Financial companies report big Q2 earnings

Korea’s top three financial groups have reported record-high second-quarter profits due to increased income from interest and upbeat overseas business.

Hana Financial Group said Friday that its net profit rose 26.5 percent in the first half of this year from a year earlier.

This was due to higher interest income and a sharp decline in loan-loss provisions.

Its net profit stood at 1.3 trillion won ($1.15 billion) in the January-June period on a consolidated basis, Hana Financial said in a statement.

Hana Financial’s interest income and income from commission fees totaled 3.9 trillion won in the first half, up 15 percent from a year earlier.

Loan-loss provisions fell 75.5 percent on-year to 123.6 billion won, Hana Financial said.

The company’s net interest margin, a key barometer of profitability, was unchanged at 1.99

Its flagship business, KEB Hana Bank, posted a net profit of 1.1 trillion won for the first half, up 19.5 percent from a year earlier.

KEB Hana Bank’s interest income stood at 2.5 trillion won for the January-June period.

Hana Financial said it would pay 400 won per share in interim dividends to shareholders.

Woori Bank reported a record first-half net profit exceeding 1.3 trillion won as it gains further from overseas businesses and local asset management.

In the January-June period, net profit jumped 18.7 percent to 1.316 trillion won from 1.109 trillion won a year earlier, the company said.

“The first-half bottom-line was buoyed not only by increased profits in overseas investment banking and foreign-exchange trading services but also by growing domestic demand for asset management services due to low interest rates,” an official at the bank’s investment relations team said.

Operating profit climbed 21.8 percent to 1.808 trillion won in the first half from 1.484 trillion won.

Sales fell 4.2 percent to 11.480 trillion won from 11.987 trillion won during the same period.

A day earlier, KB Financial Group said its net profit fell 4.4 percent in the second quarter from a year earlier due to the base effect.

Net profit stood at 946.7 billion won for the April-June period, compared with a profit of 990 billion won a year earlier.

Yonhap