Shinhan profit surges more than double to $918.3mn

The second quarter net beats forecasts as bad loan provisions fall to less than half year-ago level.

Shinhan Financial Group reported its net profit more than doubled in the second quarter from the prior year as it set aside fewer provisions.

Shinhan, which closely trails rivals KB Financial Group and Woori Finance Holdings in asset size, said on Wednesday net profit in the quarter ended June was 965 billion won ($918.3 million), compared to 448 billion won ($419.77 million) in the year-earlier quarter.

South Korean banks in general are expected to post stellar profit growth this year due to declining provisioning charges and stable net interest margins.

Nine analysts polled by Thomson I/B/E/S forecast an average profit of 953 billion won ($892.94 million) for the second quarter.

South Korea's top financial services group by market value said the results underscored profit recovery in its banking division and were helped by 352.3 billion won ($330.1 million) in pre-tax gains from a stake sale in Hyundai Engineering & Construction .

"In the banking division, interest income remains on an uptrend through stable asset growth and margins," Shinhan said in a statement

View the full story in Reuters.