Consumer financing firms' profit soars in H1 on stock rally

Consumer financing firms in South Korea saw their combined net profit jump 50 percent on-year in the first half, supported by strong gains from stock rallies and a modest gain in interest income, data showed Thursday.

The combined net profit of 114 credit-specialized financial firms stood at 1.99 trillion won ($1.69 billion) in the first half, compared with a profit of 1.33 trillion won a year earlier, according to the data by the Financial Supervisory Service (FSS).

Their interest income rose 7.7 percent on-year to 3.3 trillion won in the first half, the data showed.

Loan-loss provisions fell 18 percent on-year to 547.4 billion won in the first half, according to the data.

The combined assets of those firms climbed 13.1 percent on-year to 193.6 trillion won at the end of June, the data showed.

The FSS has urged consumer financing firms to improve risk assessment processes amid financial uncertainties at home and abroad. (Yonhap)