Record-High Earnings
Agricultural Support Fund Reaches 611.1 Billion KRW
NongHyup Financial Group announced on the 14th that it recorded a net profit of 2.4537 trillion KRW last year. This figure represents an 11.4% increase compared to the same period of the previous year and is the highest annual cumulative performance to date.
The net profit of its major affiliate, NongHyup Bank, was 1.807 trillion KRW, NH Investment & Securities recorded 686.7 billion KRW, NongHyup Life Insurance 246.1 billion KRW, NongHyup Property & Casualty Insurance 103.6 billion KRW, and NongHyup Capital 86.4 billion KRW.
Interest income slightly decreased compared to the previous year due to a decline in net interest margin (NIM), but non-interest income sectors such as fee income and insurance revenue improved. Interest income was 8.4972 trillion KRW, a 0.1% (5.2 billion KRW) decrease compared to the same period last year. Non-interest income was 1.7991 trillion KRW, a 6.7% (113.3 billion KRW) increase compared to the same period last year. Specifically, fee income recorded 1.7999 trillion KRW, and securities operation income was 1.2385 trillion KRW.
In accordance with the NongHyup Act, the agricultural support business fund, which is a contribution paid by NongHyup affiliates to the NongHyup Central Association, amounted to 611.1 billion KRW, an increase of 118.4 billion KRW compared to 492.7 billion KRW in the same period last year.
The return on assets (ROA) and return on equity (ROE) were 0.52% and 7.98%, respectively, showing slight increases from the previous quarter (ROA up 0.05 percentage points, ROE up 0.27 percentage points). The provision for credit losses decreased by 877 billion KRW compared to the previous year to 1.2248 trillion KRW, the loan loss reserve ratio was 178.01%, and the non-performing loan ratio was 0.68%.
NongHyup Financial’s Basel III (BIS) capital adequacy ratio was 15.37%, down 0.54 percentage points from the same period last year, while NongHyup Bank’s BIS ratio was 17.57%, down 0.73 percentage points compared to the same period last year.
NongHyup Financial Group stated, “We will proactively and nimbly respond to the three major megatrends directly related to survival: demographic changes, climate change, and digital technological innovation. At the same time, we will build capabilities and systems to meticulously manage risks arising from domestic and international economic uncertainties, changes in international regulatory environments, and the emergence of new products and services.”
They added, “We will prioritize customer trust above all, align all perspectives with the customer’s viewpoint, and strengthen our position as a specialized agricultural finance company by leading policy finance and private investment in the agricultural sector for the sustainable growth of agriculture and rural areas.”
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