ID :
70522
Wed, 07/15/2009 - 18:34
Auther :
Shortlink :
https://oananews.org//node/70522
The shortlink copeid
Banks` Q2 earnings may top 1 tln won: analysts
SEOUL, July 15 (Yonhap) -- South Korean banks probably earned more than 1
trillion won (US$772.8 million) in the second quarter on decreased loan-loss
reserves and one-off gains, market watchers said Wednesday.
The combined net profit of nine major banks, including top lender Kookmin Bank,
is estimated at 1.1 trillion won for the April-June period, sharply up from 145
billion won three months earlier, according to analysts.
Local banks are expected to start unveiling their second-quarter results later
this month.
"Korean banks' second-quarter earnings may have topped 1 trillion won as one-time
profits increased from stake sales," said Song Yun-kyu, an analyst at Daishin
Securities Co.
The bright earnings outlook comes as the Korean economy is showing signs of
improvement, allowing lenders to set aside less reserves for potential loan
losses. Local banks also saw significant one-off gains in the last quarter as
they unloaded stakes in Hyundai Engineering & Construction Co. in May.
In the final quarter of last year, 18 Korean lenders lost a combined 300 billion
won, stung by surging non-performing loans stemming from the slumping economy.
But market experts said local banks' profit margins likely fell in the second
quarter from three months earlier, as lending growth has remained slow and the
effects of a record-low key interest rate continued to linger.
According to the nation's financial watchdog, Korean banks' net interest margin
-- the difference between interest income and interest expenses -- came in at
1.91 percent in the first quarter, down from 2.38 percent the previous year.
Analysts have forecast that the bottom lines at domestic banks will likely remain
sluggish or fall slightly in the third quarter, due to a lack of one-off gains in
the second quarter and a need to pump up loan-loss reserves because of corporate
restructuring efforts.
The Bank of Korea (BOK), the country's central bank, said the Korean economy is
estimated to have grown 2.3 percent in the April-June period from three months
earlier, sharply up from a 0.1 percent on-quarter expansion in the first quarter.
The BOK upgraded its 2009 economic growth outlook to a 1.6 percent contraction
from a previous estimate of a 2.4 percent fall.
sooyeon@yna.co.kr
(END)
trillion won (US$772.8 million) in the second quarter on decreased loan-loss
reserves and one-off gains, market watchers said Wednesday.
The combined net profit of nine major banks, including top lender Kookmin Bank,
is estimated at 1.1 trillion won for the April-June period, sharply up from 145
billion won three months earlier, according to analysts.
Local banks are expected to start unveiling their second-quarter results later
this month.
"Korean banks' second-quarter earnings may have topped 1 trillion won as one-time
profits increased from stake sales," said Song Yun-kyu, an analyst at Daishin
Securities Co.
The bright earnings outlook comes as the Korean economy is showing signs of
improvement, allowing lenders to set aside less reserves for potential loan
losses. Local banks also saw significant one-off gains in the last quarter as
they unloaded stakes in Hyundai Engineering & Construction Co. in May.
In the final quarter of last year, 18 Korean lenders lost a combined 300 billion
won, stung by surging non-performing loans stemming from the slumping economy.
But market experts said local banks' profit margins likely fell in the second
quarter from three months earlier, as lending growth has remained slow and the
effects of a record-low key interest rate continued to linger.
According to the nation's financial watchdog, Korean banks' net interest margin
-- the difference between interest income and interest expenses -- came in at
1.91 percent in the first quarter, down from 2.38 percent the previous year.
Analysts have forecast that the bottom lines at domestic banks will likely remain
sluggish or fall slightly in the third quarter, due to a lack of one-off gains in
the second quarter and a need to pump up loan-loss reserves because of corporate
restructuring efforts.
The Bank of Korea (BOK), the country's central bank, said the Korean economy is
estimated to have grown 2.3 percent in the April-June period from three months
earlier, sharply up from a 0.1 percent on-quarter expansion in the first quarter.
The BOK upgraded its 2009 economic growth outlook to a 1.6 percent contraction
from a previous estimate of a 2.4 percent fall.
sooyeon@yna.co.kr
(END)
