Earnings of foreign banks in S. Korea more than triple

SEOUL, Dec. 9 (Yonhap) -- Total earnings of foreign bank branches in South Korea
more than tripled this year due mainly to increased foreign exchange gains
stemming from a weak won, industry sources said Tuesday.

The combined net income of 16 foreign bank branches came to 1.19 trillion won
(US$826 million) in the January-September period, up 3.1 times from a year
earlier and a record high, according to the sources.
The jump in their earnings was attributed mainly to the local currency's plunge
against the U.S. dollar, which sharply raised their foreign exchange gains. The
won has fallen 35 percent against the greenback so far this year.
The local branch of JP Morgan posted 333.4 billion won in earnings during the
period, a 12-fold increase from a year earlier and the largest among foreign
lenders here. The earnings of 11 HSBC branches rose five-fold to 173.9 billion
won.
At the end of September, the branches' assets totaled 276.96 trillion won,
compared with 136.25 trillion won a year earlier.
Their stellar performance strikes a sharp contrast against the dismal earnings of
major local lenders. Top lender Kookmin Bank and five others recorded 5.79
trillion won in combined earnings during the nine-month period, down 31 percent
from a year earlier, on increased funding costs and bad loans.
pbr@yna.co.kr
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