April 27, 2024

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[THE INVESTOR] Korean savings banks reported a drop in their combined net profits in the first quarter while also being hit by a hike in loan-loss provisions, the financial regulator said on June 5.

The combined net income of the 79 savings banks came to 232.1 billion won (US$216.70 million) for the three-month period, down 7 percent from a year earlier, according to the Financial Supervisory Service.

Their first-quarter interest income rose 17.7 percent on-year to 1 trillion won, while loan-loss provisions jumped 69.4 percent on year to 413 billion won.

Their loan delinquency ratio stood at 4.6 percent as of the end of March, unchanged from three months earlier, the latest findings showed.

The average capital adequacy ratio of the savings banks reached 14.15 percent as of the end of March, down 0.16 percentage point from three months earlier.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)