4th Place NongHyup Financial, Q3 Cumulative Net Profit of 1.4608 Trillion KRW... 4.8% Increase (Comprehensive)

4th Place Following Shinhan, KB, and Hana Based on Cumulative Net Profit for Q3

[Asia Economy Reporter Park Sun-mi] NongHyup Financial Group announced on the 29th that its cumulative net income as of the end of the third quarter this year reached 1.4608 trillion KRW, a 4.8% increase compared to the same period last year (1.3937 trillion KRW).

Unlike other financial groups, NongHyup Financial Group's net income, considering the agricultural support business expenses of 321.1 billion KRW provided under the NongHyup Act to support agriculture and rural areas, amounts to 1.6854 trillion KRW.

The cumulative net interest margin (NIM) for the third quarter was 1.67%, the same level as the second quarter, but interest income increased by 1.1% (67.7 billion KRW) year-on-year due to growth in interest-bearing assets and an increase in low-cost deposits. Fee income recorded 1.2117 trillion KRW, up 35.6% (318.2 billion KRW) year-on-year, driven by net increases in securities brokerage commissions.

The provision for credit losses increased by 160.3 billion KRW year-on-year to 440.9 billion KRW. Following the second quarter (123.8 billion KRW), an additional 110.5 billion KRW was proactively set aside in the third quarter to enhance future loss absorption capacity.

Asset quality indicators continued to show a favorable trend.

The ratio of non-performing loans (NPL) was 0.45%, improving by 0.18 percentage points compared to the end of last year, and the loan loss coverage ratio stood at 142.51%, up 34.64 percentage points from the end of last year. Total assets reached 474.8 trillion KRW, an 11.2% (47.7 trillion KRW) increase from the end of last year, supported by growth in loan receivables and financial assets. Return on equity (ROE) was 8.89%, and return on assets (ROA) was 0.43%.

The core subsidiary, NongHyup Bank, posted a cumulative net income of 1.1155 trillion KRW for the third quarter, down 6.4% (76.7 billion KRW) year-on-year. Interest income increased by 3.8% (146 billion KRW) year-on-year, but the provision for credit losses rose by 111.4 billion KRW due to proactive additional provisioning to enhance future loss absorption capacity.

Among non-bank affiliates, NH Investment & Securities recorded a net income of 501.4 billion KRW, while life insurance posted 64.3 billion KRW, non-life insurance 49.2 billion KRW, capital 44.8 billion KRW, asset management 15.9 billion KRW, and savings banks 16.2 billion KRW in net income.

Among the five major financial holding companies, NongHyup Financial Group ranks fourth in cumulative net income for the third quarter, following Shinhan Financial Group (2.9502 trillion KRW), KB Financial Group (2.8779 trillion KRW), and Hana Financial Group (2.1061 trillion KRW). Woori Financial Group ranked fifth with 1.1404 trillion KRW.

A NongHyup Financial Group official stated, "In preparation for a prolonged economic downturn, we will strengthen risk management for potential non-performing assets, focus on improving management structures to enhance agricultural and rural support capabilities as a comprehensive NongHyup revenue center, and secure future competitiveness to increase the group's sustainable profitability and growth."