This year, the net profit of domestic banks in the first half is expected to approach 15 trillion won. This is the largest scale ever.
According to the Financial Supervisory Service's report on '2025 domestic bank operational results (provisional)' announced on the 21st, domestic banks reported a net profit of 14.9 trillion won in the first half of this year. This marks an 18.4% (2.3 trillion won) increase compared to the same period last year (12.6 trillion won).
While the net profit of commercial banks and internet-only banks increased by 26% (1.7 trillion won) and 13.7% (1 billion won) compared to the same period last year, respectively, regional banks saw a decrease of 11.8% (1 billion won). The net profit of specialized banks rose by 5.4 trillion won, an increase of 12.7% (600 billion won) during the same period.
The interest income of domestic banks stands at 29.7 trillion won, a decline of 0.4% (1 billion won) compared to the same period last year. The growth in interest income has somewhat slowed due to the contraction of the net interest margin (NIM). Non-interest income surged 53.1% (1.8 trillion won) to 5.2 trillion won during the same period. The FSS noted, 'Due to factors such as the decline in exchange rates and market interest rates, profits related to foreign exchange and derivatives increased by 1.9 trillion won, and profits related to securities also rose by 800 billion won.'
The return on assets (ROA) is at 0.75%, an increase of 0.08 percentage points compared to the same period last year. The return on equity (ROE) is at 10.18%, up by 1.08 percentage points.
Selling and administrative expenses amounted to 13.7 trillion won, a 6.5% (800 billion won) increase compared to the same period last year. Provisions for bad debts rose by 23.3% (600 billion won) to 3.2 trillion won during the same period.
The FSS stated, 'Due to the continued economic slowdown, there is a possibility that provisions for bad debts will expand, particularly in vulnerable sectors such as small and medium-sized enterprises and individual business owners,' adding, 'We will continuously encourage banks to enhance their loss absorption capacity to prepare for the potential expansion of credit risk.'