Banks outdone by insurers in net profit

South Korean banks were most likely outdone by local insurers in terms of net profit last year for the first time in the country's financial history, industry data indicated Monday, with market watchers placing the blame on the lenders for the reversal.Eighteen local lenders, including No. 1 commercial bank Shinhan Bank and state-run Korea Development Bank, posted a combined 6.2 trillion won ($5.7 billion) in net income in 2014, according to the data.Net profit of 56 life and non-life insurers c

Feb. 9, 2015

Seoul shares likely to move in tight range this week

South Korean stocks are expected to continue range-bound trading this week following last week’s flat market, as lack of momentum will persist with jitters over the Greek debt issue in the eurozone, analysts said. The benchmark Korea Composite Stock Price Index closed up 0.32 percent Friday at 1,955.52 from a week ago. The main index started off the week higher on the back of a foreign inflow on anticipation that the eurozone would salvage Greece from a potential default by injecting liquidity.

Feb. 8, 2015

Local banks’ net profit jumps 60 percent

Banks saw their net profit soar 60.4 percent in 2014 from a year ago, largely resulting from the reduced provision of bad loans, the financial authorities said Friday. The combined net income of 18 banks operating here stood at 6.2 trillion won ($5.7 billion) in 2014, up 3.9 trillion won from a year earlier, the Financial Supervisory Service reported. The financial watchdog said the lenders’ provision of bad loans dropped to 8.9 trillion won last year, down 24.9 percent on-year from 11.9 trillio

Feb. 6, 2015

Woori Bank swings back to black in 2014

Woori Bank, a major South Korean lender, said Thursday it swung to a net profit in 2014 from a year earlier on a tumble in loan loss reserves.  Net profit came in at 1.2 trillion won ($1.1 billion) last year, a sharp turnaround from a 537.7 billion won loss a year earlier, the lender said in a regulatory filing.  Woori Bank attributed the turnaround to a plunge in reserves against bad loans and a tax refund of 604.3 billion won.  For the fourth quarter, however, it posted a 163 billion won net l

Feb. 5, 2015

Seoul shares sink 0.51 pct on Greece debt woes

South Korean stocks closed 0.51 percent lower Thursday, as renewed concerns over Greek debts sapped investor appetite, analysts said. The local currency lost ground against the U.S. dollar.   The benchmark Korea Composite Stock Price Index slid 9.95 points to finish at 1,952.84. Trading volume was moderate at 387.5 million shares worth 4.24 trillion won ($3.89 billion) with decliners outnumbering gainers 419 to 374.   Analysts said the abrupt decision by the European Central Bank not to accept G

Feb. 5, 2015

S. Korea's finance minister says 3.8 pct growth possible for 2015

South Korea's top economic policymaker said Thursday that 3.8 percent annual growth is attainable for 2015, despite various challenges."If risks are properly managed, the country can use the drop in international crude oil prices to its advantage in trade," Finance Minister Choi Kyung-hwan told lawmakers of the National Assembly's Strategy and Finance Committee. He added that free trade agreements reached with large trading partners will further affect investment that is linked to growth.He poin

Feb. 5, 2015

Hana-KEB merger talks suspended until June

A Seoul court handed down a suspension on the ongoing merger talks between Hana Bank and Korea Exchange Bank.The Seoul Central District Court issued an injunction on Wednesday, banning Hana Financial Group from pushing ahead with the merger until the end of June, partly acknowledging the KEB labor union’s protest.“There were no compelling reasons for an early merger,” the court said in its ruling.The court decision will stop the banking group from holding a shareholders’ meeting on the merger is

Feb. 4, 2015

Seoul shares up 0.55 pct on Wall Street gains

South Korean stocks closed 0.55 percent higher Wednesday, buoyed by strong foreign buying following a rally on Wall Street overnight, analysts said. The local currency rose sharply against the U.S. dollar.   The Korea Composite Stock Price Index climbed 10.82 points to finish at 1,962.79. Trading volume was moderate at 342.1 million shares worth 4.95 trillion won ($4.53 billion) with advancers far outpacing decliners 535 to 274.   Analysts said a bullish run in U.S. markets on Tuesday, led by a

Feb. 4, 2015

Shinhan Financial's Q4 net down 7.7 pct

South Korean banking behemoth Shinhan Financial said Wednesday its net profit slipped 7.7 percent on-year in the fourth quarter, the latest sign of weakening profitability at local lenders challenged by stiff competition and low interest rates.  Net income reached 313.1 billion won ($288.5 million) in the October-December period, compared with 339.1 billion won in the previous year, the financial group said in a press release.   Compared with three months earlier, the banking group's net profit

Feb. 4, 2015

Korea's FX reserves dip in Jan.

South Korea's foreign exchange reserves slipped in January from a month earlier as the currency value of the euro and the British pound weakened, data showed Wednesday.  The country's foreign exchange reserves reached $362.2 billion as of the end of last month, falling $1.4 billion from December, according to Bank of Korea data.  Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and bullio

Feb. 4, 2015