South Korean banks post record earnings on FX gains

SEOUL, November 20 (AJP) - South Korea’s banking sector logged record profits in the first nine months of the year, buoyed by a sharp rise in non-interest income as a weakening dollar lifted foreign-exchange and derivatives gains, according to preliminary figures released Thursday by the Financial Supervisory Service (FSS).

Banks reported a combined net profit of 21.1 trillion won, up 12 percent — or 2.3 trillion won — from a year earlier.

The FSS warned that a portion of this year’s gains was temporary, citing volatility in exchange rates and the removal of last year’s exceptional costs. The regulator urged banks to bolster their buffers as global economic risks, including uncertainty surrounding U.S. tariff policy, continue to cloud the outlook.

“There is a possibility of a significant increase in loan-loss provisions due to domestic and international uncertainties,” an FSS spokesperson said. “We will encourage banks to enhance their risk management.”

* This article, published by Economic Daily, was translated by AI and edited by AJP.