Seoul:Financial holding companies in South Korea experienced record net profits in the first half of the year, primarily driven by strong performances in their banking and insurance sectors, alongside significant investment returns.
According to Yonhap News Agency, the combined net profit of 10 financial holding firms reached 17.6 trillion won (US$13.1 billion) during the January-June period. This marks an increase of 2.2 trillion won, or 13.7 percent, compared to the same period last year, based on preliminary data from the Financial Supervisory Service.
The data revealed that net income from banking operations constituted 47.1 percent of the total profits, while financial investment returns accounted for 24.9 percent. Profits from insurance operations made up 12.3 percent of the overall earnings.
By the end of June, the total combined assets of these firms amounted to 4,391.4 trillion won, representing an increase of 323.6 trillion won, or 8 percent, from the previous year. However, the nonperforming loan (NPL) ratio rose to 1.03 percent, up by 0.08 percentage points from six months prior. Additionally, the loan loss reserve ratio decreased from 106.8 percent to 96.5 percent over the same period.
The 10 financial holding firms include notable names such as KB Financial Group, Shinhan Financial Group, Nonghyup Financial Group, Hana Financial Group, and Woori Financial Group. These companies collectively had 355 financial affiliates by the end of June, an increase from 342 affiliates six months earlier.