▲ ATM machines from local banks are seen in Seoul, in this file photo taken Aug. 16, 2026. (Yonhap)

SEOUL, Aug. 23 (Yonhap) -- Net profits of South Korean banks fell in the first half of 2026, due mainly to a fall in non-interest income, while their interest income recorded the highest six-month figure on record, data showed Sunday.

The combined net income of 20 banks came to 13.8 trillion won (US$9.95 billion) in the January-June period, down 6.4 percent from the same period a year earlier, according to the data from the Financial Supervisory Service (FSS).

Their interest income came to 32.2 trillion won in the first half, up 8.3 percent on-year.

Non-interest income came to 2.9 trillion won, sharply falling by 43.4 percent from the same period a year earlier, according to the FSS.

The drop in non-interest income was blamed on a fall in profits related to the benchmark KOSPI market, amid a rise in interest rates, the FSS said. Profits related to the KOSPI swung to the red in the first half, generating a deficit of 2.5 trillion won.

The FSS said external uncertainties, such as the Middle East war, and increasing delinquency rates could pose a burden on the fiscal soundness of banks, as it vowed to strengthen monitoring and encourage banks to take measures to expand their loss-absorption capacities.

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