NongHyup Financial, 3Q Net Profit 542.8 Billion KRW... Cumulative 1.8 Trillion KRW Achieved

NongHyup Bank Posts 1.2 Trillion KRW Net Profit, Up 10.9% YoY
4Q Also Strengthens Risk Management... Focuses on Key Tasks

[Asia Economy Reporter Kwangho Lee] NH Nonghyup Financial Group announced on the 25th that it achieved a cumulative net profit of 1.8247 trillion KRW for the first three quarters of this year. The net profit for the third quarter alone was 542.8 billion KRW, a 24.9% increase compared to the same period last year.

Interest income recorded 6.3134 trillion KRW, up 5.9% year-on-year, driven by an increase in low-cost deposits and growth in loan assets. Non-interest income was 1.5331 trillion KRW, a 30.2% increase compared to the same period last year.

Fee income reached 1.4265 trillion KRW, up 17.7% year-on-year. Gains from securities and foreign exchange derivatives also increased by 33.6% year-on-year to 1.0983 trillion KRW, reflecting strategic asset management in response to increased volatility.

Asset soundness indicators showed a non-performing loan ratio of 0.37% and a loan loss provision coverage ratio of 176.30%, maintaining a favorable trend.

Profitability indicators showed a return on equity (ROE) of 10.57% and a return on assets (ROA) of 0.60%.

The core subsidiary, Nonghyup Bank, posted a net profit of 1.2375 trillion KRW, a 10.9% increase compared to the same period last year. Interest income increased by 8.2% year-on-year, and credit loss provisions decreased by 30.4%. Asset soundness indicators also improved, with a non-performing loan ratio of 0.30% and a loan loss provision coverage ratio of 187.89%.

Among non-bank affiliates, NH Investment & Securities recorded a net profit of 742.5 billion KRW, up 48.1% year-on-year. Other non-bank affiliates such as NH Nonghyup Life Insurance with 114.2 billion KRW, NH Nonghyup Property & Casualty Insurance with 87.6 billion KRW, and NH Nonghyup Capital with 90.8 billion KRW also maintained growth in performance, driving NH Nonghyup Financial Group’s profit increase.

An NH Nonghyup Financial Group official stated, "In the fourth quarter, we plan to strategically respond to increased market volatility in interest rates and exchange rates and continue to strengthen risk management for potential non-performing assets. We will focus on key tasks such as securing core growth engines through qualitative growth and improving high-efficiency management structures, and based on this, we intend to enhance our capabilities to support agriculture and rural areas."