Seoul: South Korean banks' combined net profit experienced a 12 percent increase in the first nine months of 2025, driven by a significant rise in non-interest income, data revealed on Thursday. The collective net profit of 20 banks reached 21.1 trillion won (US$14.5 billion) during the period from January to September, marking an increase of 2.3 trillion won from the 18.8 trillion won recorded in the same period the previous year.

According to Yonhap News Agency, the Financial Supervisory Service (FSS) provided data indicating that the banks' interest income slightly increased to 44.8 trillion won, up by 0.3 trillion won or 0.7 percent from the previous year. However, the substantial growth in non-interest income, which rose by 1.1 trillion won or 18.5 percent to 6.8 trillion won, was a key factor in the overall profit increase.

The report also highlighted that the banks' expenses for covering loan losses amounted to 4.7 trillion won in the first nine months, up by 0.1 trillion won or 2.4 percent compared to the same period last year. Despite these increased costs, the banks saw an improvement in their return on assets ratio, which rose to 0.67 percent from 0.66 percent a year ago. Additionally, their return on equity ratio increased by 0.17 percentage points to 8.99 percent over the cited period.