Samsung Card 1Q Net Profit 145.5 Billion Won... 9.5% Decrease YoY

Operating profit also decreased by 11.4% YoY
Increased procurement costs and rising delinquency rates lead to higher bad debt expenses

Samsung Card posted a net profit in the 140 billion KRW range for the first quarter of this year. Both operating profit and net profit decreased compared to the same period last year due to increased costs from rising funding interest rates and a worsening economy.

Samsung Card announced on the 25th that it recorded an operating profit of 191.8 billion KRW and a net profit of 145.5 billion KRW in the first quarter of this year. These figures represent decreases of 11.4% and 9.5%, respectively, compared to the same period last year.

Samsung Card explained that the increase in financial costs due to rising funding interest rates and the deterioration of economic conditions, such as the continuation of high interest rates, worsened customers' repayment ability, leading to a rise in delinquency rates and an increase in bad debt expenses.

Samsung Card expects the business environment to remain challenging in the second quarter of this year due to growing domestic and international uncertainties. Therefore, it plans to focus on managing asset soundness and enhancing platform and data competitiveness, which are future growth engines.

Meanwhile, Samsung Card's total transaction volume in the first quarter of this year was 41.1876 trillion KRW, an 11.0% increase compared to the same period last year. Among this, the card business transaction volume was 41.0836 trillion KRW, up 11.3% from the same period last year. Specifically, credit sales (lump-sum + installment) amounted to 36.7254 trillion KRW, and the financial sector (long-term and short-term card loans) accounted for 4.3582 trillion KRW. Additionally, the installment lease business transaction volume was 104 billion KRW.

Samsung Card analyzed that "the resumption of overseas travel significantly increased spending in the travel sector, and credit card usage increased in public transportation, dining, and other sectors related to outdoor activities."

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