Proactive Risk Management and Efficiency Enhancement Prove Effective
[Asia Economy Reporter Minwoo Lee] Despite the downturn in the card industry, Samsung Card posted solid results last year. It is evaluated that proactive risk management played a key role.
According to the Financial Supervisory Service's electronic disclosure system on the 9th, Samsung Card recorded provisional results for the fourth quarter of last year with consolidated sales of 747.7 billion KRW and operating profit of 228.9 billion KRW. Compared to the same period last year, sales decreased by 15.6%, but operating profit increased by 30.2%. Net profit for the same period rose by 28.1% to 165.8 billion KRW.
As a result, total sales for last year reached 3.7946 trillion KRW, and operating profit was 848.9 billion KRW. These figures represent increases of 5.8% and 13.3%, respectively, compared to the previous year. The accumulated net profit for last year also rose by 12.9% to 622.3 billion KRW during the same period.
Although the funding market froze from the second half of last year, this is interpreted as a result of proactive response. Samsung Card's delinquency rate over 30 days stands at about 0.8%. A Samsung Card official explained, "Despite the bond market freezing, we have continuously strived to maintain profitability through thorough risk management and cost efficiency." He added, "Additionally, by restructuring the product system and launching the iD Card, and strengthening personalized marketing, we expanded the customer base and market dominance, thereby increasing sales."
Total transaction volume reached 161.4039 trillion KRW, a 14.4% increase compared to the previous year. Among this, the card business transaction volume, which accounts for the majority, was recorded at 160.7219 trillion KRW, up 14.6% from the previous year. By sector, credit sales (lump sum + installment) amounted to 142.8815 trillion KRW, and the financial sector (long-term + short-term card loans) was 17.8404 trillion KRW. As external activities, which had contracted due to COVID-19, increased, credit card usage amounts rose in travel, dining, and gas stations.
A Samsung Card official stated, "This year, amid concerns about a global economic recession, high inflation, and a high-interest rate trend, we expect a continuation of difficult conditions unlike those experienced before." He added, "We plan to enhance our resilience to worsening conditions through efficient management based on solid fundamentals and to advance as a company strong in platforms and data."
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