South Korea’s Financial Supervisory Service (FSS) released preliminary 2025 earnings for 32 foreign bank branches operating in Korea, reporting net income of KRW 1.6773 trillion, down KRW 102.8 billion (5.8%) from 2024. The figures exclude the UBS (former Credit Suisse) Seoul branch, which is undergoing approval to discontinue its banking business in Korea. Interest income declined 4.7% year on year to KRW 913.7 billion, with the FSS pointing to elevated funding costs and a lower net interest margin. Non-interest income fell 2.0% to KRW 2.4909 trillion as securities income swung to a loss of KRW 544.8 billion, reflecting a KRW 452.1 billion drop in valuation gains amid higher government bond yields at end-December 2025. FX and derivatives income rose 43.1% to KRW 3.1942 trillion, driven by an increase in FX-related income to KRW 1.7738 trillion, while derivatives-related income dropped to KRW 1.4204 trillion. SG&A expenses increased 5.1% to KRW 1.1561 trillion and loan loss provisions rose 16.8% to KRW 40.5 billion. Against a backdrop of heightened market volatility and broader economic uncertainty, the FSS stated it will regularly review foreign bank branches’ business strategies and their financing and liquidity management, and conduct risk-based, tailored inspections focusing on risk factors, internal controls and regulatory compliance.
South Korea Financial Supervisory Service 2026-03-24
South Korea Financial Supervisory Service publishes 2025 preliminary results showing foreign bank branch net income fell 5.8% to KRW 1.68 trillion
South Korea's Financial Supervisory Service reported a 5.8% decline in 2025 net income for 32 foreign bank branches, excluding UBS Seoul, to KRW 1.6773 trillion. Interest income fell 4.7% due to higher funding costs, while non-interest income decreased 2.0% amid losses in securities income. The FSS plans regular reviews and risk-based inspections of foreign bank branches' strategies and compliance.