Second Quarter Delinquency Rate at 1.4%
Down 0.21 Percentage Points from Previous Quarter
KB Kookmin Card's net profit for the first half of the year decreased by nearly 30% compared to the same period last year. The delinquency rate for the second quarter improved by 0.21 percentage points compared to the previous quarter.
KB Financial Group announced on July 24 that KB Kookmin Card's net profit for the first half of the year was KRW 181.3 billion, a decrease of 29.1% (KRW 74.4 billion) compared to KRW 255.7 billion in the same period last year.
The net profit for the second quarter was KRW 96.8 billion, a decrease of 17% (KRW 19.8 billion) compared to KRW 116.6 billion in the same period last year.
However, due to the reversal of provisions following the sale of non-performing loans, net profit increased by 14.6% (KRW 12.3 billion) compared to the previous first quarter (KRW 84.5 billion).
A representative from KB Financial explained, "Although card spending centered on general sales increased, net profit decreased due to a reduction in commission income following the adjustment of merchant commission rates, and an increase in costs related to the sale of receivables."
As of the end of last month, the delinquency rate was 1.40% and the non-performing loan (NPL) ratio was 1.20%. These figures improved by 0.21 percentage points and 0.12 percentage points, respectively, compared to the previous quarter.
The NPL coverage ratio, which is the ratio of loan loss provisions to non-performing loans, was 271.2%. This is 77.5 percentage points lower than the 348.7% recorded in the first half of last year.
The NPL coverage ratio refers to the ratio of loan loss provisions set aside to cover potential losses from non-performing loans. A higher ratio indicates better preparedness for non-performing loans.
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