Samsung Card Reports 398.8 Billion KRW Net Profit Last Year, Up 15.9% Year-on-Year

Reduction of High-Cost, Low-Efficiency Marketing
Resulting from Focus on 'Solid Management'

[Asia Economy Reporter Ki Ha-young] Despite the impact of COVID-19 last year, Samsung Card's net profit increased by nearly 16%. This was the result of strengthening fundamentals through cost reduction despite sluggish consumption caused by COVID-19.

Samsung Card announced on the 29th through its preliminary business performance disclosure that it recorded a net profit of 398.8 billion KRW in 2020. This figure represents a 15.9% increase compared to the previous year. The company explained that this was due to focusing on solid management, including reducing high-cost, low-efficiency marketing and restructuring the business with a focus on profitability.

Last year, the total transaction volume was 125.9031 trillion KRW, an increase of 1.9% compared to the previous year. Among this, the card business transaction volume recorded 124.8402 trillion KRW, up 1.8% from the previous year. This was influenced by increased untact consumption such as online shopping and increased purchases of automobiles and home appliances.

By sector, the figures are ▲ credit sales (lump sum + installment) 106.4887 trillion KRW ▲ financial sector (long-term + short-term card loans) 17.3349 trillion KRW ▲ prepaid and check cards 1.0166 trillion KRW. The installment lease business transaction volume was 1.0629 trillion KRW.

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

A Samsung Card official said, "This year as well, economic uncertainty caused by the COVID-19 situation continues," adding, "We plan to focus on strengthening future profit bases through innovation in digital and data-based businesses while proactively preparing for the risk of asset quality deterioration."

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