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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

K bank reports first-ever quarterly profit

By Lee Kyung-min K bank is on track to improve its financial fundamentals ahead of its planned initial public offering (IPO) possibly set for 2023 at the earliest. The internet-only bank achieved its first quarterly profit in the April-June period since it was launched in 2017. In a regulatory filing Tuesday, K bank said that its net profit during the second quarter of this year reached 3.9 billion won ($3.3 million).Chief among its growth drivers was a sharp increase in the number of customers and a consequent rise in the amount of deposits, which helped the internet-only bank borrow at a lower cost. For the first six months of this year, cumulative net losses were reduced to 8.4 billion won, only a fifth of the 44.9 billion won in net losses it suffered during the same period of 2020.The number of bank customers exceeded 6.19 million during the January-June period, up over 26 times year-on-year. As of July, the number stood at 6.28 million. During the first half of this year, the bank had a total of 11.29 trillion won in deposit accounts, up by 7.54 trillion won from six month

Aug 3, 2021By Lee Kyung-min
K bank reports first-ever quarterly profit

Banks shuttering branches despite FSS warnings

A man passes by ATMs in Seoul. Korea Times fileBy Lee Kyung-min Major commercial banks plan to reduce the number of branches by at least 100 in the second half of this year, despite recommendations from the Financial Supervisory Service (FSS) against doing so.The COVID-19 pandemic has prompted more and more customers to handle most of their transactions online, prompting banks to feel increasingly reluctant to spend money on maintaining a large number of offline branches.But financial authorities appear to be against the rapid closures of a large number of bank branches.Former FSS head Yoon Suk-heun said last July that it is “not desirable to reduce the number of branches in a short period of time.”According to FSS data, the number of branches operated by Korea's top five banks ― Shinhan, KB Kookmin, NongHyup, Woori and Hana ― stood at 4,398 as of March, down 191 from a year ago. In contrast, 96 branches were shuttered from March 2019 to March 2020.After the FSS said it would set up procedural guidelines on branch closures, many lenders hurried to shut down their branches

Jul 31, 2021By Lee Kyung-min
Banks shuttering branches despite FSS warnings

Top 4 Korean banks receive favorable reviews from Fitch

Seen above are the main branch buildings of Korea's top four commercial banks. Courtesy of each company By Park Jae-hyukFitch Ratings revised its outlooks on the long-term issuer default ratings (IDRs) of Shinhan and KB Kookmin banks to “stable” from “negative,” while upgrading the long-term IDRs of Hana and Woori banks to “A” from “A-,” after all of the holding companies of the lenders announced record-high half-yearly earnings this month.Long-term IDR assesses a borrower's ability to repay its debts over an extended period of time.The global rating agency affirmed the long-term IDRs of Shinhan and KB Kookmin at “A,” upgrading their short-term ratings to the top grade of “F1+” from the second-best grade of “F1.”Its revision of its outlooks on the two commercial banks was attributed to the Korean economy's solid overall recovery from the impact of the COVID-19 pandemic. Fitch said that its projections also reflect a stable outlook on Korea's sovereign rating, which

Jul 30, 2021By Park Jae-hyuk
Top 4 Korean banks receive favorable reviews from Fitch

Market slowdown paves way for Woori, JB to buy securities firms

gettyimagesbankFinancial groups desperate to diversify income sourcesBy Park Jae-hyukWoori and JB financial groups seem to have become unexpected beneficiaries of the recent slowdown of the domestic stock market, because the situation can deteriorate the profitability of securities firms here, eventually prompting some of them to be put up for sale.The two financial groups have sought to acquire brokerage houses over the past few years to maintain competitive edges over their rivals that have enjoyed handsome profits from securities subsidiaries.Such intentions were shown again during their conference calls on their second-quarter earnings.“Regarding our M&A strategies, we are in the most urgent need of a securities firm which can create the greatest synergy,” Woori Chief Financial Officer Lee Sung-wook said, July 21. “Our next targets will be the sectors that can minimize damage to our capital adequacy ratio.”JB Chairman Kim Ki-hong also said Tuesday that his company will continue to look for a securities firm and an asset management company to expand its

Jul 29, 2021By Park Jae-hyuk
Market slowdown paves way for Woori, JB to buy securities firms

Moody's upgrades ratings outlook on Jeonbuk, Gwangju banks

Main offices of Gwangju Bank, left and Jeonbuk Bank / Korea Times fileBy Kim Yoo-chulMoody's Investors Service has left unchanged its A3 credit ratings on JB Financial Group's two banking affiliates ― Jeonbuk Bank and Gwangju Bank ― and revised up its outlook for the banks to “positive” from “stable.” In a statement, Thursday, the U.S.-based credit ratings agency said that its revised outlook on the two regional banks was a reflection of the banks' improved performances, a plus factor in terms of asset quality and profitability.The ratings agency also added the two banks were maintaining quite a stable capital adequacy ratio thanks to the pursuits of profitability-driven corporate growth strategies. Plus, the possibility that the banks will become recipients of government support was viewed as another reason for its revision of the banks to “positive.”Regarding the release, JB Financial Group said the two banks will continue to optimize their asset portfolios and capital ratios with the strengthened credit outlook. On a related note, Moody's had al

