SBI Savings Bank Turns Profit in 2Q... Slight Improvement in Delinquency Rate

SBI Savings Bank announced on the 30th that its net profit for the first half of this year amounted to 16.12672 billion KRW. Although SBI Savings Bank recorded a net loss of 6.42857 billion KRW in the first quarter, the first net loss in over 10 years, it posted a net profit of 22.55529 billion KRW in the second quarter.

Soundness indicators generally improved. The delinquency rate at the end of the first half of this year was 5.35%, down 0.24 percentage points from the previous quarter (5.59%). The ratio of non-performing loans classified as substandard or below decreased by 0.14 percentage points to 6.83%. However, the delinquency rate related to real estate, including real estate project financing (PF) loans, construction, and real estate businesses, rose by 1.45 percentage points from 4.63% at the end of March to 6.08% at the end of June this year.

A representative from SBI Savings Bank explained, "Interest rates on deposits have continued to fall, and we earned profits by executing a significant number of mid-interest loans," adding, "Since the volume of real estate PF handled is small, the burden of provisioning for loan losses is relatively low."

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