Nh Nonghyup Financial Achieves Record-High Net Profit Of 2.5112 Trillion Won Last Year

Non-interest Income Up 26.4% Year-on-Year
Growth in Fee Income and Securities/FX Derivatives Gains
NongHyup Bank and NongHyup Life Insurance Each Post Net Profit Exceeding 1 Trillion Won

NH NongHyup Financial Group announced on the 11th that it posted a net profit of 2.5112 trillion won last year. The group achieved solid results by improving its portfolio with a focus on non-interest income.

Through its earnings announcement on the same day, NongHyup Financial stated that it recorded a net profit of 2.5112 trillion won and operating profit of 4.8960 trillion won. These figures represent increases of 2.3% and 8.6%, respectively, compared with the previous year. Among the major affiliates, NongHyup Bank and NongHyup Life Insurance led the performance, with net profits rising by 0.39% and 50.23% year-on-year to 1.8140 trillion won and 1.0316 trillion won, respectively.

NongHyup Financial’s interest income came to 8.4112 trillion won, down 86.0 billion won from a year earlier, as the net interest margin (NIM) narrowed due to falling market interest rates and a restructuring of the portfolio toward high-quality securities. In contrast, non-interest income increased by 26.4% (474.9 billion won) year-on-year to 2.2740 trillion won, driven by growth in fee income and gains on securities and foreign exchange derivatives.

The ratio of substandard-and-below loans stood at 0.63%, an improvement of 0.05 percentage point from the end of the previous year. The loan loss coverage ratio reached 165.98%, the highest level among major financial holding companies. In general, when the loan loss coverage ratio exceeds 100%, it is deemed that current non-performing loans do not have a significant impact on management, and the higher the ratio, the sounder the institution is considered to be.

Profitability indicators, namely return on assets (ROA) and return on equity (ROE), stood at 0.60% and 9.26%, respectively, on a basis before deducting agricultural support project expenses, maintaining their levels from the end of the previous year.

NongHyup Financial also explained that last year it provided the largest-ever amounts for agricultural support projects and social contribution, including 650.3 billion won in agricultural support project expenses and 276.2 billion won in social contribution funds to support vulnerable groups and marginalized local communities.

This year, NongHyup Financial plans to fully implement a productive and inclusive finance framework to help enhance the dynamism of the domestic economy, while pursuing the securing of future growth engines by improving the structure of the group’s portfolio. On January 23, NongHyup Financial launched the Special Committee on Productive Finance for Agricultural Finance and decided to continue expanding capital supply focused on venture capital and future strategic industries, as well as to continuously develop and promote its own unique financial model.

This content was produced with the assistance of AI translation services.