Samsung Card Reports 551.1 Billion KRW Net Profit Last Year, Up 38%

[Asia Economy Reporter Yu Je-hoon] Samsung Card announced on the 28th that its total transaction volume for last year was 141.1111 trillion KRW, and its net profit for the period was 551.1 billion KRW, according to preliminary estimates. These figures represent increases of 12.9% and 38.2%, respectively, compared to the previous year.

It is the first time in seven years since 2014 that Samsung Card's annual net profit has exceeded 500 billion KRW. At that time, Samsung Card recorded a net profit of 656 billion KRW from the sale of shares in Cheil Industries.

According to Samsung Card, the card business transaction volume accounted for 140.2048 trillion KRW, up 13.2%. By sector, credit sales (lump-sum + installment) amounted to 122.2563 trillion KRW, and the financial sector accounted for 17.9485 trillion KRW. The installment lease business transaction volume totaled 906.3 billion KRW.

This increase in card business transaction volume is interpreted as a result of the rapid recovery of consumption that had been depressed due to the COVID-19 pandemic. By industry, the company analyzed that credit card usage increased in department stores, internet shopping, automobiles, and fuel stations.

Samsung Card also attributes the approximately 40% increase in net profit to cost efficiency. Last year, the company reorganized its product system by newly launching the iD Card and strengthened personalized marketing tailored to customer preferences, which enhanced market dominance while focusing on cost efficiency.

Samsung Card stated, "This year, uncertainties caused by COVID-19 continue domestically and internationally, and the environment surrounding the card industry is expected to be challenging due to reductions in merchant commission rates, strengthened loan regulations, and rising benchmark interest rates. Samsung Card plans to discover and implement strategies that can lead the market from the perspectives of customers, products, and channels, which are the foundations of competitiveness, to sustain continuous growth."

Meanwhile, Samsung Card's delinquency rate over 30 days remains stable at 0.9%.