Financial companies report record net profit in 2022

Finance

Published: 08 Feb. 2023, 18:56 Updated: 08 Feb. 2023, 19:19

Financial companies report record net profit in 2022

Shinhan Financial Group office in central Seoul [SHINHAN FINANCIAL GROUP]

Financial companies reported a record net profit last year due to the rapid rise of interest rate.

Shinhan Financial Group reported 4.64 trillion won ($3.68 billion) in consolidated net profit last year, falling short of FnGuide's 4.91 trillion won consensus.

Shinhan’s annual net profit in 2022 was up 15.5 percent from a year earlier, according to the company’s preliminary report released on Wednesday. The sale of Shinhan Securities office in Yeouido, western Seoul, for 443.8 billion won contributed to the company’s net profit, it said.

In the fourth quarter alone, net profit was 326.9 billion won, down 29 percent on year.

Preserving provisional reserves, costs for employees’ voluntary retirement and loss in value of the company’s investment contributed to the reduced net profit.

Shinhan will “actively respond to the volatility in the economy in and outside of Korea, and maintain appropriate levels of capital ratio,” said the company's board. "It will put in effort to enhance shareholder value and support vulnerable borrowers."

Shinhan Financial Group will buy back 150 billion won of shares and cancel them in 2023.

The company’s interest profit last year was 10.68 trillion won, up 17.9 percent on year.

Shinhan Bank’s annual net profit jumped 22.1 percent to 3 trillion won on an improved net interest margin.

Woori Financial Group office in central Seoul [WOORI FINANCIAL GROUP]

On Wednesday, Woori Financial Group said it reported 3.17 trillion won in consolidated net profit last year, slightly higher than 3.16 trillion-won consensus.

The company’s net profit was up 22.47 percent on year, according to its preliminary report.

Consolidated net profit at Woori Bank was 2.92 trillion won, Woori Card 204.4 billion won and Woori Financial Capital 183.3 billion won.

Woori Financial Group will “continue to put in effort to improve profitability, respond to uncertainties in the financial market through risk management and practice diverse social contribution activities while protecting financial customers,” said a company spokesperson in a statement.

Internet-only KakaoBank reported 263.1 billion won in net profit, up 28.9 percent on year.

It was a record high, but the figure fell short of the 287.1-billion-won consensus.

KakaoBank said the number of its customers grew 14 percent on year as of the end of last year. The number of monthly active users was 16.44 million.

Users were largely concentrated to those in their 20s through 40s.

KakaoBank said it will diversify services and products this year as platform competition intensifies from banks and big tech firms’ strengthening of the super-app, which provides end users with a mix of services on a single ID.

Hana Financial Bank is scheduled to report its earnings on Thursday.

BY JIN MIN-JI [jin.minji@joongang.co.kr]