As the financial sector enters the first-quarter earnings season, non-interest income and non-bank businesses determined diverging results among the four major financial holding companies. KB Financial Group, Shinhan Financial Group and Hana Financial Group each continued to post record results, while Woori Financial Group was the only financial holding company to record a decline. Industrial Bank of Korea also posted falling earnings.

Overall, expanding non-interest income on the back of a strong stock market supported results, while financial companies with heavy reliance on banks showed relatively weak performance. Sh Suhyup Bank posted net profit of 98.6 billion won, continuing its push for management efficiency.

Non-bank portfolio competitiveness is emerging as a key variable driving performance differences.

• KB's 'solo run' and Woori's 'negative growth'... The four major financial groups' first-quarter results split in non-bank businesses • Woori Financial Group posts 603.8 billion won in first-quarter net profit, down 2.1 percent from a year earlier • Hana Financial Group posts 1.21 trillion won in first-quarter net profit, up 7.3 percent from a year earlier • KB Financial Group posts 1.89 trillion won in first-quarter net profit, up 11.5 percent from a year earlier • Shinhan Financial Group posts 1.62 trillion won in first-quarter net profit, up 9 percent from a year earlier • NH NongHyup Financial Group posts 868.8 billion won in first-quarter net profit, up 21.7 percent from a year earlier • Industrial Bank of Korea posts 753.4 billion won in first-quarter net profit, down 7.5 percent from a year earlier • Sh Suhyup Bank posts 98.6 billion won in first-quarter net profit... "Continue to push management efficiency"

Major securities firms posted notable growth in first-quarter results, helped by a stock market boom. NH Investment & Securities posted operating profit of 637.9 billion won, up 120.3 percent from a year earlier, and Shinhan Investment Corp's profit surged 167.4 percent to 288.4 billion won. KB Securities also posted net profit of 350.2 billion won, up 92.75 percent, while Hana Securities posted 141.7 billion won, up 47.9 percent.

Woori Investment & Securities posted net operating revenue of 70.1 billion won, showing a growth trend centered on non-interest income. Overall, rising trading value and improving investor sentiment supported results, with the securities business emerging as a key driver of improved performance at financial holding companies.

• Securities firms soar on stock market boom, becoming a key contributor to financial holding companies' first-quarter results • KB Securities posts 350.2 billion won in first-quarter net profit, up 92.75 percent from a year earlier • NH Investment & Securities posts 637.9 billion won in first-quarter operating profit, up 120.3 percent from a year earlier • Hana Securities posts 141.7 billion won in first-quarter operating profit, up 47.9 percent from a year earlier • KB Securities posts 350.2 billion won in first-quarter net profit, up 92.75 percent from a year earlier • Shinhan Investment Corp posts 288.4 billion won in first-quarter net profit, up 167.4 percent from a year earlier • Woori Investment & Securities posts 70.1 billion won in first-quarter net operating revenue, leading non-interest income growth

Financial and investment products tailored to customer demand are also being launched in succession. Toss Bank launched a savings product offering 10 percent annual interest for new customers.

Deposit-linked products tied to stock prices, known as equity-linked deposits, are expanding for customers seeking income beyond deposits. Investment markets are also seeing broader choices. Single-stock 2x ETFs based on Samsung Electronics and SK Hynix have been introduced, reflecting demand for more active investment.

A "Youth Future Savings" product offering up to 12 percent in benefits for monthly payments of 500,000 won is also set to be launched in June.

A public participation fund focused on "advanced industries" has also been flagged for launch, expanding policy-linked investment opportunities. Investment choices are broadening with more products, but the need to improve investor understanding is also being raised as product structures become more complex.

• Toss Bank launches 10 percent annual-interest savings product for new customers • Youth Future Savings to launch in June... Up to 12 percent support with monthly payments of 500,000 won • ELDs instead of deposits... Financial authorities 'watch closely' amid a rush of bank launches • South Korea enters era of single-stock 2x ETFs... Starting with Samsung Electronics and SK Hynix • Public participation fund goes all-in on advanced industries to be released in May... Expectations and concerns 'cross'

As the shift to digital finance accelerates, technology-driven change is spreading across payments, banking and investment. In Europe, moves are under way to build its own payment standard to reduce reliance on Visa and Mastercard alongside the introduction of a digital euro.

