Korean banks' overseas earnings dip 25.5 pct in 2008

SEOUL, March 17 (Yonhap) -- South Korean banks saw their earnings from overseas
operations fall 25.5 percent on-year in 2008 mainly due to declines in
non-interest income, the nation's financial watchdog said Tuesday.

The combined net profit of the 128 overseas subsidiaries and branches, located in
31 countries and operated by 11 local lenders, reached US$312 million last year
compared with $418.7 million in 2007, according to the Financial Supervisory
Service.
The weaker bottom line came as non-interest income tumbled due to higher
provisions, the watchdog said. Non-operating profit also fell, despite rising
loan growth.
Non-interest income came in at $217.9 million for 2008, down 136.5 percent from a
year earlier, while non-operating profit tumbled 148.9 percent on-year to $62.5
million.
Total assets amounted to $50.7 billion as of the end of las year, up 8.5 percent
from the previous year, the watchdog added. The foreign branches' average return
on assets, a measure of profitability, reached 0.64 percent as of the end of
2008, compared with 1.08 percent the previous year.
The regulator said it will strengthen its monitoring of overseas operations by
local banks as the global economic slump eats away at their profitability and
financial health.
sooyeon@yna.co.kr
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