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Banks' Q3 profits fall 7.4 pct on loan-loss provisions

Finance 06:00 November 14, 2019

SEOUL, Nov. 14 (Yonhap) -- South Korean banks reported a 7.4-percent decline in their combined net profit for the third quarter, hit by a jump in loan-loss provisions, data showed Thursday.

The combined net profit stood at 3.8 trillion won (US$3.2 billion) for the July-September period, compared with a profit of 4.1 trillion won a year ago, the Financial Supervisory Service (FSS) said in a statement.

Preliminary interest income for the third quarter stood at 10.2 trillion won, up 0.6 percent from a year earlier, as the banks continued to enjoy low market rates, it said.

Loan-loss provisions jumped 79.5 percent on-year to 1.5 trillion won, the FSS said.

"Newly delinquent loans increased for the period and allowance for doubtful accounts expanded as well, which made the loan-loss expenses for the July-September period of 2019 increase," the FSS said.

The average net interest margin of the banks, a key barometer of profitability, stood at 1.55 percent for the third quarter, down 0.13 percentage point from a year ago.

Corporate logos of South Korea's leading banks (Yonhap)

kdh@yna.co.kr
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