Lone Star’s Korea Exchange Bank Posts 63% Drop in Earnings

Lone Star Funds’ Korea Exchange Bank posted a 63 percent drop in third-quarter profit because of increased provisions, a week after the U.S. firm was told it would have to sell its stake in the lender.

Net income declined to 117 billion won ($104 million) from a restated 319.3 billion won a year earlier, the Seoul-based bank said in a filing yesterday. More than two-thirds of workers at KEB, which also said it won’t pay a quarterly dividend, plan to meet today to oppose Lone Star’s proposed $4 billion sale of its stake to Hana Financial Group Inc.