SEOUL – K-Bank, a South Korean internet-only bank, reported a 48 percent decrease in its net profit for the third quarter compared to the same period last year. This significant drop in profit is attributed to one-off provisions made by the bank.
According to Yonhap News Agency, The bank's net profit for the quarter ending in September fell to 13.2 billion won (US$9.9 million), down from 25.6 billion won in the same period last year. In a statement, K-Bank explained that the company proactively set aside provisions in anticipation of financial volatility, which adversely affected the quarterly results. The bank allocated 63 billion won for provisions in the third quarter, a considerable increase from 32.1 billion won a year earlier.
Despite the decline in net profit, K-Bank has managed to post profits for ten consecutive quarters. This achievement is credited to diversified loan portfolios and a rise in interest income, which increased by 15 percent year-on-year to 115.6 billion won in the quarter. The bank's strategy of diversifying its loan offerings and increasing interest income appears to have contributed to its continued profitability despite the financial challenges.