The Financial Supervisory Service said that the net profits of South Korean banks' overseas branches recorded a marginal year-over-year increase in 2005. The local banks' overseas branches recorded a combined net income of US$400 million in 2005, an increase of 9.8% y/y. The higher profits are attributed to increased profits from trade related loans and higher overseas investments. Combined assets at the overseas branches stood at US$27.6 billion at the end of the fourth quarter. December saw an increase of US$500 million from the end of the previous year. Branches in China had higher net income growth than the branches in any other foreign country. South Korean local banks operate 109 overseas branches.