NongHyup Financial, H1 Net Profit 1.7538 Trillion KRW... 2.8% Increase YoY

"Support for Farmers Affected by Heavy Rainfall"

NongHyup Financial Group announced on the 26th that its net profit for the first half of this year was 1.7538 trillion KRW. This represents a 2.8% (48 billion KRW) increase compared to the same period last year.

Compared to the same period last year, interest income increased, but non-interest income decreased due to a decline in securities operation income. Interest income was 4.3424 trillion KRW, up 3.2% from the same period last year. Non-interest income was 1.112 trillion KRW, down 11% from the same period last year. Specifically, fee income rose 3.8% year-on-year to 882.4 billion KRW, while securities operation income recorded 808.6 billion KRW, down 11.8% from the previous year.

Regarding profitability, the return on assets (ROA) and return on equity (ROE) were 0.73% and 11.57%, respectively, increasing by 0.16 percentage points and 2.89 percentage points compared to the previous quarter. Looking at asset soundness, the credit loss provision amount was 315.1 billion KRW, the provision coverage ratio was 186.50%, and the non-performing loan ratio was 0.59%. NongHyup Bank’s credit loss provision amount was 214 billion KRW, the loan loss provision coverage ratio was 237.24%, and the non-performing loan ratio was 0.42%.

NongHyup Financial’s BIS ratio was 16.25%, up 0.7 percentage points from the previous quarter, and the bank’s BIS ratio rose 0.92 percentage points from the previous quarter to 18.62%.

The net profit of the major subsidiary NongHyup Bank was 1.2667 trillion KRW, and NH Investment & Securities recorded 422.7 billion KRW. NongHyup Life Insurance posted a net profit of 163.9 billion KRW, NongHyup Property & Casualty Insurance 120.5 billion KRW, and NongHyup Capital 54.4 billion KRW.

NongHyup Financial Group stated, “We judge that uncertainty will remain high in the second half of the year. While maintaining the conservative provision accumulation policy we have upheld so far, we will flexibly respond to market changes to generate stable profits and simultaneously build a growth foundation for supporting agriculture and rural areas and the future.”

Meanwhile, NongHyup Financial Group is mobilizing company-wide efforts to support farmers who suffered significant damage due to heavy rains and other disasters. They are providing crop disaster insurance payments through rapid damage assessments. By dispatching 1,800 investigators, the investigation period was shortened from 7 days to 3 days. As of the 24th, 43,617 accident reports were received, and 42,756 investigations were completed. Using the provisional insurance payment system, up to 50% of the estimated insurance payout was advanced. NongHyup cooperatives have intensively carried out volunteer work in the affected areas and provided relief supplies.

They also emphasized their commitment to fulfilling social responsibilities. In the first half of this year, NongHyup Bank supported about 210 billion KRW through interest cashback for small business owners, and social contribution activities totaled approximately 73,000 hours.