Foreign banks in S. Korea suffer 4.5% drop in profits in 2021
The net profit of 35 foreign bank branches in South Korea dropped 4.5 percent to 1.15 trillion won in the fiscal year of 2021, down 53.5 billion won from a year earlier due to an increase in securities-linked losses amid market downswings.
According to statistics from the Financial Supervisory Service, these branches either closed their books for the fiscal year 2021 in September last year or in March this year (FSS).
Data from the Financial Supervisory Service shows that these branches either closed their books for the fiscal year 2021 in September of last year or in March of this year (FSS).
According to the FSS, the drop happened despite a rise in interest income due to high borrowing costs, which was offset by an increase in securities-related losses and a decline in revenue from other non-interest categories like as transaction fees, currency, and derivative trading.
The decrease occurred despite an increase in interest income due to high borrowing costs, which was countered by an increase in securities-related losses and decreased revenue from other non-interest categories such as transaction fees, forex, and derivative trading, according to the FSS.
Because of the high market rates, their interest earnings remained robust. The profit was 1.86 trillion won, up 19.5 percent from the previous year, according to the figures.
Concerns about monetary tightening in key nations and rising currency market volatility have prompted the FSS to step up its surveillance of those foreign bank branches' risk management capabilities.