NongHyup Reports Record Net Profit of 2.3 Trillion Won Last Year, Up 32% Year-on-Year

Interest Income Rises and Stock Market Boom

All 5 Major Financial Groups Earned Over 2 Trillion Won Last Year

[Asia Economy Reporter Sim Nayoung] NongHyup Financial Group achieved record-high profits last year thanks to increased interest income and a booming stock market. NH NongHyup Financial Holdings announced on the 16th that its net profit for last year reached 2.2919 trillion KRW, an increase of 556 billion KRW or 32% compared to the previous year. This amount excludes the 446 billion KRW paid to the NongHyup Central Association for agricultural support projects. The net profit before the burden of agricultural support expenses amounted to 2.6034 trillion KRW.

With NongHyup Financial posting net profits in the 2 trillion KRW range, all five major financial groups recorded profits exceeding 2 trillion KRW last year. The bank’s interest income (8.5112 trillion KRW, up 6.6% year-on-year) increased significantly due to a sharp rise in loans last year. The favorable stock market conditions also led to a substantial increase in non-interest income (1.7314 trillion KRW, up 17.8% year-on-year).

Fee income (1.8147 trillion KRW) rose 11.6% compared to the previous year, thanks to the booming stock market and strengthened competitiveness in the investment banking (IB) sector. NongHyup Financial explained that gains from securities and foreign exchange derivatives also increased by 24.8% to 1.2116 trillion KRW, reflecting the results of strategic asset management in response to increased market volatility.

By subsidiary, the core affiliate NongHyup Bank posted a net profit of 1.5556 trillion KRW, up 13.5% from the previous year. Among non-bank affiliates, NH Investment & Securities recorded a net profit of 931.5 billion KRW, surging 61.5% year-on-year, contributing to the overall profit growth of the group. NongHyup Financial’s stake in NH Investment & Securities stands at approximately 49.11%, differing from other financial holding companies such as KB, Shinhan, and Hana, which fully own their securities subsidiaries. NH NongHyup Life Insurance posted a net profit of 165.7 billion KRW, NH NongHyup Capital 96 billion KRW, and NH NongHyup Property & Casualty Insurance 86.1 billion KRW, respectively.

A NongHyup Financial official stated, "Considering agricultural support expenses and the stake in securities affiliates, NongHyup Financial achieved performance on par with other financial groups last year," adding, "We will continue to serve as a profit center for agriculture, rural areas, and farmers."

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