SEOUL, July 25 (Yonhap) — The interest income of South Korea’s five major financial groups likely jumped 11 percent in the first half from a year earlier on extended loan growth amid low market rates, industry sources said Sunday.
KB, Hana, Shinhan, Woori and NH Nonghyup are expected to report a combined 20.38 trillion won (US$17.7 billion) worth of interest income from January to June, up from 18.43 trillion won in the same period of last year, it said.
KB, Hana, Woori and NH Nonghyup posted interest income of 5.41 trillion won, 3.25 trillion won, 3.32 trillion won and 4.17 trillion won, respectively, in the first six months. Shinhan has yet to release its first-half interest income result, but the figure from Shinhan is projected to reach 4.24 trillion won.
The financial firms earned higher interest income due to an increase in high-rate loans for home purchases and living expenses amid the extended coronavirus pandemic.