RETAIL BANKING | Staff Reporter, Korea

Korean banks net income rose 23.9% to $807m in 2017

Cash inflow from overseas business in China ballooned 389.3% to $110.9m.

The net income of Korean banks rose 23.9% YoY to US$807m in 2017 as interest income grew $228m whilst bad debt expenses plunged $297m, according to a press release from the Financial Supervisory Service.

Overseas business from China boomed as net income ballooned 389.3% to $110.9m. The Indonesian and Japanese markets also posted strong net income inflows at $100.5m and $91.9m respectively.

Also read: What you need to know about Korea's thriving credit card sector

However, business from Hong Kong decreased 19% YoY as net income contributions fell to $123.8m alongside net income from Singapore which decreased 13% to $40.3m.

Total profit also remained flat at $2.08b as selling and administrative expenses surged 11.5%.

Here’s more from FSS:

Total asset volume rose 9.4% YoY to USD104.88b at the end of 2017 thanks to increases in loans, securities and bills brought in foreign currencies.

Whilst Indonesia and Vietnam experienced increases in asset volume, assets in the United States and the United States were reduced

The ratio of loans classified as substandard or below (SBLs) stood at 0.9% at the end of 2017, down 0.2%p from the same period a year earlier. Compared to the end of 2016, the SBL ratio fell in most countries including the United Kingdom, Japan and the United States, but the ratio rose in Vietnam

Having expanded overseas, domestic banks were operating in 39 countries through 52 subsidiaries, 76 branches and 57 offices at the end of 2017. Most of the overseas businesses were concentrated in Asia, accounting for 69.7% of the total, followed by Europe (12.0%) and North America (11.5%).

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