Shinhan Financial increases capital for investment banking

By Park Sae-jin Posted : July 21, 2016, 18:22 Updated : July 21, 2016, 18:22

[Courtesy of Shinhan Bank]


Shinhan Financial, a major South Korean banking group, approved a capital increase of 440 million US dollars through rights issue Thursday in a bid to win permission for its investment banking service.

With an extra capital of 500 billion won ($440 million), the group's equity capital will exceed three trillion won, as required by financial regulators, to conduct investment banking activities.

If approved by financial authorities, Shinhan Financial could create South Korea's seventh investment bank capable of offering a bundled package of investment services such as asset management, lending and consulting to financial firms and funds.

Shinhan Financial posted a 13.3 percent on-year jump in net profit in the first half on a stable increase in profits in its banking unit and improved performance in non-banking units. First-half net profit soared 13 percent on-year to 1.45 trillion won.

The group said its loan-loss provisions in the first half edged down 2.6 percent from a year earlier. Shinhan Bank's net profit rose 30 percent on-year to 1.026 trillion won.

Aju News Lim Chang-won = cwlim34@ajunews.com
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