SC First Bank's Cumulative Net Profit Through Q3 Rises 67% to 506.2 Billion Won

[Financial News] SC First Bank posted cumulative net profit of 506.2 billion won for the first three quarters of this year, reversing 110.2 billion won in provisions for Hong Kong H Index-linked securities (ELS), amid a sharp rise in non-interest income. 
According to financial industry sources on the 13th, SC First Bank's cumulative consolidated net profit for the first three quarters of this year rose 67% (202.2 billion won) from the same period last year to 506.2 billion won. Operating profit over the same period increased 40% (150.8 billion won) to 526.5 billion won. In the third quarter alone, consolidated net profit fell 14% year on year to 81.8 billion won.
Net interest income rose 4% year on year to 942.4 billion won. The net interest margin (NIM) fell 0.27 percentage points. 
Non-interest income rose by 147.1 billion won (54%) year on year to 418.5 billion won. The increase reflected improved performance in wealth management amid growth in high-net-worth clients and a buoyant stock market, as well as higher earnings in foreign-exchange derivatives. In the second quarter, the reversal of 110.2 billion won in provisions related to Hong Kong H Index ELS also contributed to higher net profit.
Selling, general and administrative expenses increased by 19.5 billion won (3%) from the same period last year to 732.9 billion won, as operating costs rose with wages and prices. Savings in personnel costs from a special retirement program at the end of last year partially offset the increase in expenses.
At the end of September, total loans stood at 44.4053 trillion won, reflecting increased funding demand from corporate banking customers.
The return on assets (ROA) was 0.58% and the return on equity (ROE) was 12.06%, up 0.14 and 4.74 percentage points, respectively, from the same period last year.
The previous day, SC First Bank resolved to pay an interim dividend of 150 billion won. Even after the dividend, its BIS total capital ratio (CAR) and common equity tier 1 (CET1) capital ratio stood at 20.28% and 17.83%, respectively.
The bank plans to build on its stable financial performance to enhance shareholder value and strengthen its social role. SC First Bank said, "In line with the policy direction of the financial authorities, we will continue to explore various financial support measures that align with the goals of inclusive finance and productive finance, and contribute to the sustainable growth of customers and businesses." 
[email protected] Lee Hyun-jung Reporter