[서울신문] “Real filial piety” Unnamed bank “The infiltrate weep in the stock boom”

[경제 블로그] Securities company’s biggest performance and bank’s negative growth’preparation’
Internal anxiety under the influence of ultra-low interest rates and fintech

Every year, the banks responsible for the performance of financial companies have turned into troubles. Financial holding companies made the most money in history last year, thanks to the propaganda of securities companies, which carried out the’Donghak Ant Movement’, but the affiliated banks have rather reversed growth.

According to the financial sector on the 9th, the net income of the four major commercial banks last year decreased by an average of 8%. KB Kookmin Bank’s net income for the year was 2,298.2 billion won, down 5.8% from the previous year, and Shinhan Bank was down 10.8% to 2.78 trillion won. Hana Bank and Woori Bank also fell 6.1% (2.1 trillion won) and 9.45% (1.363 trillion won) respectively. Net interest margin (NIM), the bank’s representative profitability indicator, also fell 0.12 percentage points on average.

The performance of the bank, which was treated as a “swan” of financial holding companies, looks more shabby compared to the performance of other financial holding companies. KB Financial Group (4.3%), Shinhan Financial Group (0.3%), and Hana Financial Group (10.3%) performed higher than the previous year as non-banking companies such as securities companies made large profits last year. Only Woori Finance, which has fewer non-bank affiliates, saw a decline in net income.

First of all, the impact of ultra-low interest rates is largely due to the decrease in net income of banknotes. Due to the low interest rate, the loan-to-deposit margin (the gain from the loan interest minus the deposit interest) was reduced, and the provisions were accumulated in preparation for Corona 19, so it was impossible to make much money. In addition, it was a bad news that big tech and fintech companies such as Kakao and Naver entered the bank’s unique business areas such as remittance and payment. An official from a banking sector said, “As a result of Corona 19, the window of profits has decreased overall, and there are limitations in global sector and corporate investment, so it was difficult to make a profit.”

The problem is that the deterioration is likely to continue this year. Loans declined due to pressure from financial authorities concerned about the household loan crisis, and financial support for the victims of COVID-19 continues this year. The financial authorities are considering extending the loan maturity and delaying interest repayment measures for small and medium-sized enterprises and small business owners suffering from COVID-19 by 6 months. Although it is an inevitable measure in the event of a national disaster, banks are concerned that the loan principal and interest accumulated over a year will become a big threat in the future.

In recent years, as financial holding companies recorded record-breaking performance, voices are emerging to share their profits with society. Bank officials complained, “The performance of the bank and the landlord is different, but it is difficult to openly say that’profit has decreased’ from outside as a financial company.” Banks’ worries are deepening while the sharp numbers that broke through the vague situation are not visible.

Reporter Yoon Yeon-jung [email protected]