Delinquency Rate at 1.0%... 0.4%P Lower than Industry Average
Total Transaction Volume Last Year at 166 Trillion KRW, Up 0.5% Year-on-Year
"Proactive Risk Management... Reduced Bad Debt Expenses"
Samsung Card announced on the 7th that its consolidated net profit for last year was tentatively estimated at 664.6 billion KRW, a 9.1% increase compared to the same period the previous year. The company explained that it preserved profitability by strengthening risk management and reducing bad debt expenses. Although management uncertainty is high this year, it emphasized plans to stably manage asset soundness indicators such as delinquency rates.
Samsung Card's operating profit last year was 885.4 billion KRW, up 9.3% from the previous year. Revenue increased by 9.5% year-on-year to 4.3832 trillion KRW. A Samsung Card official explained, "The reason for the increase in net profit is due to higher operating income and reduced bad debt expenses through proactive risk management."
Net profit for the fourth quarter was 133.1 billion KRW, down 25.8% compared to the same period last year. Operating profit was 171.8 billion KRW, a decrease of 28.1%. Revenue rose 39.7% to 1.3042 trillion KRW.
The delinquency rate remained relatively stable at 1.0%, rising 0.06 percentage points from the end of the previous quarter (0.94%). It was about 0.4 percentage points lower than the industry average of around 1.4%. According to the Financial Supervisory Service’s Financial Statistics Information System, the average delinquency rate of eight specialized card companies (Woori, KB Kookmin, Lotte, BC, Samsung, Shinhan, Hana, Hyundai Card) was in the 1.4% range for three consecutive quarters from the first to the third quarter last year. Here, the delinquency rate refers to the ratio of receivables overdue by more than one month among the total receivables of card companies.
Last year, the total transaction volume was 166.0725 trillion KRW, a 0.5% increase from the previous year. Among this, the card business transaction volume increased by 0.5% year-on-year to 165.621 trillion KRW.
By segment, credit sales (lump-sum and installment) amounted to 149.087 trillion KRW, and the financial sector (long-term and short-term card loans) was 16.534 trillion KRW. The installment lease business transaction volume was 451.5 billion KRW.
A Samsung Card official said, "Uncertainty will remain high this year due to delayed domestic economic recovery and concerns over worsening collection environments. We plan to stably manage asset soundness indicators such as delinquency rates, strengthen core business competitiveness, and promote changes and reforms for sustainable growth."
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