4 Major Banks' 2Q Rankings Reversed... Shinhan, KB, Woori, Hana Order

Shinhan Rises to No.1, Surpassing KB
Woori Financial Without Securities Firm Also Shows Solid Performance
Hana Financial Slightly Declines YoY... "Due to Provisions and Foreign Exchange Losses"

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The performance results of the four major financial holding companies in the second quarter of this year showed mixed outcomes. Shinhan Financial Group surpassed KB Financial Group to take first place, while Woori Financial Group also overtook Hana Financial Group to rank third.

According to the financial sector on the 23rd, Shinhan Financial Group posted a net profit of 1.3204 trillion KRW (based on controlling shareholders) on a consolidated basis in the second quarter of this year. This represents a 5.48% increase compared to the same period last year, surpassing KB Financial Group to claim the top spot. Considering the significant increase in loan loss provisions in the second quarter, this is regarded as a commendable performance. Shinhan Financial Group's loan loss provisions amounted to 358.2 billion KRW in the second quarter alone, more than double that of the same period last year. For the first half of the year, the total reached 601.8 billion KRW.

The rise in market interest rates is believed to have positively impacted the solid performance of Shinhan Bank, the group's main affiliate. Shinhan Bank recorded a net profit of 820 billion KRW this year, marking a 14.77% increase compared to the same period last year. Shinhan Card, which has been focusing on business diversification, also posted a net profit of 236.8 billion KRW, up 18.9% year-on-year. However, due to the sluggish stock market, Shinhan Investment Corp.'s operating profit fell by 50.5% compared to the same period last year, amounting to 98.9 billion KRW.

KB Financial Group ranked second with a net profit of 1.3035 trillion KRW in the second quarter, slightly behind Shinhan Financial Group. However, for the first half of the year, KB Financial Group led with a total of 2.7566 trillion KRW, surpassing Shinhan Financial Group's 2.7208 trillion KRW, securing its position as the 'leading financial group.' There is also speculation that the rankings could change in the second half of the year, as KB Financial Group's loan loss provisions in the second quarter were 121 billion KRW, less than those of Shinhan Financial Group.

Woori Financial Group rose to third place, overtaking Hana Financial Group, with a net profit of 877.2 billion KRW in the second quarter. This represents a 16.56% increase compared to the same period last year, the largest growth among the four major financial holding companies. The quarter-on-quarter decline was also the smallest at 0.80%, compared to KB (-10.3%), Hana (-8.57%), and Shinhan (-5.71%). For the first half of the year, Woori Financial Group achieved its highest half-year performance with 1.7614 trillion KRW. This is attributed to asset growth centered on corporate loans and the absence of a securities affiliate, which minimized the impact of the stock market downturn among the four major financial holding companies.

Hana Financial Group posted a net profit of 825.1 billion KRW in the second quarter, a 10.04% decrease compared to the same period last year. It was the only one among the four major financial holding companies to see a decline in net profit compared to the second quarter of last year. Hana Financial Group explained that this was due to "preemptive loan loss provisions in preparation for domestic and international uncertainties and non-monetary foreign exchange losses caused by the rise in exchange rates."