China’s Growth Faces Structural Challenges Amid Doubts Over Data 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Wall Street Analysts Weigh in on Latest NFP Data 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Urban studies: Doing research when every city is different 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
US Gas Market Poised for Supercycle: Bernstein Analysts 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Moody's Investors Service says that Korea's banks posted robust profit results for FY2014, but the outlook for net interest margins (NIM) and asset quality is restrained for FY2015.
"Net profit -- which rose 60.4% year on year -- for the fiscal year ended 31 December 2014 was better than we had expected, driven by a 24.9% fall in provisions and impairment losses, and the absence of the one-time non-operating losses recorded in FY2013," says Hyun Hee Park, a Moody's Assistant Vice President and Analyst.
"However, NIM will narrow further in the first quarter of FY2015 to reflect a policy rate cut in October 2014, while asset quality could be impacted by exposure to highly leveraged industries, such as shipping, shipbuilding, steel and oil refining," adds Park.
Park was speaking on the release of a new Moody's report, "Korean Banks: Improvement in Net Profits Is Better than Expectations".
The robust results for FY2014 were further boosted by provision expenses falling 24.9%, equating to credit costs of around 60 bps, the lowest level since the global financial crisis in 2008-09, and lower than Moody's expectations.
The report also says that the fall in NIM in FY2014 was in line with expectations. Specifically, the metric's 8-basis-point (bps) fall was driven by a 25-bps base rate cut in May 2014, and an additional 25-bps cut in October 2014, as well as intense competition in the industry.
Furthermore, Moody's expect s selling and administration costs in the banking system will rise this year -- before ultimately leading to lower costs -- as more banks start to streamline their workforces and branch networks.
