On Monday, Standard Chartered Bank Korea reported that their net income for the first half of the year had dropped 1.4 percent from the same time period in the previous year, due to an increase in loan-loss reserves and costs.
The operating income of the British banking giant’s local unit went up 6.4 percent year-on-year to 278 billion won, but the net profit declined because of the additional expenses and reserves.
Interest income rose 15 percent compared to the same period in 2020, and non-interest income increased 32.1 percent. The return on equity, which is a key measure of profitability, was 7.93 percent in the first half, a decrease of 0.56 percentage points from the year before.
The ratio of nonperforming loans grew 0.14 percentage points to 0.31 percent at the end of June.
Standard Chartered Bank Korea’s capital adequacy ratio, a key indicator of financial health, was 20.39 percent at the end of June. According to the Bank for International Settlements, an international organization of central banks based in Basel, Switzerland, banks should maintain a ratio of 8 percent or higher.
In 2005, the British financial group took over the financially troubled First Bank of Korea.
The headquarters of Standard Chartered Bank Korea is located in central Seoul (Yonhap).