SC Jeil Bank's Net Profit Last Year 350.6 Billion KRW... 10.1% Decrease YoY

SC First Bank announced on the 15th that its net profit for last year was 350.6 billion KRW. This represents a 10.1% decrease compared to the previous year (390.1 billion KRW). Last year's operating profit was 471.2 billion KRW, down 18.4 billion KRW from 489.6 billion KRW the previous year. SC First Bank explained that this was due to increased expenses and provisions despite balanced growth in interest income and non-interest income.

Regarding interest income, despite a decrease in assets, it recorded 1.2933 trillion KRW, a 5.3% increase from the previous year, thanks to an improvement in net interest margin (NIM). Non-interest income (308.6 billion KRW) increased by 24.1% year-on-year due to recovery in the wealth management (WM) sector from the movement of idle market funds, as well as increases in foreign exchange handling fees and corporate loan-related fees.

Expenses amounted to 974 billion KRW, increasing by 112 billion KRW from the previous year due to factors such as increased labor costs from regular wage hikes and higher taxes and public charges. Provisions also increased to 157 billion KRW, up 31 billion KRW from the previous year. This was because potential risk factors from expanded domestic and international uncertainties were reflected in future economic outlook adjustments, along with increased proactive additional provisions for corporate loans and project financing (PF) loans.

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The return on assets (ROA) was 0.36%, down 0.03 percentage points from the previous year, and the return on equity (ROE) was 6.56%, down 1.05 percentage points year-on-year. The ratio of non-performing loans (NPL) classified as fixed or below was 0.39%, up 0.20 percentage points from the previous year. Total assets stood at 85.7008 trillion KRW, a decrease of 12.691 trillion KRW from 98.3918 trillion KRW at the end of December 2022. This was due to a decrease in loan receivables assets caused by reduced loan demand in a high-interest-rate environment and a decrease in foreign currency derivative assets.

Meanwhile, SC First Bank resolved a year-end dividend of 50 billion KRW at the regular board meeting held that day and submitted it as an agenda item for the regular shareholders' meeting scheduled for the 29th of this month.

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