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Shinhan Financial posts 15.8% YOY increase in Q3 net income

South Korea's Shinhan Financial Group Co. Ltd. reported a 15.8% year-over-year increase in net income for the third quarter ended Sept. 30.

The bank said consolidated net income attributable to controlling interest rose to 981.57 billion won in the third quarter from 847.83 billion won.

Interest income climbed to 2.028 trillion won from 1.931 trillion won, and noninterest income rose to 836.91 billion won from 505.88 billion won.

The group's net interest margin, excluding merchant fees in credit card, stood at 1.99% as of Sept. 30, compared to 2.03% as of June 30 and 2.10% as of Sept. 30, 2018.

The group's provision for credit losses increased to 221.30 billion won from 214.83 billion won in the quarter ended Sept. 30, 2018.

The group's nonperforming loan ratio came in at 0.60% at Sept. 30, compared to 0.59% at June 30 and 0.55% at Sept. 30, 2018.

BIS capital ratio under Basel III clocked in at 14.15% as of Sept. 30, compared with 14.26% as of June 30 and with 15.25% as of Sept. 30, 2018. Its common equity Tier 1 and Tier 1 capital ratios stood at 11.38% and 12.59%, compared with 11.57% and 12.84% as of the end of the previous quarter and with 12.96% and 13.79% as of the end of the third quarter of 2018.

The group's banking unit, Shinhan Bank Co. Ltd. reported net income attributable to controlling interest of 694.43 billion won for the quarter, up from 644.68 billion won in the prior-year period.

The bank's net interest income for the quarter rose to 1.171 trillion won from 1.126 trillion won. Its net interest margin clocked in at 1.53% for the quarter, down from 1.58% in the previous quarter and 1.62% in the prior-year quarter.

Under Basel III, Shinhan Bank's BIS capital ratio stood at 16.46%, up from 16.36% as of the end of June and from 16.41% as of the end of September 2018. Its Tier 1 capital ratio increased to 13.70% from 13.56% as of June 30 and from 13.61% as of Sept. 30, 2018, while its common equity Tier 1 ratio clocked in at 13.15%, compared with 12.99% and 13.31% over the same periods.

As of Oct. 24, US$1 was equivalent to 1,173.57 South Korean won.