[Bank Management Report] ① Five Major Commercial Banks Earned 39 Trillion Won in Interest Last Year

Hana tops net profit rankings
KB Kookmin leads in interest income
Base rate cuts push loan rates down to 4% range
Net interest margin declines across the board
Toss Bank posts first annual profit since launch

Last year, the combined net profit of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) totaled 13.7898 trillion won. Although internet banks had smaller net profits, their growth rates surged compared to the previous year. In addition, the net interest margin (NIM) of all banks declined due to the impact of base rate cuts.

According to the "Bank Management Status Disclosure Report" for 18 domestic banks released by the Korea Federation of Banks on the 30th, the total net profit of the five major commercial banks last year was 13.7898 trillion won. Total interest income amounted to 38.9272 trillion won. During the same period, the combined net profit of the three internet banks was 613.9 billion won. Toss Bank turned a profit this year, and all three internet banks have been profitable since their establishment.

Hana ranks first in net profit... Toss posts first annual profit since launch

Among the five major commercial banks, Hana Bank ranked first in net profit last year. It was followed by Kookmin Bank, Shinhan Bank, Woori Bank, and Nonghyup Bank in that order. While the top three banks?Kookmin, Shinhan, and others?each posted net profits in the 3 trillion won range, the rankings were determined by narrow margins. In terms of net profit growth rate alone, Shinhan Bank showed an overwhelming rate of increase.

Hana Bank's net profit was 3.1273 trillion won, down 5.0% from the previous year's 3.2922 trillion won. Despite being the only major commercial bank to see a decrease in net profit, it still ranked first.

Kookmin Bank posted a net profit of 3.0736 trillion won, up 2.41% from 3.0012 trillion won the previous year. Shinhan Bank saw a sharp increase of 16.09%, with net profit rising to 3.0324 trillion won from 2.6121 trillion won the previous year. Woori Bank's net profit was 2.7946 trillion won, up 6.9% from 2.2771 trillion won. NH Nonghyup Bank recorded a net profit of 1.7619 trillion won, down 0.9% from 1.7783 trillion won the previous year.

For internet banks, while the absolute scale of net profit remains small, the growth rate was remarkable. Last year, KakaoBank's net profit was 440.1 billion won, up 24.81% from 354.9 billion won the previous year.

K Bank posted a net profit of 128.1 billion won, a dramatic increase of 900.7% from 12.8 billion won the previous year. Toss Bank recorded its first annual profit since its launch, posting a net profit of 45.7 billion won last year, turning around from a net loss of 17.5 billion won the previous year.

KB Kookmin tops interest income... Toss leads in growth rate

Last year, the five major commercial banks recorded a combined interest income of 38.9272 trillion won. Kookmin Bank led with interest income of 9.8224 trillion won, up 3.80% from 9.463 trillion won the previous year. Shinhan Bank posted 7.5871 trillion won, up 4.1% from 7.285 trillion won the previous year.

Both banks saw increases in interest income due to solid growth in loan assets. Kookmin Bank explained, "Interest income increased due to a rise in interest-earning assets driven by increased loan demand and proactive efforts to manage funding costs."

Nonghyup Bank recorded 7.562 trillion won, down 2.1% from 7.6878 trillion won the previous year, while Hana Bank posted 7.2139 trillion won, down 2.0% from 7.3585 trillion won. Both banks were unable to offset the impact of falling market interest rates.

Woori Bank posted 6.7418 trillion won, up 0.8% from 6.6885 trillion won the previous year. Woori Bank explained, "Interest income increased as corporate loans, especially to small and medium-sized enterprises, grew."

Among internet banks, KakaoBank's interest income last year was 1.3413 trillion won, up 17.9% from 1.1367 trillion won the previous year. KakaoBank explained, "Interest income increased by 204.6 billion won from the previous year as a result of asset growth driven by increased loan demand." Toss Bank posted 764.1 billion won, up 37.7% from 554.8 billion won the previous year. K Bank recorded 481.5 billion won, up 6.9% from 450.4 billion won the previous year.

Five major banks see loan rates fall with rate cuts... NIM declines across the board

Lee Changyong, Governor of the Bank of Korea, is presiding over the Monetary Policy Committee meeting held at the Bank of Korea in Jung-gu, Seoul, on the 29th, tapping the gavel. 2025.05.29 Photo by Joint Press Corps

Loan interest rates at commercial banks all fell compared to the previous year. The Bank of Korea cut the base rate from 3.50% (January 2023) to 3.25% (October 2024), and then to 3.00% (November), leading to a drop in market rates applied to loan interest rates. Accordingly, NIM also declined.

As of last year, the average interest rate on new won-denominated loans at KB Kookmin Bank was 4.52%, down 0.47 percentage points from the previous year. The average interest rate on new household loans was 4.28%, while the average for new corporate loans was 4.67%.

Hana Bank's average interest rate on new won-denominated loans was 4.76%, down 0.41 percentage points from the previous year. The average for new household loans was 4.22%, and for new corporate loans, it was 5.01%. Hana Bank was the only major commercial bank where the average interest rate on new corporate loans exceeded 5%.

Shinhan Bank's average interest rate on new won-denominated loans was 4.66%, down 0.41 percentage points from the previous year. The average for new household loans was 4.07%, while the average for new corporate loans was 4.86%.

Woori Bank's average interest rate on new won-denominated loans was 4.64%, down 0.38 percentage points. The average for new household loans was 4.10%, and for new corporate loans, it was 4.86%.

Nonghyup Bank's average interest rate on new won-denominated loans was 4.61%, down 0.39 percentage points. The average for new household loans was 4.29%, and for new corporate loans, it was 4.82%.

For internet banks, the average interest rates on new won-denominated loans were 4.92% at KakaoBank, 4.39% at K Bank, and 6.12% at Toss Bank. The average interest rates on new household loans were 4.88% at KakaoBank, 4.29% at K Bank, and 6.13% at Toss Bank. The average interest rates on new corporate loans were 5.52% at KakaoBank, 5.38% at K Bank, and 5.99% at Toss Bank. Toss Bank appears to have contributed to its turnaround by aggressively expanding lending.

Net interest margin declined at all major banks last year due to cuts in the base rate and market rates. Nonghyup Bank's NIM was 1.88%, down 0.08 percentage points from the previous year. This was followed by Kookmin Bank at 1.78% (down 0.05 percentage points), Shinhan Bank at 1.58% (down 0.04 percentage points), Hana Bank at 1.47% (down 0.12 percentage points), and Woori Bank at 1.44% (down 0.12 percentage points).

Among internet banks, KakaoBank's NIM was 2.16% (down 0.22 percentage points), K Bank's was 1.91% (down 0.44 percentage points), and Toss Bank's was 2.53% (up 0.35 percentage points). Toss Bank was the only bank among the five major banks and internet banks to see an increase in NIM.