Korean banks’ net profit rose sharply from a year earlier in the third quarter on an increase in interest income, preliminary data showed Monday.
The combined net profit of 20 banks in the July-October period came to 5.34 trillion won ($4.15 billion), up 38.2 percent from a 4.2 trillion won net profit posted in the same period last year, according to the data from the Financial Supervisory Service (FSS).
From the previous quarter, the reading marks a 23.9 percent, or 1.6 trillion-won, decline.
The interest income of the 20 banks came to 14.8 trillion won in the third quarter, up from 14.3 trillion won a year earlier.
The banks’ return on assets (ROA) ratio gained 0.15 percentage point to 0.58 percent over the cited period, while their return on equity (ROE) ratio added 1.76 percentage points to 7.87 percent.
The non-interest income of the 20 banks came to 800 billion won in the July-October period, compared with a 100 billion won loss over the same period last year, according to the FSS.
The aggregate loan loss expenses of the 20 banks came to 2 trillion won in the third quarter, up from 900 billion won a year before.
In the first nine months of the year, the banks’ combined net profit surged 38.2 percent on-year to 19.5 trillion won, with their interest income gaining 8.9 percent to 44.2 trillion won. (Yonhap)