Lotte Card Reports Q1 Net Profit of 14.3 Billion Won, Down 42.4% Year-on-Year

"Impact of Increased Provisions for Bad Debts Due to High Interest Rates"

Lotte Card announced on May 15 that its net profit for the first quarter was 14.3 billion won, a decrease of 42.4% compared to the same period last year.

A Lotte Card representative explained, "Net profit decreased due to an increase in funding costs caused by prolonged high interest rates, as well as a rise in provisions for bad debts to prepare for potential future losses amid expectations of an economic slowdown." The representative added, "We expect to improve our maturity structure and funding costs within the year through refinancing at lower interest rates."

Driven by an increase in the number of members and a rise in transaction volume, assets grew by 5.8% year-on-year to 24.7297 trillion won. Operating revenue was 708 billion won, maintaining a similar level to the same period last year (705.1 billion won).

A Lotte Card representative stated, "We plan to enhance profitability by improving usage efficiency through the development of various content and services tailored to customer preferences, as well as through proactive asset quality management and ongoing efforts to optimize funding costs."