ID :
44133
Wed, 02/04/2009 - 16:57
Auther :
Shortlink :
https://www.oananews.org//node/44133
The shortlink copeid
KEB Q4 net falls 46 pct on increased reserves
SEOUL, Feb. 4 (Yonhap) -- Korea Exchange Bank (KEB), South Korea's No. 5 lender, said Wednesday its fourth-quarter earnings sank 45.6 percent on-year on increased provisions amid an economic slump and a subsequent corporate restructuring drive.
Net profit reached 136.6 billion won (US$98.2 million) in the October-December
period, compared with 250.9 billion won a year earlier, the lender said in a
regulatory filing. Compared with three months earlier, net profit dipped 9.47
percent.
Sales gained 5.06 percent on-year to 9.2 trillion won while operating profit fell
33.6 percent to 156 billion won, the bank, controlled by U.S. private equity fund
Lone Star Funds, added.
For all of 2008, the lender's earnings declined 16.6 percent on-year to 801.3
billion won.
"The weaker bottom line comes as KEB set aside more loan-loss reserves to brace
for the slowing econmy and corporate revamps for construction firms and
builders," an official at KEB said. It put aside 335.7 billion won in reserves
last quarter.
As part of a corporate restructuring drive, local banks decided in mid-January to
end support to two ailing companies and reschedule debts at 11 builders and three
shipbuilders.
In mid-September, British banking giant HSBC Holdings Plc backed out of a $6.3
billion deal to buy a 51.02 percent stake in KEB from Lone Star Funds, citing
falling asset values amid global financial turmoil.
The lender said it plans to pay a dividend of 125 won per share, marking the
third straight yearly dividend payout. Lone Star would recoup 87.3 percent out of
its 2.15 trillion won investment in KEB from receiving dividends and selling part
of its stake in KEB.
KEB said its total assets reached 114 trillion won as of the end of December, up
from 112.7 trillion won three months earlier. Its net interest margin, a key
barometer of profitability, reached 2.82 percent in the fourth quarter, up from
2.81 percent in the third quarter.
The lender's capital adequacy ratio stood at 11.7 percent as of the end of last
year, up from 10.4 percent at the end of September.
Since late last year, South Korean lenders have been under pressure to raise
their falling capital adequacy ratio, a key barometer of financial soundness that
measures the percentage of a bank's capital to its risk-weighted credit.
Net profit reached 136.6 billion won (US$98.2 million) in the October-December
period, compared with 250.9 billion won a year earlier, the lender said in a
regulatory filing. Compared with three months earlier, net profit dipped 9.47
percent.
Sales gained 5.06 percent on-year to 9.2 trillion won while operating profit fell
33.6 percent to 156 billion won, the bank, controlled by U.S. private equity fund
Lone Star Funds, added.
For all of 2008, the lender's earnings declined 16.6 percent on-year to 801.3
billion won.
"The weaker bottom line comes as KEB set aside more loan-loss reserves to brace
for the slowing econmy and corporate revamps for construction firms and
builders," an official at KEB said. It put aside 335.7 billion won in reserves
last quarter.
As part of a corporate restructuring drive, local banks decided in mid-January to
end support to two ailing companies and reschedule debts at 11 builders and three
shipbuilders.
In mid-September, British banking giant HSBC Holdings Plc backed out of a $6.3
billion deal to buy a 51.02 percent stake in KEB from Lone Star Funds, citing
falling asset values amid global financial turmoil.
The lender said it plans to pay a dividend of 125 won per share, marking the
third straight yearly dividend payout. Lone Star would recoup 87.3 percent out of
its 2.15 trillion won investment in KEB from receiving dividends and selling part
of its stake in KEB.
KEB said its total assets reached 114 trillion won as of the end of December, up
from 112.7 trillion won three months earlier. Its net interest margin, a key
barometer of profitability, reached 2.82 percent in the fourth quarter, up from
2.81 percent in the third quarter.
The lender's capital adequacy ratio stood at 11.7 percent as of the end of last
year, up from 10.4 percent at the end of September.
Since late last year, South Korean lenders have been under pressure to raise
their falling capital adequacy ratio, a key barometer of financial soundness that
measures the percentage of a bank's capital to its risk-weighted credit.
