Samsung Card Q3 Net Profit 128.1 Billion KRW... Up 41.1% YoY

Effect of Sound Management
Impact of Reduced Card Service Costs in Travel Industry and Duty-Free Shops Due to COVID-19

[Asia Economy Reporter Ki Ha-young] Samsung Card achieved a net profit for the current period that increased by 41% compared to the previous year by focusing on profitability-centered business restructuring and solid management in the third quarter of this year.

Samsung Card announced on the 27th that it recorded a net profit of 128.1 billion KRW in the third quarter of 2020. This figure represents a 41.1% increase compared to the previous year. A Samsung Card representative explained, "This is the result of focusing on solid management such as reducing high-cost, low-efficiency marketing and restructuring the business centered on profitability," adding, "There was also an impact from the decrease in card service costs related to travel industries, duty-free shops, amusement parks, and movie theaters, whose sales declined due to the COVID-19 pandemic."

The total transaction volume was 32.5456 trillion KRW, of which the card business transaction volume recorded 32.2652 trillion KRW, a 7.3% increase compared to the previous year. The increase in card business transaction volume is the result of expanded untact consumption as the COVID-19 situation prolonged. By sector, the figures were ▲ Credit sales (lump-sum + installment) 27.7854 trillion KRW ▲ Financial sector (long-term + short-term card loans) 4.2268 trillion KRW ▲ Prepaid and check cards 253 billion KRW. The installment lease business transaction volume was 280.4 billion KRW.

The delinquency rate is also stable. The over-30-day delinquency rate remains steady at 1.0%.

A Samsung Card official said, "Uncertainty caused by COVID-19 continues, and risks are increasing due to the extension of debt repayment grace periods," adding, "It is a situation where preparation for this is necessary."

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