Net income of local banks totaled 21.3 trillion won (16.2 billion U.S. dollars) in 2023, up 15.0 percent compared with the previous year, according to the Financial Supervisory Service.
Interest income gained 5.8 percent to 59.2 trillion won (44.9 billion dollars) as the average net income margin, or difference between interest received and interest paid, climbed 0.03 percentage points to 1.65 percent in the cited year.
Non-interest income jumped 68.0 percent to 5.8 trillion won (4.4 billion dollars) on higher profit growth relevant to securities trading and valuation.
Loan-loss expenses surged 55.6 percent from a year earlier to 10.0 trillion won (7.6 billion dollars) in 2023 as banks expanded loan-loss provisions in preparation for uncertainty at home and abroad.
The return on assets for domestic banks, a major gauge of profitability, rose 0.06 percentage points to 0.58 percent in the cited year, while the return on equity increased 0.50 percentage points to 7.92 percent.
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