Savings banks post combined net loss of $417.5 mil. in 2023

The headquarters of Financial Supervisory Service (FSS) in Yeouido, Seoul, is seen in this undated file photo. Yonhap

The headquarters of Financial Supervisory Service (FSS) in Yeouido, Seoul, is seen in this undated file photo. Yonhap

Savings banks in Korea posted a combined net loss of 555.9 billion won ($417.5 million) in 2023, data showed Friday.

It compared with a combined net profit of 1.56 trillion won the previous year, according to the data from the Financial Supervisory Service (FSS).

The decline came mostly from a dip in interest income, while the banks were forced to boost their loan loss reserves amid growing concerns of risks stemming from real estate project financing (PF) loans, the FSS noted.

The banks’ interest income came to 5.4 trillion won last year, down 1.3 trillion won from a year before, while their outstanding loans plunged 9.6 percent on-year to 103.9 trillion won as of end-December.

The savings banks’ total assets were valued at 126.6 trillion won at end-December, down 12 trillion won from a year earlier, according to the financial regulator.

Their average loan delinquency ratio came to 6.55 percent as of end-December, up 3.14 percentage points from a year earlier, while their average capital adequacy ratio also climbed to 14.35 percent from 13.15 percent over the period. (Yonhap)

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