Shinhan Financial profit grows despite record-low interest rates

Shinhan Financial Group reported robust quarterly earnings despite low interest rates, boosted by of a recovery in earnings in its nonbanking units including brokerage, credit card and life insurance.

The financial group said Wednesday that it reaped 592.1 billion won ($548.2 million) in net profit during the first quarter, up 6 percent from 558.4 billion won during the same period last year. The figure was an 89.1 percent surge compared to the previous quarter.

A group spokesperson cited the “diversification of profit sources” for the earnings growth.

Its securities unit Shinhan Investment has led growth in the nonbanking sector. It posted a 48.8 billion won profit in the first quarter, up 82.8 percent from the same period of 2014 and 81.6 percent from the previous quarter.

Shinhan Card and Shinhan Life reported on-year profit growth of 9.5 percent and 48 percent, respectively. Meanwhile, the flagship bank unit logged 389.9 billion won in net profit.

(kys@heraldcorp.com)