Preliminary figures show that domestic banks’ net income for the first quarter of 2005 totaled KRW2.76 trillion, up KRW1.05 trillion or 61.2% from KRW1.71 trillion a year earlier. Income before provisioning for loan losses (including nonoperating income) totaled KRW4.62 trillion, which is KRW616.0 billion or 11.8% less than KRW5.24 trillion a year earlier, indicating most of the gains resulted from lower provisioning in the quarter.

Interest income for the first quarter totaled KRW6.30 trillion, down KRW330.5 billion or about 5% from KRW6.63 trillion a year earlier, on falling interest margins amid increasing competition in the banking sector. As a result of drop in fee income and securities trading income, non-interest income fell by KRW250.4 billion or 16.2% in the quarter.

* Please refer to the attached PDF for details.