Banks are planning to shift the focus of their business strategy to shoring up profitability next year from aggressive marketing this year, as they expect a slowdown in economic growth, industry sources said yesterday.

A slower pace in economic growth could result in deterioration in banks' asset quality which in turn will erode their profitability. Kookmin Bank, Korea's biggest lender in terms of assets, is planning to maximize its profits next year, although this may limit its asset growth.

The lender is expecting its assets to increase by 9-10 percent next year to around 204 trillion won ($167 billion), with net profit growing to 2.4-2.5 trillion won from the estimated 1.5 trillion won for the whole of this year Kookmin is targeting a 10-11 percent increase in household loans next year, and around 10 percent growth in corporate loans.

Other banks also plan to stay on the conservative side in their operations next year. Chohung Bank, which is expecting no profits this year due to clean up of its bad loans, is eyeing 1.88 trillion won in ordinary profit next year, up 15 percent from this year's expected figure, with net profit reaching around 700 billion won.

Growth in assets and loans would be limited to around 10 percent from this year, the lender said. Woori Bank is also expecting its assets to grow next year between 10 to 20 percent, with net profits ranging from 800-900 billion won.

Shinhan Bank is now projecting a 17 percent increase in assets at 80 trillion won, with net profit reaching around 650 billion won, up 10 percent from this year's estimated figure.

Hana Bank expects its net profit this year to record 950 billion won and total assets 103 trillion won due to its merger with Seoul Bank.

The bank said it will try to lure back old customers of Seoul Bank under an aggressive marketing strategy.