Hyundai Card Posts Cumulative Net Profit of 255 Billion Won Through Q3, Up 6.2% Year-on-Year

Delinquency Rate Drops by 0.05 Percentage Points to 0.79% from Previous Quarter
Hyundai Commercial Achieves 171.4 Billion Won in Cumulative Net Profit, Up 30%

Hyundai Card announced that its cumulative net profit through the third quarter increased, driven by growth in operating revenue as a result of expanding membership.

Hyundai Card Headquarters, Yeouido, Seoul. Hyundai Card

On October 30, Hyundai Card disclosed that it recorded a cumulative net profit of 255 billion won through the third quarter. This represents a 6.2% increase compared to the same period last year.

Cumulative operating revenue reached 2.7464 trillion won, up by 203.8 billion won (8%) from 2.5426 trillion won during the same period last year.

Breaking down the details, card revenue amounted to 1.3034 trillion won, up 1.8%, while interest income rose by 12.5% to 1.2423 trillion won.

Operating profit for the same period also increased by 7.3%, totaling 328.7 billion won.

Cumulative operating expenses for the third quarter rose by 8.1% year-on-year to 2.4177 trillion won, due to increases in interest expenses and credit loss costs.

Interest expenses increased by 555.4 billion won, up 4.7%, and credit loss costs rose by 334.2 billion won, up 19%.

The delinquency rate for loans overdue by more than one month was 0.79%, down 0.05 percentage points from the previous quarter (0.84%). The actual delinquency rate also decreased by 0.03 percentage points to 1.16% from 1.19% in the previous quarter.

A Hyundai Card representative stated, "Thanks to the strengthened product lineup tailored to member lifestyles, such as Hyundai Card Boutique and Alphabet Card, the number of high-quality members increased, and the volume of credit sales also showed solid growth."

Hyundai Commercial reported a cumulative net profit of 171.4 billion won through the third quarter, representing a 30.3% increase year-on-year.

The company expanded new car assets by increasing captive finance (exclusive finance) operations for Hyundai Motor Company and HD Hyundai.

Investment finance assets grew by 35.3% year-on-year to 1.2997 trillion won, supported by steady new contracts centered on overseas funds.

While increasing assets, the company also maintained its soundness indicators at the highest level in the industry.

In the third quarter, the average delinquency rate for domestic AA- rated capital companies was 1.83%, but Hyundai Commercial recorded just 0.79%. The leverage ratio was managed at 7.3 times, within the regulatory limit set by financial authorities. The leverage ratio refers to total assets relative to equity capital. From this year, capital companies must keep their leverage ratio below 8 times.

A Hyundai Commercial representative commented, "By diversifying our business to include both corporate and investment finance based on industrial finance, we achieved a record cumulative operating profit of 133.2 billion won," adding, "The delinquency rate remained the lowest in the industry due to proactive risk management."

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