South Korea’s four largest commercial banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank—collectively generated more than 34 trillion won ($23 billion) in net interest income last year, despite a decline in net interest margins (NIM). Strong loan demand propelled profits to record levels, and banks’ heavy reliance on interest earnings is expected to persist this year.
According to the banking sector on Feb. 8, the combined net interest income of the four banks reached 34.36 trillion won ($23.5 billion) in 2024, a 2.1% increase from 33.63 trillion won the previous year. Higher interest earnings also lifted their aggregate net profit by 8.38% to an all-time high of 13.34 trillion won ($9.1 billion), surpassing the 12.31 trillion won recorded in 2023.
Among the four, KB Kookmin Bank posted the highest net interest income at 10.22 trillion won ($7 billion), followed by Shinhan Bank at 8.84 trillion won ($6.1 billion), Hana Bank at 7.74 trillion won ($5.3 billion), and Woori Bank at 7.56 trillion won ($5.2 billion). In terms of year-on-year growth, Shinhan Bank led with a 5.2% increase, followed by KB Kookmin Bank at 3.6% and Woori Bank at 1.7%. Hana Bank, however, recorded a 2.26% decline.
Despite a softening interest rate environment, banks saw robust growth in interest income as loan assets expanded. Household lending at Shinhan Bank, KB Kookmin Bank, and Hana Bank exceeded targets by 836.3 billion won (27.4%), 136.8 billion won (4.1%), and 1.69 trillion won (60.6%), respectively. Woori Bank’s household loans surged past its target by 1.34 trillion won, reaching 1.56 trillion won—more than seven times the planned increase.
Breaking down loan growth by category, KB Kookmin Bank increased household and corporate lending by 6.2% and 6.6%, respectively, while Shinhan Bank saw gains of 7.6% and 12.5%. Hana Bank posted growth of 5.9% in household loans and 2.6% in corporate loans, while Woori Bank reported respective increases of 5.9% and 9.0%.
Financial regulators had instructed banks to keep household loan growth in line with the country’s nominal gross domestic product (GDP) growth rate, which was estimated at 3.8% in 2024. However, the latest figures show household lending expanded at a significantly faster pace, underscoring its role as a key profit driver for banks.
