Financial holding firms post record net profit in H1

In the first half of the year, South Korean financial holding firms achieved record net profits, driven by strong performances in banking, insurance, and investment operations. The combined net profit of the 10 firms reached a record 17.6 trillion won ($13.1 billion), a 13.7% increase from the previous year, according to preliminary data from the Financial Supervisory Service.

Banking operations contributed 47.1% to the total, while investment returns accounted for 24.9% and insurance firms contributed 12.3%. As of June, the firms' combined assets totaled 4,391.4 trillion won, an 8% rise from the same period last year. The nonperforming loan ratio stood at 1.03% at the end of June, an increase of 0.08 percentage points from six months ago.

Loan loss reserves dropped to 96.5% of loan losses, down from 106.8% during the same period. The 10 holding firms include KB Financial Group, Shinhan Financial Group, Nonghyup Financial Group, Hana Financial Group, and Woori Financial Group. As of June, they managed a combined 355 financial affiliates, an increase from 342 six months earlier.