"How Much Is the Bank's Money Party"... Bonuses and Severance Pay Fully Disclosed on the 31st

Domestic Banks Achieve Record-Breaking Profits Consecutively
18 Banks Submit 'Bank Management Status Disclosure Report' Based on Last Year
Released by the Korea Federation of Banks on the 31st

As domestic banks continue to post record-breaking profits day after day, detailed information on employee performance bonuses, voluntary retirement payments, and dividend statuses of major commercial banks, regional banks, and internet banks will be disclosed on the 31st. This also reveals what banks do, how they generate profits, and how the generated profits are utilized.

According to the financial industry, the Korea Federation of Banks will release the "Bank Management Status Disclosure Report" on the 31st. A representative from a commercial bank stated, "All 18 member banks of the Federation, excluding the Korea Development Bank and the Export-Import Bank of Korea, will submit reports." The content to be prepared this time is based on last year's management status. Reports on management status after this year are to be prepared and announced by the end of April next year.

The report will include basic bank overviews such as total assets, branches, and number of employees, as well as details on assets and liabilities, income and expenses, and the utilization of net income. In particular, the income and expense section must specify interest income including the interest rate spread between loans and deposits, fee income, salaries including performance bonuses and voluntary retirement payments, social contribution achievements, and provisions. The net income section will include capital reserves and dividend statuses.

This follows the contents announced by the task force (TF) on "Improvement Measures for Banking Industry Management and Business Practices," led by the Financial Services Commission and the Financial Supervisory Service in July.

At that time, the TF expanded the minimum proportion of deferred payment of financial sector executives' performance bonuses from the existing 40% to 50% to prevent a "performance bonus feast" focused on short-term results. The deferral period was also extended from the original 3 years to 5 years. Additionally, individual registered executives' compensation payment plans are to be explained at shareholders' meetings, and disclosure of individual executives' compensation payments will be strengthened.

Banks, which had been embarrassed following President Yoon Seok-yeol's "bank money feast" remarks earlier this year, are tense ahead of tomorrow's announcement. Major commercial banks recorded strong performances in the third quarter of this year as well. Except for Woori Bank, KB Kookmin Bank, Shinhan Bank, and Hana Bank increased their net profits and continued their growth trend. In particular, banks achieved strong results by earning substantial interest income centered on corporate loans amid financial authorities' household loan suppression policies.

The cumulative net income of KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank for the third quarter reached 10.5107 trillion won. This represents a 7.7% growth compared to the same period last year (9.7604 trillion won). Looking at each bank, KB Kookmin Bank earned 2.8554 trillion won, a 12% increase year-on-year, Hana Bank recorded 2.7664 trillion won, growing 23.3%, and Shinhan Bank posted 2.5991 trillion won, a 0.3% increase. Only Woori Bank saw a decrease in cumulative net income to 2.2898 trillion won, down 3.5% compared to the previous year.