Yeojeonsa's Net Profit Last Year 2.5639 Trillion KRW... 25% Increase YoY

Interest Income Increases by 162.9 Billion KRW Driving Net Profit Growth
Total Assets of 112 Credit Card Companies Reach 181 Trillion KRW, Up 19.4% YoY
Delinquency Rate at 1.26%, Down 0.42%P YoY
"Credit Card Companies Strengthen Monitoring of Key Performance Indicators"

[Asia Economy Reporter Kwangho Lee] Last year, the net income of specialized credit finance companies (excluding credit card companies) increased by 24.7% compared to the same period the previous year.

According to the '2020 Specialized Credit Finance Companies Operating Performance (Preliminary)' announced by the Financial Supervisory Service on the 13th, the net income of 112 specialized credit finance companies last year was 2.5639 trillion KRW, an increase of 24.7% (508.2 billion KRW) compared to the same period the previous year (2.0557 trillion KRW). The net profit from core businesses such as installment sales and leasing was 2.9651 trillion KRW, up 2.2% (94.1 billion KRW) from the previous year's 2.871 trillion KRW.

Bad debt expenses decreased by 2.2% (-35 billion KRW) to 1.5874 trillion KRW compared to the previous year's 1.6224 trillion KRW, but interest income increased by 16.29 billion KRW (2.9%), and total assets rose by 19.4% (19.4 trillion KRW) to 181.1 trillion KRW from 161.7 trillion KRW the previous year.

Core business assets increased by 8.0% (5.1 trillion KRW) to 67.3 trillion KRW. Loan receivables also rose by 11.8% (9.1 trillion KRW) to 85.8 trillion KRW. During the same period, the delinquency rate fell by 0.42 percentage points to 1.26% from 1.68% the previous year, and the non-performing loan ratio (16.4%) and leverage ratio (6.7 times) remained at similar levels to the end of the previous year.

The Financial Supervisory Service stated, "Despite the COVID-19 situation, the total assets and net income of specialized credit finance companies continued to increase, and soundness indicators such as delinquency rates and adjusted capital adequacy ratios remained stable. However, to prepare for the possibility of prolonged COVID-19 impact and the resulting uncertainties in the global financial market, we plan to strengthen monitoring and management of liquidity status and soundness indicators such as delinquency rates of specialized credit finance companies."