Domestic Banks' Q1 Net Profit Down 3.9%

Domestic banks' net profit for the first quarter of this year decreased by 300 billion won (3.9%) year-on-year to 6.7 trillion won. This was due to a sharp decline in securities-related gains stemming from rising market interest rates, and an increase in operating expenses, including labor and administrative costs.

According to the 'Preliminary Operating Results for Domestic Banks in Q1 2026' released by the Financial Supervisory Service on the 20th, general banks recorded a net profit of 4.3 trillion won. Non-interest income plunged by 700 billion won to 1.3 trillion won, largely due to increased losses on securities valuation, while interest income rose by 1 trillion won driven by growth in loan assets and an increase in the net interest margin (NIM). General banks posted a net profit of 4.3 trillion won, while special banks' net profit decreased by 300 billion won year-on-year to 2.4 trillion won. Internet banks and regional banks saw their net profits increase.

The Financial Supervisory Service has continuously encouraged banks to bolster their loss-absorbing capacity and fulfill their social responsibilities amidst growing domestic and external uncertainties.