Credit card issuers' net profits drop 10% on increased cost

Published : Mar 6, 2017 - 14:37 Updated : Mar 6, 2017 - 14:37

year on a sharp increase in marketing cost and loan loss expenses, data showed Monday.

Eight standalone credit card firms here posted a total of 1.81 trillion won ($1.5 billion) in net profit, down 9.9 percent from 2015, according to the country's state financial watchdog.

Credit cards sit one atop another in this file photo. (Yonhap)

"Merchant fee income and card loan interest revenues rose compared with the previo year. However, provisions against soured assets and marketing expenses increased by 281.6 billion won and

519.4 billion won, respectively," the Financial Supervisory Service said.

Samsung Card was the only winner with its net income growing 12.5 percent on-year to 322.7 billion won.

The number of credit cards issued here totaled 95.6 million at the end of 2016, up 2.7 percent from a year ago.

Purchases with credit cards grew 11.4 percent on-year to 59 trillion, with debit card purchases rising 14.5 percent to 150.0 trillion won.

Cash advances and credit card loans climbed 3.5 percent on-year to 97.9 trillion won.

The FSS said it will tighten the monitoring of the card firms' financial soundness, as uncertainty grows over economic conditions at home and abroad including the possibility of further hikes in the US interest rate. (Yonhap)