Hyundai Card, 'PLCC Effect' Last Year's Net Profit 316.4 Billion KRW... Delinquency Rate 1.08%

Hyundai Card continued its growth last year by demonstrating product competitiveness, including private label credit cards (PLCC). Although the delinquency rate broke the 0% range, it recorded a low 1% level, maintaining the highest standard in the industry alongside Samsung Card.

Seoul Yeongdeungpo-gu Yeouido Hyundai Card building exterior. Provided by Hyundai Card

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Hyundai Card announced on the 5th that its net profit last year was 316.4 billion KRW, an increase of 19.4% compared to the previous year.

Revenue rose 22.9% to 3.9638 trillion KRW, and operating profit increased 16.0% to 406.1 billion KRW.

According to the Credit Finance Association, Hyundai Card's credit sales (individual and corporate) last year increased by 10.7% to 16.1114 trillion KRW, ranking first in the industry. Overseas payment volume also rose 32.6% to 3.3523 trillion KRW, maintaining the top position for two consecutive years.

Thanks to strengthened product competitiveness, both new sales performance and membership numbers increased. By the end of last year, Hyundai Card secured 12.25 million members, up 520,000 (4.2%) from the previous year.

Enhancements in payment convenience through Apple Pay, premium services, PLCC, and American Express acted as driving forces for increasing new sales performance and membership numbers. Hyundai Card explained, "Both revenue and net profit increased due to the growth in membership and new sales volume resulting from strengthened product competitiveness."

Hyundai Card recorded a delinquency rate of 1.08% at the end of last year, up 0.11 percentage points from 0.97% at the end of the previous year. This figure is the same as Samsung Card (1.08%) and 0.23 to 0.43 percentage points lower than KB Kookmin Card (1.31%) and Shinhan Card (1.51%).

Hyundai Card stated, "We maintained a low delinquency rate through soundness-centered management and proactive risk management carried out from a long-term perspective."

Meanwhile, Hyundai Commercial recorded a net profit of 193.4 billion KRW last year, a 45.2% increase compared to the previous year. The delinquency rate was 0.58%, down 0.12 percentage points from 0.70% the previous year.

The industrial finance, corporate finance, and investment finance sectors all grew evenly, successfully securing business resilience.

A Hyundai Commercial official said, "Operating profit increased and asset soundness improved due to balanced growth in industrial, corporate, and investment finance, which also led to an increase in net profit. We maintained a delinquency rate in the 0% range through proactive crisis response, including aggressive reserve accumulation."

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