Profits at South Korea’s banks fell 57 per cent in the first six months of this year compared with the same period in 2008, suggesting lenders could struggle to revitalise the sector with a round of acquisitions.

But in spite of the the dismal headline figures, data from regulators released on Monday showed that profits in the second quarter recovered to Won2,300bn ($1.9bn) from Won600bn in the first three months of the year.