Seoul: Shinhan Financial Group announced on Tuesday that its accumulated net profit for the first three quarters has reached a record high, primarily due to increases in both interest and non-interest income. The company's net profit totaled 4.46 trillion won (US$3.1 billion) from January to September, marking a 10.3 percent increase from the 4.04 trillion won profit recorded during the same period last year, as disclosed in a regulatory filing.
According to Yonhap News Agency, Shinhan Financial's operating profit for the first three quarters was 5.91 trillion won, reflecting a 2.1 percent increase compared to the previous year. However, revenue experienced a decline of 1.73 percent, totaling 48.85 trillion won. In the third quarter alone, the group's net profit was 1.42 trillion won, which represents a 9.8 percent increase from the previous year, although it is a decrease from the 1.55 trillion won recorded in the previous quarter.
Shinhan Financial attributed its record earnings for the first three quarters to the rise in interest and non-interest income. Interest income amounted to 8.67 trillion won during the January-September period, a 2 percent increase from the previous year. Non-interest income also saw a significant rise, increasing by 4.9 percent to 3.17 trillion won over the same period.
In the third quarter, the group's interest income grew by 1.5 percent year-on-year to 2.86 trillion won, while non-interest income surged by 13.7 percent to 1.26 trillion won. The net interest margin, which is the difference between interest received and paid, remained steady at 1.9 percent in the third quarter compared to the previous year.