Samsung Card Reports Q1 Net Profit of 112.2 Billion KRW, Down 6.8% YoY

Renault Samsung Motors Dividend Decrease Blamed

[Asia Economy Reporter Ki Ha-young] Samsung Card's net profit for the first quarter of this year decreased by 6.8% compared to the previous year due to a reduction in dividends from Renault Samsung Motors.

Samsung Card announced on the 29th that its net profit for the first quarter of 2020 was 112.2 billion KRW, a 6.8% decrease compared to the previous year. The company explained that the main reason was a 21.2 billion KRW decrease in dividends from Renault Samsung Motors compared to the previous year.

The total transaction volume for the first quarter was 29.7835 trillion KRW. The card business transaction volume increased by 0.2% year-on-year to 29.5572 trillion KRW. By sector, it was ▲credit sales (lump sum + installment) 24.8553 trillion KRW ▲financial sector (long-term + short-term card loans) 4.4387 trillion KRW ▲prepaid and check cards 263.2 billion KRW.

The transaction volume for credit sales (lump sum + installment) decreased by 1.2% year-on-year due to reduced consumption caused by the novel coronavirus disease (COVID-19). The financial sector transaction volume (long-term + short-term card loans) increased by 9.7% year-on-year, driven by stable growth centered on card loan products. The installment lease business transaction volume was 226.3 billion KRW.

The delinquency rate over 30 days was 1.2%, showing continuous stability at a lower level than the previous year.

A Samsung Card official said, "We are reducing high-cost, low-efficiency marketing and restructuring the business focusing on profitability," adding, "We are concentrating on solid management through cost efficiency based on digital and big data."

This content was produced with the assistance of AI translation services.