Warrior's net profit of 1.33 trillion KRW at the end of June... Up 22% YoY

Impact Including 20% Reduction in Bad Debt Expenses

[Asia Economy Reporter Kim Hyo-jin] The Financial Supervisory Service announced on the 28th that the net profit of 110 specialized credit finance companies (excluding credit card companies) as of the end of June this year was 1.3306 trillion KRW, a provisional figure showing a 22.2% (241.2 billion KRW) increase compared to the same period last year.

Net profit from core businesses such as leasing, installment financing, and new technology decreased by 2.3% (32.1 billion KRW) compared to the same period last year, but interest income increased by 3.1% (86.6 billion KRW). Bad debt expenses decreased by 19.7% (163.8 billion KRW).

The total assets of the specialized credit finance companies as of the end of June amounted to 171.2 trillion KRW, an increase of 12.2% (18.6 trillion KRW) compared to the same period last year (152.6 trillion KRW).

Assets related to core businesses reached 64.4 trillion KRW, increasing by 10.5% (6.1 trillion KRW) compared to the same period last year (58.3 trillion KRW), due to asset growth across all sectors including installment financing, leasing, and new technology businesses.

Loan assets were recorded at 79.8 trillion KRW. Corporate loans increased relatively more, rising by 11.2% (8.1 trillion KRW) compared to the same period last year (71.7 trillion KRW).

The delinquency rate as of the end of June was 1.49%, down 0.4 percentage points from 1.89% in the same period last year. The adjusted capital adequacy ratio (16.2%) and leverage ratio (6.8 times) as of the end of June were at similar levels to those of the same period last year (16.2% and 6.7 times, respectively).

A Financial Supervisory Service official evaluated, "In the first half of the year, the total assets and net profit of the specialized credit finance companies showed a continuous upward trend, and indicators such as delinquency rate and adjusted capital adequacy ratio were also favorable."

The official added, "However, in preparation for the possibility of prolonged COVID-19, we plan to strengthen liquidity management by encouraging additional provisioning for bad debts to enhance loss absorption capacity, as well as monitoring funding and operational conditions."

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