Net income decreased by 11.5% due to increased provisions
Income tax expense 4.2 trillion won… 700 billion won decrease from the previous year
Last year, when the economic downturn began in earnest due to Corona 19, the interest income of domestic banks increased by 500 billion won from the previous year. During the same period, non-interest income such as securities-related gains also increased by KRW 800 billion from the previous year.
According to the Financial Supervisory Service on the 8th, the net income of domestic banks last year was 12.3 trillion won, a decrease of 1.6 trillion won (11.5%) from 13.9 trillion won in 2019.
This is because a domestic bank last year expanded provisions to reflect the impact of Corona 19. Last year’s bad debt cost was 7 trillion won, an increase of 3 trillion won compared to 3.7 trillion won in 2019.
■ Current status of domestic banks’ net income (unit: trillion won, %)
By category, interest income was 41.2 trillion won, and non-interest income was 7.3 trillion won, respectively, an increase of 50 million won and 80 million won. The loss of non-operating profits and losses also decreased from 1.1 trillion won to 900 billion won.
This is due to an increase in assets under management, including loans, despite a 0.15%p decline in net interest margin last year, with the 4Q net interest margin recording a record low of 1.38%. The increase in non-interest income is attributed to the increase in profits related to securities, foreign exchange, and derivatives due to lower interest rates and increased exchange rate volatility.
Selling and administrative expenses increased by 500 billion won from the previous year to 24 trillion won, while corporate tax expenses decreased by 700 billion won to 4.2 trillion won.
■ Current status of corporate tax expenses of domestic banks (unit: trillion won, %)
