Bulletin: Slower Growth To Support Major Korean Commercial Banks? Capitalization

HONG KONG (S&P Global Ratings) Feb. 20, 2019--S&P Global Ratings today said that the creditworthiness of Korea's four major commercial banks will likely remain stable in 2019, following solid financial performance in 2018. We expect the banks-- Kookmin Bank (A+/Stable/A-1), Shinhan Bank (A+/Stable/A-1), KEB Hana Bank (A+/Stable/A-1), and Woori Bank (A/Stable/A-1)--to maintain prudent risk management and an adequate capital buffer amid economic uncertainties such as the U.S.-China trade dispute or sluggish domestic housing demands along with high household leverage. We believe the banks' improved risk management should support their overall credit profiles. We expect the banks to continue managing their exposures in risky large corporates--especially in construction, shipbuilding, and shipping sectors--and maintain a prudent provisioning policy. Credit costs--as measured by

...HONG KONG (S&P Global Ratings) Feb. 20, 2019--S&P Global Ratings today said that the creditworthiness of Korea's four major commercial banks will likely remain stable in 2019, following solid financial performance in 2018. We expect the banks-- Kookmin Bank (A+/Stable/A-1), Shinhan Bank (A+/Stable/A-1), KEB Hana Bank (A+/Stable/A-1), and Woori Bank (A/Stable/A-1)--to maintain prudent risk management and an adequate capital buffer amid economic uncertainties such as the U.S.-China trade dispute or sluggish domestic housing demands along with high household leverage. We believe the banks' improved risk management should support their overall credit profiles. We expect the banks to continue managing their exposures in risky large corporates--especially in construction, shipbuilding, and shipping sectors--and maintain a prudent provisioning policy. Credit costs--as measured by impairment charges as a percentage of gross loans--fell to historically low levels of about 10 basis points (bps) in...

Bulletin