Savings banks in South Korea saw their combined net loss widen in the first half from a year earlier, due largely to a sharp increase in loan-loss reserves set aside for real estate project financing (PF) loans, data showed Friday.

The banks posted a combined net loss of 380.4 billion ($284.5 million) in the January-June period, sharply up from a net loss of 96.5 billion won over the same period last year, according to the data from the Financial Supervisory Service.

Their interest income came to 2.77 trillion won in the six-month period, nearly unchanged from a year earlier, while their non-interest loss shrank from 169.5 billion won to 100.9 billion won over the cited period.

The banks' loan-loss reserves, however, gained nearly 400 billion won to 2.33 trillion won from 1.93 trillion won over the cited period amid growing concerns over risks stemming from short-term PF loans.

The banks' average loan delinquency ratio came to 8.36 percent as of end-June, up 1.81 percentage points from six months earlier. The delinquency rate for household loans dropped 0.21 percentage point to 4.80 percent over the said period, but the rate for corporate loans surged 3.90 percentage points to 11.92 percent, according to the financial regulator.

Their total assets were valued at 120.1 trillion won as of end-June, down 6.5 trillion won from six months earlier.

The savings banks' average capital adequacy ratio stood at 15.04 percent as of end-June, up from 14.35 percent six months earlier and well above the required level of 7 percent. (Yonhap)