SBI Savings Bank announced on the 30th that its net profit for the first half of this year amounted to 16.12672 billion KRW. Although SBI Savings Bank recorded a net loss of 6.42857 billion KRW in the first quarter, the first net loss in over 10 years, it posted a net profit of 22.55529 billion KRW in the second quarter.
Soundness indicators generally improved. The delinquency rate at the end of the first half of this year was 5.35%, down 0.24 percentage points from the previous quarter (5.59%). The ratio of non-performing loans classified as substandard or below decreased by 0.14 percentage points to 6.83%. However, the delinquency rate related to real estate, including real estate project financing (PF) loans, construction, and real estate businesses, rose by 1.45 percentage points from 4.63% at the end of March to 6.08% at the end of June this year.
A representative from SBI Savings Bank explained, "Interest rates on deposits have continued to fall, and we earned profits by executing a significant number of mid-interest loans," adding, "Since the volume of real estate PF handled is small, the burden of provisioning for loan losses is relatively low."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
