Shinhan Financial reports weak first-quarter earnings

Shinhan Financial Group announced a 483.3 billion won ($436.6 million) net profit during the first quarter of this year. It was a 41.8 percent drop from a year earlier and a 54.8 percent increase from a quarter earlier.

The quarterly operating profit fell 10.1 percent from the previous quarter due to the increase in loan losses, Shinhan said.

The overall weak quarterly performance occurred among Shinhan’s bank sectors, which almost halved to 341.5 billion won from a year ago, with the group holding the drop in interest rate and rise in loan loss accountable.

The non-bank sectors, including Shinhan’s brokerage and capital firm, also saw a 12.8 percent drop in net profit from a year earlier, which is about 50.6 percent more than the previous quarter.

Shinhan Card and Shinhan Life Insurance also reported a drop in net profit by 13.9 percent and 38.9 percent, respectively, citing a drop in card service fees and interest rates.

(joowonc@heraldcorp.com)