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SC Bank Korea's 2021 net dips 50 pct on one-off costs

All News 11:24 March 18, 2022

SEOUL, March 18 (Yonhap) -- Standard Chartered Bank Korea said Friday its net profit tumbled more than 50 percent in 2021 from a year earlier on large one-off costs.

Combined net income stood at 127.9 billion won (US$106 million) last year, down 50.3 percent from a year earlier, said the local unit of British banking giant Standard Chartered Bank.

The lender said the bottom-line plunge is blamed on one-off costs worth 252.7 billion won resulting from a special early retirement program in the fourth quarter of last year.

Its operating profit also sank 59.4 percent on-year to 145.9 billion won in 2021, but the amount rose 10.9 percent on-year, excluding the one-off expense.

Standard Chartered Bank Korea said its interest income expanded 5.7 percent on-year to 1.01 trillion won last year, despite a fall in its net interest margin, a key barometer of profitability.

The lender's ratio of nonperforming loans had reached 0.19 percent as of the end of December, down 0.12 point from a year earlier, with its loan delinquency rate dropping by 0.04 percentage point to 0.10 percent.

As of end-December, the bank had 86.7 trillion won in assets, up 4.2 percent from the previous year.

Standard Chartered Bank Korea said its capital adequacy ratio, a key barometer of financial health, had stood at a "good level" of 15.20 percent as of end-December.

The ratio measures the share of a bank's total capital to its risk-weighted assets. The Bank for International Settlements, an international organization of central banks based in Basel, Switzerland, advises lenders to maintain a ratio of 8 percent or higher.

Last month, global ratings agency S&P Global raised the lender's credit outlook to "positive" from "stable."

In 2005, the British financial group took over the financially troubled First Bank of Korea.

The headquarters of Standard Chartered Bank Korea in central Seoul (Yonhap)


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