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[Alpha Biz=(Chicago) Reporter Paul Lee] The four major banks, including Kookmin, Shinhan and Woori, earned more than 33 trillion won in interest income last year as loans increased amid high interest rates. The four major financial holding companies to which each bank belongs also posted net profits of nearly KRW 15 trillion. Amid the forecast of a cut in the benchmark interest rate this year, financial holding companies' earnings are expected to slow down in the wake of compensation from the Hong Kong H Index's Share Price-Linked Securities (ELS).
According to the financial sector on the 13th, the total interest income of the four major banks last year was 33.6265 trillion won. It increased 2.5% (831.6 billion won) from 32.7949 trillion won in 2022. Hana (3.4766 trillion won), the people (3.2615 trillion won), and Shinhan (3.677 trillion won) posted record net profits.
The phenomenon of interest profit bias has become more severe. Interest income accounted for more than 90% of the four major banks' total operating profit (36.304 trillion won) last year. Non-interest income, including commission income, was less than 10%. The proportion of non-interest income of major US banks such as JP Morgan and Bank of America is about 30%.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
