SEOUL: Hana Bank and the Korea Exchange Bank have consolidated to give rise to a new giant with total assets of approximately 290 trillion won (US$254 billion), second to none in the Korean banking sector.
Experts are looking forward to a complementary synergy. Hana Bank is good at asset management, including private banking, while Korea Exchange Bank has a competitive edge in corporate finance and foreign exchange. Hana Bank recorded total lending of 113 trillion won (US$99.2 billion) as of the end of last month, with 61 trillion won (US$53.6 billion) of it provided for households.
The new bank’s overseas business capabilities are drawing much attention, too. It is going to have 127 banking networks in 24 countries. Hana Bank even runs an office in Myanmar, which is an example of the new business opportunities that the consolidation will bring in the near future. Hana Bank’s global business portfolio focusing on retail banking and the Korea Exchange Bank’s portfolio specialized in corporate finance and foreign exchange are expected to result in greater profits based on the merger.
The two banks have run PT Bank KEB Hana in Indonesia with each other. Its lending and deposits increased by 54.5 percent and 69.2 percent between its inception and the end of last year, respectively. Its current net income rose about 40 percent between December 2013 and December 2014, too. The new bank is planning to reach 800 trillion won in total assets, four trillion won in pre-tax profits and 40 percent in global business ratio by 2025.
