"Impact of Increased One-Off Expenses and Bad Debt Provisions"
Shinhan Card announced on the 28th that its net profit for the third quarter was 133.8 billion won, a decrease of 22.8% compared to the previous year (173.4 billion won), due to one-off expenses and an increase in bad debt expenses.
Shinhan Card explained that costs rose as a result of increased credit sales volume and that there were one-off factors such as voluntary retirements. The company also cited an increase in bad debt expenses, which was caused by unfavorable external conditions such as sluggish domestic demand and an economic downturn.
On a cumulative basis for the third quarter, net profit stood at 380.4 billion won, down 31.2% from the same period last year.
As of the end of last month, the delinquency rate was 1.37%, down 0.13 percentage points from the previous quarter.
A Shinhan Card official stated, "We will optimize our business portfolio with a focus on profitability," and added, "To strengthen our core payment business, we will maintain a strategy of qualitative growth through quantitative expansion of our membership base and improved marketing efficiency."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
