ID :
48316
Sun, 03/01/2009 - 14:35
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https://www.oananews.org//node/48316
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S. Korean card firms' 2008 net dips 36.5 pct
SEOUL, March 1 (Yonhap) -- Total earnings by South Korea's credit card companies
declined 36.5 percent in 2008 from a year earlier as business costs rose and
one-off gains were absent, the financial watchdog said Sunday.
Samsung Card Co. and the country's four other credit card firms logged a combined
net profit of 1.66 trillion won (US$1.08 billion) in 2008, compared with 2.61
trillion won a year earlier, according to the Financial Supervisory Service
(FSS).
"Amid global market jitters, funding costs rose in 2008 as card companies
recorded a lack of one-time profits posted the previous year," the watchdog said.
Shinhan Card Co. enjoyed a corporate tax cut in 2007 related to its parent
group's purchase of then loss-making LG Card Co., while Samsung Card Co. reaped a
one-time profit related to its initial public offering in 2007.
Shinhan Financial bought a 78.6 percent stake in LG Card for 6.7 trillion won in
March 2007. Shares of Samsung Card began trading in June 2007 after the company
sold 12 million shares in an initial public offering.
Shinhan Card posted the biggest profit of 940.6 billion won last year, followed
by Samsung Card with 257.7 billion won and Hyundai Card with 196.9 billion won.
Meanwhile, local card companies' financial health was dented by the slumping
economy. The average delinquency rate stood at 3.43 percent as of the end of last
year, up from 3.28 percent three months earlier.
Total credit card bills increased 12.2 percent on-year to 464.2 trillion won in
2008, but the growth of card spending slowed in the fourth quarter, hit by
sluggish domestic demand. In the fourth quarter, credit card bills reached 118.2
trillion won, compared with 118.3 trillion won in the third quarter.
The FSS said local card firms have the capacity to cover possible losses as they
put aside an additional 1.12 trillion won in reserves in January. But the
watchdog plans to step up its monitoring of their financial health amid the
deteriorating economy, it added.
sooyeon@yna.co.kr
(END)
declined 36.5 percent in 2008 from a year earlier as business costs rose and
one-off gains were absent, the financial watchdog said Sunday.
Samsung Card Co. and the country's four other credit card firms logged a combined
net profit of 1.66 trillion won (US$1.08 billion) in 2008, compared with 2.61
trillion won a year earlier, according to the Financial Supervisory Service
(FSS).
"Amid global market jitters, funding costs rose in 2008 as card companies
recorded a lack of one-time profits posted the previous year," the watchdog said.
Shinhan Card Co. enjoyed a corporate tax cut in 2007 related to its parent
group's purchase of then loss-making LG Card Co., while Samsung Card Co. reaped a
one-time profit related to its initial public offering in 2007.
Shinhan Financial bought a 78.6 percent stake in LG Card for 6.7 trillion won in
March 2007. Shares of Samsung Card began trading in June 2007 after the company
sold 12 million shares in an initial public offering.
Shinhan Card posted the biggest profit of 940.6 billion won last year, followed
by Samsung Card with 257.7 billion won and Hyundai Card with 196.9 billion won.
Meanwhile, local card companies' financial health was dented by the slumping
economy. The average delinquency rate stood at 3.43 percent as of the end of last
year, up from 3.28 percent three months earlier.
Total credit card bills increased 12.2 percent on-year to 464.2 trillion won in
2008, but the growth of card spending slowed in the fourth quarter, hit by
sluggish domestic demand. In the fourth quarter, credit card bills reached 118.2
trillion won, compared with 118.3 trillion won in the third quarter.
The FSS said local card firms have the capacity to cover possible losses as they
put aside an additional 1.12 trillion won in reserves in January. But the
watchdog plans to step up its monitoring of their financial health amid the
deteriorating economy, it added.
sooyeon@yna.co.kr
(END)
