NongHyup Financial, Q1 Net Profit 651.2 Billion KRW... 31.2% Decrease YoY

NongHyup Financial Group announced on the 26th that its net profit for the first quarter of this year was 651.2 billion KRW. This represents a 31.2% (295.9 billion KRW) decrease compared to the same period last year.

Interest income amounted to 2.2049 trillion KRW, an increase of 8.6% (175.1 billion KRW) compared to the same period last year. Non-interest income decreased by 30.1% (217 billion KRW) to 504.6 billion KRW due to a decline in securities operation gains and losses. Securities operation gains and losses were 339 billion KRW, down 247.9 billion KRW from last year.

The provision for credit losses was 207.7 billion KRW, and the provision coverage ratio was 204.68%, an increase of 8.23 percentage points compared to the same period last year.

The non-performing loan ratio, an asset soundness indicator, recorded 0.56%, up 0.15 percentage points from the same period last year but down 0.01 percentage points compared to the end of last year. Profitability indicators ROA and ROE were 0.57% and 8.68%, respectively, increasing by 0.09 percentage points and 0.86 percentage points compared to the end of last year.

The net profit of NongHyup Bank, a major subsidiary, was 421.5 billion KRW. NH Investment & Securities recorded a net profit of 225.5 billion KRW, NongHyup Life Insurance 78.4 billion KRW, NongHyup Property & Casualty Insurance 59.8 billion KRW, and NongHyup Capital 16.3 billion KRW.

NongHyup Financial Group stated, “We will focus on securing a stable business management foundation by proactively responding to increasing risk factors such as the recently growing concerns in the real estate PF market, overseas alternative investments, and the escalation of the Middle East war.” It added, “We will strengthen internal controls and consumer protection systems, fulfill social responsibilities such as supporting self-employed and small business owners, and do our best to support agriculture and rural areas, which is the core role of NongHyup Financial.”