Samsung Card's net profit for the first half of the year decreased due to one-time labor costs and rising financial expenses.
On July 27, Samsung Card announced that its net profit for the first half of the year was 310.5 billion won, a 7.5% decline compared to the same period last year.
Total transaction volume for the first half reached 96.5 trillion won, marking a 9.0% increase from the previous year. The growth was attributed to enhanced product competitiveness through expanded partnerships with high-quality affiliates, leading to an increase in both membership and spending per member.
The card business recorded a transaction volume of 96.1 trillion won, up 9.1% year-on-year. By segment, credit sales accounted for 86.9 trillion won, while financial services, including short- and long-term card loans, totaled 9.3 trillion won. The installment finance business recorded a transaction volume of 404.2 billion won.
Despite increased operating revenue from higher spending and an increase in product receivables, net profit declined due to a proactive reflection of retirement benefit provisions, which raised one-time labor costs. The expansion of borrowings and rising funding costs also contributed to the decrease in net profit.
A Samsung Card official stated, "Excluding one-time factors such as retirement benefit provisions, net profit for the first half shows a slight increase compared to the same period last year."
Asset soundness remained stable, with the delinquency rate for loans overdue by more than one month at 0.89% as of the end of June, down 0.03 percentage points from the previous quarter.
Samsung Card anticipates continued challenges in the second half due to rising funding costs and plans to focus on managing asset soundness and enhancing core business competitiveness. The company also intends to continue investing in future growth foundations, including artificial intelligence (AI), stablecoins, and platforms.
* This article has been translated by AI.
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