Banks' net income falls in H1; interest profit hits record high: data
Net profits of Korean banks fell in the first half of 2026, due mainly to a fall in non-interest income, while their interest income recorded the highest six-month figure on record, data showed Sunday. The combined net income of 20 banks came to 13.8 trillion won ($9.95 billion) in the January-June period, down 6.4 percent from the same period a year earlier, according to the data from the…
In the first half of 2026, the net profits of Korean banks experienced a decline, primarily attributed to a reduction in non-interest income, while their interest income reached a record high for the six-month period, according to data released by the Financial Supervisory Service (FSS) on Sunday. The combined net income of 20 major banks amounted to 13.8 trillion won ($9.95 billion) for the January-June timeframe, marking a 6.4% decrease compared to the corresponding period last year, as reported by the FSS.
Their interest income for the same period reached 32.2 trillion won, reflecting an 8.3% increase year-on-year. However, non-interest income plummeted by a significant 43.4%, falling to 2.9 trillion won, according to the FSS. This decline in non-interest income was primarily attributed to the adverse impact of a decline in KOSPI market profits, exacerbated by rising interest rates, as stated by the FSS.
The FSS further noted that external uncertainties, such as the ongoing conflict in the Middle East and increasing delinquency rates, could potentially pose challenges to the financial stability of banks, underscoring the agency's commitment to intensifying monitoring efforts.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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