Korean banks log record interest income in first half

By Kim Dong-young Posted : August 22, 2024, 13:24 Updated : August 22, 2024, 13:24
This photo shows the Financial Supervisory Service headquarters in Yeouido, Seoul. Courtesy of the Financial Supervisory Service
SEOUL, August 22 (AJU PRESS) - Korean banks posted a record-high interest income of 29.8 trillion won ($22.3 billion) in the first half of 2024, up 1.4 percent year-on-year, the Financial Supervisory Service (FSS) reported on Thursday.

However, net profit for the period declined by 11 percent to 12.6 trillion won, primarily due to a decrease in non-interest income and operating losses from provisions for equity-linked securities (ELS).

The FSS noted that banks' interest income assets grew by 4.1 percent year-on-year, but the positive impact was partially offset by a shrinking net interest margin (NIM). 

Non-interest income fell by 11.4 percent to 3.4 trillion won, driven by lower foreign exchange and derivatives-related gains.

"While interest income showed a slight increase, the growth rate has slowed due to NIM contraction following interest rate declines," the FSS said.

Banks' return on assets (ROA) decreased by 0.12 percentage points to 0.67 percent, while return on equity (ROE) fell by 1.82 percentage points to 9.03 percent compared to the same period last year.
Kim Dong-young

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