Shinhan Net Jumps 13% on More Loans to Smes

By Choi Kyong-ae

Shinhan Financial Group posted a 13-percent jump in net profit during the January-September period on increased interest income from small and medium-sized enterprises (SMEs) and cost cutting.

Net profit for the first nine months rose to 177 trillion won ($1.

7 billion) from 156 trillion won a year earlier, the bank said in a statement.

"Interest income that arose from loans to SMEs and a companywide drive to cut costs helped Shinhan Financial post stronger-than-expected earnings," the statement said.

The won-denominated loans to SMEs climbed 63 percent to 156.2 trillion at the end of September, compared to the end of December last year

The bank was able to reduce loan-loss provisions by extending more loans to financially stable companies.

The value of loan-loss provisions fell 14 percent to 739.6 billion won in the January-September period from a year earlier

Looking ahead, Shinhan Financial said it will continue to boost profits by reducing non-performing loans and developing corporate customers which are small but have growth potential.

In efforts to seek stable growth, Shinhan Financial has been aggressive in lending money to venture startups and SMEs that have advanced technologies and competitive business models since the 2008 financial crisis.

Its strategy to seek...

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