SC Jeil Bank Reports 313.2 Billion KRW Cumulative Net Profit in Q3, Down 1.7% YoY
SC Jeil Bank announced on the 15th that its cumulative net profit for the third quarter of this year recorded 313.2 billion KRW, a 1.7% (5.5 billion KRW) decrease compared to 318.7 billion KRW a year earlier. Operating profit was 398.4 billion KRW, down 0.2% (700 million KRW) from 399.1 billion KRW in the same period last year.
Interest income grew by 10.2% year-on-year due to an improvement in net interest margin (NIM) driven by rising market interest rates, and non-interest income increased by 36.1% compared to a year ago, supported by a recovery in the Wealth Management (WM) sector, and increased fees from foreign exchange handling and corporate loans.
SC Jeil Bank explained that despite balanced growth in interest and non-interest income, net profit declined due to increased expenses and provisions. Expenses rose by 90.6 billion KRW (14.4%) to 718.9 billion KRW from 628.3 billion KRW in the same period last year, mainly due to higher personnel costs. Provisions increased by 75.3 billion KRW year-on-year to 147.2 billion KRW, reflecting potential risk factors amid expanding domestic and external uncertainties, and increased provisions for corporate loans and derivative product valuations.
The return on assets (ROA) was 0.42%, down 0.01 percentage points from the same period last year, and the return on equity (ROE) was 7.82%, down 0.57 percentage points year-on-year.
The ratio of non-performing loans (NPL) was 0.38%, up 0.19 percentage points from the same period last year, while the loan loss coverage ratio fell by 66.4 percentage points to 215.55% compared to the previous year.
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On the same day, SC Jeil Bank held an extraordinary board meeting and resolved to pay an interim dividend of 200 billion KRW. Even after the dividend, the Bank for International Settlements (BIS) capital adequacy ratio as of the end of September this year stood at 20.63%, exceeding regulatory requirements.
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