Jul 29, 2021By Kim Yoo-chul
Moody's upgrades ratings outlook on Jeonbuk, Gwangju banks

Man behind Korean rugby team, judoka from Japan

OK Financial Group Chairman Choi Yoon / Courtesy of OK Financial GroupBy Park Jae-hyukOK Financial Group Chairman Choi Yoon has drawn attention in the 2020 Tokyo Summer Olympics for his support of Korea's rugby players ― who made their Olympic debut at the games ― as well as of bronze medalist judoka An Chang-rim, who was born in Japan as a third-generation ethnic Korean just like him.The Nagoya-born chairman, who has led the Korea Rugby Union since January, participated in the global event as one of the vice captains of the Korean Olympic delegation.A month before the opening ceremony, his company decided to pay each member of the Korean men's rugby sevens team 50 million won ($43,600) if they win gold, 40 million won if they win silver and 30 million won if they win bronze.In case they fail to get a medal, the chairman promised to pay each player 22 million won if they advance to the quarterfinal and 18 million won if they achieve the first victory. Among the athletes who qualified for the Olympics, those who were selected as the final squad received 15 million won each, while thos

Jul 29, 2021By Park Jae-hyuk
Man behind Korean rugby team, judoka from Japan

KakaoBank's IPO craze contradicts shaky corporate valuation

Retail investors talk with employees at a branch of Korea Investment & Securities located in Yeouido, Seoul, Tuesday, the last day of a two-day subscription period for KakaoBank's IPO stock allotment for retail investors. YonhapKakaoBank's corporate valuation at the center of controversyBy Anna J. ParkFor the first-time ever, a local securities company issued a “sell” recommendation for shares being newly offered through an initial public offering. Despite generating a huge buzz among investors, KakaoBank set the humiliating record, becoming the country's first IPO stock to receive the unprecedented “sell” opinion due to its offering price being overpriced, according to the securities firm.BNK Securities published the research report with the recommendation Monday, the first day of a two-day subscription period for stock allotments to retail investors. Other brokerages, including Yuanta and Meritz, also pointed out that the corporate valuation was excessive ― eBest Investment & Securities stated that the valuation from the offering price reflected a si

Jul 29, 2021By Anna J. Park
KakaoBank's IPO craze contradicts shaky corporate valuation

Promoting digitization

The avatars of NongHyup Financial Group Chairman Son Byung-hwan, center with thumb raised, and the firm's young employees pose for a photo on Zepeto, a “metaverse” platform operated by Naver Z, after a meeting held to foster digitalization at the group's headquarters in Seoul, Wednesday. Yonhap

Jul 28, 2021By Lee Kyung-min
Promoting digitization

Shinhan forced to delay quarterly dividend policy

Shinhan Financial Group's headquarters in Seoul / Courtesy of Shinhan Financial GroupDelta variant hinders shareholders from enjoying Q3 dividendsBy Park Jae-hyukShinhan Financial Group admitted that it may not be able to pay cash dividends for the third quarter of this year, citing the need to brace for the spread of Delta variant infections in the fourth wave of the COVID-19 pandemic in Korea.The banking group indicated the adjustment after earlier reports said financial authorities have put the brakes on its ambitious plan to pay quarterly dividends.The group, however, remained cautious about its decision being interpreted as a consequence of pressure from the financial regulators. The banking group emphasized that it has continued to communicate with the authorities regarding its dividend policy, ever since it started considering paying quarterly dividends.“Our board of directors will make a decision in August on whether to pay second-quarter dividends, but we will consider the COVID-19 situation when making a decision on our third-quarter dividends,” a Shinhan repres

Jul 28, 2021By Park Jae-hyuk
Shinhan forced to delay quarterly dividend policy

KB outperforms Shinhan in H1 earnings

Major banking groups set to pay interim dividendsBy Park Jae-hyukKB Financial Group narrowly outpaced Shinhan Financial Group in its first-half earnings, maintaining its leading status, amid the fierce competition among the nation's major banking groups, all of which posted record-high net incomes during the first six months of 2021.Based on their earnings growth, domestic financial groups are ready to pay half-yearly or quarterly dividends to their shareholders, who had to receive smaller-than-expected dividends earlier this year, due to the decision of the financial authorities that virtually enforced a 20-percent dividend cap.Shinhan announced Tuesday that its first-half net income rose 35.4 percent year-on-year to 2.44 trillion won ($2.1 billion) and that its second-quarter net profit soared 43.4 percent year-on-year to 1.25 trillion won. The results enabled the group to post record half-yearly and quarterly earnings since it established its holding company structure in 2001.Its first-half net profit was

Jul 27, 2021By Park Jae-hyuk
KB outperforms Shinhan in H1 earnings
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