Shinhan and Hana beat net profit estimates for Q3

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Shinhan and Hana beat net profit estimates for Q3

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

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

 
Shinhan Financial Group reported 1.22 trillion won ($901.7 million) in net profit in the third quarter, down 26 percent from the same period a year earlier, according to its regulatory filing on Friday.
 
The net profit over the July-September period beat the 1.2 trillion-won market consensus compiled by market tracker FnGuide.
 
Shinhan attributed the reduced profit to the weakened won, which reduced its gains on the valuation of marketable securities and one-time expenses, including the voluntary retirement of bank employees.
 
Its total net profit through the third quarter this year went down 10.7 percent on year to 3.9 trillion won. The sale of Shinhan Securities' office in Yeouido, western Seoul, last year for 322 billion won contributed to the on year decline, Shinhan said.
 
The financial holding firm’s interest income in the third quarter rose 2.6 percent on year to 2.76 trillion won on an increased number of working days. But noninterest profit plunged 11.6 percent over the same period to 913.3 billion won.
 
The flagship Shinhan Bank’s net profit in the third quarter inched up 0.99 percent to 918.58 billion won from a year earlier on a rise in interest income.
 
Hana Financial Group office in central Seoul [HANA FINANCIAL GROUP]

Hana Financial Group office in central Seoul [HANA FINANCIAL GROUP]

 
Hana Financial Group on the same day reported 963.37 billion won in net profit in the third quarter, down 15.43 percent on year.
 
The figure is higher than the FnGuide market consensus that projected 954.2 billion won.
 
Hana cited its appropriation fund for the decline. Its appropriation fund through the third quarter totaled 1.22 trillion won, up 105 percent from a year earlier.
 
Its net profit through the third quarter this year totaled 3.01 trillion won, up 3.51 percent compared to the same period last year.
 
Hana attributed the gain to a rise in both interest and noninterest income helped by a drop in costs.
 
The financial company’s noninterest profit reached 1.7 trillion won in the first nine months of this year, up 125.5 percent on year. It cited increased sales from foreign exchange transactions on a recovered travel demand and adjustment to commission for trusts and retirement pension.
 
The flagship Hana Bank’s net profit in the third quarter gained 5.91 percent on year to 929.87 billion won on a rise in loan extension, it said.
 
Rivals KB and Woori Financial Group reported their July-September earnings earlier this week.
 
Woori Financial Group on Thursday saw its third-quarter net profit slip 1.6 percent on year due to a sharp drop in sales. KB Financial Group on Tuesday reported 1.34 trillion won in net profit, down 1.3 percent over the same period.
 

BY JIN MIN-JI [[email protected]]
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