The Financial Supervisory Service said on the 20th that domestic banks' net income for the first quarter was 6.7 trillion won, down 300 billion won (-3.9%) from a year earlier.
Net income at commercial banks was 4.3 trillion won. By segment, internet and regional banks each increased by 100 billion won from a year earlier, while nationwide banks fell by 200 billion won. Net income at policy banks was 2.4 trillion won, down 300 billion won from the same period a year earlier (2.7 trillion won).
The decline in net income at nationwide banks came as the net interest margin (NIM) rose on higher market rates, but noninterest income fell on securities valuation losses.
In the first quarter, domestic banks' interest income was 15.8 trillion won, up 1 trillion won (6.4%) from a year earlier (14.9 trillion won). Interest-earning assets such as loan receivables (3,556 trillion won) increased 4.8% from a year earlier. With market rates rising, NIM also improved by 0.03 percentage point. In contrast, noninterest income was 1.3 trillion won, down 700 billion won (35.6%) from a year earlier (2 trillion won). Due to higher market rates, securities-related income, including valuation losses on securities, fell by 3.6 trillion won from a year earlier.
During the first quarter, the return on assets (ROA) of domestic banks was 0.64%, down 0.07 percentage point from a year earlier (0.71%) due to the decline in net income. Over the same period, the return on equity (ROE) was 8.68%, down 0.89 percentage point.
Selling and administrative expenses at domestic banks in the first quarter were 7.2 trillion won, up 400 billion won from a year earlier (6.8 trillion won). Personnel expenses were 4.3 trillion won, up 100 billion won from last year, and non-personnel expenses were 2.8 trillion won, up 200 billion won. Credit loss expenses were 1.4 trillion won, down 300 billion won.