Hyundai Card reported a 15.7% year-over-year increase in net profit for the second quarter, reaching 1,205 billion won, driven by operating profit expansion and increased Apple Pay transactions. The company disclosed on the 23rd that Q2 net profit rose from 1,041 billion won in the prior-year period. For the first half, Hyundai Card posted net profit of 1,852 billion won, an 11.9% increase from 1,655 billion won in the same period last year, with both operating revenue and operating profit growing compared to the prior year.
Hyundai Card Reports 15.7% Q2 Net Profit Growth
Hyundai Card announced through its earnings disclosure on the 23rd that second-quarter net profit reached 1,205 billion won, representing a 15.7% increase from 1,041 billion won in the same period last year. On a first-half basis, the company provisionally reported net profit of 1,852 billion won, an 11.9% increase from 1,655 billion won in the prior-year period.
Operating Revenue and Profit Increase in First Half
First-half operating revenue totaled 2.3372 trillion won, an increase of 2,117 billion won (10%) compared to 2.1255 trillion won in the same period last year. Operating profit rose 350 billion won (16.3%) to 2,495 billion won. However, on a second-quarter basis, while operating profit increased 19.9% year-over-year to 1,616 billion won, operating revenue decreased 0.4% to 1.1556 trillion won.
First-half operating expenses reached 2.0876 trillion won, up 1,767 billion won (9.25%) from 1.9110 trillion won in the prior-year period. Card costs increased 5.1% to 5,470 billion won due to expansion of profitability-focused financial assets, while bad debt expenses rose 11.7% to 3,300 billion won amid deteriorating market conditions. Second-quarter bad debt expenses totaled 1,671 billion won, a 23.6% increase from 1,352 billion won in the prior-year period, driving overall cost increases.
Credit Sales and Membership Expand
Credit sales (individual + corporate) increased 4.021 trillion won (4.6%) year-over-year. Average monthly usage per member reached 1.2 million won. Membership grew by 280,000 (2.2%) during the same period.
Overseas Transactions Lead Market with Apple Pay Growth
Overseas transaction volume reached 2.0128 trillion won in the first half, maintaining the number one position. The growth was attributed to enhanced payment convenience through Apple Pay and specialized overseas travel services.
Delinquency Rate Remains Stable at 0.84%
In terms of asset quality, the 1-month or longer delinquency rate stood at 0.84% at the end of the second quarter, decreasing 0.01 percentage points from 0.85% at the end of the previous quarter.
A Hyundai Card official stated, "Instead of excessive competition for scale, we secured efficiency while growing membership and credit sales," adding, "Despite economic deterioration, we maintain industry-leading delinquency rates through stable asset quality management."
FAQ
What was Hyundai Card's net profit in Q2?
Hyundai Card reported net profit of 1,205 billion won in the second quarter, representing a 15.7% increase from 1,041 billion won in the same period last year.
How much did Hyundai Card's overseas transactions grow in the first half?
Overseas transaction volume reached 2.0128 trillion won in the first half, maintaining the number one position, driven by Apple Pay and specialized overseas travel services.
What is Hyundai Card's current delinquency rate?
The 1-month or longer delinquency rate stood at 0.84% at the end of the second quarter, decreasing 0.01 percentage points from 0.85% at the end of the previous quarter.
