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[Alpha Biz=(Chicago) Reporter Paul Lee] Major financial holding companies in Korea are expected to record record highs this year following last year, according to a market forecast.
According to financial information provider FnGuide on the 2nd, the annual net profit of the four major financial holding companies listed on the securities market (KB, Shinhan, Hana, and Woori) this year was estimated at 17.2316 trillion won.
The figure is up 4.1 percent from last year's net profit estimate of 16.551 trillion won.
Although it will be difficult to expect a sharp increase in bank interest income due to a cut in the benchmark interest rate this year, the prevailing analysis is that overall growth will continue without any significant changes in profits.
In terms of banks, which are key subsidiaries, it is expected that the balance of household and corporate loans will continue to increase even if the net interest margin (NIM) is slightly reduced.
The increase in costs due to 2 trillion won in measures to support people's livelihoods in the banking sector and additional loan-loss reserves is not expected to have a significant impact on earnings.
Securities firms forecast that KB Financial's net profit will rise 3.1% to KRW 5.1968 trillion and Shinhan Financial's net profit will rise 3.8% to KRW 4.9219 trillion, respectively.
In addition, Hana Financial Group posted net profits of KRW 3.9433 trillion and Woori Financial Group of KRW 3.1696 trillion, showing a 4.5% and 5.7% increase, respectively.
The profit contribution of non-banking subsidiaries such as securities and insurance is also considered a variable.
KB Securities said in its forecast report this year, "Financial holding companies' profits from bank subsidiaries will increase 3.4% and non-banking subsidiaries' profits will increase 15.2%."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
