Operating profit rises 11.5% to 366.5 billion won year-on-year
Credit card sales reach 136.3 trillion won; membership tops 12.87 million
Delinquency rate improves to 0.75%, though credit loss costs climb 17.2%
Hyundai Card's cumulative net profit for the period through the third quarter rose 8.2 percent year-on-year to 275.8 billion won ($206 million), the company said Thursday. The growth came amid an expansion in credit card transaction volume and membership, alongside an improvement in the delinquency rate, marking the fourth consecutive year of cumulative net profit growth through the third quarter.
According to third-quarter earnings results Hyundai Card released Thursday, cumulative net profit for the period reached 275.8 billion won, up 20.8 billion won from 255 billion won in the same period last year. Operating profit climbed 11.5 percent to 366.5 billion won from 328.7 billion won. Operating revenue also increased 13.0 percent, rising from 3.02 trillion won to 3.41 trillion won.
Hyundai Card's cumulative net profit through the third quarter has grown consistently — from 207.8 billion won in 2022 to 225.7 billion won in 2023, 240.1 billion won in 2024 and 255 billion won in 2025. The company said it is the only card issuer in the industry to have sustained uninterrupted net profit growth over that four-year stretch.
Hyundai Card attributed the growth to stronger competitiveness in its proprietary card lineup and business diversification. This year the company launched its own-brand "Alphabet Card" series and expanded its premium card offerings, while pursuing a "PLCC 2.0" strategy that deepens co-branded private-label credit card partnerships through data sharing and business collaboration. Its investment finance business has also contributed to earnings, and the company has secured a new revenue stream by exporting its proprietary AI and data-science software platform, Universe.
Card usage figures also improved. Cumulative total transaction volume through the third quarter reached 146.41 trillion won, up 2.7 percent from the same period a year earlier. Credit card sales volume within that total rose 2.8 percent to 136.3 trillion won. Membership grew by 260,000 from a year earlier to 12.87 million.
Asset quality indicators also improved. The over-one-month delinquency rate as of the end of the third quarter stood at 0.75 percent, down 0.04 percentage points from the same period last year. The effective delinquency rate, which includes debt-consolidation loans, also fell from 1.16 percent to 1.06 percent.
However, cumulative credit loss costs through the third quarter rose 17.2 percent year-on-year to 509.4 billion won. Hyundai Card said credit loss costs tend to increase in tandem with growth in card product volume.
"Maintaining Hyundai Card's own pace is what has allowed us to achieve four consecutive years of profit growth — something no other card company has managed," a Hyundai Card official said. "Stronger product competitiveness, a technology-driven transformation and portfolio diversification are all driving growth, and at the same time our soundness-focused management keeps our delinquency rate among the best in the industry."
snsd@heraldcorp.com
