2024-04-28 11:14:36
KB Financial 862 billion won… Woori Finance 7.5 billion won
Hong Kong H Index at 6000… Bae Sang-an’s stance remains the same
While the banking sector is in the process of compensation for Hong Kong H Index (Hang Seng China Enterprise Index) equity-linked securities (ELS), major financial holding companies have accumulated this as provisions in their first quarter performance. It is worth about 1.7 trillion won. With the recent rise in the Hong Kong H Index, the possibility of additional provisioning appears to be small.
According to the financial sector on the 27th, the five major financial holding companies, including KB, Shinhan, Hana, Woori, and Nonghyup, announced their first quarter results and announced that they recognized a loss of 1.665 trillion won in customer compensation costs related to Hong Kong H Index ELS.
The size of provisions related to Hong Kong ELS losses by financial holding company is 862 billion won for KB Financial Group, 341.6 billion won for Nonghyup Finance, 274 billion won for Shinhan Finance, 179.9 billion won for Hana Financial Group, and 7.5 billion won for Woori Finance.
In the case of KB Financial, KB Kookmin Bank sold Hong Kong ELS in a larger amount than other banks, resulting in the largest amount of compensation for investor losses. In the case of Woori Financial Group, which had relatively low sales, the related provisions were also limited to a small level.
Financial holding companies recognized customer compensation costs related to ELS linked to the Hong Kong H Index as provisions, resulting in a significant increase in non-operating losses in the first quarter. Accordingly, the net profit of the five major financial groups in the first quarter was KRW 4.8803 trillion, a decrease of 16.6% (KRW 974 billion) compared to the same period last year.
The financial sector believes that compensation for this loss is a one-time cost and that there will be no additional losses.
Lee Jong-min, Vice President of KB Kookmin Bank’s Business Planning Group, said in a conference call announcing KB Financial’s first quarter performance on the 25th, “We have sufficiently accumulated Hong Kong ELS-related provisions of about KRW 862 billion in the first quarter,” adding, “Some buffer is based on the Hong Kong H index at the end of March. “It gave me (spare power),” he said.
He added, “Considering the current upward trend of the Hong Kong H Index, I don’t think there is any possibility of additional losses,” adding, “I think it can be seen as a one-time factor.” Recently, the Hong Kong H Index has exceeded the 6,000 level.
Shinhan Bank Vice President Kim Ki-hong (CFO) also said in a conference call announcing Shinhan Financial’s first quarter performance on the 26th, “Hong Kong ELS sales amounted to 2.4 trillion won, and based on the Hong Kong H Index at the end of March, 274 billion won was reflected as non-operating expenses in the first quarter. He said, “Considering the current index situation, we believe there will be no impact on future settlements.”
An official from the banking sector explained, “The Hong Kong H Index has been on the rise recently, and if the compensation rate is set according to the dispute resolution standards proposed by the Financial Supervisory Service, there will likely be no variables that will allow for the recognition of additional provisions.”
However, although the banking sector is providing voluntary compensation in accordance with the guidelines of the financial authorities, the gap between banks and customers is not narrowing. The ‘Request to withdraw the differential compensation plan for damage to the Hong Kong ELS incident’ submitted to the National Assembly’s National Consent Petition has exceeded 20,000 signatures. As of 6 p.m. the previous day, the number of consents reached 23,700.
[서울=뉴시스]
-
- great
- 0dog
-
- I’m so sad
- 0dog
-
- I’m angry
- 0dog
-
- I recommend it
- dog
Hot news now
2024-04-28 11:14:36