According to the financial industry on Saturday, the five groups reported combined first-quarter net profit of 6.1976 trillion won, up 9.8% from 5.6430 trillion won a year earlier. It was the first time their combined first-quarter profit topped 6 trillion won.
By group, KB Financial logged 1.8924 trillion won in net profit, up 11.5% from a year earlier, keeping its position as the top earner. Shinhan Financial followed with a record 1.6226 trillion won.
Hana Financial posted 1.2100 trillion won, its best result since the 2015 merger of Hana Bank and Korea Exchange Bank. NH NongHyup Financial reported 868.8 billion won, up 21.7%. Woori Financial was the only one to post a decline, with net profit of 603.8 billion won, down 2.1%. The group cited costs tied to voluntary retirement, provisions for overseas business and a reduction in loan assets to manage its common equity tier 1 ratio.
The biggest swing factor was nonbank performance, led by securities units. With trading value surging in a buoyant stock market, brokerages emerged as a key profit engine and widened gaps among groups.
KB Securities posted first-quarter net profit of 347.8 billion won, up 93.3%, as stock-trading commissions and proprietary trading both grew. Shinhan Investment Corp. reported 288.4 billion won, up 167.4%.
NH Investment & Securities recorded 475.7 billion won in net profit, up 128.5%. The securities business accounted for 29.9% of NH NongHyup Financial’s group net profit, outpacing insurance and other nonbank units.
Hana Securities reported 103.3 billion won, up 37.1%, but lagged the leading groups. The company said a one-time loss in its bond business followed a sharp rise in interest rates at the end of March. Woori Investment & Securities posted a 1,300% jump in profit, but the amount was only 14.0 billion won, limiting its impact on group results.
Outside brokerages, nonbank results were weaker. Ten insurance companies under the five groups posted combined first-quarter net profit of 495.9 billion won, down 2,188 billion won, or 30.6%, from 714.7 billion won a year earlier. Card companies largely held profits at last year’s level as they faced pressure to cut merchant fees, higher funding costs and rising delinquency concerns.
Despite the record first-quarter performance, it remains unclear whether the momentum will continue. The industry cited Middle East-related risks as a potential drag on exchange rates, interest rates and capital ratios. Rising corporate-loan delinquencies, linked to an expansion of so-called productive finance, are also adding to concerns about asset quality.
“Earnings improved thanks to stronger noninterest income, but burdens from expanding productive finance and capital regulation remain,” a financial industry official said. “A key task this year will be balancing bigger shareholder returns with sound capital management.”
* This article has been translated by AI.
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