Household Loan Interest Rate Spread Among Top 5 Banks: NongHyup, Woori, KB in Order

Overall 1st and 2nd Are Toss Bank and Jeonbuk Bank
Including Corporate Loans, Nonghyup and Woori Tie for 1st Place

Last month, among banks excluding those providing microfinance, Toss Bank was found to have the largest household loan interest rate spread (loan interest rate minus deposit interest rate). Among the top five banks, NH Nonghyup Bank had the largest spread.

According to the March statistics from the Bankers Association consumer portal 'Interest Rate Spread Comparison,' excluding policy microfinance products (햇살론 Bank, 햇살론15, Safety Net Loans), NH Nonghyup Bank's household loan interest rate spread (household loan interest rate minus savings deposit interest rate) was recorded at 1.34 percentage points. A larger interest rate spread means a greater margin (profit) between loan and deposit interest rates.

Following Nonghyup Bank, Woori Bank (1.22 percentage points), KB Kookmin Bank (1.13 percentage points), Hana Bank (1.11 percentage points), and Shinhan Bank (1.01 percentage points) had the next largest household loan interest rate spreads.

A banner for mortgage loans displayed at a commercial bank in downtown Seoul. [Image source=Yonhap News]

Among 19 banks including internet banks, regional banks, and foreign banks, Toss Bank (5.41 percentage points) and Jeonbuk Bank (4.82 percentage points) ranked first and second. Among internet banks, K Bank and Kakao Bank had household loan interest rate spreads of 1.76 percentage points and 1.21 percentage points, respectively.

Including corporate loans, the overall bank interest rate spread (loan interest rate minus savings deposit interest rate) was highest at 1.68 percentage points for both Nonghyup Bank and Woori Bank among the top five banks. KB Kookmin Bank (1.59 percentage points), Hana Bank (1.57 percentage points), and Shinhan Bank (1.42 percentage points) followed.