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  • 35 branches of foreign banks which have operated in Korea generated KRW1.1482 trillion in net income for FY2021, down KRW53.5 billion or 4.5% from the same period a year earlier. In particular, interest income grew KRW303.4 billion, but non-interest income decreased KRW445.5 billion year on year. Meanwhile, return on assets (ROA) stood at 0.35%, down 0.02%p from a year ago.

  • The delinquency rate of domestic banks’ won-denominated (WD) loans—classified as the percentage of loans with principal of interest payment past due by at least one month—as of end-March 2022 stood at 0.22%, down 0.03%p from a month earlier and 0.06%p from a year earlier. In March, the amount of resolved loans expanded KRW0.9 trillion month on month while that of newly delinquent loans shrank KRW0.1 trillion. This mostly contributed to the monthly decline in the delinquency rate for March.

  • Domestic banks’ preliminary net income for the first quarter of 2022 remained the same as a year earlier, coming in at KRW5.6 trillion. In the first three months, interest income expanded by KRW1.8 trillion or 16.9% due to higher interest rates. By contrast, non-interest income shrank KRW1.2 trillion or 49.4% due to the base effect of unusual factors last year. Meanwhile, loan loss expenses grew KRW0.2 trillion as well as selling and administrative expenses increased KRW0.4 trillion from the same period a year ago.

  • The delinquency rate of domestic banks’ won-denominated (WD) loans—classified as the percentage of loans with principal of interest payment past due by at least one month—as of end-February 2022 stood at 0.25%, up 0.02%p from a month earlier and down 0.08%p from a year earlier. In February, the amount of newly delinquent loans grew KRW0.1 trillion while that of resolved loans remained the same as a month ago. This resulted in the month-on-month increase in the delinquency rate for February.

  • Domestic banks were operating in 39 countries through 61 subsidiaries, 83 branches and 60 offices as of year-end 2021. Most of the overseas operations were concentrated in Asia, accounting for 69.1% of the total, followed by the Americas (14.2%), Europe (12.7%) and other regions including Oceania and Africa (3.9%).

  • Domestic banks’ common equity Tier 1 (CET1) capital ratio stood at 12.99% as of year-end 2021. The Tier 1 capital ratio was seen at 14.19% and total capital ratio 15.53% at the end of December 2021. All the capital ratios have risen from the same period a year earlier. Total capital of the domestic banks increased KRW27.7 trillion from a year ago, and risk-weighted assets expanded by KRW112.8 trillion as well. Meanwhile, leverage ratio stood at 6.51% as of year-end 2021.

  • The aggregate assets of 79 mutual savings banks came in at KRW118.2 trillion as of year-end 2021, up KRW26.2 trillion or 28.5% from KRW92.0 trillion the same period a year earlier. Loans expanded from KRW77.6 trillion to KRW100.5 trillion between 2020 and 2021. To go into detail, loans to companies increased KRW15.7 trillion while household loans grew KRW6.3 trillion. Meanwhile, shareholders’ equity has risen by 21.1% to KRW12.6 trillion year on year. In particular, retained gains grew KRW1.8 trillion, which contributed to the growth in shareholders’ equity.

  • The delinquency rate of domestic banks’ won-denominated (WD) loans—classified as the percentage of loans with principal of interest payment past due by at least one month—as of end-January 2022 stood at 0.23%, up 0.02%p from a month earlier and down 0.08%p from a year earlier. The amount of newly delinquent loans remained the same as the previous month, but that of resolved loans decreased by KRW1.2 trillion from a month ago. This contributed to the uptick in the delinquency rate for January.

  • Preliminary figures on domestic banks’ loan classified as substandard or below (SBLs) showed that the ratio stood at 0.50% as of year-end 2021, down 0.01%p from 0.51% three months earlier and down 0.14%p from 0.64% a year earlier. Meanwhile, coverage ratio was seen at 165.9% at the end of December 2021, up 9.2%p from 156.7% three months earlier and up 27.6%p from 138.3% a year earlier.

  • Domestic banks preliminarily reported net income of KRW16.9 trillion for 2021, up KRW4.8 trillion or 39.4% from the same period a year earlier. Unusual factors of the Korea Development Bank (KDB) contributed to the year-on-year growth in net income of the domestic banks. Meanwhile, preliminary net income of the 19 domestic banks except the KDB grew KRW2.8 trillion or 24.1% to KRW14.4 trillion during the same period.