Korean financial holding companies’ net incomes fell in the first half as their banking units were hurt by exposures to shipbuilders and shippers whose loans soured amid liquidity crisis and ongoing restructuring.

According to the Financial Supervisory Service Monday, a total of seven financial holding groups reported 3.44 trillion won ($3.11 billion) in net income in the first six months this year, down 16.2 percent on year from 4.1 trillion won a year ago.

Nonghyup Financial Group Inc. registered the biggest loss, reversing to a deficit of 138.5 billion won in the January - June period from a net income of 410.4 billion won a year ago. Shinhan Financial Group Inc.’s net profit sank 7.4 percent on year to 1.3 trillion won. Both lenders had to set aside greater loan-loss reserves as STX Offshore & Shipbuilding Co. filed for receivership in May. KB Financial Group Inc.’s net income decreased 1.7 percent to 910 billion won. Those of KEB Hana fell 10.4 percent and Shinhan 7.4 percent.

The smaller JB Financial Group Co. managed to gain 37.2 percent to 74.5 billion won in net profit in the first half this year.

Shinhan Financial Group earned the most among the seven bank holding companies, recording 1.3 trillion won in net income. KB Financial Group followed with 910 billion won, Hana 818.7 billion won, BNK 307 billion won and DGB 158.4 billion won.

As of the end of June, the consolidated BIS (Bank for International Settlements) capital ratio of the seven bank holding companies stood at 13.96 percent, up 0.24 percentage point from a year ago.

KB Financial Group’s consolidated BIS ratio was the highest among the seven firms - 15.11 percent - while BNK Financial Group posted the lowest figure of 11.69 percent.

By Chung Seok-woo

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