Banks’ overseas earnings jump 32.1% in H1

South Korean banks saw their combined net profit from overseas operations jump 32.1 percent in the first six months of the year from a year earlier due mainly to a drop in bad debt expenses and a rise in interest income, the financial watchdog said Sunday.

Earnings by 156 overseas units and branches of local lenders stood at $373.4 million in the January-June period, compared with $282.7 million the previous year, according to the Financial Supervisory Service.

The overseas income accounted for 10.2 percent of the banks’ total profit during the six-month period, the FSS added.

It said the strong bottom line came as their loan loss reserves fell 7.5 percent on-year to $115.2 million from $124.5 million.

Increased interest earnings also contributed to the net profit jump, rising 21.1 percent to $713.5 million from $589.2 million over the cited period.

Their net interest margin, a gauge of profitability, dropped 0.07 percentage point to 1.71 percent as of end-June from 1.78 percent six months earlier.

The banks’ total assets amounted to $85.95 billion, up 10.4 percent from $77.84 billion tallied in the end of 2013. The overseas assets accounted for 4.5 percent of the total assets as of end-June.

Local banks had 64 branches, 42 subsidiaries and 50 offices in 34 countries at the end of June. (Yonhap)