Sangsangin Savings Bank Posts 9 Billion KRW Operating Profit in Q4 Last Year, Turning to Black... CEO Lee Jae-ok Emphasizes "Efforts in Soundness Management"

Lee Jae-ok: "Expecting to Achieve Annual Profit Turnaround This Year"

Sangsangin Savings Bank announced on the 13th that it succeeded in turning a profit in the fourth quarter of last year. It explained that it turned a profit for the first time in nine quarters since the third quarter of 2022. CEO Lee Jae-ok emphasized, "We expect to turn an annual profit this year and will make multifaceted efforts to strengthen asset soundness management in line with the financial authorities' policies."

Sangsangin Savings Bank Bundang Headquarters. Photo by Sangsangin

Sangsangin Savings Bank stated on the same day that its provisional operating profit for the fourth quarter of last year, based on Korean Generally Accepted Accounting Principles (K-GAAP), was 9 billion KRW.

This turnaround to profitability is the result of reducing losses each quarter last year. The operating loss in the third quarter of last year was 12.7 billion KRW. Compared to the previous quarter (-21.9 billion KRW), the loss decreased by 42%, and compared to the same period last year (-29.6 billion KRW), the loss decreased by 57% (16.9 billion KRW).

Sangsangin Savings Bank explained that it succeeded in turning a profit in the fourth quarter of last year by proactively setting aside loan loss provisions in accordance with regulatory guidelines. It also reflected the effect of reduced funding costs due to the recent interest rate cuts.

The scale of net loss is said to be decreasing. It was recorded as 38 billion KRW in the first quarter of last year, 20 billion KRW in the second quarter, 10.3 billion KRW in the third quarter, and 50 million KRW (provisional) in the fourth quarter.

Sangsangin Savings Bank said, "Since the fourth quarter's results include litigation-related provision liabilities, if these are excluded, the provisional net profit is estimated to be around 7.6 billion KRW," adding, "We also expect to turn an annual profit this year."

CEO Lee said, "Despite the difficult business environment, we reduced operating losses every quarter last year and succeeded in improving fourth-quarter performance even though a considerable amount of provision liabilities was applied. We will continue to strengthen asset soundness management in line with regulatory policies going forward."