5. Segment Information
5.1 Overall Segment Information and Business Segments
The Group classifies reporting segments based on the nature of the products and services provided, the type of customer, and the Group’s management organization.
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Banking Business |
Corporate Banking |
The activities within this segment include providing credit, deposit products and other related financial services to large, small and medium-sized enterprises and SOHOs.
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Retail Banking |
The activities within this segment include providing credit, deposit products and other related financial services to individuals and households.
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Other Banking Services
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The activities within this segment include trading activities in securities and derivatives, funding and other supporting activities. | |||
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Securities Business |
The activities within this segment include investment banking, brokerage services and other supporting activities.
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Non-life Insurance Business |
The activities within this segment include property insurance and other supporting activities.
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Credit Card Business |
The activities within this segment include credit sale, cash service, card loan and other supporting activities.
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Life Insurance Business |
The activities within this segment include life insurance and other supporting activities. | |||
Financial information by business segment for the year ended December 31, 2016, is as follows:
| Banking business | ||||||||||||||||||||||||||||||||||||||||
| Corporate Banking |
Retail Banking |
Other Banking Services |
Sub-total | Securities | Credit Card | Life Insurance |
Others | Intra-group Adjustments |
Total | |||||||||||||||||||||||||||||||
| (In millions of Korean won) | ||||||||||||||||||||||||||||||||||||||||
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Operating revenues from external customers |
￦ | 1,803,204 | ￦ | 2,248,035 | ￦ | 1,402,861 | ￦ | 5,454,100 | ￦ | 184,856 | ￦ | 1,269,573 | ￦ | 139,847 | ￦ | 396,566 | ￦ | — | ￦ | 7,444,942 | ||||||||||||||||||||
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Intra-segment operating revenues(expenses) |
9,274 | — | 249,235 | 258,509 | 3,268 | (261,747 | ) | (26,528 | ) | 159,944 | (133,446 | ) | — | |||||||||||||||||||||||||||
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Sub-total |
￦ | 1,812,478 | ￦ | 2,248,035 | ￦ | 1,652,096 | ￦ | 5,712,609 | ￦ | 188,124 | ￦ | 1,007,826 | ￦ | 113,319 | ￦ | 556,510 | ￦ | (133,446 | ) | ￦ | 7,444,942 | |||||||||||||||||||
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Net interest income |
2,286,347 | 2,353,232 | 189,331 | 4,828,910 | 73,205 | 981,342 | 233,742 | 283,158 | 2,172 | 6,402,529 | ||||||||||||||||||||||||||||||
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Interest income |
3,297,791 | 3,740,601 | 855,764 | 7,894,156 | 142,960 | 1,261,787 | 233,764 | 501,675 | (12,460 | ) | 10,021,882 | |||||||||||||||||||||||||||||
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Interest expense |
(1,011,444 | ) | (1,387,369 | ) | (666,433 | ) | (3,065,246 | ) | (69,755 | ) | (280,445 | ) | (22 | ) | (218,517 | ) | 14,632 | (3,619,353 | ) | |||||||||||||||||||||
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Net fee and commission income |
231,182 | 504,259 | 352,410 | 1,087,851 | 193,384 | 92,070 | (927 | ) | 212,723 | (209 | ) | 1,584,892 | ||||||||||||||||||||||||||||
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Fee and commission income |
293,336 | 583,048 | 433,998 | 1,310,382 | 220,938 | 1,658,034 | 85 | 252,031 | (290,593 | ) | 3,150,877 | |||||||||||||||||||||||||||||
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Fee and commission expense |
(62,154 | ) | (78,789 | ) | (81,588 | ) | (222,531 | ) | (27,554 | ) | (1,565,964 | ) | (1,012 | ) | (39,308 | ) | 290,384 | (1,565,985 | ) | |||||||||||||||||||||
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Net insurance income |
— | — | — | — | — | 20,825 | (166,095 | ) | — | 27,467 | (117,803 | ) | ||||||||||||||||||||||||||||
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Insurance income |
— | — | — | — | — | 33,874 | 1,167,478 | — | — | 1,201,352 | ||||||||||||||||||||||||||||||
