Major local financial conglomerates and industrial banks are anticipated to report a net profit exceeding 8.3 trillion South Korean won during the second quarter of this year. Total net earnings for the first six months of the year are forecasted to go beyond 16 trillion South Korean won, representing the best half-year result ever recorded.
As reported by financial information provider FnGuide on the 2nd, the total estimated net profit for nine financial conglomerates and industrial banks during the second quarter of this year amounted to 8.3307 trillion South Korean won. This marks an increase of 2.7% compared to the same period in the previous year (8.1091 trillion South Korean won). The overall net profit for the first six months of the year is expected to be 16.6639 trillion South Korean won, reflecting a 7.4% growth over the corresponding period last year. This signifies the best half-year result since FnGuide started collecting such data in 2019.
The enhancement in performance is driven by the four leading financial conglomerates. Their total net income during the second quarter is anticipated to amount to 5.5661 trillion South Korean won, representing an increase of 2.1% compared to the previous year’s corresponding period. Additionally, the overall net profit for the first six months of the year is forecasted to grow by 5.2%, reaching 11.0018 trillion South Korean won, marking a new half-yearly high.
The parent company reports that KB Financial Group's net income for the second quarter is projected to decline by 0.3% to 1.7422 trillion South Korean won, as opposed to the previous year's figure. Shinhan Financial Group is anticipated to experience a 2.5% growth reaching 1.6162 trillion South Korean won, while Hana Financial Group is predicted to have an increase of 5.5%, totaling 1.2496 trillion South Korean won. Additionally, Woori Financial Group is expected to witness a 2% boost, amounting to 958.1 billion South Korean won.
The robust performance of financial holding companies stems from enhancements in net interest margin (NIM), driven by higher market interest rates and expanded loan activities. The profitability of brokerage and investment banking (IB) segments within security firms has also risen with greater activity in stock market transactions.