S. Korea's Big Four Financial Groups Eye $4.2 Billion Q3 Profit
South Korea's four major financial holding companies are expected to post combined third-quarter net profit of approximately 5.6 trillion won, extending their year-on-year earnings growth. According to estimates compiled by financial data provider FnGuide as of Oct. 21, combined net profit attributa
South Korea's four biggest financial groups are projected to generate nearly $4.2 billion in combined profits for Q3, marking a 2.6% rise year-on-year. KB Financial Group is expected to lead with a 9.3% increase to 1.84 trillion won, while Shinhan Financial Group anticipates a 12.6% growth to 1.6 trillion won. Hana Financial Group is forecast to see a 7.0% increase to 1.21 trillion won, whereas Woori Financial Group is predicted to face a 22.1% decline to 968.4 billion won.
Loan growth and a favorable exchange rate are expected to drive earnings, with total loans for the banks surging by over 21 trillion won. However, net interest margins are projected to decrease due to rising funding costs and shrinking low-cost deposits. The stronger won against the US dollar is anticipated to enhance capital adequacy, potentially boosting CET1 capital ratios by 0.18 to 0.46 percentage points.
The financial groups are set to announce shareholder return plans in the fourth quarter, with potential buybacks and cancellations reaching 250 billion won each.
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