NH Nonghyup Maintains Top Spot in Loan-Deposit Interest Rate Spread Throughout Second Half of the Year

NH Nonghyup and Woori Shift to Increasing Loan-Deposit Margin This Month

[Asia Economy Reporter Kwon Hyun-ji] Among the five major commercial banks last month?KB Kookmin, Hana, Shinhan, Woori, and NH Nonghyup?NH Nonghyup Bank had the largest loan-deposit interest rate spread. Both NH Nonghyup and Woori Bank saw an increase in their interest rate spreads compared to the previous month, returning to a trend of 'rising loan-deposit margins.'

According to the Bankers Association Consumer Portal disclosure on the 20th, NH Nonghyup Bank's loan-deposit interest rate spread last month was 1.67 percentage points. The larger the spread between loan interest rates and savings deposit interest rates, the greater the profit margin. NH Nonghyup Bank has maintained the top position among the five major banks since July last year. It was followed by Woori (1.13%p), Shinhan (1.11%p), Hana (1.05%p), and KB Kookmin (1.02%p).

Only NH Nonghyup Bank and Woori Bank saw their interest rate spreads increase compared to the previous month, rising by 0.13 percentage points and 0.1 percentage points respectively. Despite regulatory pressure to restrain interest-based profits, these two banks' loan-deposit margins actually increased. In contrast, KB Kookmin and Hana Bank saw decreases of 0.19 percentage points and 0.06 percentage points respectively, while Shinhan Bank's spread remained unchanged.

Internet banks, which tend to have a higher proportion of loans to medium- and low-credit borrowers, had higher interest rate spreads than the five major commercial banks. Toss Bank had the highest spread at 5.55 percentage points, followed by K Bank at 2.27 percentage points, and Kakao Bank at 1.71 percentage points.