Financial groups post record earnings, boost shareholder returns

Korea’s major financial groups extended their strong earnings momentum in the second quarter, as KB, Shinhan and Hana posted record quarterly and first-half profits, industry officials said Friday.

Woori Financial Group also staged a turnaround in the second quarter, delivering year-on-year growth in first-half net profit despite market forecasts for a decline.

The four largest groups' combined first-half of the year net profit of more than 11 trillion won ($7.5 billion) was supported by higher interest rates and a strong stock market rally.

The strong performance prompted the companies to announce enhanced shareholder return plans, including larger share buybacks and higher cash dividends.

According to company filings, KB Financial Group reported a record quarterly net profit of 1.99 trillion won in the second quarter, up 14.6 percent from a year earlier.

First-half net profit also hit a record 3.88 trillion won, increasing 13.1 percent year-on-year.

Its nonbanking affiliates accounted for 44 percent of first-half earnings, with KB Securities contributing about one-fifth of total prof ...