April 27, 2024

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[THE INVESTOR] Korean savings banks reported a 13.8 percent rise in their combined net profit in the first half thanks to robust gains in interest income, the financial regulator said on Sept. 5.

The combined net income of the 79 savings banks came to 561.3 billion won (US$502.20 million) for the six-month period, compared with a profit of 493.3 billion won a year earlier, according to the Financial Supervisory Service.

Their first-half interest income rose 14.6 percent on-year to 2 trillion won, while loan-loss provisions gained 20.5 percent on year to 688.9 billion won.

Their loan delinquency ratio stood at 4.5 percent as of the end of June, down 0.1 percentage point from six months earlier, according to the data.

The average capital adequacy ratio of the savings banks reached 14.49 percent as of the end of June, up 0.18 percentage point from six months earlier.

The FSS said it will induce savings banks to step up efforts to boost their financial health in the face of headwinds at home and abroad, including US rate rises, rising household debt and sluggish recovery in private consumption.

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