110.2 billion won in Hong Kong H-index ELS provisions reversed

Bank approves interim dividend for first time in three years

The headquarters of SC First Bank. [SC First Bank]
The headquarters of SC First Bank. [SC First Bank]

SC First Bank recorded a cumulative net profit for the period of 506.2 billion won ($380 million) for the first three quarters of this year, up 66.5 percent from the same period a year earlier.

Cumulative net interest income rose 3.69 percent year-on-year to 942.4 billion won. Although the net interest margin fell 0.27 percentage points to 1.17 percent from 1.44 percent over the same period, growth in the loan portfolio drove the increase in interest income.

Non-interest income climbed 54.2 percent year-on-year to 418.5 billion won, buoyed by expansion in foreign exchange and derivatives earnings. The reversal of 110.2 billion won in provisions related to Hong Kong H-index equity-linked securities in the second quarter also contributed to the rise in cumulative net profit.

Total loans outstanding as of end-September reached 44.41 trillion won, up 1.44 percent from a year earlier, driven by growing demand for corporate financing.

Cumulative selling, general and administrative expenses for the first three quarters came to 732.9 billion won, up 2.73 percent year-on-year, reflecting higher wages and rising prices.

The bank's cumulative return on assets and return on equity for the first three quarters stood at 0.58 percent and 12.06 percent, respectively, up 0.14 percentage points and 4.74 percentage points from the same period last year. Its BIS total capital adequacy ratio and common equity tier 1 ratio were 20.28 percent and 17.83 percent, respectively.

SC First Bank approved an interim dividend of 150 billion won on Thursday, its first interim dividend in three years.

The bank received an A+ rating for the eighth consecutive year in this year's corporate governance assessment by the Korea Institute of Corporate Governance and Sustainability (KCGS).


hyuk@heraldcorp.com