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Insurance expenses |
— | — | — | — | — | (13,049 | ) | (1,333,573 | ) | — | 27,467 | (1,319,155 | ) | |||||||||||||||||||||||||||
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Net gains (losses) on financial assets/ liabilities at fair value through profit or loss |
(1,166 | ) | — | 198,064 | 196,898 | (212,522 | ) | — | 8,154 | 7,851 | (9,149 | ) | (8,768 | ) | ||||||||||||||||||||||||||
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Net other operating income (expense) |
(703,885 | ) | (609,456 | ) | 912,291 | (401,050 | ) | 134,057 | (86,411 | ) | 38,445 | 52,778 | (153,727 | ) | (415,908 | ) | ||||||||||||||||||||||||
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General and administrative expenses |
(950,038 | ) | (2,102,384 | ) | (1,216,527 | ) | (4,268,949 | ) | (316,958 | ) | (348,121 | ) | (94,753 | ) | (266,124 | ) | 66,194 | (5,228,711 | ) | |||||||||||||||||||||
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Operating profit before provision for credit losses |
862,440 | 145,651 | 435,569 | 1,443,660 | (128,834 | ) | 659,705 | 18,566 | 290,386 | (67,252 | ) | 2,216,231 | ||||||||||||||||||||||||||||
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Provision (reversal) for credit losses |
(278,277 | ) | (2,615 | ) | 26,563 | (254,329 | ) | 9,083 | (249,809 | ) | (1,663 | ) | (42,893 | ) | 328 | (539,283 | ) | |||||||||||||||||||||||
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Net operating income (expense) |
584,163 | 143,036 | 462,132 | 1,189,331 | (119,751 | ) | 409,896 | 16,903 | 247,493 | (66,924 | ) | 1,676,948 | ||||||||||||||||||||||||||||
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Share of profit of associates and joint ventures |
— | — | 17,615 | 17,615 | 106,423 | (20 | ) | — | 156,820 | — | 280,838 | |||||||||||||||||||||||||||||
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Net other non-operating income (expense) |
(1,300 | ) | — | 50,611 | 49,311 | 634,863 | 2,262 | (148 | ) | (440 | ) | (14,979 | ) | 670,869 | ||||||||||||||||||||||||||
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Segment profits before income tax |
582,863 | 143,036 | 530,358 | 1,256,257 | 621,535 | 412,138 | 16,755 | 403,873 | (81,903 | ) | 2,628,655 | |||||||||||||||||||||||||||||
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Income tax benefit (expense) |
(140,910 | ) | (34,614 | ) | (116,477 | ) | (292,001 | ) | 20,765 | (95,035 | ) | (4,041 | ) | (66,262 | ) | (1,901 | ) | (438,475 | ) | |||||||||||||||||||||
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Profit (loss) for the year |
441,953 | 108,422 | 413,881 | 964,256 | 642,300 | 317,103 | 12,714 | 337,611 | (83,804 | ) | 2,190,180 | |||||||||||||||||||||||||||||
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Profit (loss) attributable to shareholders of the parent company |
441,953 | 108,422 | 413,881 | 964,256 | 642,300 | 317,103 | 12,714 | 291,175 | (83,804 | ) | 2,143,744 | |||||||||||||||||||||||||||||
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Profit attributable to non-controlling interests |
— | — | — | — | — | — | — | 46,436 | — | 46,436 | ||||||||||||||||||||||||||||||
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Total assets1 |
109,500,342 | 122,806,490 | 74,759,538 | 307,066,370 | 32,382,795 | 15,772,036 | 8,887,413 | 36,646,767 | (25,081,725 | ) | 375,673,656 | |||||||||||||||||||||||||||||
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Total liabilities1 |
91,685,643 | 140,082,958 | 51,972,767 | 283,741,368 | 28,198,439 | 11,807,038 | 8,337,849 | 12,468,290 | (140,731 | ) | 344,412,253 | |||||||||||||||||||||||||||||
| 1 | Assets and liabilities of the reporting segments are amounts before intra-segment transaction adjustment. |
Financial information by business segment for the year ended December 31, 2017, is as follows:
| Banking business | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate Banking |
Retail Banking |
Other Banking Services |
Sub-total | Securities | Non-life Insurance |
Credit Card | Life Insurance |
Others | Intra-group Adjustments |
Total | ||||||||||||||||||||||||||||||||||
| (In millions of Korean won) | ||||||||||||||||||||||||||||||||||||||||||||
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Operating revenues from external customers |
￦ | 2,128,913 | ￦ | 2,710,798 | ￦ | 1,405,605 | ￦ | 6,245,316 | ￦ | 1,074,365 | ￦ | 1,121,108 | ￦ | 1,276,803 | ￦ | 129,513 | ￦ | 345,077 | ￦ | — | ￦ | 10,192,182 | ||||||||||||||||||||||
