Korean banks’ net profit from overseas branches down 15% in 2022

Shinhan Vietnam Bank located in Ho Chi Minh City, Vietnam [Courtesy of Shinhan Bank]

South Korean commercial banks have seen assets of their overseas branches grow by more than 10 percent last year on the back of their global reach.

According to the data released by the Financial Supervisory Service (FSS) on Tuesday, the Korean banks operated 207 overseas branches as of the end of last year, up three from a year ago. Seven branches were newly established and four closed down.

The branches were operated in 40 countries as of the end of last year, up from 39 countries, as Taiwan was added. Vietnam had the largest 20 branches, followed by China with 17, and the U.S. with 16.

Eight countries in Southeast Asia had a total of 70 branches operated by Korean banks, accounting for 33.8 percent of the entire overseas operations.

Korean banks said that the total assets held by their overseas branches rose by 10.9 percent to $203.1 billion at the end of last year from $183.2 billion in the previous year.

The branches in the eight Southeast Asian countries had much more assets compared with those in the U.S. and China, holding 26.6 percent of the entire assets.

Net income of the overseas branches, however, fell by 14.9 percent in 2022 to $991 million from $1.16 billion in 2021. Most of the decline came from an increased loss of $331 million in Indonesia. Other branches outside Southeast Asia saw profits rise.