NongHyup Financial, Last Year's Net Profit 2.2309 Trillion KRW... 2.7% Decrease YoY

Non-Operating Profit ↓ and Provisioning Impact
1.2636 Trillion Won Spent on Fulfilling Social Responsibility

[Asia Economy Reporter Kwon Hyun-ji] NongHyup Financial Group's annual net profit for last year slightly decreased to 2.2309 trillion won compared to the previous year. Although interest income increased, non-interest income declined and provisions were proactively set aside.

On the 14th, NongHyup Financial announced in its earnings report that last year's net profit was 2.2309 trillion won. This represents a decrease of 61 billion won (2.7%) compared to the previous year, showing a contrasting trend to other financial holding companies that recorded record-high earnings.

Interest income rose by 1.0447 trillion won (12.3%) year-on-year to 9.5559 trillion won, driven by interest rate hikes and growth in corporate loans. On the other hand, non-interest income fell by 1.0737 trillion won (62.0%) from the previous year to 657.7 billion won, due to decreases in securities operation gains and fee income. Fee income dropped by 395.9 billion won compared to the previous year.

Setting aside 400 billion won in loan loss provisions in consideration of economic uncertainties was also a factor that reduced profits. NongHyup Financial's loan loss provision coverage ratio rose from 187.49% in 2021 to 251.13% last year.

For costs related to fulfilling social responsibilities, a total of 1.2636 trillion won was spent. NongHyup supplied 1.0905 trillion won to the NongHyup Central Association, including 450.5 billion won for agricultural support projects and 640 billion won in dividends, and spent 173.1 billion won supporting vulnerable groups and marginalized local communities.

Asset soundness indicators improved slightly compared to the previous year. The ratio of non-performing loans classified as fixed or below, indicating loans with collection difficulties, decreased from 0.36% at the end of 2021 to 0.30% at the end of last year.

Looking at subsidiaries, NongHyup Bank's net profit last year was 1.7182 trillion won, up 162.6 billion won (10.5%) from a year earlier. Among non-bank affiliates, NongHyup Life Insurance achieved a net profit of 217 billion won, NongHyup Property & Casualty Insurance 114.7 billion won, and NongHyup Capital 103.1 billion won. NH Investment & Securities recorded a net profit of 303.4 billion won, down 628.1 billion won from the previous year.

NongHyup Financial stated, “We will continuously improve the group's profitability and growth by strengthening risk management for potential non-performing assets due to economic slowdown, enhancing market competitiveness through focused core business promotion by sector, and securing future growth engines through new business discovery.”