IBK has highest labor productivity among banks

The state-run Industrial Bank of Korea led Korean lenders in terms of labor productivity last year, government data showed Monday.

According to the Financial Supervision Service, the IBK recorded 181 million won ($163,107) in profit per employee. Shinhan scored the second with 154 million won.

Employees at Hana Bank came third with 118 million won and the state-run Woori Bank came fourth with 80 million won. Kookmin Bank, which runs the largest number of workers, came last of the major five with each worker generating only 1 million won. The low productivity level is attributed to the increased loan-loss provision and massive retirement grants it had to pay for its voluntary lay-off program.

KB Financial Group, the parent of Kookmin Bank, swung to a loss in the fourth quarter and posted a net loss of 231 billion won in the October-December period.

But Kookmin Bank’s net interest margin topped the industry, together with that of IBK. Net interest margin is the ratio of a bank’s interest bearing assets.

Kookmin’s NIM, which already accounts for more than 80 percent of the group’s assets, was 2.94 percent in the fourth quarter, versus 2.63 percent in the previous quarter.

Wages were higher at foreign banks. Citibank paid the most generous package with 36 million won, followed by SC First Bank with 31 million won for the first half of last year. The Korea Exchange Bank paid 30.7 million won per employee in the same period.

By Cynthia J. Kim (cynthiak@heraldcorp.com)