Bloomberg News

Korean Banks’ Third-Quarter Profit Unchanged at 2.8 Trillion Won

October 27, 2011

Oct. 28 (Bloomberg) -- South Korean banks’ combined profit was unchanged last quarter as gains from wider loan margins and fewer loan provision costs were undermined by asset sales made last year, the nation’s finance regulator said.

Net income at the 18 commercial lenders totaled 2.8 trillion won ($2.5 billion) for the three months ended September 30 on a preliminary basis, compared with a revised 2.8 trillion won a year earlier, the Financial Supervisory Service said today.

Net interest margin, a measure for profitability from lending, widened to 2.33 percent in the period, compared with 2.21 percent a year earlier, according to the statement. Loan- loss provisions dropped to 2 trillion won from 3.3 trillion won, when the banks had to set aside funds for soured construction project loans, it said.

--Editors: James Gunsalus

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net.


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