Last Year, Mutual Savings Banks' Net Profit Reached 3.1256 Trillion KRW... 14% Increase YoY

Last year, the net income of mutual financial cooperatives such as NongHyup, ShinHyup, SuHyup, and the Korea Forest Cooperative reached 3.1256 trillion won, marking a 14% increase compared to the previous year.

The Financial Supervisory Service (FSS) announced this on the 22nd through the "2022 Mutual Financial Cooperatives Business Performance" report. Looking at each cooperative, NongHyup recorded a net income of 2.2959 trillion won, ShinHyup 570.6 billion won, SuHyup 167.3 billion won, and the Korea Forest Cooperative 91.8 billion won last year.

The net profit from the credit business (financial sector) of mutual financial cooperatives last year was 6.002 trillion won, an increase of 1.9549 trillion won from the previous year (4.471 trillion won), but the economic business sector posted a deficit of 2.8764 trillion won, expanding by 1.5706 trillion won compared to the previous year (1.3058 trillion won).

The total assets of mutual financial cooperatives including NongHyup (1,113 branches), ShinHyup (870 branches), Korea Forest Cooperative (140 branches), and SuHyup (90 branches) amounted to 687.5 trillion won last year, an increase of 56.4 trillion won from the previous year. The average assets per cooperative were 310.7 billion won. Total loans reached 498.3 trillion won, up 44.4 trillion won from the previous year, and total deposits increased by 49.5 trillion won to 588.5 trillion won.

The delinquency rate of mutual financial cooperatives was 1.52% last year, rising by 0.35 percentage points from 1.17% the previous year. The delinquency rate for household loans was 0.91%, up 0.09 percentage points, and the delinquency rate for corporate loans was 2.23%, increasing by 0.47 percentage points compared to the previous year.

The ratio of non-performing loans classified as fixed or below was 1.84% last year, up 0.23 percentage points from 1.61% the previous year. Loan loss provisions amounted to 12.4978 trillion won, increasing by 1.8212 trillion won from the previous year, and the loan loss provision coverage ratio rose by 2.2 percentage points to 140%. The net capital ratio was 8.26%, a slight decrease of 0.05 percentage points from the previous year, but the FSS stated that it remained at a high level compared to the minimum regulatory ratios (2% for ShinHyup, SuHyup, and Korea Forest Cooperative, and 5% for NongHyup).

An FSS official said, "Due to the real estate market downturn, credit quality indicators such as delinquency rates have somewhat deteriorated, especially in corporate loans. We plan to strengthen loss absorption capacity by requiring additional loan loss provisions in preparation for increased financial market uncertainties, and we will actively encourage support for vulnerable borrowers in accordance with recently announced measures to expand debt restructuring for housing mortgage repayment difficulties."