Last year, the country's 10 financial holding companies recorded nearly 24 trillion won in net income, marking the highest performance on record.
The Financial Supervisory Service (FSS) announced the management performance of financial holding companies for 2024. According to the FSS, the consolidated net income of the 10 holding companies, including KB, Shinhan, Hana, Woori, NH, iM, BNK, JB, Hanwha Investment & Securities, and Meritz, was 23.8478 trillion won. This figure represents an increase of 10.8% compared to the previous year (21.5246 trillion won).
The proportion of net income by sector was highest for banks at 59.8% (16.3 trillion won), followed by insurance at 14.3% (3.9 trillion won), financial investment at 11.7% (3.2 trillion won), and others (including cards, capital, savings banks) at 9.4% (2.6 trillion won).
As of the end of last year, the total consolidated assets of financial holding companies stood at 3,754.8 trillion won, an increase of 6.3% compared to the end of the previous year.
The ratio of non-performing loans, which indicates the proportion of bad debts in total loans, was reported at 0.90%, up 0.18 percentage points from the end of the previous year (0.72%). The provision coverage ratio, an indicator used to assess the ability to absorb credit losses, was 122.7%, down 27.9 percentage points from the end of the previous year (150.6%).
The FSS evaluated that while key management indicators such as capital adequacy for the performance of financial holding companies are favorable, there is a need to strengthen asset health management as the ratio of non-performing loans rises. It also noted that it would continue to monitor, analyze, and respond to potential risks associated with financial holding companies amid persistent uncertainties in the financial market.