NongHyup Financial, Q1 Net Profit of 604.4 Billion KRW Recorded... "Balanced Growth Among Affiliates" (Comprehensive)

[Asia Economy Reporter Kiho Sung] NH Nonghyup Financial Group recorded a net profit of 604.4 billion KRW in the first quarter of this year, an increase of 78.4% compared to 338.7 billion KRW in the first quarter of last year. Unlike other financial groups, the net profit for the period, considering the 111.5 billion KRW agricultural support project expenses provided under the Agricultural Cooperatives Act to support agriculture and rural areas, was 682.2 billion KRW.

NH Nonghyup Financial Group announced this on the 30th through its earnings report. The group's core income, interest income, increased by 5.9% (115.7 billion KRW) compared to the same period last year, reaching 2.0643 trillion KRW. Non-interest income was 594.9 billion KRW, an increase of 489.4 billion KRW compared to the same period last year.

Fee income recorded 538.7 billion KRW, up 161.3 billion KRW from the same period last year, driven by a net increase in securities brokerage commissions. Gains from securities and foreign exchange derivatives also improved significantly by 482.4 billion KRW due to strategic asset management and stock market recovery. Asset soundness indicators showed a non-performing loan ratio of 0.47% and a loan loss provision ratio of 141.46%, improving by 0.01 percentage points and 1.45 percentage points respectively compared to the end of last year, maintaining a favorable trend.

Total assets increased by 2.2% (10.6 trillion KRW) from the end of last year to 494.1 trillion KRW, and profitability indicators recorded an ROE of 10.68% and an ROA of 0.61% (before agricultural support project expenses, ROE was 12.05%, ROA 0.68%).

The core subsidiary, Nonghyup Bank, posted a net profit of 409.7 billion KRW, up 29.6% (93.5 billion KRW) compared to the same period last year. Interest income increased by 7.9% (102.7 billion KRW) year-on-year, and non-interest income rose by 47.4 billion KRW due to gains from securities and foreign exchange derivatives.

Among non-bank affiliates, NH Investment & Securities achieved a net profit of 257.5 billion KRW, NH Nonghyup Life Insurance 42.5 billion KRW, and NH Nonghyup Property & Casualty Insurance 27.8 billion KRW, with all affiliates showing improved performance.

As emphasized in Chairman Byunghwan Son's inauguration speech earlier this year, aiming to build NH Nonghyup Financial Group as a comprehensive Nonghyup profit center with balanced growth across all affiliates, this performance is analyzed as meaningful growth.

NH Nonghyup Financial Group stated that it will continue to strengthen proactive risk management of potential non-performing assets, expand the ESG (environmental, social, and governance) management foundation, enhance its role in agricultural finance, and focus on key tasks to secure future competitiveness, thereby creating a sustainable 100-year Nonghyup Financial Group.

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