Shinhan Card said on the 28th that it posted a net profit of 133.8 billion won in the third quarter of this year. That was down 22.9% from the same period a year earlier (173.4 billion won).
Operating revenue for the same period was 1.3188 trillion won, up 4.7% from a year earlier (1.2592 trillion won). Of operating revenue, credit card revenue was 799.5 billion won, down 2.7% from a year earlier (821.3 billion won). Installment financing revenue was 70.6 billion won, down 12% from a year earlier (63.0 billion won).
The arrears rate, an asset soundness indicator, was 1.37% in the third quarter of this year, down 0.13 percentage points from the previous quarter (1.5%). The size of the provision for bad debts set aside to prepare for delinquent and other nonperforming loans decreased. According to Shinhan Card, it was 160.1 billion won in the third quarter of this year, down 12.2% from the same period a year earlier (182.3 billion won).
Shinhan Card said net profit fell due to factors such as "merchant fee cuts, higher funding and credit loss expense, and costs from a voluntary retirement program."