Seoul: 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.

According to Yonhap News Agency, 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. 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.