Samsung Card Reports 222.6 Billion KRW Net Profit in H1, Up 16% YoY... "Recession-Type Surplus"

Preliminary Half-Year Earnings Announcement on the 28th
Profitability Amid Recession Alongside Sound Management

[Asia Economy Reporter Ki Ha-young] Samsung Card achieved a double-digit increase in net profit for the first half of this year compared to last year. This is attributed to cost reduction effects from sound management and the impact of recession-type profits.

Samsung Card announced on the 28th that it recorded a net profit of 222.6 billion KRW in the first half of this year, a 16.0% increase compared to the previous year.

The total transaction volume for the first half was 61.0281 trillion KRW, and the card business transaction volume recorded 60.5099 trillion KRW, a 0.6% decrease compared to the previous year. By sector, it was ▲credit sales 51.3727 trillion KRW ▲financial sector 8.6153 trillion KRW ▲prepaid and check cards 521.9 billion KRW. The installment lease business transaction volume was 518.2 billion KRW.

The delinquency rate over 30 days in the second quarter remained at 1.2%, the same level as in the first quarter.

Samsung Card explained that the card business transaction volume decreased as the relatively low-profit corporate card sector was downsized, leading to a reduction in corporate credit sales usage.

Regarding the net profit surplus in the first half, sound management and recession-type profits were cited. A Samsung Card official said, "We have been focusing on sound management such as reducing high-cost, low-efficiency marketing and restructuring the business centered on profitability," adding, "Due to the impact of COVID-19, sales in travel industries, duty-free shops, amusement parks, and movie theaters have decreased, resulting in reduced marketing costs related to these sectors, which also contributed to the 'recession-type profit' effect."

For the second half, risk management is expected to be necessary. A Samsung Card official emphasized, "There is a high possibility of prolonged COVID-19 in the second half, and with the expiration of payment deferral and loan repayment deferral measures, the risk is expected to increase, so preparations for this are necessary."

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