In the first half of this year, the net income of full-time card companies was 1.2251 trillion won, down 18.3% (273.9 billion won) compared to the same period last year (1.499 trillion won). Total revenue increased by 331.1 billion won, including card loan revenue (268.6 billion won) and installment card fee revenue (71.4 billion won), but franchise fee revenue decreased by 291.1 billion won. Total expenses also rose by 604.9 billion won, comprising 264.3 billion won in provisions for bad debts and 101.3 billion won in interest.
The Financial Supervisory Service announced the results of 'the Business Performance of Credit Specialized Financial Companies in the First Half of 2025' on the 4th.
The delinquency rate of card companies rose to 1.76% in the first half of this year, up 0.11 percentage points from the end of last year (1.65%). The delinquency rate of card receivables was recorded at 1.8%, which is an increase of 0.12 percentage points during the same period. During the same period, the delinquency rate of credit card receivables rose by 0.1 percentage points to 0.99%, and the delinquency rate of card loan receivables increased by 0.16 percentage points to 3.54%.
The ratio of non-performing loans to total loans rose to 1.3% in the first half of this year, up 0.14 percentage points from the end of last year (1.16%). The bad debt reserve ratio was recorded at 106.3%, down 1.8 percentage points during the same period.
The adjusted capital adequacy ratio slightly increased to 20.7% in the first half of this year, compared to 20.4% at the end of last year. The leverage ratio remained at a similar level of 5.2 times compared to the end of last year. The regulatory limit for the leverage ratio is below 8 times.
The net income of credit specialized financial companies, including installment finance companies, leasing companies, and new technology finance companies, was 1.7829 trillion won in the first half of this year, an increase of 14.5% (226.4 billion won) compared to the same period last year (1.5564 trillion won). This was influenced by an increase in total revenue of 1.0071 trillion won, including leasing, rental, and installment revenue of 548.1 billion won, securities-related revenue of 163 billion won, and new technology finance revenue of 92.4 billion won. Leasing, rental, and installment expenses increased by 401.1 billion won, but provisions for bad debts fell by 73.3 billion won, and interest expenses decreased by 39.6 billion won.
The delinquency rate during the first half of this year was 2.43%, up 0.33 percentage points from the end of last year (2.1%). The non-performing loan ratio during the same period was found to have risen by 0.13 percentage points to 2.99%. The bad debt reserve ratio was identified at 129.1%, down 4.4 percentage points. In addition, the adjusted capital adequacy ratio rose by 0.5 percentage points to 19.1%, while the leverage ratio recorded a slight increase to 5.6 times.
The FSS noted that "in preparation for the continued potential deterioration of soundness in the second half of this year, it plans to enhance asset quality monitoring, encourage active reduction of non-performing loans, and ensure adequate provisions for bad debts to improve loss absorption capacity.