(Photo= Yonhap news)

 

[Alpha Biz= Reporter Paul Lee] In the first quarter of this year, the net profit of domestic banks plummeted by 24% compared to the same period last year, largely due to the significant losses incurred from the Hong Kong H-Index Linked Securities (ELS) debacle. The losses, amounting to billions of won, resulted in the payment of compensation to customers affected by the ELS products. Additionally, the reduction in the sale of derivative products such as ELS, which previously generated fees, contributed to the decline in non-interest income.

According to the Financial Supervisory Service on the 20th, the net profit of banks in the first quarter amounted to 5.3 trillion won, a decrease of 1.7 trillion won (24.1%) compared to the same period last year, which recorded 7 trillion won. Interest income increased slightly by 200 billion won (1.6%) compared to the first quarter of last year, reaching 14.9 trillion won.

 

 

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