'It's True They Got Fat on Interest'... Domestic Banks' Interest Income Alone Reached 56 Trillion Won Last Year

9.9 Trillion KRW Increase Compared to Last Year
Non-Interest Income Including Fees Decreased by 3.6 Trillion KRW

Last year, domestic banks recorded interest income of approximately 56 trillion KRW. Net profit for the period increased by 1.6 trillion KRW (9.6%) compared to the previous year, reaching 18.5 trillion KRW.

On the 16th, the Financial Supervisory Service disclosed the provisional figures for the "2022 Domestic Banks' Operating Performance," which includes the results of commercial banks, regional banks, internet-only banks, and specialized banks. Domestic banks achieved strong performance as interest-earning assets such as loan receivables expanded and market interest rates rose, leading to increased interest income.

Last year, domestic banks' interest income rose by 9.9 trillion KRW (21.6%) from the previous year to 55.9 trillion KRW. Non-interest income decreased by 3.6 trillion KRW (52%) to 3.4 trillion KRW, due to declines in securities-related gains and fee income. Additionally, the return on assets (ROA) of domestic banks fell by 0.01 percentage points from the previous year to 0.52%. The return on equity (ROE) increased by 0.44 percentage points to 7.41% compared to the previous year.

To prepare for domestic and external uncertainties, domestic banks plan to proactively increase provisions this year to strengthen their loss-absorbing capacity.

The Financial Supervisory Service stated, "We will encourage securing sufficient loss-absorbing capacity so that banks can stably perform their core functions even in the face of unexpected domestic and external shocks. We will continuously monitor the status of loan loss provisions and guide banks with weak capital ratios to strengthen their capital."