Savings banks' profit rises 10% in 2020 on interest income

South Korean savings banks reported 10 percent growth in their combined net profit for 2020, thanks to a modest rise in interest income, data showed Tuesday.

The combined net income of the 79 savings banks stood at 1.4 trillion won ($1.24 billion) last year, compared with a profit of 1.3 trillion won a year ago, according to the data from the Financial Supervisory Service (FSS).

Their interest income rose 8.7 percent on-year to 6.5 trillion won, while loan-loss provisions jumped 30.7 percent on-year to 1.5 trillion won.

Their loan delinquency ratio edged down 0.4 percentage point to 3.3 percent at the end of last year, according to the data.

The average capital adequacy ratio of the savings banks reached 14.29 percent at the end of last year, down 0.54 percentage point from a year ago.

A key barometer of financial health, the ratio measures the proportion of a bank's total capital to its risk-weighted assets. The Bank for International Settlements, an international organization of central banks based in Basel, Switzerland, advises lenders to maintain a ratio of 8 percent or higher. (Yonhap)