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(Photo = Yonhap news) |
[Alpha Biz= Reporter Paul Lee] The net profit of the top five financial holding companies fell 16.7 percent in the first quarter of this year from a year earlier due to compensation for losses to the Hong Kong H Index's Stock Linked Securities (ELS).
According to the financial sector on the 28th, the top five financial holding companies (KB, Shinhan, Hana and Woori NH) posted net profit of 4.88 trillion won in the first quarter of this year. Compared to the same period last year (5.8597 trillion won), the figure decreased by 16.7%.
In the first quarter of this year, the leading holding company pushed KB Financial out and Shinhan Financial took over. Shinhan Financial Group posted a net profit of 1.3215 trillion won in the first quarter. KB Financial Group (1.491 trillion won), Hana Financial Group (1.34 trillion won), Woori Financial Group (824.5 billion won) and NH Nonghyup Financial Group (651.2 billion won) followed.
The factor that determined the performance of the financial holding company in the first quarter of this year is the H index ELS loss autonomous compensation. The provisions accumulated by the five major banks in the first quarter (about 1.665 trillion won) were set as a one-off cost, leading to a drop in performance. By bank, KB Kookmin Bank, which sold the largest number of H index ELSs, was the largest with KRW 862 billion, followed by NH Nonghyup Bank (KRW 341.6 billion), Shinhan Bank (KRW 274 billion) and Hana Bank (KRW 179.9 billion). Woori Bank, which has the lowest sales, spent only 7.5 billion won.
All five major financial holding companies saw their net profits fall year-on-year, but their overall operating profit increased as high interest rates continued. Their operating profit for the first quarter was 8.6163 trillion won, up 5.5% from 8.1645 trillion won a year ago. By financial holding company, KB Financial's operating profit in the first quarter was 2.3554 trillion won, up 10.1% from a year earlier. Shinhan Financial Group (2.682 trillion won) and Hana Financial Group (1.5631 trillion won) increased by 17.8% and 2.9%, respectively, during the same period. Woori Finance (down 8.2%) and NH Nonghyup Finance (down 1.1%) were relatively sluggish.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
