Credit card companies, which had record earnings last year, saw their earnings plummet in the first quarter of this year.

This is because procurement costs have risen this year and the allowance for bad debts that must be accumulated has increased due to higher delinquency rates.

According to the card industry today (1th), Hana Card's net profit in the first quarter of this year was 15.1 billion won, a sharp decline of 546% year-on-year.

Woori Card's net profit in the first quarter was 63.1 billion won, down 855.46 percent from the same period last year, followed by KB Kookmin Card at 4.1 billion won, down 189 percent, and Samsung Card at 31.1 billion won, down 608.9 percent, respectively.

Shinhan Card, the No. 5 card company, posted a net profit of KRW 1.1 billion in the first quarter, down 1.759% from the same period last year.

The decline in operating profits for credit card companies was even greater.

Hana Card's operating profit for the first quarter was 5.2 billion won, down 1.719 percent from the same period last year, while Woori Card's operating profit for the first quarter was 66 billion won, down 2.1 percent from Kookmin Card's 1.140 billion won, and 50.3 percent from Samsung Card's 1.656 billion won.

On the other hand, the delinquency rate of all credit card companies exceeds 32%, and each credit card company has an emergency in health management.

On the other hand, the Financial Services Commission and the Financial Supervisory Service plan to actively induce credit specialized financial companies, including credit card companies, to expand their capacity to absorb losses such as provisions to manage risks due to poor real estate project financing (PF) and a sharp increase in delinquency rates this year.

(Photo=Yonhap News)