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Intra-segment operating revenues(expenses) |
(18,447 | ) | — | 203,310 | 184,863 | (1,157 | ) | 18,039 | (194,167 | ) | (20,515 | ) | 171,422 | (158,485 | ) | — | ||||||||||||||||||||||||||||
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Sub-total |
￦ | 2,110,466 | ￦ | 2,710,798 | ￦ | 1,608,915 | ￦ | 6,430,179 | ￦ | 1,073,208 | ￦ | 1,139,147 | ￦ | 1,082,636 | ￦ | 108,998 | ￦ | 516,499 | ￦ | (158,485 | ) | ￦ | 10,192,182 | |||||||||||||||||||||
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| Net interest income | 2,555,780 | 2,647,768 | 190,767 | 5,394,315 | 251,967 | 465,016 | 1,083,665 | 215,743 | 296,920 | 2,383 | 7,710,009 | |||||||||||||||||||||||||||||||||
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Interest income |
3,584,021 | 3,935,895 | 818,508 | 8,338,424 | 452,862 | 465,144 | 1,341,150 | 215,768 | 582,864 | (13,760 | ) | 11,382,452 | ||||||||||||||||||||||||||||||||
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Interest expense |
(1,028,241 | ) | (1,288,127 | ) | (627,741 | ) | (2,944,109 | ) | (200,895 | ) | (128 | ) | (257,485 | ) | (25 | ) | (285,944 | ) | 16,143 | (3,672,443 | ) | |||||||||||||||||||||||
| Net fee and commission income | 235,210 | 595,322 | 394,157 | 1,224,689 | 551,619 | (97,828 | ) | 132,686 | (3,612 | ) | 252,813 | (10,343 | ) | 2,050,024 | ||||||||||||||||||||||||||||||
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Fee and commission income |
315,994 | 668,227 | 487,259 | 1,471,480 | 637,630 | 1,532 | 1,901,112 | 69 | 299,783 | (323,356 | ) | 3,988,250 | ||||||||||||||||||||||||||||||||
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Fee and commission expense |
(80,784 | ) | (72,905 | ) | (93,102 | ) | (246,791 | ) | (86,011 | ) | (99,360 | ) | (1,768,426 | ) | (3,681 | ) | (46,970 | ) | 313,013 | (1,938,226 | ) | |||||||||||||||||||||||
| Net insurance income | — | — | — | — | — | 699,873 | 19,948 | (141,421 | ) | — | 15,310 | 593,710 | ||||||||||||||||||||||||||||||||
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Insurance income |
— | — | — | — | — | 7,947,262 | 33,579 | 1,008,329 | — | (18,178 | ) | 8,970,992 | ||||||||||||||||||||||||||||||||
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Insurance expenses |
— | — | — | — | — | (7,247,389 | ) | (13,631 | ) | (1,149,750 | ) | — | 33,488 | (8,377,282 | ) | |||||||||||||||||||||||||||||
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Net gains (losses) on financial assets/ liabilities at fair value through profit or loss |
(1,750 | ) | — | 101,012 | 99,262 | 526,023 | 41,079 | — | 7,795 | 19,749 | 46,421 | 740,329 | ||||||||||||||||||||||||||||||||
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Net other operating income (expense) |
(678,774 | ) | (532,292 | ) | 922,979 | (288,087 | ) | (256,401 | ) | 31,007 | (153,663 | ) | 30,493 | (52,983 | ) | (212,256 | ) | (901,890 | ) | |||||||||||||||||||||||||
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General and administrative expenses |
(974,096 | ) | (1,946,640 | ) | (745,086 | ) | (3,665,822 | ) | (734,024 | ) | (629,469 | ) | (370,508 | ) | (72,423 | ) | (291,240 | ) | 134,822 | (5,628,664 | ) | |||||||||||||||||||||||
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Operating profit before provision for credit losses |
1,136,370 | 764,158 | 863,829 | 2,764,357 | 339,184 | 509,678 | 712,128 | 36,575 | 225,259 | (23,663 | ) | 4,563,518 | ||||||||||||||||||||||||||||||||
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Provision (reversal) for credit losses |
6,918 | (122,107 | ) | 23 | (115,166 | ) | (23,080 | ) | (8,987 | ) | (336,884 | ) | (1,692 | ) | (62,894 | ) | 459 | (548,244 | ) | |||||||||||||||||||||||||
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Net operating income (expense) |
1,143,288 | 642,051 | 863,852 | 2,649,191 | 316,104 | 500,691 | 375,244 | 34,883 | 162,365 | (23,204 | ) | 4,015,274 | ||||||||||||||||||||||||||||||||
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Share of profit of associates and joint ventures |
— | — | 37,571 | 37,571 | 535 | — | (462 | ) | — | 6,076 | 40,554 | 84,274 | ||||||||||||||||||||||||||||||||
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Net other non-operating income (expense) |
1,873 | — | (75,340 | ) | (73,467 | ) | 1,794 | 11,167 | (6,882 | ) | (289 | ) | 6,582 | 99,971 | 38,876 | |||||||||||||||||||||||||||||
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Segment profits before income tax |
1,145,161 | 642,051 | 826,083 | 2,613,295 | 318,433 | 511,858 | 367,900 | 34,594 | 175,023 | 117,321 | 4,138,424 | |||||||||||||||||||||||||||||||||
