The banks recorded another record-high net profit last year. The photo shows ATM machines of major banks in downtown Seoul. News1
, ‘ Domestic banks achieved another record-high net profit last year, based on stable interest income. ‘,
, ” According to the ‘2024 Domestic Bank Business Performance’ report released by the Financial Supervisory Service on the 14th, the net profit of domestic banks last year was 22.4 trillion KRW, an increase of 1.2 trillion KRW (5.5%) compared to the previous year (21.2 trillion KRW). “,
, ‘ The Financial Supervisory Service explained that despite the expansion of non-operating losses due to compensation costs of 1.4 trillion KRW for Equity-Linked Securities (ELS), the decrease in loan-loss provisions by 3.1 trillion KRW led to an increase in net profit. ‘,
, ‘ By category, interest income was 59.3 trillion KRW, nearing 60 trillion KRW, an increase of 1 trillion KRW (0.2%) compared to the previous year. ‘,
, ‘ The Financial Supervisory Service stated, “The growth rate of interest income has significantly slowed compared to the previous year (5.8%), and the net interest margin (NIM) has been in a decreasing trend since peaking in the fourth quarter of 2022.” ‘,
, ‘ Last year, non-interest income was 6 trillion KRW, an increase of 2 trillion KRW (2.9%) from the previous year (5.8 trillion KRW), influenced by increased profits related to securities due to falling market interest rates. ‘,
, ‘ In terms of expenses, last year’s selling and administrative expenses were 27.4 trillion KRW, an increase of 9 trillion KRW (3.2%) compared to the previous year (26.5 trillion KRW). ‘,
, ‘ Loan-loss provisions were calculated at 6.9 trillion KRW, a decrease of 3.1 trillion KRW (30.9%) compared to the previous year (10 trillion KRW). ‘,
, ‘ The Financial Supervisory Service explained that this was influenced by the additional accumulation of loan-loss provisions due to an improved calculation method for loan-loss allowances in 2023. ‘,
, ‘ Last year’s return on assets (ROA) of banks was 0.58%, the same as the previous year, while the return on equity (ROE) was 7.80%, down by 0.08 percentage points (p) over the same period. ‘,
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