NongHyup Financial, Q3 Net Profit 2.3151 Trillion KRW... Up 13.2% YoY

"Balanced Growth of Bank and Non-Bank Affiliates"

NongHyup Financial Group announced on the 29th that it recorded a net profit of 2.3151 trillion KRW in the third quarter of this year. This represents a 13.2% (270.1 billion KRW) increase compared to the same period last year.

Interest income remained similar to last year at 6.4083 trillion KRW due to a decline in the net interest margin (NIM). Non-interest income increased by 11.7% year-on-year to 1.5563 trillion KRW. Gains from securities operations and fee income were 1.0846 trillion KRW and 1.3392 trillion KRW respectively, up 10.7% and 6.6% compared to the same period last year, contributing to the improvement in non-interest income.

The credit loss provision, an asset soundness indicator, was 681.3 billion KRW, a decrease of 665.5 billion KRW compared to last year. The provision coverage ratio stood at 176.99%, and the ratio of non-performing loans classified as substandard or below was 0.64%.

Return on assets (ROA) and return on equity (ROE) were 0.64% and 10.09% respectively, showing a slight decline compared to the previous quarter. NongHyup Financial Group's BIS ratio was 16.16%, down 0.12 percentage points from the previous quarter.

NongHyup Financial Group announced on the 29th that its net profit for the third quarter of this year reached 2.3151 trillion KRW. This represents a 13.2% (270.1 billion KRW) increase compared to the same period last year.

Agricultural support expenses amounted to 458.3 billion KRW, a 24% (88.8 billion KRW) increase compared to the same period last year. This is a contribution paid by NongHyup affiliates to support farmers, agriculture, and rural areas, which is a core purpose of NongHyup under the NongHyup Act.

The net profit of NongHyup Bank, a major subsidiary, was 1.6561 trillion KRW. The bank's credit loss provision was 526.2 billion KRW, with a loan loss provision coverage ratio of 215.38% and a non-performing loan ratio of 0.48%. The BIS ratio was 18.64%, down 0.01 percentage points from the previous quarter.

NH Investment & Securities posted a net profit of 576.6 billion KRW, NongHyup Life Insurance 247.8 billion KRW, NongHyup Property & Casualty Insurance 151.8 billion KRW, and NongHyup Capital 70.9 billion KRW.

NongHyup Financial Group stated, “Given the significant uncertainties in the domestic and international economic and financial environment after the fourth quarter of this year, we will make every effort to prevent accidents and manage risks. We will continuously monitor key indicators and respond flexibly to market changes to support agriculture and rural areas, which are increasingly facing challenges such as regional extinction risks, and actively promote the stabilization of growth foundations for the future.”

In particular, they emphasized that they will take extraordinary measures to prevent financial accidents by actively strengthening internal controls across work processes and organizational culture, including the introduction of a responsibility structure this month, the industry's first ‘NH Financial Ethics Certification,’ and improvements to the internal control system in the first half of next year.