NongHyup Financial Q2 Net Profit 677.5 Billion KRW... 19% Increase YoY

Net Profit of 1.2819 Trillion Won in First Half... 41% Sharp Increase

[Asia Economy Reporter Kiho Sung] NH Nonghyup Financial Group announced on the 23rd that it achieved a cumulative net profit of 1.2819 trillion KRW in the first half of this year. This performance increased by 371.7 billion KRW compared to the same period last year, driven by continuous growth in interest and non-interest income and a decrease in loan loss expenses.

Nonghyup Financial stated that its net profit for the second quarter was 677.5 billion KRW, an 18.5% (105.9 billion KRW) increase compared to the same period last year. Accordingly, the net profit for the first half reached 1.2819 trillion KRW, a sharp rise of 40.8% (371.7 billion KRW) compared to the first half of last year. Before paying 223 billion KRW in agricultural support expenses to the Nonghyup Central Association, the first half net profit was 1.4376 trillion KRW.

Core interest income recorded 4.1652 trillion KRW, up 6.3% (245.1 billion KRW) from the same period last year, while non-interest income rose 81.6% to 1.178 trillion KRW. Fee income increased by 28.5% year-on-year to 983.7 billion KRW, supported by net growth in securities brokerage commissions. Gains from securities and foreign exchange derivatives also rose 114.7% to 898.1 billion KRW as a result of strategic asset management.

By division, the core subsidiary NH Nonghyup Bank posted a net profit of 856.3 billion KRW, up 17.8% (129.5 billion KRW) from the same period last year.

NH Investment & Securities led the profit growth of NH Nonghyup Financial Group with a net profit of 527.9 billion KRW, a 101.7% increase year-on-year. Other non-bank affiliates such as NH Nonghyup Life Insurance (98.2 billion KRW), NH Nonghyup Property & Casualty Insurance (57.3 billion KRW), and NH Nonghyup Capital (58.3 billion KRW) also maintained growth momentum, contributing to overall profitability.

Meanwhile, coinciding with the first half earnings announcement, Nonghyup Financial held its 2021 second half management strategy meeting on the 22nd, attended by Chairman Son Byung-hwan, executives from the holding company and affiliates, and key department heads totaling about 40 people. The meeting was conducted via video conference considering social distancing measures due to the spread of COVID-19.

At the meeting, focused discussions were held on strategic directions and key strategic tasks for the new decade as Nonghyup Financial Group marks its 10th anniversary since its establishment.

To this end, Nonghyup Financial set “Building a Future Foundation for the New Decade” as the strategic goal for the second half and selected seven key initiatives including “Securing Core Competitiveness, Strengthening Business Competitiveness, and Solidifying Management Foundations” as three major areas, along with “Implementing All-Digital Customer Experience and Establishing a Trusted ESG (Environmental, Social, and Governance) Management System.” The company plans to mobilize all organizational capabilities to drive these initiatives.

Nonghyup Financial transitioned to a financial holding company system on March 2, 2012, and will celebrate its 10th anniversary next March. It is reported that the group is preparing a new vision and management principles for the next decade accordingly.

Chairman Son emphasized at the conclusion of the meeting, “We must not be complacent with the growth and achievements of the past 10 years. In an unprecedentedly fast-changing management environment and amid various crises, thorough preparation and detailed strategic planning for survival are necessary.” He urged, “By enhancing market competitiveness through change and innovation, Nonghyup Financial will faithfully fulfill its original role and become a new decade that contributes to the people, agriculture, and rural communities.”

Prior to the meeting, Chairman Son awarded performance excellence prizes to seven subsidiaries including Nonghyup Bank, Nonghyup Life Insurance, Nonghyup Property & Casualty Insurance, NH Investment & Securities, Nonghyup Capital, NH Savings Bank, and 10 offices, recognizing their efforts and achievements in the first half of the year.

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