NongHyup Financial's First Half Net Profit 'Record High' 1.3505 Trillion Won

Interest Income Increase Mainly from Corporate Loans
First Half Net Profit Up 5.3% Compared to Last Year

[Asia Economy Reporter Sim Nayoung] NH Nonghyup Financial Group's net profit for the second quarter of this year (April to June) was recorded at 754.2 billion KRW, an 11.3% increase from 677.5 billion KRW in the second quarter of last year. The net profit for the first half of this year was 1.3505 trillion KRW, a 5.3% increase compared to 1.2819 trillion KRW in the first half of last year. Both on a quarterly basis (controlling shareholder basis) and half-year basis, the company recorded its highest-ever performance.

Including 225.2 billion KRW in agricultural support expenses that Nonghyup Financial provides for agriculture and rural areas, the net profit amounts to 1.504 trillion KRW.

Interest income for the first half reached 4.5669 trillion KRW, driven by growth in loan assets focused on corporate loans. This is an increase of 401.7 billion KRW compared to the first half of last year. Nonghyup Financial stated, "Despite proactively setting aside an additional 310 billion KRW or more in provisions, we achieved improved results compared to last year based on stable business growth such as asset expansion."

Non-interest income was 624.9 billion KRW, a decrease of 553.1 billion KRW compared to the first half of last year. This was due to reduced fee income caused by a downturn in the stock market and decreased sales of investment products. The sharp rise in market interest rates also led to a decline in securities operation profits.

Asset soundness indicators improved, with the non-performing loan (NPL) ratio at 0.29% and the loan loss provision coverage ratio at 246.99%.

By affiliate, the core subsidiary Nonghyup Bank recorded a net profit of 922.8 billion KRW, a 7.8% increase compared to the first half of last year. Interest income during the interest rate hike period was 3.2643 trillion KRW, an increase of 410.6 billion KRW compared to the first half of last year. Fee income was 334.6 billion KRW due to increased financial market volatility, a decrease of 54.7 billion KRW compared to the first half of last year.

Among non-bank affiliates, NH Investment & Securities posted a net profit of 222.1 billion KRW, NH Nonghyup Life Insurance recorded 196.4 billion KRW, NH Nonghyup Property & Casualty Insurance 72.5 billion KRW, and NH Nonghyup Capital 61.9 billion KRW in profits.

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