Samsung Card stock faces higher funding costs after Q3 profit drop

Samsung Card reported lower third-quarter earnings on October 27 as higher funding and credit costs offset growth in card spending and receivables, according to The Asia Business Daily. Net income fell 13.5 percent year over year to KRW 139.8 billion, while total transaction volume rose 9.1 percent to KRW 49.7927 trillion.

Profit falls as costs rise

The company attributed the earnings pressure to increased borrowings, higher funding rates and rising credit loss expenses linked to more debt restructurings. Card-business transaction volume increased 8.9 percent to KRW 49.5465 trillion, and installment and leasing volume reached KRW 246.2 billion.

The delinquency rate for accounts overdue by at least one month stood at 0.87 percent at the end of September, down 0.02 percentage points from the previous quarter. Management said the fourth quarter would remain difficult for card issuers because of funding-cost pressure, while it plans to focus on asset quality, creditworthy customers, artificial intelligence and stablecoins.

Competitive pressure in Korea

South Korean card issuers are operating in a higher-cost environment. Seoul Economic Daily reported that borrowing rates and revolving-credit charges increased across major issuers, including Samsung Card, Shinhan Card, Hyundai Card and KB Kookmin Card. That environment places the focus on funding discipline, credit quality and customer selection rather than transaction growth alone.

Samsung Card stock traded at 41,100 Korean won on the Korean market at 2:56 a.m. CET on Friday, November 6. The quote is a current market indication and is not compared here with a verified Xetra close.

Investors can follow the current market reports for broader developments in Asian equities.

Business model and competitors

Samsung Card is headquartered in Seoul, South Korea, and provides credit, debit and prepaid card services, short-term and long-term card loans, installment finance, leasing and rental services. Its offerings also include fraud protection, insurance agency services and lifestyle-related shopping, travel and wedding services, according to the Samsung Card website. The company competes with Shinhan Card, Hyundai Card and KB Kookmin Card in South Korea's non-bank card market. Samsung Card is described in market coverage as one of the country's major issuers, with KB Kookmin Card positioned behind Shinhan Card and Samsung Card.

South Korean equities can be followed through the KOSPI market theme.

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