Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Banking group CEOs capitalize on record earnings to resume global marketing campaigns
U.S. investment bank Morgan Stanley, pictured in this 2008 file photo, invited CEOs of Korea's four major banking groups to an investor relations meeting last week. Korea Times file
By Yi Whan-woo
By Yi Whan-woo
The chiefs of the country's four largest banking groups are capitalizing on record earnings to resume global marketing campaigns, which were mostly suspended after the start of the pandemic in 2020, aiming at highlighting how lucrative their businesses are.
In their latest move, they have been participating in investor relations meetings hosted separately by U.S. investment banking companies Morgan Stanley and J.P. Morgan since last week.
According to the financial groups, Friday, the closed-door meetings have been held online, with the CEOs of the three financial groups ― Yoon Jong-gyu of KB, Cho Yong-byoung of Shinhan and Son Tae-seung of Woori ― participating.
Hana's Chief Financial Officer (CFO) Lee Hoo-seung represented the company on behalf of its outgoing Chairman and CEO Kim Jung-tai whose term will end in mid-March.
The CEOs of KB, Shinhan and Woori and Hana's incoming CEO Ham Young-joo are also anticipated to travel abroad later this year and meet investors after the protracted pandemic eases, according to sources familiar with the matter.
The meeting hosted by Morgan Stanley took place last week, with CEOs explaining to heavyweight investors that their respective company shares are in an upward march over record profits plus a hike in key interest rates. No further details were provided
KB and Shinhan both saw their net incomes for 2021 surpassing the symbolic 4 trillion won ($3.34 billion) mark, while that of Hana exceeded 3 trillion won for the first time.
The smallest of the four, Woori, reported a record net income of 2.59 trillion won and is enjoying the sharpest rise in its stock price among the four following its successful privatization.
“The meeting was reportedly held in a favorable atmosphere although they were not able to talk with investors in person,” an industry source said.
The source added the meeting is held annually and that investors were more interested in banking groups than before amid speculation that their profitability will keep improving in 2022.
The J.P. Morgan-hosted meeting began this week and will run through next week, with schedule and other details not being disclosed to outsiders.
The sources said the banking group CEOs are focused on highlighting their 2022 earnings, medim- to long-term growth strategies and shareholder returns, among other management issues.
Regarding possible overseas trips, all four banking groups said their CEOs are enthusiastic about the idea but nothing has been decided because of the pandemic and other variables.
A Hana press officer said, “Going abroad is critical because the banking groups have been underestimated in valuation and they have more room to grow.”
A Woori press officer said Singapore may the first travel destination for CEO Son considering its location as an Asian financial hub. The United Kingdom and the United States are the strongest candidates for investments from the West.