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Photo courtesy of Shinhan Financial Group |
[Alpha Biz= Paul Lee] SEOUL, October 28, 2025 — Shinhan Card Co., Ltd., South Korea’s largest credit card issuer, reported a 22.9% year-on-year decline in third-quarter net profit as lower operating income and interest margins offset growth in overall spending volume.
In a regulatory filing on Tuesday, the company said its net profit for Q3 2025 stood at ₩133.8 billion (US$97 million), compared with ₩173.6 billion a year earlier.
Operating revenue fell 4.7% to ₩1.319 trillion, while operating profit declined 21.5% to ₩178 billion, reflecting continued margin pressure and higher credit costs.
Credit Risk Indicators Improve Slightly
As of the end of September, Shinhan Card’s delinquency ratio for loans overdue more than one month stood at 1.37%, down 0.13 percentage points from the previous quarter — suggesting gradual stabilization in credit quality despite macroeconomic headwinds.
Transaction Volume and Segment Breakdown
The company’s total transaction volume for the third quarter reached ₩60.41 trillion, up 3.89% year-on-year.
Breakdown by segment is as follows:
Credit transactions (lump-sum and installment sales): ₩53.78 trillion
Financial services (short- and long-term card loans): ₩51.59 trillion
Installment and lease business: ₩6.69 trillion
While consumer spending continued to recover, the growth was insufficient to offset declining profitability driven by a more conservative credit environment and regulatory loan-loss provisioning.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
