SEOUL, Aug. 24 (Xinhua) -- South Korean banks' combined net income fell in the first half as securities-related losses offset record-high interest income, financial watchdog data showed Monday.
The net income of local banks stood at 13.8 trillion won (10.0 billion U.S. dollars) in the January-June period, down 6.4 percent compared to the same period of last year, according to the Financial Supervisory Service.
Their interest income grew 8.3 percent to hit the first-half high of 32.2 trillion won on the back of higher net interest margins (NIM) and larger interest-bearing assets.
The NIM gained 0.04 percentage points to 1.56 percent in the first half on a yearly basis, while the interest-bearing assets swelled 6.4 percent to 3,628.1 trillion won.
Non-interest income dipped 43.4 percent to 2.9 trillion won as securities-related earnings swung into a deficit amid rising interest rates.
Amid lingering inflationary pressure, the Bank of Korea lifted its benchmark interest rate by 25 basis points to 2.75 percent in July, marking the first monetary tightening in about three and a half years, since January 2023.
Loan-loss expenses rose 8.6 percent to 3.5 trillion won in the cited period.
Return on assets for domestic banks, a key gauge of profitability, retreated 0.10 percentage points to 0.65 percent, and the return on equity declined 1.15 percentage points to 8.89 percent. (1,000 won equals 0.72 U.S. dollars) ■