McKinsey urges Korean banks to enhance profitability
McKinsey & Company partner Kim Su-ho / Korea Times fileBy Park Jae-hyukMcKinsey & Company has displayed a skeptical outlook about the future of the nation's major commercial banks, despite the solid earnings they have enjoyed over the past few years, according to its Korean partner, Monday.Kim Su-ho, a Seoul-based McKinsey partner specializing in the banking industry, told The Korea Times that Korean banks' competitiveness cannot be ensured, if they stick to their current business model.“Korean financial services firms have posted trillions of won in earnings every quarter,” he said. “However, their returns on equity (ROE) have remained at about 8 percent to 9 percent, falling short of the 10 percent ROE that global investors expect.”In the Global Banking Annual Review published in October, the consulting firm said a third of 595 banks worldwide, including those in Korea, will not be able to survive the next downturn unless they revamp their business models.Korea's lucrative top four commercial banks ― Shinhan, KB, KEB Hana and Woori ― have been consid
Dec 9, 2019By Park Jae-hyuk