[GLOBAL ECONOMIC TIMES] The five major financial groups posted a total net profit of over 16 trillion won through the third and fourth quarters of this year. This is the result of the bank's interest income, which raised the additional interest rate in accordance with the financial authorities' household loan management policy, plus various non-interest income through portfolio diversification.
Hana Financial Group and NH Nonghyup Financial Group announced on the 29th that this year's cumulative net profit was 3.2254 trillion won and 2.3151 trillion won, respectively, as of the third and fourth quarters.
KB Financial Group (KRW 4.3953 trillion), Shinhan Financial Group (KRW 3.9856 trillion), and Woori Financial Group (KRW 2.659 trillion), which previously announced their third-quarter performance, combined total KRW 16.5804 trillion. This is an increase of 5.9% (KRW 931.1 billion) compared to the same period last year (KRW 15.6493 trillion).
As banks' interest profits increased significantly amid the good performance of non-bank affiliates such as securities companies and credit card companies, financial groups began to improve their corporate value. In response to the criticism of 'interest business' raised by some, 'value up' was strengthened by purchasing and canceling treasury shares and increasing the dividend amount.
On this day, Hana Financial Group announced its 'Corporate Value Up Plan', which aims to △achieve a shareholder return rate of 50% by 2027, △manage the common equity capital ratio (CET1) at 13.0~13.5%, and △maintain a return on equity (ROE) of 10% or more. did it
The time to achieve the shareholder return rate of 50%, which was previously presented as a mid- to long-term goal, was specified as 2027. To expand the shareholder return policy, 150 billion won worth of treasury stocks will be canceled. It was also decided to implement quarterly cash dividends of 600 won per share, totaling 169.7 billion won.
Previously, KB Financial also unveiled a new shareholder return plan based on the CET1 ratio. The key is to return surplus capital exceeding the CET1 ratio of 13% to shareholders starting next year. We plan to increase the shareholder return rate to 40%.
KB Financial's total annual cash dividends this year (KRW 1.2 trillion) have already exceeded last year's level (KRW 1.174 trillion). On the 24th, Chairman Yang Jong-hee of KB Financial Group emphasized, “In order for corporate value to be properly evaluated, the shareholder return rate must be increased further,” and added, “We will maintain the industry’s highest level in shareholder return.”
Shinhan Financial Group also presented a goal of achieving ROE of 10%, return on tangible equity (ROTCE) of 11.5%, and shareholder return rate of 50% by 2027 through a value up disclosure in July, based on a CET1 ratio of over 13%. We plan to reduce the total number of shares to below 500 million shares by the end of this year.
As of the 3rd and 4th quarter, Shinhan Financial Group's (provisional) CET1 ratio is 13.13%, ROE 10.2%, and ROTCE 11.7%. Cheon Sang-young, Chief Financial Officer (CFO) of Shinhan Financial Group, said, "In order to implement policies with speed, we plan to implement a treasury stock policy without any gaps throughout the year by acquiring an additional KRW 150 billion early next year following the KRW 250 billion in the fourth quarter."
Woori Financial Group also paid quarterly cash dividends of 180 won per share until September of this year. Woori Financial Group's core task is to improve the CET1 ratio. We are seeking to achieve an early CET1 ratio of 12% by next year. The mid- to long-term goal is a total shareholder return rate of 50%.
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