Breaking away from the dominance of traditional banking giants, Samsung Group’s financial affiliates are on a distinct path, projecting a combined earnings figure of 6 trillion won ($4.13 billion), potentially surpassing all major financial groups.
Industry forecasts suggest that Samsung’s four core financial businesses – insurance, credit cards, and securities – are set to collectively generate approximately 5.98 trillion won in net profits by 2025.
Samsung Card reported a net profit of 655 billion won last year, maintaining its position as an industry frontrunner. Meanwhile, Samsung Securities exceeded 1 trillion won for the first time, with earnings increasing by 12 percent year-on-year to 1.01 trillion won.
Samsung Life Insurance and Samsung Fire & Marine Insurance are scheduled to release their earnings reports on Friday. Current market expectations indicate that both insurers will exceed 2 trillion won in net profit. Samsung Life is projected to post a 9 percent year-on-year increase to approximately 2.3 trillion won, while Samsung Fire is expected to remain slightly above 2.02 trillion won despite a 2.7 percent decline.
With Samsung Asset Management poised to outperform last year’s 160 billion won due to thriving capital markets, Samsung’s financial divisions are expected to comfortably achieve the 6 trillion won benchmark.
If these projections materialize, Samsung would surpass the 6 trillion won milestone ahead of banking groups that rely on their flagship commercial banks for the majority of their earnings, demonstrating the strength of its non-bank holdings.
Among the four leading banking groups, KB Financial Group led with 5.84 trillion won in consolidated net profit, a record high but still below 6 trillion won. Shinhan Financial Group reported 4.97 trillion won, followed by Hana Financial Group at 4.03 trillion won, and Woori Financial Group at 3.13 trillion won. While varying in size, all four operate credit card, insurance, and securities divisions that compete directly with Samsung. However, on average, over 70 percent of their revenue is derived from banking activities.
Samsung’s subsidiaries are not only achieving strong financial results but also demonstrating qualitative improvements.
Samsung Life Insurance and Samsung Fire & Marine Insurance are undisputed leaders in their respective sectors, each exceeding 2 trillion won in net profit in 2024 for the first time within the industry.
The credit card division also secured the top position in 2024 and widened its lead over Shinhan Card last year. Samsung Card’s net profit fell by only 2.3 percent amidst an industry downturn, compared to Shinhan Card’s 16.7 percent decline. Its market share is also approaching Shinhan’s, as Samsung continues to narrow the gap.
Samsung Securities also benefited from a successful year for Korean equities, which were among the strongest performers globally, along with a surge in retail trading both domestically and internationally. Brokerage commission income increased by over 30 percent, while retail assets under management jumped by 43 percent, boosting its wealth management business.
jwc
