Korean banks’ net profit from overseas up 34.3% in 2023

[Photo by MK DB]

South Korean banks’ net income from overseas branches increased by more than 34 percent in 2023 from the previous year on the back of high interest income.

According to the Financial Supervisory Service on Wednesday, the combined net profit of Korean banks‘ overseas operations stood at $1.33 billion last year, up 34.3 percent from a year earlier.

The increase came on higher interest income amid the interest rate hike trend and also non-interest income led by the sale of bad debts.

By country, Korean banks’ operations in China saw net income increase by $125 million in 2023 and those in Vietnam by $65 million. Their operations in the United States, however, saw net income fall by $156 million and those in Cambodia by $152 million.

The total assets of the overseas branches stood at $210.19 billion, up 3.5 percent from a year-ago period.

The return on assets (ROA) stood at 0.63 percent, up 0.14 percentage point from a year earlier.

The ratio of non-performing loans was 1.74 percent, up 0.23 percentage point from 1.51 percent at the end of the previous year.

The total number of the lenders’ overseas branches came to 202 at the end of 2023, down by five from the end of the previous year.

By country, Vietnam had the most overseas branches with 20, followed by the U.S. and China with 16 branches each, Myanmar with 14, and Hong Kong with 11.