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Income tax benefit (expense) |
(181,936 | ) | (102,059 | ) | (154,595 | ) | (438,590 | ) | (46,732 | ) | (181,488 | ) | (71,069 | ) | (13,508 | ) | (61,610 | ) | 18,034 | (794,963 | ) | |||||||||||||||||||||||
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Profit for the year |
963,225 | 539,992 | 671,488 | 2,174,705 | 271,701 | 330,370 | 296,831 | 21,086 | 113,413 | 135,355 | 3,343,461 | |||||||||||||||||||||||||||||||||
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Profit attributable to shareholders of the Parent Company |
963,225 | 539,992 | 671,488 | 2,174,705 | 271,701 | 330,286 | 296,831 | 21,086 | 113,798 | 103,031 | 3,311,438 | |||||||||||||||||||||||||||||||||
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Profit attributable to non-controlling interests |
— | — | — | — | — | 84 | — | — | (385 | ) | 32,324 | 32,023 | ||||||||||||||||||||||||||||||||
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Total assets1 |
117,904,269 | 129,438,168 | 82,423,490 | 329,765,927 | 37,351,680 | 32,351,778 | 17,658,310 | 9,125,741 | 37,439,753 | (26,907,580 | ) | 436,785,609 | ||||||||||||||||||||||||||||||||
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Total liabilities1 |
102,224,405 | 147,870,309 | 54,347,779 | 304,442,493 | 32,936,024 | 29,128,747 | 13,616,481 | 8,586,328 | 15,137,421 | (1,106,714 | ) | 402,740,780 | ||||||||||||||||||||||||||||||||
| 1 | Assets and liabilities of the reporting segments are amounts before intra-segment transaction adjustment. |
5.2 Services and Geographical Segments
5.2.1 Services information
Operating revenues from external customers for each service for the year ended December 31, 2015, 2016 and 2017, are as follows:
| 2015 | 2016 | 2017 | ||||||||||
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Banking service |
￦ | 5,398,554 | ￦ | 5,454,100 | ￦ | 6,245,316 | ||||||
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Securities service |
184,880 | 184,856 | 1,074,365 | |||||||||
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Non-life insurance service |
— | — | 1,121,108 | |||||||||
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Credit card service |
1,310,628 | 1,269,573 | 1,276,803 | |||||||||
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Life insurance service |
142,885 | 139,847 | 129,513 | |||||||||
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Other service |
345,002 | 396,566 | 345,077 | |||||||||
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Total |
￦ | 7,381,949 | ￦ | 7,444,942 | ￦ | 10,192,182 | ||||||
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5.2.2 Geographical information
Geographical operating revenues from external customers for the year ended December 31, 2015, 2016 and 2017, and major non-current assets as of December 31, 2015, 2016 and 2017, are as follows:
| 2015 | 2016 | 2017 | ||||||||||||||||||||||
| Revenues from external customers |
Major non-current assets |
Revenues from external customers |
Major non-current assets |
Revenues From external customers |
Major non-current assets |
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| (In millions of Korean won) | ||||||||||||||||||||||||
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Domestic |
￦ | 7,305,697 | ￦ | 3,821,634 | ￦ | 7,354,698 | ￦ | 4,952,552 | ￦ | 10,078,253 | ￦ | 7,472,597 | ||||||||||||
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United States |
11,847 | 276 | 10,522 | 299 | 17,596 | 363,330 | ||||||||||||||||||
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New Zealand |
5,143 | 209 | 5,422 | 128 | 5,855 | 57 | ||||||||||||||||||
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China |
30,590 | 6,949 | 47,360 | 5,038 | 44,531 | 4,585 | ||||||||||||||||||
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Cambodia |
5,072 | 350 | 6,109 | 1,216 | 7,475 | 1,753 | ||||||||||||||||||
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United Kingdom |
9,533 | 130 | 10,987 | 149 | 11,547 | 319 | ||||||||||||||||||
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Others |
14,067 | 1,786 | 9,844 | 2,242 | 26,925 | 78,142 | ||||||||||||||||||
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Adjustment |
— | 134,692 | — | 72,971 | — | 72,455 | ||||||||||||||||||
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Total |
￦ | 7,381,949 | ￦ | 3,966,026 | ￦ | 7,444,942 | ￦ | 5,034,595 | ￦ | 10,192,182 | ￦ | 7,993,238 | ||||||||||||
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