Seoul: Shinhan Financial Group announced an 8.7% increase in its second-quarter net profit, attributed to a significant rise in non-interest income. The financial giant reported a net profit of 1.55 trillion won (approximately US$1.09 billion) for the April to June period, compared to 1.43 trillion won during the same period last year.
According to Yonhap News Agency, the reported earnings surpassed market expectations. Analysts had projected an average net profit of 1.44 trillion won, as per a survey conducted by Yonhap Infomax, the financial data branch of Yonhap News Agency. In the first half of the year, Shinhan Financial Group's cumulative net profit increased by 10.6% year-on-year, reaching 3.37 trillion won.
The group's operating profit for the second quarter stood at 2.01 trillion won, marking an 8.7% increase from the previous year, while revenue saw a substantial rise of 29.2%, totaling 23.22 trillion won. Interest income for the quarter experienced a 1.5% year-on-year increase, amounting to 2.86 trillion won. Meanwhile, non-interest income surged by 13.7%, reaching 1.26 trillion won.
Additionally, the group's net interest margin, which measures the difference between interest income and interest expenses, remained stable at 1.9% in the second quarter, unchanged from the previous year. Shinhan Bank, the group's flagship entity, reported a net profit of 1.14 trillion won for the second quarter, representing a 1.2% increase from the prior year.