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Financial holding firms see profits gain 19.6 pct in 2016

All Headlines 06:00 April 12, 2017

SEOUL, April 12 (Yonhap) -- South Korea's seven financial holding companies saw their combined net profit gain 19.6 percent on year in 2016, helped by solid interest income and lower debt provisions, government data showed Wednesday.

The combined net profit of financial holding firms stood at 7.5 trillion won (US$6.5 billion) in 2016, compared to a profit of 6.2 trillion won in 2015, according to the data by the Financial Supervisory Service (FSS).

Banking units of the financial holding firms have expanded assets, led by mortgage loans.

"While expanded assets under management resulted in increasing interest incomes, bad debt expenses were on the decline," the FSS said in a statement.

Shinhan Financial reported a net profit of 2.7 trillion won last year, up 17.2 percent on year, while KB Financial posted a net profit of 2.1 trillion won, up 26.2 percent on year, the data showed.

NongHyup Financial, however, saw its net profit decline 20.2 percent on year to 321 billion won last year.

JB Financial's 2016 net profit also fell 24.4 percent on year to 142.7 billion won, the data showed.

The capital adequacy ratio for the financial holding companies averaged 14.33 percent at the end of December last year, up 0.61 percentage point from a year earlier.

Their average bad loan ratio stood at 0.97 percent as of end-December last year, down 0.38 percentage point from a year ago.

The combined assets of the holding firms reached 1,679.2 trillion won at the end of December last year, up 8.5 percent from a year earlier, according to the FSS data.
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