South Korean lenders saw their combined net profit from overseas operations grow more than two-fold in the first half from a year earlier on the back of increased interest income, the financial regulator said Sunday.

Net income by 131 overseas units and branches managed by 11 local banks reached $429.4 million in the January-June period, compared with $211.8 million a year ago, according to the Financial Supervisory Service.

The stronger bottom line came as interest income rose, thanks to a fall in foreign currency funding costs, the FSS said, adding banks’ profits from securities investments also shifted to positive territory.

The overseas outlets’ combined interest earnings totaled $641.2 million, up 24 percent from a year earlier. Their average net interest margin, a key gauge of profitability, jumped 0.14 percentage points to 2.13 percent, the regulator added.

Meanwhile, their assets totaled $61.6 billion as of end-June, up 9 percent from the end of last year.

The FSS said it will step up efforts to monitor overseas operations’ foreign currency funding and asset quality in a bid to brace against a possible worsening of global economic conditions. 

(Yonhap News)