[Digital Today reporter Ji-young Lee (이지영)] The first-quarter performance contest among the four biggest financial holding groups was decided by non-interest income and the competitiveness of non-bank units. As net interest income held steady, fees and capital markets businesses surged on a stock market recovery and the impact of money moves, widening performance gaps. KB Financial Group kept its lead, while Woori Financial Group was the only one to post negative growth due to one-off costs.

According to the financial sector on April 26, combined first-quarter net profit for the four financial holding groups (KB, Shinhan, Hana and Woori) was 53.3 trillion won, up 8.1 percent from a year earlier's 49.3 trillion won. It topped 50 trillion won for the first time.

By profit size, KB Financial held on to the top spot with 18.9 trillion won, up 11.5 percent. Shinhan Financial followed with 16.2 trillion won, up 9.0 percent, and Hana Financial posted 12.1 trillion won, up 7.3 percent.

Woori Financial, however, fell 2.1 percent to 6.0 trillion won, the only group to post negative growth. One-off factors weighed, including reduced gains related to securities and exchange rates and provisions at overseas units.

Net interest income for the four groups totalled 111.7 trillion won, up 4.9 percent, maintaining its role as the earnings foundation. The groups reshuffled assets toward corporate lending and defended net interest margins despite an environment of tighter household lending rules.

Non-interest income also rose sharply. Combined non-interest income totalled 38.8 trillion won, up 19.2 percent from a year earlier. Brokerage custody fees, wealth management and investment banking all expanded, lifting overall performance.

In particular, contributions from non-bank affiliates increased, pushing the share of non-bank businesses within each group to 43 percent for KB Financial, 34.5 percent for Shinhan Financial, 18.0 percent for Hana Financial and 23.5 percent for Woori Financial.

Rising cost burdens were cited as a common challenge. With provisions and selling, general and administrative expenses continuing to rise, they could act as a factor behind future earnings volatility.

Among banks, Shinhan Bank posted net profit of 11.6 trillion won, beating KB Kookmin Bank's 11.0 trillion won by 561.0 billion won to take the leading bank title.

Hana Bank also stayed in the top-tier battle with 11.0 trillion won, a narrow gap. Woori Bank recorded 5.3 trillion won, widening the difference.

A financial sector official said the influence of non-bank units in financial holding groups' results is growing and the bank-centric structure is gradually weakening. The official said soundness management should proceed in tandem amid rising costs.