Samsung Card's Q3 Net Income Falls 13.5% to KRW 139.8 Billion on Higher Financial Costs

Costs rise amid higher funding rates, weighing on earnings
Delinquency rate at 0.87%... "Asset quality management and efforts to drive future growth in AI and stablecoins"

Samsung Card disclosed on October 27 that its net income for the third quarter was KRW 139.8 billion, down 13.5% from the same period a year earlier.

The company said operating revenue increased as transaction volume and product receivables outstanding rose. However, financial costs also increased due to a larger volume of borrowings and higher funding rates, while credit loss expenses rose amid an increase in debt restructurings, affecting earnings.

Total transaction volume reached KRW 49.7927 trillion, up 9.1% from the same period a year earlier.

Of that total, transaction volume in the card business, including KRW 45.0217 trillion in purchases and KRW 4.5248 trillion in financial services, rose 8.9% year over year to KRW 49.5465 trillion. Transaction volume in the installment and leasing business was KRW 246.2 billion.

The company said the increase in transaction volume was driven by growth in the number of members and spending per member, following efforts to strengthen product competitiveness by expanding partnerships with high-quality partners.

As of the end of September, the delinquency rate for accounts overdue by at least one month was 0.87%, down 0.02 percentage points from the previous quarter.

A Samsung Card official said, "Difficulties in the business environment for card companies are expected to continue into the fourth quarter, with ongoing pressure from rising financial costs. We plan to focus on strengthening our core business competitiveness by managing asset quality and growing our assets around high-quality members, while continuing efforts to drive future growth in areas such as artificial intelligence (AI) and stablecoins."

This content was produced with the assistance of AI translation services.