Shinhan Financial's Q1 net shots up 27.8 pct
SEOUL, April 20 (Yonhap) -- Shinhan Financial Group Co., a major South Korean banking group, said Thursday that its first-quarter net profit surged more than 27 percent from a year earlier largely thanks to a clawback of loan-loss provisions from its credit-card unit and reduced provisions as well.
Net income for the January-March quarter stood at 1 trillion won (US$876 million), compared to a profit of 787.7 billion won a year ago, Shinhan Financial said in a regulatory filing.
The first-quarter net profit beat analysts' expectations. According to a survey by industry tracker FnGuide, Shinhan Financial was expected to have posted a net profit of 679.7 billion won for the quarter.
The lender's first-quarter operating profit nearly doubled on year to 1.29 trillion won and sales jumped 58.7 percent to 13.8 trillion won over the cited period.
Excluding the one-off return of 360 billion won in provisions from its credit card unit, Shinhan Financial also said its expenses for loan-loss provisions fell by more than 40 percent for the quarter.
Shinhan Financial's net interest margin rose 0.04 percentage point to 2.01 percent for the quarter.
It was the first time since the first-quarter of 2015 that the group's quarterly net interest margin stood at above 2 percent.
Flagship Shinhan Bank saw its net profit for the first quarter fall 7 percent on year to 534.6 trillion won.