Korea Capital Reports 59.5 Billion KRW Cumulative Net Profit in 3Q... Risk Management Amid Strong Performance

[Asia Economy Reporter Hyungsoo Park] Korea Capital is expected to achieve record-high performance this year while also making thorough efforts in risk management.

Korea Capital announced on the 14th that its cumulative operating profit for the third quarter reached 78 billion KRW, a 55.0% increase compared to the same period last year. Net profit rose by 65.4% to 59.5 billion KRW. The annual net profit of 53.1 billion KRW from last year was surpassed within just three quarters.

For the third quarter alone, operating profit was 23.3 billion KRW and net profit was 18.0 billion KRW, marking increases of 31.5% and 39.1% respectively compared to the same period last year. Total assets amounted to 3.7338 trillion KRW, up 444.9 billion KRW (13.5%) from the previous year.

Despite the benchmark interest rate rising by 0.75 percentage points in the third quarter this year, Korea Capital secured financial soundness alongside improved performance. The delinquency rate over one month was maintained at 1.3%, and the leverage ratio was kept low at 8.3 times.

Even amid tightening conditions in the corporate bond market, Korea Capital diversified its funding methods and maintained good liquidity. In September, it raised a total of 310 billion KRW through syndicated loans and asset-backed securities (ABS) issuance. Although the proportion of existing corporate bonds (public offerings) and commercial paper (within one year) decreased, the share of other funding sources expanded from 12% last December to 33%.

Korea Capital is reducing new real estate project financing (PF) with increased risk and expanding the proportion of other products. The share of real estate PF loans in new business performance shrank from 18.2% in June to 11.4% in September.

A Korea Capital official stated, "We expect domestic and international market volatility to continue," adding, "We will prepare for variables by strengthening credit risk inspections, accumulating provisions based on conservative standards, and securing sufficient liquidity."

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