SC Jeil Bank 2Q Net Profit 82.7 Billion KRW... 45% Increase YoY

Balanced Growth in Interest and Non-Interest Income
However, Costs and Provision Expenses Also Increased

SC Jeil Bank's net profit for the second quarter of this year increased to approximately KRW 83 billion, 1.5 times higher than the same period last year. However, for the entire first half of the year, it slightly decreased compared to last year. Although interest income and non-interest income increased, expenses such as provision expenses also rose, resulting in a slight decline compared to the first half of last year.

SC Jeil Bank announced on the 14th that its net profit for the second quarter of this year was KRW 82.7 billion, a 44.8% increase compared to the same period last year. Operating profit was KRW 106.7 billion, up 57.1% during the same period.

For the entire first half, net profit was KRW 209.2 billion, down 1.37% compared to the same period last year. Although both interest income and non-interest income grew steadily, the increase in various expenses and provision expenses is considered the cause.

Interest income for the second quarter was KRW 330.9 billion, up 10.3% from the same period last year. For the first half, it was KRW 671.6 billion, a 15.0% increase compared to the first half of last year.

Non-interest income also showed growth. For the second quarter, it was KRW 74.8 billion, and for the first half, KRW 173.1 billion, increasing by 32.1% and 64.8% respectively compared to the same periods last year. SC Jeil Bank explained that this was due to solid performance in the foreign exchange derivatives sector and recovery in the asset management division.

However, expenses also rose to KRW 480.2 billion, an 18.2% increase compared to the same period last year, influenced by regular wage increases. Provision expenses also increased by KRW 38.9 billion to KRW 86.3 billion compared to the same period last year. This was due to reflecting potential risk factors from expanded domestic and international uncertainties in future economic outlook adjustments, as well as increased corporate loan provisions and derivative product evaluation provisions.

The return on assets (ROA) was 0.42%, and the return on equity (ROE) was 7.93%, decreasing by 0.04 percentage points and 0.56 percentage points respectively compared to the same period last year. Due to the sharp rise in loan interest rates, the ratio of non-performing loans (NPL) increased to 0.31%, up 0.14 percentage points compared to the same period last year.

The loan loss provision coverage ratio fell by 58.5 percentage points from the same period last year to 233.7%. SC Jeil Bank stated, "We are striving to maintain sound asset quality by actively responding to difficult economic conditions through proactive risk management, including continuous expansion of loan loss provisions."

Meanwhile, as of the end of the first half of this year, total assets stood at KRW 97.7874 trillion, down 0.6% (KRW 604.3 billion) from the end of last year. Although loan asset balances slightly decreased due to reduced loan demand in a high-interest-rate environment, the increase in assets related to foreign exchange derivatives mostly offset this decline. The Bank for International Settlements (BIS) capital adequacy ratio and Tier 1 capital ratio were recorded at 20.39% and 17.02%, respectively.

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