NH Nonghyup Financial, Q1 Net Profit of 596.3 Billion KRW... Down 1.3% YoY

[Asia Economy Reporter Song Seung-seop] NongHyup Financial Group posted a net profit of 596.3 billion KRW in the first quarter. Considering the agricultural support business expenses of 112.6 billion KRW, the total is 672.8 billion KRW.

According to the disclosure by NH NongHyup Financial Group on the 22nd, the group's overall net profit slightly decreased compared to the same period last year. It fell by 8.1 billion KRW (1.3%) from 604.4 billion KRW in the same period last year. Even when considering the agricultural support business expenses, the figure shrank by 9.4 billion KRW (1.3%) from 682.2 billion KRW.

A NongHyup Financial Group official explained, "Operating profit declined due to increased volatility in the financial market such as interest rates," and added, "We strengthened our future loss absorption capacity by additionally setting aside 112 billion KRW in loan loss provisions related to COVID-19."

Interest income rose by 130.6 billion KRW (6.3%) year-on-year to 2.1949 trillion KRW. On the other hand, non-interest income dropped by 281 billion KRW (47.2%) to 313.9 billion KRW. This was due to a 216.8 billion KRW decrease in securities and foreign exchange/derivatives gains and losses caused by financial market volatility such as stock market decline and bond yield increases.

Asset soundness indicators showed improvement with a non-performing loan ratio of 0.29% and a loan loss provision coverage ratio of 224.12%.

By subsidiary, NongHyup Bank increased by 36.6 billion KRW (8.9%) to 446.3 billion KRW. Although additional provisions were proactively set aside to respond to future financial market volatility, loan loss costs decreased by 20.8 billion KRW (28.9%) year-on-year due to normalization of large-scale non-performing loans.

NH NongHyup Life Insurance recorded a net profit of 43 billion KRW (+1.1%), NH NongHyup Property & Casualty Insurance 34.3 billion KRW (+23.3%), and NH NongHyup Capital 27.2 billion KRW (+65.8%). NH Investment & Securities posted 102.4 billion KRW, down 60.2%.

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