Samsung Card Reports 3Q Net Profit of 140.5 Billion KRW, Up 0.8% YoY

"Increase in Card Usage Due to Recovery in Consumer Sentiment, Impact of Cost Efficiency Under Solid Management Policy"

[Asia Economy Reporter Yu Je-hoon] Samsung Card announced on the 26th that its net profit for the third quarter increased by 0.8% year-on-year to 140.5 billion KRW.

Samsung Card attributed the slight improvement in performance despite the recent surge in interest rates and increased funding costs to sound management and the recovery of consumer sentiment.

A Samsung Card official explained, "The recovery of consumer sentiment, the reorganization of the product system, and strengthened personalized marketing led to an increase in the number of members and card usage per person. Also, despite the rising financial costs due to increased funding rates and the rising costs related to card approvals from increased usage amounts, the ratio of selling and administrative expenses decreased compared to the same period last year, reflecting continuous cost efficiency as part of sound management."

According to Samsung Card, the total transaction volume in the third quarter increased by 16.1% to 41.709 trillion KRW. Among this, the card business transaction volume rose 16.2% year-on-year to 41.5561 trillion KRW. By sector, ▲credit sales (lump-sum and installment) amounted to 37.1724 trillion KRW, and ▲card finance (long- and short-term card loans) was 4.3837 trillion KRW. Additionally, the installment lease business transaction volume was 152.9 billion KRW.

Samsung Card explained that the increase in card business transaction volume was due to the rise in outdoor activities, which had been suppressed by COVID-19, leading to increased credit sales usage in travel, dining, and gas stations, as well as growth in usage amounts in shopping sectors such as department stores and outlets.

Meanwhile, Samsung Card expects that uncertainties in the business environment will continue due to rising funding rates following base rate hikes, increased volatility in the capital procurement market, and concerns over economic recession amid high inflation rates.

Samsung Card stated, "While thoroughly preparing for liquidity risks and potential deterioration in asset soundness, we plan to further strengthen our sound management policy by improving profitability by business and enhancing the asset portfolio centered on high-quality members."

Meanwhile, Samsung Card's delinquency rate over 30 days is being stably managed at 0.7%.

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