Total Revenue 1.8531 Trillion KRW
Increase in Installment Card Fee Income and Corporate Loan Interest Income
Last year, the net profit of domestic full-service card companies (based on IFRS) was 2.6062 trillion KRW, a 4% (107.6 billion KRW) decrease compared to the previous year (2.7138 trillion KRW), the Financial Supervisory Service announced on the 20th.
Total revenue was 1.7455 trillion KRW, with merchant fee income (20.6 billion KRW) and card loan income (49.6 billion KRW) showing only slight increases. However, installment card fee income (389.2 billion KRW) and related interest income such as corporate loans (344.5 billion KRW) increased.
Total expenses were recorded at 1.8531 trillion KRW. This was mainly due to an increase in interest expenses (825.4 billion KRW), an increase in costs from provisions for bad debts (450.3 billion KRW), and an increase in selling and administrative expenses (138.7 billion KRW).
After provisioning for bad debts, the net profit for the year was 1.8282 trillion KRW, a decrease of 324.9 billion KRW compared to the previous year (2.1531 trillion KRW).
As of last year, the delinquency rate for card companies was 1.20%, up 0.11 percentage points from the end of the previous year (1.09%). The delinquency rate for card receivables was 1.38%, up 0.14 percentage points from the end of the previous year (1.24%). The delinquency rate for credit sales receivables was 0.65%, up 0.11 percentage points from the end of the previous year (0.54%). The delinquency rate for card loan receivables was 2.98%, up 0.38 percentage points from the end of the previous year (2.60%).
As of the end of last year, the provision coverage ratio was 106.7%, down 0.2 percentage points from the end of the previous year (106.9%), but all card companies exceeded 100%. The adjusted capital adequacy ratio (19.4%) also fell by 1.4 percentage points compared to the end of the previous year (20.8%), but all card companies exceeded the management guidance ratio (8%).
Meanwhile, the number of credit cards issued last year was 124.17 million, an increase of 6.48 million cards compared to the end of the previous year (117.69 million cards). The cumulative number of check cards issued was 105.17 million, a decrease of 940,000 cards compared to the end of the previous year (106.11 million cards).
Last year, the usage amount of credit and check cards was 1,076.6 trillion KRW, an increase of 116 trillion KRW compared to the previous year (960.6 trillion KRW). Credit card usage amounted to 884 trillion KRW, up 105 trillion KRW (13.5%) from the previous year (779 trillion KRW), and check card usage was 192.6 trillion KRW, up 11 trillion KRW (6.1%) from the previous year (181.6 trillion KRW).
Last year, card loan usage amounted to 103.8 trillion KRW, a decrease of 3.4 trillion KRW compared to the previous year (107.2 trillion KRW).
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