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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Major South Korean credit card companies reported mixed first-quarter earnings, highlighting growing pressure on profitability amid a sluggish industry environment.
Samsung Card maintained the top spot with net profit of KRW 156.3 billion, but this marked a 15.3% decline year-on-year. Despite expanding partnerships with brands such as Starbucks and Musinsa, rising selling and administrative costs, along with higher funding and credit costs, weighed on earnings.
Shinhan Card also saw net profit fall 14.9% to KRW 115.4 billion, partly due to increased expenses including one-off costs from a voluntary retirement program.
In contrast, KB Kookmin Card posted strong growth, with net profit rising 27.2% to KRW 107.5 billion. The improvement was driven by proactive risk management, which significantly reduced credit loss provisions and improved asset quality indicators.
Hyundai Card recorded a 5.4% increase in net profit to KRW 64.7 billion, maintaining stable asset quality through a focus on premium products and disciplined risk management.
Hana Card posted a 5.3% rise in net profit to KRW 57.5 billion, supported by strong corporate card performance and growth in overseas transactions.
Woori Card delivered the fastest growth, with net profit jumping 33.3% to KRW 44 billion, driven by an improved cost structure and expansion of proprietary merchant and card operations.
Despite divergent performances, card issuers face common challenges, including slowing industry growth and declining fee income, forcing them to seek new revenue streams beyond traditional payment processing.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
