(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Minyoung] According to the Financial Supervisory Service's report on 'Operating Performance of Domestic Banks in the First Quarter,' the net profit of banks for the first quarter totaled 5.3 trillion won, down by 1.7 trillion won (24.1%) compared to the same period last year (7 trillion won).

Breaking down by segments, interest income increased by 200 billion won (1.6%) to 14.9 trillion won compared to the first quarter of last year. In contrast, non-interest income decreased by 400 billion won (19.3%) to 1.7 trillion won during the same period, mainly due to a decrease in securities valuation gains following the rise in market interest rates.

Operating losses amounted to 2.2 trillion won, reflecting ELS compensation payments of 1.8 trillion won. This represents a decrease of 2.7 trillion won compared to the same period last year when there was a profit of 500 billion won. Provision expenses decreased by 600 billion won (34.6%) to 1.1 trillion won compared to the same period last year, attributed to the base effect of expanding loan loss reserves in the previous year and the return of reserves related to Hanwha Ocean (400 billion won). Selling and administrative expenses increased by 2 trillion won (2.7%) to 6.4 trillion won compared to the first quarter of last year.

The Financial Supervisory Service explained that while a steady level of interest income is being maintained, the compensation payments for ELS acted as a factor contributing to the decline in net profit."

 

 

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