S. Korea’s banks see 22.2% rise in overseas profits in 2018

The overseas branches of South Korean banks last year saw their profit climb 22.2 percent on-year, reflecting the rise in interest income, data showed Tuesday.

According to market watchdog Financial Supervisory Service, the banks’ overseas net profit stood at $983 million as of end-2018, which accounted for 8 percent of their total net profit.

The total asset volume of overseas businesses came to $114.25 billion, up $93.7 billion or 8.9 percent from a year earlier.

“The pick-up mostly resulted from considerable increases in interest and non-interest incomes,” the FSS said in a release.

“In terms of geographical region, net income increased the most in Hong Kong, China and Vietnam.”

The total asset volume of overseas businesses came to $114.25 billion, up $93.7 billion or 8.9 percent from a year earlier.

Expanding at a notable pace were loans and securities, which grew by $7.24 billion and $1.53 billion, respectively.

The average non-performing loan ratio in the overseas market stood at 0.6 percent, lower than the 0.9 percent average for the domestic market.

Korean banks also received Grade 20 in localization assessment and recorded Grade 3+ in headquarters globalization.

By Bae Hyun-jung (tellme@heraldcorp.com)