(LEAD) Shinhan Financial Group-Q2 earnings

▲ The corporate logo of Shinhan Financial Group, captured from the company's official website (PHOTO NOT FOR SALE) (Yonhap)

(LEAD) Shinhan Financial Group-Q2 earnings

(LEAD) Shinhan Financial Group Q2 net profit down over 3 pct on bad debt expenses

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SEOUL, July 27 (Yonhap) -- Shinhan Financial Group Co. on Thursday reported its second-quarter net income fell more than 3 percent from a year earlier on increased allowance for bad debt.

Net profit for the three months ended in June was 1.26 trillion won (US$997.3 million), down 3.7 percent from a year ago, the company said in a regulatory filing.

Operating profit inched up 1.1 percent to 1.73 trillion won, while sales fell 25.9 percent to 13.56 trillion won.

The earnings beat market expectations. The average estimate of net profit by analysts stood at 1.24 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Shinhan Financial Group said its net profit retracted in the second quarter as it set aside more loan-loss reserves by 19 percent from the previous quarter amid global financial uncertainty.

In the first half, Shinhan Financial's loan-loss provisions soared 67.8 percent on-year to over 1 trillion won.

The group said, however, its operating profit went up thanks to higher interest and noninterest income.

The flagship Shinhan Bank posted a net profit of 749 billion won in the second quarter, down 8.7 percent on-year, and Shinhan Card's net profit was 150.4 billion won, plunging more than 36 percent on-year.

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