Samsung Card’s Q1 net profit up 22.3% on reduced bad debt costs

[Courtesy of Samsung Card Co.]

South Korea’s Samsung Card Co. posted 177.9 billion won ($129.43 million) in net profit for the first quarter, up 22.3 percent from the same period a year ago, thanks to the company’s focus on boosting profitability.

According to Samsung Card on Friday, its sales totaled 1.1 trillion won for the first quarter, up 3.4 percent from the same period a year ago. Its operating profit stood at 241.2 billion won, up 25.7 percent during the same period.

“Finance costs increased due to rising borrowing rates, but bad debt expenses decreased due to profitability-focused efficient management and systematic asset quality management,” the company said.

Samsung Card’s total transaction volume stood at 39.94 trillion won for the first quarter, down 3 percent from the same period a year ago.

The card business transaction volume, in particular, fell by 3 percent to 39.85 trillion won.

The decrease is attributable to adjustments in asset portfolios in line with an efficiency-focused management strategy, resulting in a decline in transaction amounts in relatively low-profit sectors.

The company’s delinquency rate for over 30 days stood at 1.1 percent.

“High-interest rate conditions are expected to persist for a considerable period of time after the second quarter, and the environment surrounding the card industry is projected to remain challenging,” the company said. “We will continue to focus on asset quality management and pursue efforts to expand profitability through efficiency-based management.”