Set a Long-Term Net Profit Target of 200 Billion KRW
Entered Global Business After 2012 Credit-Economic Separation
"Late Start, but Building Solid Fundamentals"
President Kang Taeyoung Stresses Strengthening Competitiveness Through Investment Banking
Establishing Customized Business Models by Region
NH Nonghyup Bank is stepping up its efforts to strengthen its global business. Among the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup), it has the smallest overseas business scale but aims for steady growth with solid fundamentals. The bank plans to establish customized business models according to the characteristics of each country it has entered and push forward its business plans accordingly. Since his inauguration, President Kang Tae-young has been driving the global business aggressively, including the establishment of an IB Desk team to activate Global Investment Banking (GIB). Starting with a net profit of 30 billion KRW this year, the bank has also set a long-term goal of achieving 200 billion KRW in net profit.
According to the financial sector on the 25th, Nonghyup Bank is currently executing its focused global business promotion plan. It has set a target of 30 billion KRW in global net profit for this year. Specifically, it aims to achieve total assets of 4.9608 trillion KRW and total loans of 2.4062 trillion KRW. These figures represent increases of 552.7 billion KRW and 844.4 billion KRW, respectively, compared to last year. Nonghyup Bank’s global business has been steadily growing. In 2023, it recorded a net profit of 15.4 billion KRW, up from 27.7 billion KRW last year. Total assets increased from 3.1724 trillion KRW to 4.4081 trillion KRW, and both loan assets (1.0368 trillion KRW → 1.5618 trillion KRW) and trade finance (946.4 billion KRW → 1.4153 trillion KRW) expanded. Nonghyup Bank plans to elevate its global business to the level of its core domestic business headquarters. It has set a medium-term profit target of 100 billion KRW and a long-term goal of achieving 200 billion KRW in net profit, which is about 10% of the bank’s total net profit.
Nonghyup Bank entered the global business later than commercial banks. After the separation of credit and economic businesses in 2012, the bank has focused on expanding its network over the past decade and currently operates two subsidiaries (Cambodia and Myanmar) and six branches (New York, USA; Hong Kong; Sydney, Australia; Hanoi, Vietnam; Beijing, China; and Noida, India).
Since last year, Nonghyup Bank has been focusing on asset expansion and profit-centered strategies, achieving results in its global business. The Hanoi branch in Vietnam and the New York branch in the USA generated net profits of 13 billion KRW and 8 billion KRW, respectively, driving the profitability of the global business. Through collaboration between the Investment Banking Division and the Global Business Division, credit loans at the New York and Hong Kong branches also grew.
President Kang Tae-young has emphasized the need to strengthen business competitiveness through global investment banking loans. The IB Desk team, which was piloted with one member at the New York branch last year, was officially expanded and newly established this year. Nonghyup Bank explained that by assigning two members each to the New York and Hong Kong branches, they can directly engage with global financial firms on-site, select better deals, and significantly enhance expertise.
Starting this year, Nonghyup Bank will establish customized business models by dividing its overseas markets into three regions based on their characteristics. It will designate and nurture hub branches for each region and build a system to support other countries. The advanced financial region (New York, Hong Kong, Sydney) specializes in GIB, fundraising and management, and corporate loans. This year, the bank plans to expand IB loans through the full-scale operation of the IB Desk. The IB loan hub is New York, and the fundraising and foreign exchange hub is the Hong Kong branch. The corporate finance region (Hanoi, Beijing, Noida) specializes in deposits and loans related to Korean-affiliated local companies (overseas local subsidiaries or offices established by Korean companies) and trade finance. The Hanoi branch will serve as the hub, conducting active local marketing and coordinated marketing between overseas branches and domestic sales offices. The retail region (Myanmar, Cambodia) specializes in small loans to individual customers and plans to maintain a surplus trend through soundness management.
The bank will also expand its global network by opening four additional branches. The London branch in the UK is scheduled to open within the year and aims to stabilize its business early. In Singapore, the bank has obtained preliminary approval and aims to open the branch in the first half of next year. The Ho Chi Minh branch is conducting comprehensive lobbying activities for branch approval, and the second branch in India is selecting the feasibility and optimal location for establishment. Market research is also underway for establishing an additional office in Yangon, Myanmar.
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