Credit finance firms' earnings shrink 24 pct in 2022

credit finance firms-2022 earnings

Credit finance firms' earnings shrink 24 pct in 2022

SEOUL, April 3 (Yonhap) -- South Korean credit finance firms saw their earnings shrink 24 percent in 2022 from a year earlier as their assets decreased amid a sluggish market, data showed Monday.

Their net profit came to 3.41 trillion won (US$2.59 billion) last year, down 1.05 trillion won from a year earlier, according to the data compiled by the Financial Supervisory Service (FSS).

The loss is primarily attributed to a fall in the value of stocks that credit firms have invested in.

Credit finance companies include capital financing firms and leasing companies but exclude credit card firms, with their business focusing on corporate lending and investment in startups.

As of end-2022, their delinquency rates stood at 1.25 percent, up 0.39 percentage point from a year ago, FSS data showed.

Their total assets came to 232 trillion won as of end-2022, up 11.9 percent from a year earlier.

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