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[Alpha Biz=(Chicago) Reporter Paul Lee] The domestic banking sector is posting record-high earnings day after day.
According to the Financial Supervisory Service (FSS) on the 30th, interest income in the domestic banking sector is increasing by 42.7% from 41.2 trillion won in 2020 to 58.8 trillion won (estimated) this year. The domestic banking sector's interest income for this year is an annual conversion of 29.4 trillion won in interest income in the first half of this year.
The bank's interest income naturally grows when interest-income assets such as loans increase. However, domestic bank interest income assets increased only 23.8% from 2,521.3 trillion won in 2020 to 3,120.2 trillion won at the end of the first half of this year. In other words, the growth of interest income is much greater than the growth of interest-earning company assets.
The surge in interest income at local banks is attributable to a rise in net interest margin (NIM) in the banking sector. The NIM in the local banking sector expanded from 1.42 percent in 2020 to 1.62 percent in 2022, followed by 1.68 percent in the first half of this year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
