▲ The logo of the Financial Supervisory Service (PHOTO NOT FOR SALE) (Yonhap)

banks-bad loans

Banks' bad loans rise for 4th consecutive quarter in Q3

SEOUL, Nov. 30 (Yonhap) -- South Korean banks' nonperforming loans continued to rise for the fourth consecutive quarter in the three months ended September, data showed Thursday.

Loans classified as substandard or below (SBL) held by local banks came to 11.5 trillion won (US$8.91 billion) as of end-September, up 1 trillion won from 10.5 trillion won tallied three months earlier, according to preliminary data from the Financial Supervisory Service (FSS).

The figure has been on a steady rise since the fourth quarter of 2022, when it stood at 10.1 trillion won, up 400 billion won from the previous quarter. The tally had risen to 10.4 trillion won in the first quarter of this year, and to 10.5 trillion won in the second quarter.

The percentage of SBLs to the total outstanding loans came to 0.44 percent at the end of September, up 0.03 percentage point from three months earlier, according to the FSS.

SBLs taken out by companies gained 800 billion won to 9 trillion won over the cited period, while SBLs taken out by households stood at 2.3 trillion won at end-September, up from 2.2 trillion won three months earlier.

Banks' coverage ratio dropped to 215.3 percent in the third quarter from 226.4 percent three months earlier.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]