ID :
198921
Wed, 08/03/2011 - 11:28
Auther :
Shortlink :
https://oananews.org//node/198921
The shortlink copeid
Shinhan Financial Q2 net more than doubles
SEOUL, Aug. 3 (Yonhap) -- Shinhan Financial Group Co., South Korea's No. 3 banking group, said Wednesday its second-quarter earnings more than doubled from a year ago on a rise in non-interest income and lower loan-loss reserves.
Net profit came to 964.8 billion won (US$910.5 million) in the April-June period, compared with 447.6 billion won a year earlier, the group said in a regulatory filing.
The second-quarter bottom line, however, was weaker than the market consensus of 982.8 billion won in a poll of analysts by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Revenue slipped 5.2 percent on-year to 8.5 trillion won, but operating profit more than doubled to 1.27 trillion won from last year's 558.2 billion won.
In the first half of the year, net income reached 1.89 trillion won, up 38.4 percent from the previous year, it added.
Shares of Shinhan Financial fell 1.01 percent to close at 49,000 won on the Seoul bourse. The results were announced after the stock market closed.
The group said its stronger bottom line came on the back of a decline in loan-loss reserves and a rise in non-interest income.
"A sharp fall in costs for bad debts mainly contributed to the group's improved net profit," Shinhan Financial said in an e-mailed statement. The group set aside 287.5 billion won for loan-loss reserves in the April-June period, compared with 619.3 billion won last year.
The proceeds from a stake sale in Hyundai Engineering & Construction Co. also strengthened the bottom line, the group said. The company reaped a pre-tax profit of 352.3 billion won from the sale.
The group's net interest margin (NIM), a key gauge of profitability, reached 3.65 percent, up from 3.63 percent three months earlier.
The group's total assets reached 328.9 trillion won as of end-June, a slight gain from 328.6 trillion won three months earlier.
The group, meanwhile, said its flagship Shinhan Bank logged a net profit of 785.5 billion won in the second quarter, growing more than three-fold from 260.4 billion won a year ago.
The lender's NIM remained unchanged at 2.27 percent in the second quarter.
Shinhan Financial said profits from its bank business accounted for 69 percent of the first-half earnings, while those from its non-bank units contributed to the remainder.
In the second quarter, Shinhan Financial posted the largest net profit among the country's top four banking groups. Shinhan Financial has been the most profitable industry player during the last three years.
Net profit came to 964.8 billion won (US$910.5 million) in the April-June period, compared with 447.6 billion won a year earlier, the group said in a regulatory filing.
The second-quarter bottom line, however, was weaker than the market consensus of 982.8 billion won in a poll of analysts by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Revenue slipped 5.2 percent on-year to 8.5 trillion won, but operating profit more than doubled to 1.27 trillion won from last year's 558.2 billion won.
In the first half of the year, net income reached 1.89 trillion won, up 38.4 percent from the previous year, it added.
Shares of Shinhan Financial fell 1.01 percent to close at 49,000 won on the Seoul bourse. The results were announced after the stock market closed.
The group said its stronger bottom line came on the back of a decline in loan-loss reserves and a rise in non-interest income.
"A sharp fall in costs for bad debts mainly contributed to the group's improved net profit," Shinhan Financial said in an e-mailed statement. The group set aside 287.5 billion won for loan-loss reserves in the April-June period, compared with 619.3 billion won last year.
The proceeds from a stake sale in Hyundai Engineering & Construction Co. also strengthened the bottom line, the group said. The company reaped a pre-tax profit of 352.3 billion won from the sale.
The group's net interest margin (NIM), a key gauge of profitability, reached 3.65 percent, up from 3.63 percent three months earlier.
The group's total assets reached 328.9 trillion won as of end-June, a slight gain from 328.6 trillion won three months earlier.
The group, meanwhile, said its flagship Shinhan Bank logged a net profit of 785.5 billion won in the second quarter, growing more than three-fold from 260.4 billion won a year ago.
The lender's NIM remained unchanged at 2.27 percent in the second quarter.
Shinhan Financial said profits from its bank business accounted for 69 percent of the first-half earnings, while those from its non-bank units contributed to the remainder.
In the second quarter, Shinhan Financial posted the largest net profit among the country's top four banking groups. Shinhan Financial has been the most profitable industry player during the last three years.
