Financial holding companies post 26.7 trillion won in net profit last year, setting another record high

According to Financial News, the combined net profit of 10 financial holding companies exceeded 26 trillion won last year. Their net income increased by 3 trillion won from the previous year, setting a new all-time high. Robust stock market conditions and a sharp rise in non-bank and non-interest income were major contributors.
The Financial Supervisory Service (FSS) announced in its report on the “2025 Business Performance of Financial Holding Companies” released on the 9th that the consolidated net profit of 10 financial holding companies — KB, Shinhan Financial Group, Hana Bank, Woori Financial Group, NongHyup Financial Group (NH Financial Group), iM Financial Group, BNK Financial Group, JB Financial Group, Korea Investment Holdings and Meritz Financial Group — came to 26.7 trillion won at the end of last year. This was up 3 trillion won, or 12.4%, from 23.7 trillion won a year earlier.
Net profit has continued to grow, rising from 21.4 trillion won in 2022 to 21.5 trillion won in 2023, 23.8 trillion won in 2024, and 26.7 trillion won last year.
By business segment, banks saw net profit increase by 1.6 trillion won, up 10.1%. The securities and investment sector jumped by 2 trillion won, a surge of 62.3%. In contrast, insurance and credit-specialized finance companies recorded declines of 6.1% and 0.7%, respectively.
The FSS explained, “Although the net interest margin (NIM) narrowed, interest income increased thanks to growth in interest-earning assets, and non-bank and non-interest income also rose sharply due to a strong stock market and exchange rate movements.”
In terms of profit contribution by sector, banks accounted for the largest share at 57.4%, followed by securities and investment at 17.0%, insurance at 11.7%, and credit card and other non-bank firms at 8.1%.
The combined total assets of financial holding companies reached 4,067.4 trillion won, an increase of 312.7 trillion won, or 8.3%, from 3,754.7 trillion won at the end of the previous year.
Capital adequacy indicators also improved.
For bank holding companies, the total capital ratio, Tier 1 capital ratio and common equity Tier 1 ratio rose to 15.75%, 14.81% and 13.15%, respectively, all higher than a year earlier and above the regulatory minimums.
However, some asset quality indicators deteriorated.
The ratio of substandard or below loans at financial holding companies stood at 0.95%, up 0.05 percentage points from 0.90% at the end of the previous year, while the loan loss coverage ratio fell to 106.8%, down 15.6 percentage points from 122.4% a year earlier.
The FSS noted, “Financial holding companies delivered solid results, including growth in total assets and an expansion of net profit.” It added, “Given persistent external uncertainties such as Middle East risks and the prolonged environment of high exchange rates and high oil prices, thorough preparation is needed against the possibility of a deterioration in asset quality.”

gogosing@fnnews.com Park So-hyun Reporter