Domestic banks posted record half-year results, raking in more than 32 trillion won in interest income in the first half of this year alone. With market interest rates rising and loan assets increasing, the net interest margin (NIM) also improved.
According to the "Domestic banks' operating results for the first half of 2026" released by the Financial Supervisory Service on the 23rd, first-half interest income at domestic banks was 32.2 trillion won, up 8.3% from a year earlier.
It was driven by a 6.4% increase from a year earlier in interest-earning assets such as loan receivables to 3,628.1 trillion won, along with an improvement in the net interest margin due to higher market rates. The net interest margin of domestic banks rose 0.04 percentage point, from 1.52% in the first half of last year to 1.56% this year.
With first-half interest income exceeding 32 trillion won, full-year interest income is increasingly likely to top 60 trillion won this year. Annual interest income at domestic banks climbed from 46 trillion won in 2021 to 55.9 trillion won in 2022, surpassing 50 trillion won for the first time, and last year exceeded 60 trillion won for the first time at 60.4 trillion won.
By contrast, non-interest income slumped 43.4% to 2.9 trillion won from a year earlier. Foreign exchange and derivatives-related income increased by 2.3 trillion won due to factors including the rise in the won-dollar exchange rate, but securities-related income fell by 5.7 trillion won as bond prices declined on higher market rates, which had a large impact. Selling and administrative expenses rose 5.4% to 14.4 trillion won from a year earlier as labor costs and other expenses such as rent, entertainment, and research all increased.
Accordingly, net income for the first half was 13.8 trillion won, down 6.4% from a year earlier. Commercial banks earned 8.1 trillion won, regional banks 600 billion won, and internet banks 400 billion won in net income. The net income of policy banks and other specialized banks was tallied at 4.6 trillion won.