Across fintech and finance at home and abroad, AI-based "agent banking" is emerging as the next competitive factor, and the possibility of structural change in finance combining autonomous AI and blockchain is also being raised. As AI use expands, the need for internal controls and risk management is also growing.

Capital markets are also undergoing structural change, including seeking integration with green finance centered on digital transformation. The overseas spread of South Korean fintech models is also continuing, including Toss sharing operating cases with the Philippine central bank and the World Bank.

• Digital euro to use European standards instead of Visa and Mastercard • Agent banking is coming... WebCash says competition in the banking sector will intensify next year • Shadow AI spreads into everyday banking... Are control and blocking the answer? • Banks cannot keep up... Autonomous AI agents and blockchain emerge as key pillars • Capital markets center on digital transformation... Seek integration with green finance • Toss shares digital finance operating cases with the Philippine central bank and the World Bank

Other major developments in finance and fintech are also summarised.

Banks are recently pursuing both the expansion of digital-based services and strategies to boost shareholder value. KB Financial Group created social value worth 828.6 billion won in the first quarter, strengthening inclusive finance, and KB Kookmin Bank and KB Securities moved to expand embedded finance.

Shinhan Financial Group is strengthening shareholder return policies through "Value Up 2.0", while Shinhan Bank is also expanding services centered on real demand, including a foreign-exchange rate preferential event.

• KB Financial Group: "Created social value worth 828.6 billion won in the first quarter through inclusive finance" • KB Kookmin Bank builds ERP-linked embedded finance... Expands data-based B2B finance • KB Securities signs agreement with SK Planet to expand embedded finance services • Shinhan Financial Group declares "Shinhan Value Up 2.0" to enhance shareholder value • Shinhan Bank holds event offering 100 percent preferential exchange rates for receiving trade remittances

Digital and global strategies are also being pursued alongside expanding inclusive finance. Woori Financial Group is accelerating productive and inclusive finance. Hana Financial Group achieved global award results with AI-based voice technology.

Hana Bank and NH NongHyup Bank moved to expand overseas and digital businesses, including cooperation in Vietnam and building payment ecosystems, while NH Investment & Securities moved to improve management efficiency by adopting a co-CEO structure.

• Woori Financial Group accelerates productive and inclusive finance... "We will not miss the golden time" • Hana Financial Group wins Edison Awards for AI voice relay for the visually impaired • Hana Bank expands cooperation in Vietnam... Targets both infrastructure finance and QR payments • NH NongHyup Bank signs MOU with Vietnam's Agribank for digital agricultural finance • NH NongHyup Bank joins hands with NHN KCP to build a digital payment ecosystem • NH Investment & Securities decides to shift to a co-CEO structure

The fintech industry is upgrading functions centered on user convenience and data-based services. KakaoBank and Kakao Pay released services focused on improving account inquiry and ease of use, while Korea Credit Data strengthened transaction management functions for small business owners.

Toss is expanding platform competitiveness into global markets by sharing digital finance operating cases with overseas institutions. It is also broadening customer touchpoints by expanding YouTube content.

• KakaoBank launches "Find Hidden Accounts" service • Kakao Pay automatically extends Kakao Pay Money validity period by 10 years • Korea Credit Data launches "Cash Note Store Transactions" • Toss shares digital finance operating cases with the Philippine central bank and the World Bank • "Not jealous of the gold button"... Financial sector YouTube content sees a string of hits

Change is also continuing in industries around financial markets. As silver posts stronger gains than gold, the possibility of a shift in leadership within the precious metals market is being raised, while in AI semiconductors, investment expectations for Nvidia remain intact despite intensifying competition.

• Silver shows stronger gains than gold... Precious metals market leadership put to the test • TD Cowen maintains buy view on Nvidia despite emergence of AI chips competing with Google