NongHyup Financial 3Q Net Profit 621.2 Billion KRW... Up 14.4% YoY

Cumulative Net Profit Surpasses 1.9 Trillion This Year
Non-Interest Income Halved... Impact of Stock Market Slump

[Asia Economy Reporter Minwoo Lee] NongHyup Financial Group surpassed 600 billion KRW in consolidated net profit for the third quarter of this year, achieving nearly 2 trillion KRW in cumulative net profit for the year. This is attributed to increased interest income amid rising interest rates.

NongHyup Financial announced on the 28th that its consolidated net profit for the third quarter reached 621.2 billion KRW, a 14.4% increase compared to the same period last year. The cumulative net profit for the first three quarters was 1.9717 trillion KRW, an 8.1% increase over the cumulative amount up to the third quarter of last year. Net profit before reflecting agricultural support project expenses, which were incurred to support agriculture, rural areas, and farmers, was 698.3 billion KRW (cumulative 2.2023 trillion KRW for this year).

Cumulative interest income recorded 6.9871 trillion KRW, an increase of 673.7 billion KRW compared to the same period last year. This is attributed to the growth in asset size and an increase in net interest margin (NIM).

On the other hand, non-interest income during the same period was 759.2 billion KRW, decreasing by more than half (50.5%, 773.9 billion KRW) compared to the same period last year. This decline is analyzed to be due to reduced commission income from brokerage fees amid a sluggish stock market and decreased securities operation income caused by a sharp rise in market interest rates.

Regarding asset soundness indicators, the non-performing loan (NPL) ratio was 0.27%, and the loan loss provision coverage ratio was 265.8%. Profitability indicators recorded a return on equity (ROE) of 11.03% and a return on assets (ROA) of 0.53%.

The cumulative net profit of NongHyup Bank, a major subsidiary, was 1.4599 trillion KRW, an 18.0% increase compared to the same period last year. Agricultural support project expenses amounted to 243.5 billion KRW.

Interest income increased by 12.2% to 5.0295 trillion KRW. Conversely, commission income decreased by 7.6% to 519.6 billion KRW during the same period due to reduced sales of investment products caused by financial market volatility.

Asset soundness indicators showed a non-performing loan ratio of 0.21% and a loan loss provision coverage ratio of 314.5%.

Among non-bank affiliates, NH Investment & Securities recorded 12.1 billion KRW for the third quarter, a decrease of 89.9% compared to the previous quarter. On a cumulative basis, it recorded 234.1 billion KRW, a 68.5% decrease compared to the same period last year. Additionally, cumulative net profits for the third quarter were 242.1 billion KRW for NH NongHyup Life Insurance, 83.1 billion KRW for NH NongHyup Property & Casualty Insurance, and 86.5 billion KRW for NH NongHyup Capital.

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