SEOUL, Aug. 21 (Xinhua) -- South Korean banks' combined net income rose in double digits in the first half of this year due to higher non-interest income, financial watchdog data showed Thursday.
Net income of domestic banks totaled 14.9 trillion won (10.7 billion U.S. dollars) in the January-June period, up 18.4 percent compared to the same period of last year, according to the Financial Supervisory Service.
Interest income slipped 0.4 percent to 29.7 trillion won on a lower net interest margin.
Interest-bearing assets grew 4.7 percent in the first half, but net interest margin declined 0.09 percentage points to 1.52 percent.
The central bank cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after slashing it by the same basis points in October and November last year.
Non-interest income jumped 53.1 percent to 5.2 trillion won in the first half, owing to an increased income from the trading of securities and foreign exchange derivatives.
Loan-loss expenses swelled 23.3 percent to 3.2 trillion won in the six-month period amid concerns about an economic slump.
The return on assets for local banks, a key gauge of profitability, climbed 0.08 percentage points to 0.75 percent in the cited period, while the return on equity advanced 1.08 percentage points to 10.18 percent. (1 won equals 0.00072 U.S. dollars) ■
