April 19, 2024
Finance
Korean banks’ net profits up in Q3
[THE INVESTOR] South Korean banks increased their net profits in the third quarter this year, according to official data on Nov. 28.
The combined net income of the banks here came to 3.2 trillion won (US$2.70 billion) during the July-September period, up 151.2 percent from a year earlier, according to the Financial Supervisory Service. It marks the highest level since they posted 3.3 trillion won in combined net income in the first quarter of 2012.
“The growth was mostly attributable to an increase in interest income resulting from expanding assets under management and temporarily growing FX-derivatives income with falling loan loss expenses of specialized banks,” said Min Byeong-jin, an FSS official.
The volume of bank loans classified as substandard or below (SBLs) dropped to 29.1 trillion won over the three months from 30.4 trillion won recorded in the previous quarter. The ratio of SBLs dipped 0.08 percentage point to 1.71 percent.
Interest income increased only 2.1 percent on-year to 8.6 trillion won, while the net interest margin, a measurement of profitability, fell 0.02 percentage point to 1.54 percent.
(theinvestor@heraldcorp.com)
The combined net income of the banks here came to 3.2 trillion won (US$2.70 billion) during the July-September period, up 151.2 percent from a year earlier, according to the Financial Supervisory Service. It marks the highest level since they posted 3.3 trillion won in combined net income in the first quarter of 2012.
“The growth was mostly attributable to an increase in interest income resulting from expanding assets under management and temporarily growing FX-derivatives income with falling loan loss expenses of specialized banks,” said Min Byeong-jin, an FSS official.
The volume of bank loans classified as substandard or below (SBLs) dropped to 29.1 trillion won over the three months from 30.4 trillion won recorded in the previous quarter. The ratio of SBLs dipped 0.08 percentage point to 1.71 percent.
Interest income increased only 2.1 percent on-year to 8.6 trillion won, while the net interest margin, a measurement of profitability, fell 0.02 percentage point to 1.54 percent.
(theinvestor@heraldcorp.com)
