Financial Supervisory Service. Photo = Yonhap News

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] Net profit of foreign banks' domestic branches reached 1.6 trillion won last year, up 6 percent from a year earlier

Financial Supervisory Service. Photo = Yonhap News

The Financial Supervisory Service said on the 20th that the net profit of 33 foreign banks totaled KRW 1.5564 trillion last year, up KRW 88.4 billion (6.0%) from a year earlier (KRW 1.468 trillion).

The survey excluded Credit Suisse's Seoul branch, which suffered a loss of 453.6 billion won due to reduced operations caused by the insolvency of its headquarters.

Last year, the interest income of the foreign banks was 1.2323 trillion won, down 283.8 billion won (18.7%) from the previous year (1.5161 trillion won). Foreign bank branches mainly raise funds in dollars and operate them as won government bonds and loans, as overseas procurement rates rose sharply compared to domestic interest rates last year.

Non-interest income was 1.873 trillion won, up 551 billion won (41.7%) from the previous year (1.322 trillion won). Among them, securities profits recorded KRW 1.315 trillion due to bond sales and valuation gains due to falling market interest rates. It turned to surplus compared to the previous year (-1.4248 trillion won).

Foreign exchange and derivatives amounted to 1.191 trillion won, down 61.8% (1.65 trillion won) from the previous year (2.6697 trillion won).

The Financial Supervisory Service explained that foreign bank branches' performance last year, excluding Credit Suisse, was similar to the previous year.

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