Domestic Banks Earned $1.1 Billion from 204 Overseas Branches... Net Profit Increased by 60%

Status of Domestic Banks' Overseas Branches. Source=Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] Last year, the number of overseas branches of domestic banks surpassed 204. Nine new branches were established, and two branches were closed, with new branch locations concentrated in the New Southern region and other parts of Asia.

According to the Financial Supervisory Service on the 13th, the number of overseas branches of domestic banks increased by 7 from 197 at the end of the previous year to 204. By country, Vietnam had the most with 19 branches, followed by Myanmar (17), China and India (16), Cambodia and Indonesia (11) each. Asian region branches accounted for 141, making up 69.1% of the total.

The total assets of overseas branches of domestic banks amounted to $183.22 billion (approximately 225.5 trillion KRW as of that day), an 11% increase from $165.01 billion a year earlier. This is about 6.7% of the total assets of domestic banks, which stand at 3,275 trillion KRW.

The non-performing loan ratio of overseas branches of domestic banks was 1.91%, down 0.22 percentage points from 2.14% during the same period.

The net income of overseas branches recorded $1.165 billion, supported by an increase of $644 million in interest income. Net income increased by 62.1% in one year as it rose in most countries. The return on assets (ROA) was 0.64%, up 0.20 percentage points from 0.44% the previous year.

The comprehensive evaluation grade for localization indicators of overseas branches remained at grade 2+, the same as the previous year. The localization level of the local branch in Cambodia was the highest at grade 1+.

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