SC Jeil Bank's Net Profit Last Year 390.1 Billion Won... Tripled Compared to Previous Year

Interest Income 1.2 Trillion KRW... 21.5% Increase YoY
Base Effect Due to Large Severance Pay Expenses Reflected

SC Jeil Bank posted nearly 400 billion KRW in net profit last year, more than tripling compared to the previous year. This was largely due to increased interest income and the base effect of the large-scale special retirement costs applied in 2021, which disappeared this year.

On the 16th, SC Jeil Bank announced that its consolidated net profit for last year reached 390.1 billion KRW, an increase of 262.2 billion KRW (205.0%) from the previous year (127.9 billion KRW). Operating profit also rose by 343.7 billion KRW (235.6%) to 489.6 billion KRW from 145.9 billion KRW the previous year. This was attributed to growth in interest income and the base effect of reduced profits due to the large-scale special retirement costs applied in Q4 2021.

Interest income increased by 21.5% year-on-year to 1.2287 trillion KRW, driven by overall asset growth and an improving net interest margin (NIM) amid rising interest rates. Meanwhile, non-interest income declined by 22.3% year-on-year to 248.7 billion KRW. Despite solid performance in the foreign exchange derivatives sector, the asset management (WM) business slowed due to challenging market conditions, and losses from bond disposals increased due to the sharp rise in interest rates.

Expenses decreased by 26.4% compared to the previous year (1.1723 trillion KRW), reflecting the base effect of special retirement costs incurred in Q4 2021 and the resulting reduction in personnel expenses. Provisions increased by 112.5 billion KRW (868.3%) to 125.4 billion KRW during the same period, as the bank proactively set aside additional reserves in anticipation of an economic downturn.

The return on assets (ROA) improved by 0.24 percentage points to 0.39%, and the return on equity (ROE) rose by 5.01 percentage points to 7.61% compared to the previous year. The ratio of non-performing loans (NPL) remained steady at 0.19%, while the loan loss coverage ratio increased by 65.2 percentage points to 326.0% year-on-year.

As of the end of December 2022, total assets stood at 98.3918 trillion KRW, up 11.6775 trillion KRW (13.5%) from the end of the previous year. The main factor was an increase in derivative-related assets due to expanded market volatility. The Bank for International Settlements (BIS) capital adequacy ratio and Tier 1 capital ratio were 17.83% and 14.73%, respectively.

Meanwhile, SC Jeil Bank resolved at its regular board meeting on the same day to propose a dividend payout of 160 billion KRW at the upcoming regular shareholders' meeting scheduled for the 31st.

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