Preliminary net income of local banks totaled 12.6 trillion won (9.4 billion U.S. dollars) in the first six months of this year, down 11.0 percent compared to the same period of last year, according to the Financial Supervisory Service.
Interest income grew 1.4 percent to a record high of 29.8 trillion won (22.3 billion dollars) in the first half.
The average net interest margin, or difference between interest received and interest paid, declined 0.06 percentage points to 1.62 percent, while interest-bearing assets expanded 4.1 percent in the six-month period.
Non-interest income retreated 11.4 percent over the year to 3.4 trillion won (2.5 billion dollars) in the first half.
Loan-loss expenses dwindled 15.9 percent to 2.6 trillion won (1.9 billion dollars), while non-operating loss amounted to 1.4 trillion won (1 billion dollars).
Return on assets for domestic banks, or a major gauge of profitability, dipped 0.12 percentage points to 0.67 percent in the first half, while return on equity slipped 1.82 percentage points to 9.03 percent.
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