Financial Holding Companies Announce Q1 Earnings Starting Today... KB vs Shinhan 'Leading Bank' Neck and Neck

Q1 Earnings: Woori Financial Group Kicks Off Announcements on the 21st, Followed by Financial Holding Companies
KB and Shinhan Compete Closely Again Over Earnings

[Asia Economy Reporter Kiho Sung] Starting with Woori Financial Group, the five major financial holding companies will announce their first-quarter earnings this year. Last year, KB Financial Group claimed the leading financial title, and fierce competition with Shinhan Financial Group is expected.

According to the financial sector on the 21st, the five major financial companies will simultaneously begin announcing their first-quarter earnings, starting with Woori Financial Group. On the 22nd, KB Financial Group will report, followed by Shinhan Financial Group and Hana Financial Group on the 23rd, and NongHyup Financial Group on the 30th.

In last year's earnings announcement, Shinhan Financial Group posted a net income of 3.4146 trillion won, a 0.3% increase from 2019 (3.4035 trillion won). Although the increase was slight, it was a record high performance.

However, in the battle for the leading bank title against KB Financial Group, the result was disappointing. KB Financial Group recorded a net income of 3.4552 trillion won last year, 51.7 billion won more than Shinhan Financial Group. Shinhan Financial Group held the leading bank position for two consecutive years in 2018 and 2019 but fell to second place last year.

According to the financial industry and FnGuide, the combined net income of the four major financial holding companies?KB, Shinhan, Hana, and Woori?is expected to be 3.2541 trillion won in the first quarter. This figure represents a 14.69% increase compared to the 2.8371 trillion won net income in the first quarter of last year.

The reason for the expected increase in net income is the base effect from the poor performance in the first quarter of last year and the recent improvement in banks' profitability. In particular, banks' loan interest rates have risen due to the reduction of preferential rates and regulatory measures by authorities, while deposit interest rates have been steadily declining.