Shinhan, Woori shine in overseas business

The Korea Times

The Korea Times

Finance

Tue, September 26, 2023 | 08:38

Companies

Shinhan, Woori shine in overseas business

Posted : 2023-03-21 15:40

Updated : 2023-03-22 11:01

Shinhan Bank's logo is seen outside its headquarters in central Seoul. Korea Times file

By Yi Whan-woo

Shinhan Bank and Woori Bank saw an increase in the net profits of their respective offshore businesses last year, driven by strong performances in Southeast Asia, according to data, Tuesday.

The Financial Supervisory Service's (FSS) electronic discourse system showed Shinhan Bank's 10 corporate bodies abroad reported a combined net profit of 426.9 billion won ($326.2 million) in 2022, up 66.24 percent from a year earlier.

The increase in net profits was mainly attributed to a surge in Shinhan Bank Vietnam's year-on-year earnings, which climbed 53.1 percent to 197.7 billion won in the 2021-22 period.

"Shinhan Bank Vietnam focused on localization, especially in retail banking, as well as enhancing contactless banking for remote areas in Vietnam," the Seoul-headquartered lender said. "We're glad that such customized banking services are paying off in Vietnam."

Woori Bank's logo is seen on a window at its headquarters in central Seoul. Korea Times file

Woori Bank logged 288.2 billion won in net profit from its corporate bodies outside Korea, thanks to the strong performances of Wooribank Hanoi in Vietnam, Bank Woori Saudara in Indonesia and Woori Bank Cambodia in Cambodia.

The net profit of Wooribank Hanoi more than doubled ― up from 27.3 billion won in 2021 to 63.2 billion won in 2022 ― while that of Bank Woori Saudara increased by 20 billion won to 68.4 billion won during the cited period.

Woori Bank Cambodia in Cambodia reported 59.8 billion won in its 2022 net profit, up 22.7 percent year-on-year.

The 2022 performances of the three companies in Southeast Asia come as each marked more than a 30 percent increase in their net profit on average for the past five years.

"We hope to expand investment into the three companies, and hopefully increase their net profit by more than 50 percent, respectively, in coming years," Woori Bank said.

While ASEAN countries have emerged as a key market for Korean lenders, KB Kookmin Bank struggled in the region. Accordingly, its net profits from corporate bodies outside Korea declined.

Acquired by KB Kookmin Bank in 2018, KB Bukopin in Indonesia has been posting net losses since then. Those losses more than tripled to 802.1 billion won between 2021 and 2022.

The Korean bank has made multiple attempts, including four paid-in capital increases, to normalize loss-making KB Bukopin in Indonesia. KB Kookmin Bank's global corporate bodies as a whole suffered a net loss that increased by more than 10-fold to 558 billion won in the 2021-22 period.

Hana Bank's corporate bodies overseas shifted to the black, with the exception of Hana Bank (China) Co., which reported a net loss of 97.1 billion won in 2022.

yistory@koreatimes.co.kr