Samsung Card logs 169.1% rise in Q4 net on rebounding spending

Samsung Card Co., a major South Korean card issuer, on Friday reported a 169.1 percent rise in its fourth-quarter earnings as consumption rebounded from a pandemic-caused slowdown.

Net income in the October-December quarter came to 129.4 billion won ($107.4 million) on a consolidated basis, up from 48.1 billion won a year earlier, the company said in a regulatory filing.

Fourth-quarter operating profit also surged 179.6 percent to 175.8 billion won, while sales declined 3.1 percent to 886.4 billion over the same period.

For 2021, net profit jumped 38.2 percent on-year to 551.1 billion won on an operating profit of 749.3 billion won, which was also 40.2 percent higher than the previous year.

The improved earnings were attributed to fast-rebounding spending after a slowdown in 2020 caused by the coronavirus pandemic. Credit card spending rose in department stores and internet shopping malls, among other areas.

Consumption on credit reached 122.26 trillion won last year, up 14.8 percent from a year earlier. Card loans also grew 3.3 percent on-year to 17.95 trillion won, the company said.

The ratio of loans 30 days and longer overdue stood at a stable level of 0.9 percent, it added.

Despite the robust earnings outcome last year, Samsung Card worried that uncertainty will persist in 2022 due to the still rampant coronavirus infections, coupled with tightened state rules on lending and the central bank's rising policy rates. (Yonhap)