Seoul: Financial holding companies in South Korea saw an almost 11 percent increase in their earnings last year, driven by strong performances from banks and insurers, data revealed on Wednesday. The combined net profit of the 10 financial holding firms reached 23.85 trillion won (US$16.79 billion) in 2024, marking an increase of 2.32 trillion won, or 10.8 percent, from the previous year.

According to Yonhap News Agency, net income from banks constituted 59.8 percent of the total, while insurance firms contributed 14.3 percent to the combined net profit. Returns on financial investments accounted for 11.7 percent of the total earnings. By the end of December, the total assets of these financial holding firms amounted to 3,754.8 trillion won, an increase of 224 trillion won, or 6.3 percent, from the previous year.

The nonperforming loan (NPL) ratio rose to 0.9 percent at the end of December, compared to 0.72 percent a year ago. Despite the increase in the NPL ratio, the firms' loan loss reserve ratio decreased to 122.7 percent from 150.6 percent during the same period. The 10 financial holding firms include KB Financial Group, Shinhan Financial Group, Nonghyup Financial Group, Hana Financial Group, Woori Financial Group, BNK Financial Group, DGB Financial Group, JB Financial Group, Korea Investment Holdings Co., and Meritz Financial Group.

As of the end of December, these firms had a total of 335 financial affiliates, an increase from 329 recorded six months earlier.