Shinhan Financial reports record high 2021 earnings on higher interest income, strong non-banking biz

The headquarters of Shinhan Financial Group / Courtesy of Shinhan Financial Group

Shinhan Financial Group reported record high annual earnings for 2021, Wednesday, on increased interest income and strong performances of its non-banking businesses.

Net income came to 4.02 trillion won ($3.4 billion), up 17.7 percent from a previous record high annual net profit of 3.41 trillion won tallied in 2020, according to data provided by the company.

The strong earnings results are attributed to increased interest income and robust performances in the non-banking sector, including card and securities areas.

The company earned 9.05 trillion won in net interest income last year, up 11 percent from a year earlier.

The increased interest-linked earnings came as the Bank of Korea raised its key policy rate twice last year, which led to a rise in lending rates of local banks and an increase in their profitability.

Shinhan Bank and Shinhan Card, its major affiliates, also saw their 2021 earnings jump 20 percent and 11.3 percent year-on-year to 2.49 trillion won and 675 billion won, respectively.

In the fourth quarter of last year, however, Shinhan Financial reported that its net profit inched down 1 percent to 459.8 billion won. (Yonhap)