KB Kookmin Card's net profit for the first half of the year decreased by nearly 30% compared to the same period last year.
KB Financial Group announced on the 24th that KB Kookmin Card's net profit for the first half of the year was 181.3 billion won, a decrease of 29.1% (74.4 billion) compared to the same period last year (255.7 billion won). The net profit for the second quarter also decreased by 17% (19.8 billion won) to 96.8 billion won compared to the same period last year (116.6 billion won). However, as provisions were reversed due to the sale of non-performing loans, it increased by 14.6% (12.3 billion won) compared to the previous first quarter (84.5 billion won).
Regarding the decrease in performance for the first half of the year, KB Financial noted, "Although the amount of card usage centered on general sales increased, it was affected by a decrease in fees due to adjustments in merchant commission rates and an increase in costs related to the sale of receivables." Furthermore, as of the end of June this year, KB Kookmin Card's arrears rate was 1.40%, and the non-performing loan (NPL) ratio was 1.20%. This represents an improvement of 0.21 percentage points and 0.12 percentage points, respectively, compared to the previous quarter.
The ratio of provisions to non-performing loans (NPL coverage ratio) recorded 271.2%. This is a decrease of 77.5 percentage points compared to the first half of last year (348.7%). The NPL coverage ratio indicates how adequately a financial company has set aside provisions in relation to the non-performing loans it holds.