Samsung Card Reports 315.9 Billion KRW Net Profit in H1, Up 12% Year-on-Year

Total Handling Amount 79.5122 Trillion Won "Impact of Resumed External Activities That Had Been Contracted"

[Asia Economy Reporter Yu Je-hoon] Samsung Card announced on the 25th that its net profit for the first half of this year amounted to 315.9 billion KRW, representing a 12.0% increase compared to the same period last year.

Samsung Card stated, "With the recovery of consumer sentiment, along with the reorganization of the product system and strengthening of personalized marketing, both the number of members and the card usage amount per person increased. Additionally, by maintaining an efficiency-focused management approach and continuously optimizing selling and administrative expenses, we achieved these results."

According to Samsung Card, the total transaction volume for the first half reached 79.5122 trillion KRW, a 17.1% increase year-on-year. The card business transaction volume rose by 17.3% to 79.0738 trillion KRW. By sector, credit sales (lump-sum and installment) accounted for 69.6955 trillion KRW, card financing (long-term and short-term card loans) 9.3783 trillion KRW, and installment lease business 438.4 billion KRW. The increase in card business transaction volume is attributed to the rise in external activities that had been suppressed due to COVID-19, leading to higher usage amounts in travel, fuel, and dining sectors, the company explained.

Additionally, the delinquency rate over 30 days was 0.6%.

Meanwhile, Samsung Card plans to thoroughly prepare for potential deterioration in liquidity and asset soundness, anticipating that various uncertainties will continue in the second half of the year. Samsung Card stated, "With central banks around the world raising benchmark interest rates, market interest rates are rising rapidly, and concerns about an economic recession remain, so we expect uncertainties in the management environment to persist in the second half. We will thoroughly prepare for liquidity risks and asset soundness deterioration, strengthen a sound management approach centered on high-quality members, and also strive to protect vulnerable borrowers."