Table of Contents
Published: April 1, 2025
Despite a dip in net profits, Lotte Card is strategically pivoting towards digital innovation and customer-centric services to bolster market share and membership amid economic uncertainty.
Financial Performance: A Year of Contrasts
Lotte Card recently disclosed its financial results for the past year, revealing a net profit of ₩137.2 billion. While this figure represents a significant decrease of 62.6% compared to the previous year’s ₩367.2 billion,it’s crucial to consider the context. The previous year’s results were significantly boosted by a one-time profit from the sale of subsidiaries in the first half of 2023. Excluding this one-off event, the decrease is a more moderate 18.9% compared to the adjusted figure of ₩169.1 billion.
strategic Growth and Market Expansion
Despite the profit decline, Lotte Card demonstrated robust growth in key areas. Credit sales and financial businesses experienced strong expansion, leading to a 10.6% year-on-year increase in assets and a 19.2% rise in operating income. This growth underscores the company’s success in expanding its market share and attracting new members. Furthermore, Lotte finance Vietnam achieved a significant milestone by recording its first net profit surplus, highlighting the company’s prosperous international expansion efforts.
The decrease in net profit can be attributed to several factors, primarily the impact of prolonged high interest rates, which increased procurement costs. In anticipation of a potential economic slowdown,Lotte Card proactively increased its reserves to mitigate future losses. This cautious approach reflects the company’s commitment to maintaining financial stability in an uncertain economic climate. according to recent economic forecasts,global economic growth is expected to slow down in the coming years,with rising interest rates and inflation posing significant challenges to businesses across various sectors.
We will continue to expand profit creation by increasing market share and membership number.
Digital Transformation and Customer-Centric Strategies
Looking ahead, Lotte Card is prioritizing digital transformation and customer-centric strategies to enhance profitability. The company plans to improve the efficiency of its services by offering a diverse range of content and services tailored to customer preferences, with a strong focus on its “Digyroka” strategy. This initiative aims to leverage digital technologies to create a more personalized and engaging customer experience. In addition, Lotte Card is committed to improving asset soundness and continuously optimizing procurement costs to ensure long-term financial sustainability.