November 24, 2024

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Shinhan Financial Group headquarters in central Seoul (Yonhap)

Shinhan Financial Group reclaimed the top position among financial firms in Korea by posting net profit outpacing other players last year.

According to Shinhan's earnings report released Wednesday, its net profit marked 4.64 trillion won ($3.68 billion) in 2022, surpassing its cross-town rival KB Financial Group’s net profit by more than 200 billion won.

Since KB’s net profit outperformed Shinhan for the first time in 2017, the two top-tier banking groups have been running a neck-and-neck race for the top post.

Shinhan reclaimed the top position in 2018, but in 2020 KB Financial Group took back Korea’s leading financial group title.

Shinhan's figure last year also outdid the record-high net profit of 4.19 trillion that the group saw in 2021.

The high-interest rate was the main driving force behind Shinhan's stellar performance last year.

Shinhan’s profit from interest was 10.67 trillion won in 2022, which increased by 17.9 percent on-year. However, non-interest-related profit dropped by 30.4 percent to 2.53 trillion won.

Along with its profit from the high-interest rate, profits from Shinhan selling its Shinhan Investment headquarters building in Yeouido, Seoul for 639.5 billion won during the fourth quarter of last year was one of the main factors that contribute to Shinhan’s record-high performance, the group official explained.

Meanwhile, during the fourth quarter of last year, KB had to cover the bad debt allowance for money-losing Bank KB Bukopin in Indonesia.

Meanwhile, Woori Financial Group announced Wednesday that it realized a net profit of 3.16 trillion won in 2022.

Hana Financial Group, one of the top four financial groups here, is announcing its earnings on Thursday.

By Song Seung-hyun (ssh@heraldcorp.com)