The Financial Supervisory Service said on the 27th that savings banks' net profit for the first half of this year was 765.8 billion won, about three times higher than a year earlier (257.0 billion won). The main drivers were increased gains related to marketable securities and lower credit loss costs due to a reduction in nonperforming loans.
Savings banks' deposits stood at 100.4 trillion won, up 1.4 trillion won (1.4%) from the end of last year (99 trillion won). Total assets at the end of June were 120.6 trillion won, up 2.6 trillion won (2.2%) from the end of last year (118 trillion won), driven by growth in loan assets centered on loans to corporations. Loan assets were 95.8 trillion won, up 2.3 trillion won (2.5%) from the end of last year (93.5 trillion won).
At the end of June, the delinquency rate at savings banks was 6.26%, up 0.22 percentage points (p) from the end of last year (6.04%). The household loans delinquency rate was 4.60%, down 0.07 p from the end of last year (4.67%), while the corporations loan delinquency rate was 8.38%, up 0.38 p from the end of last year (8.00%).
The ratio of substandard or worse loans was 8.16%, down 0.27 p from the end of last year (8.43%). The loan-loss reserve coverage ratio was 107.9%, 3.4 p lower than the end of last year (111.3%). The regulatory ratio for the loan-loss reserve coverage ratio is 100%. At the end of June, the capital adequacy ratio was 15.73%, a slight decrease of 0.12 p from the end of last year (15.85%).
Mutual finance institutions' net profit for the first half of this year was 714.1 billion won, up 71% from a year earlier (417.6 billion won). The credit business (finance) segment posted net profit of 2.3632 trillion won, up 286.0 billion won (13.8%) from a year earlier (2.0772 trillion won), helped by higher interest income.
As of the end of June, total assets at mutual finance institutions were 774.2 trillion won, down 15.8 trillion won (2.0%) from the end of last year (790 trillion won). In contrast, total loans were 554.3 trillion won, up 14.1 trillion won (2.6%) from the end of last year (540.2 trillion won). Total deposits were 659.8 trillion won, down 15.8 trillion won (2.3%) from the end of last year (675.6 trillion won). The delinquency rate at mutual finance institutions at the end of June was 5.39%, up 0.77 p from the end of last year (4.62%).
The mutual finance institutions' economic business segment remained in the red, but the deficit narrowed slightly. The deficit shrank from 1.6596 trillion won in the first half of last year to 1.6490 trillion won in the first half of this year. The ratio of substandard or worse loans was 6.06%, up 0.51 p from the end of last year (5.55%). The loan-loss reserve coverage ratio was 109.1%, down 6.5 p from the end of last year (115.6%). The regulatory ratio for the loan-loss reserve coverage ratio is 100%. At the end of June, the net capital ratio was 8.02%, up 0.07 p from the end of last year (7.95%).