Overseas Performance of 4 Major Banks... Shinhan's 'Vietnam-Japan', Kookmin's 'Cambodia' as Key Contributors

Major overseas subsidiaries of leading domestic banks continue to show improved performance. In particular, subsidiaries in Japan, Vietnam, Cambodia, and Indonesia, where each bank is focusing its capabilities, are leading the expansion of profits.

According to the financial sector on the 22nd, the combined net income of major overseas subsidiaries of the four major domestic banks (KB Kookmin, Shinhan, Hana, and Woori) from the first to the third quarter of this year was 690.2 billion KRW. This represents an increase of about 9.6% compared to the previous year (629.8 billion KRW).

Looking at the overall performance, Shinhan Bank showed a clear advantage. The combined net income of Shinhan Bank's 10 overseas subsidiaries from the first to the third quarter of this year was 350.3 billion KRW, up 13.3% from 309.1 billion KRW in the same period last year. This figure surpasses the combined net income of Woori Bank (184.3 billion KRW), Hana Bank (106.4 billion KRW), and KB Kookmin Bank (49.3 billion KRW).

In particular, Shinhan and KB are leading this trend of improved performance through their overseas subsidiaries where they are concentrating their efforts. For Shinhan Bank, except for the subsidiaries in the United States and Indonesia which turned to losses, most subsidiaries showed improved performance compared to the previous year, with notable growth in the subsidiaries in Vietnam, Japan, and Kazakhstan.

Shinhan Vietnam Bank posted a net income of 184.7 billion KRW, an increase of 27.64% compared to 144.7 billion KRW in the same period last year. Japan's SBJ Bank recorded a net income of 92.2 billion KRW, up 8.6%. The Kazakhstan subsidiary posted a net income of 44.7 billion KRW, increasing eightfold.

For KB Kookmin Bank, Cambodia's KB Prasac Bank is playing a key role. While KB Bukopin Bank, acquired in Indonesia, posted a loss of 95.8 billion KRW in the third quarter, KB Prasac Bank recorded a net income of 117.3 billion KRW, which, although significantly decreased compared to the previous year, remained profitable. The Chinese subsidiary also turned a profit, offsetting the losses.

Woori Bank was the only one among the four major banks to see a decline in performance. This was due to net income decreases of 3.4 billion KRW and 23.5 billion KRW in its Russian and Cambodian subsidiaries, down 78.3% and 46.7% respectively, along with an expanded deficit in its European subsidiary. Nevertheless, net income in key locations such as Indonesia (47.4 billion KRW) and Vietnam (43.1 billion KRW) remained steady or showed slight growth, partially compensating for the decline. Additionally, net income from subsidiaries in the United States, Hong Kong, and China also showed an upward trend.

Hana Bank has been actively conducting overseas business through the former Korea Exchange Bank network. The net income of PT Bank KEB Hana in Indonesia, a strategic location, was about 28.2 billion KRW in the third quarter of this year, down 32% from 41.6 billion KRW in the same period last year. However, net income in other countries such as China, Canada, and Germany showed strong growth. Notably, Hana Bank (China) Limited, which posted a loss of 1.3 billion KRW in the third quarter last year, recorded a net income of 19.3 billion KRW this year. KEB Hana Bank in Canada (about 13.7 billion KRW), KEB Hana Bank in Germany (about 11.0 billion KRW), and KEB Hana Bank in Russia (about 11.0 billion KRW) also showed growth.