Big 4, ‘earnings surprise’ in the first quarter
KB · Shinhan · Woori, the largest record ever
Net profit increased by 8%
1st place is KB… Bank interest group tow
In the first quarter of this year, the four major financial holding companies recorded an ‘earnings surprise’ as interest income surged due to interest rate hikes. KB, Shinhan, and Woori Financial Group recorded double-digit growth rates in interest income, respectively, and posted record-breaking quarterly results. Hana Financial Group’s net profit also increased by 8.0%.
KB Financial Group announced on the 22nd that its net profit for the first quarter of this year was 1.45 trillion won, up 14.4% from the same period last year. This is the largest quarterly performance since the founding of KB Financial Group.
The interest income of the group as a whole (2.648 trillion won) increased by 18.6% compared to the same period of the previous year due to the effect of the rise in interest rates. KB Kookmin Bank’s interest income (2.13 trillion won) also increased by 18.3%. The group’s net interest margin (1.91%), an indicator of profitability, rose 0.06 percentage points from the previous quarter, and the bank’s net interest margin (1.66%) rose by 0.05 percentage points, respectively. Net interest margin is calculated by dividing the remainder following subtracting procurement costs from the profit earned by operating assets by a financial institution by the total amount of assets under management.
KB Financial Group explained, “In the first quarter, the group’s performance related to securities and derivatives was somewhat sluggish due to a rise in bond interest rates and a fall in the stock index. did.
Shinhan Financial Group also announced that its net profit for the first quarter of this year (1.4 trillion won) was the highest ever recorded for the quarter. This is an increase of 17.5% compared to the same period last year.
Looking at the details, group interest income (2,487.6 billion won) increased by 17.4% compared to the same period of the previous year, and Shinhan Bank’s interest income (1.852.3 trillion won) increased by 19.8%. Looking at the net interest margin, both the group (1.89%) and banks (1.51%) rose by 0.06 percentage points from the previous quarter. Shinhan Financial explained that the margin has increased due to a significant increase in household and corporate loans last year and the recent increase in deposits with low procurement costs, such as frequent deposits and withdrawals.
Quarterly dividend regularization, treasury stock cancellation, etc.
Each company proposes measures to enhance shareholder value
In the first quarter of this year, Woori Financial also posted a net profit of 884.2 billion won, up 32.5 percent from the same period last year, the best performance since its foundation.
Group interest income (1.988 trillion won) rose 22.7% year-on-year, and Woori Bank interest income (1.685 trillion won) rose 22.1%, respectively. Woori Financial Group said, “Assets grew centered on corporate loans and interest income increased due to the increase in the balance of low-cost deposits. did,” he said.
Hana Financial Group posted a net profit of 902.2 billion won in the first quarter of this year. Although it did not record the best quarter ever, like other financial holding companies, it grew by 8.0% compared to the same period last year. Group interest income (2.203 trillion won) increased 17.3% year-on-year, and Hana Bank’s interest income (1.555 trillion won) increased by 20.7%, respectively.
“Despite large one-time expenses incurred due to preemptive loan loss provisions and special retirement from banks and credit card companies, solid growth in core earnings and diversification of profit portfolio led to earnings growth,” said Hana Financial Group.
Financial holding companies announced plans to enhance shareholder value along with their earnings announcements on the same day. KB Financial Group has decided to make quarterly dividends regular from this year and set a dividend of 500 won per share in the first quarter. Hana Financial Group decided to cancel treasury stock worth 150 billion won for the first time since the establishment of a holding company in 2005.
