Foreign banks in S. Korea suffer profit declines in 2016

SEOUL, April 10 (Yonhap) -- The combined net profit of 43 foreign banks in South Korea plunged 39.1 percent on year in 2016, official data showed Monday, hit by lower interest income.

The decline also came as some foreign banks, including Goldman Sachs and Barclays, quit the South Korean market last year.

According to the data by the Financial Supervisory Service, the combined net profit of 43 foreign banks in South Korea stood at 689.3 billion won (US$604.4 million) in 2016, compared with a profit of 1.13 trillion won in 2015.

Chinese banks in South Korea saw their net profits slump last year as China's economic slowdown cut margins for their financing businesses.

The Bank of China's net profit dropped 68 percent on year to 25.5 billion won last year.

The Industrial and Commercial Bank of China's net profit also declined 48 percent on year to 49.2 billion won.

China Construction Bank saw its net profit plunge 84 percent on year to 6.8 billion won.

In contrast, foreign savings banks in South Korea, mostly from Japan, reported a combined net profit of 163.4 billion won last year, up 460 percent on year.

Foreign savings banks had posted solid asset expansions last year, led by a growth of mortgage loans.
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