South Korean Banks Lift H1 Interest Profit 8.3% to 32.2 Trillion Won as Delinquencies Hit 10-Year High
Updated
Updated · 매일경제 · Aug 23
South Korean Banks Lift H1 Interest Profit 8.3% to 32.2 Trillion Won as Delinquencies Hit 10-Year High
3 articles · Updated · 매일경제 · Aug 23
Summary
32.2 trillion won in H1 interest profit marked an 8.3% rise for South Korean banks, driven by a 220 trillion won increase in interest-earning assets to 3,628.1 trillion won.
A 1.56% net interest margin, up 0.04 percentage point from a year earlier, helped boost lending profitability even as market rates pressured other parts of bank earnings.
13.8 trillion won in net profit still fell 6.4% because non-interest income dropped by more than 2 trillion won, with securities valuation losses tied to higher rates weighing on results.
0.68% corporate loan delinquency in June was up 0.08 percentage point from a year earlier, pushing banks' overall delinquency rate to its highest June level in 10 years.
1,500 corporate bankruptcies from January to July—up about 15% from 1,297 a year earlier—underscore the broader strain on companies' debt repayment capacity.