BC Card significantly increased its net profit in the first quarter of this year. Although revenue from card-related services declined, a reduction in provisions and growth in proprietary card and interest income contributed to the rise.
On May 15, BC Card announced that its consolidated net profit for the first quarter reached 58.1 billion won, a 65.2% increase from 35.2 billion won in the same period last year. Operating profit also rose by 19.0% to 42.5 billion won during the same timeframe.
However, revenue from the core card acquisition business decreased. BC Card's revenue from card acquisition operations fell to 654.4 billion won, down from 676.6 billion won a year earlier. Income from member service fees and ancillary business fees also declined. In contrast, revenue from proprietary card fees increased to 16.8 billion won, up from 13.6 billion won in the previous year, while interest income expanded to 32.3 billion won.
The reduction in expense burdens also positively impacted performance. The provision for credit losses in the first quarter was 3.6 billion won, a significant decrease from 12.8 billion won in the same period last year. As a result, despite the limited growth in operating revenue, both operating profit and net profit improved.
Financial stability remained at a solid level. At the end of the first quarter, the adjusted equity capital ratio was 29.44%, slightly up from 29.28% at the end of the previous year. The ratio of delinquent loans increased to 1.17% from 1.11% at the end of last year, but still maintained a level in the low 1% range. The liquidity ratio in Korean won stood at 131.04%.
* This article has been translated by AI.
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