Samsung Card reports slight decline in Q3 net profit

[Courtesy of Samsung Card]

Samsung Card on Thursday announced that its net profit for the third quarter of 2023 was 139.5 billion won ($103 million), down 0.8 percent from a year earlier. The company reported that operating profit was 186.8 billion won, down 3.7 percent, and revenue amounted to 1.02 trillion won, down 7.9 percent.

The decrease in net profit is attributed to rising borrowing costs and worsening economic conditions, leading to weaker repayment abilities among customers, which in turn increased bad debt expenses. The ratio of accounts that are overdue by more than 30 days remained unchanged at 1.1 percent, the same level as the previous quarter.

Samsung Card’s total transactions amounted to 42.1 trillion won, up by 1 percent compared to the same period last year. Among these, the total transactions of card business reached 42.05 trillion won, up 1.2 percent from a year ago.

The credit card company acknowledged the continued internal uncertainties and challenging industry conditions in the coming fourth quarter. In response, Samsung Card plans to reinforce efficient management based on its solid foundation while enhancing its competitiveness in data-related businesses, including MyData services.