SC, Citibank suffers setback in earnings
By Jhoo Dong-chanTwo foreign banks operating here ― Citibank and SC Bank Korea ― posted disappointing earnings in the first three months of the year.They have said the setback is temporary and their earnings will bounce back soon, but industry observers said the task won't be easy considering Korea's saturated financial market.SC Bank Korea said Wednesday it posted a 76 billion won ($63.8 million) net profit in the first quarter of the year. The figure jumped 55.5 billion won, or 270.7 percent, from the previous quarter, but was down 10.9 billion won, or 12.5 percent, from a year ago.The bank's return on assets (ROA) and return on equity (ROE) were also down 0.1 and 0.4 percentage points year-on-year to 0.48 percent and 4.05 percent, respectively, over the period. Its Bank for International Settlement (BIS) ratio stood at 15.72 percent.An SC Bank Korea official said the decline was attributed to an increase in its management costs.“Bond trading grew as market interest rates decreased in the first quarter, but management and extra costs rose over the period,” the official
May 19, 2019By Jhoo Dong-chan