Shinhan Leads Overseas Profit as KB Improves; Woori, Hana Slide

Shinhan Bank and KB Kookmin Bank posted solid results across most overseas units, while Hana Bank and Woori Bank saw weaker performance as losses widened at key subsidiaries, the financial industry said. Results diverged sharply by market — including China, Europe and Southeast Asia — shaping winners and losers among the major lenders. 

According to the financial sector on the 19th, Shinhan’s 10 overseas subsidiaries posted a combined net profit of 586.9 billion won last year, the highest among the four major banks. That was up 2.59% from a year earlier.

Canada Shinhan Bank swung to a loss, but most other units improved. Two core overseas operations — Japan’s SBJ Bank and Shinhan Vietnam Bank — delivered results in the 100 billion won and 200 billion won ranges, respectively, on locally tailored strategies. Shinhan Bank China’s net profit jumped fourfold from a year earlier on higher gains tied to securities. Shinhan Bank America and Shinhan Bank Indonesia expanded lending to strong local companies, with net profit rising 278.65% and 34.7%, respectively. 

KB Kookmin sharply reduced losses at its overseas units. The bank operates five overseas subsidiaries, including Cambodia’s Prasac and Indonesia’s Bukopin. Its overseas result improved from a 2024 net loss of 202.9 billion won to 81.7 billion won last year, turning profitable. The improvement was driven largely by Bukopin, which narrowed its net loss to 102.8 billion won after posting a 360.6 billion won net loss a year earlier. Growth of 28% in low-cost deposits and 10% in settlement-related loans helped lift performance. The Myanmar unit returned to profit on expanded local business, and KB Prasac Bank earned 152 billion won as it increased low-rate deposits.

Hana Bank’s global business declined. Net profit at its overseas subsidiaries fell 33% from a year earlier to 86.8 billion won last year. Hana Bank China swung to a 39.2 billion won net loss as it set aside provisions amid a prolonged downturn in China’s real estate market. Net profit at Germany’s KEB Hana Bank also plunged 66% amid factors including falling eurozone interest rates. Hana Bancorp, a U.S. bank holding company targeting Korean-American networks, posted a 253% surge.

Woori Bank’s overseas slump deepened after it had ranked second globally in overseas net profit. Net profit at its 11 overseas subsidiaries fell 79% from a year earlier to 44.9 billion won last year. A major drag was Indonesia’s Woori Sodara Bank, which swung from more than 56 billion won in net profit to a 74.1 billion won loss. Woori Bank China also posted a 52.7 billion won net loss. 

This year, the banks plan to focus on strengthening fundamentals at overseas units as the global operating environment grows more uncertain due to the U.S.-Iran war and rising oil prices. KB Kookmin and Shinhan said they aim to expand with high-quality assets and reinforce core earnings for sustained growth. Hana said it will boost business synergies among four branches, including two opened in India in December, and seek to improve results at its German unit by attracting financing demand tied to South Korea’s defense industry exports.