Samsung Card 2Q Net Profit 145.1 Billion KRW... 6.5% Decrease YoY

Impact of Rising Procurement Interest Rates and Increased Bad Debt Expenses

Samsung Card's net profit has decreased for two consecutive quarters compared to the same period last year. This is attributed to increased provisioning costs due to rising market interest rates and higher funding costs, as well as weakened repayment ability of customers amid economic downturns.

Samsung Card announced on the 25th that its net profit for the second quarter of this year was 145.1 billion KRW, a 6.5% decrease compared to the same period last year. Following a 9.51% decline to 145.5 billion KRW in the first quarter compared to the previous year, the company experienced another decline.

With rising funding interest rates, financial costs increased, and considering the weakening repayment ability of customers due to the economic downturn caused by high interest rates and inflation, provisioning costs were raised. As domestic and international uncertainties are expected to continue in the second half of this year, the card industry outlook is anticipated to remain challenging.

Sales amounted to 979.7 billion KRW, down 2.7% from the same period last year. Operating profit also decreased by 8.2% to 192.6 billion KRW during the same period.

Samsung Card's total transaction volume in the first half of this year was 82.5105 trillion KRW, an increase of 3.8% compared to the same period last year. Among this, the card business transaction volume was recorded at 82.3503 trillion KRW, up 4.1% from the second quarter of last year. This is attributed to increased spending in the travel sector as overseas travel resumed, as well as growth in non-face-to-face payments such as subscription payments and online transactions.

By segment, credit sales (lump sum + installment) amounted to 73.7896 trillion KRW, and the financial sector (long-term + short-term card loans) totaled 8.5607 trillion KRW. The installment lease business transaction volume was 160.2 billion KRW.

Samsung Card stated, "We will strengthen efficient management based on solid fundamentals while enhancing our competitiveness in the data business through the newly licensed MyData business and data-specialized institutions."

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