Most Popular
-
1
Actor Jung Woo-sung admits to being father of model Moon Ga-bi’s child
-
2
Wealthy parents ditch Korean passports to get kids into international school
-
3
Man convicted after binge eating to avoid military service
-
4
First snow to fall in Seoul on Wednesday
-
5
Final push to forge UN treaty on plastic pollution set to begin in Busan
-
6
Korea to hold own memorial for forced labor victims, boycotting Japan’s
-
7
Nvidia CEO signals Samsung’s imminent shipment of AI chips
-
8
Job creation lowest on record among under-30s
-
9
NK troops disguised as 'indigenous' people in Far East for combat against Ukraine: report
-
10
Opposition leader awaits perjury trial ruling
Korea’s major banks are expected to see their net profits slip next year amid external uncertainties and tightened regulations, data showed Monday.
The combined net income of the country’s four major banking groups, including Woori Finance Holdings Co. and KB Financial Group Inc., are forecast to fall 6.62 percent on-year to 8.89 trillion won ($7.74 billion), according to 20 analysts consulted by Seoul-based financial information provider FnGuide.
Top player Woori Finance is likely to post the steepest loss, with its net tumbling 11.41 percent, followed by KB Financial with a 7.87 percent on-year drop and Shinhan Financial Group Co. with a 5.07 percent fall. No. 4 banking group Hana Financial Group Inc.’s profit is forecast to slip 0.12 percent, the data showed.
The weaker bottom line projection comes as banks prepare to face a set of downside risk factors.
“Loan growth will cool amid concerns over slowing economic growth, household debt and efforts to lower debt-to-deposit ratio,” said Kim Jae-woo, an analyst at Samsung Securities Co. He said recent moves to cut bank service fees are also likely to eat into their profit.
Hyundai Securities Co. analyst Koo Kyoung-hoe also projected a weaker net profit for banks, citing a rise in loan-loss reserves and an absence of one-off profits.
However, some analysts said the local lenders are expected to successfully weather a flurry of negative factors.
“Banks are likely to see their profits rise for the second straight year and risks are projected to be not larger than expected,” said Eugene Investment & Securities Co. analyst Kim In.
Kim said local banks have “differentiated” fundamentals and solid asset quality compared with their global counterparts.
(Yonhap News)
The combined net income of the country’s four major banking groups, including Woori Finance Holdings Co. and KB Financial Group Inc., are forecast to fall 6.62 percent on-year to 8.89 trillion won ($7.74 billion), according to 20 analysts consulted by Seoul-based financial information provider FnGuide.
Top player Woori Finance is likely to post the steepest loss, with its net tumbling 11.41 percent, followed by KB Financial with a 7.87 percent on-year drop and Shinhan Financial Group Co. with a 5.07 percent fall. No. 4 banking group Hana Financial Group Inc.’s profit is forecast to slip 0.12 percent, the data showed.
The weaker bottom line projection comes as banks prepare to face a set of downside risk factors.
“Loan growth will cool amid concerns over slowing economic growth, household debt and efforts to lower debt-to-deposit ratio,” said Kim Jae-woo, an analyst at Samsung Securities Co. He said recent moves to cut bank service fees are also likely to eat into their profit.
Hyundai Securities Co. analyst Koo Kyoung-hoe also projected a weaker net profit for banks, citing a rise in loan-loss reserves and an absence of one-off profits.
However, some analysts said the local lenders are expected to successfully weather a flurry of negative factors.
“Banks are likely to see their profits rise for the second straight year and risks are projected to be not larger than expected,” said Eugene Investment & Securities Co. analyst Kim In.
Kim said local banks have “differentiated” fundamentals and solid asset quality compared with their global counterparts.
(Yonhap News)
-
Articles by Korea Herald
