NH Nonghyup Bank Shows Strength Despite Reduction of Branches in Commercial Banks

Five Major Banks Reduce 700 Branches, NongHyup Bank Maintains Around 1,100 Branches for Years

NH Nonghyup Bank has attracted attention for maintaining a similar number of branches for several years. In contrast, the number of branches of the top five domestic banks has decreased by more than 700 over the past five years. This reduction in offline branches is a response to the market's shift toward digital-centered services following the launch of fintech banks.

According to the financial sector on the 6th, the total number of domestic branches of the top five banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank) stood at 3,992 at the end of last year, down by 707 compared to five years ago. Among the banks, KB Kookmin Bank reduced the most branches by 198. This was followed by Woori Bank and Hana Bank, which each cut 160 branches, and Shinhan Bank, which reduced 155 branches.

NongHyup Gyeongnam Headquarters.

On the other hand, only NH Nonghyup Bank has maintained around 1,100 branches for several years. NH Nonghyup Bank’s domestic branches numbered 1,106, a decrease of just 30 compared to five years ago. Unlike other commercial banks, NH Nonghyup Bank is composed of 100% domestic capital and returns its profits domestically. The bank also maintains the largest nationwide branch network in various local areas to minimize customer inconvenience.

Among the top five banks, NH Nonghyup Bank has the most branches but spent the least on rent. Last year, the rental expenses for the top five commercial banks were KB Kookmin Bank (72.6 billion KRW), Shinhan Bank (63.8 billion KRW), Woori Bank (55.2 billion KRW), Hana Bank (51.1 billion KRW), and NH Nonghyup Bank (39.1 billion KRW). This is interpreted as commercial banks reducing branches in less profitable areas while focusing on opening premium branches mainly in cities where high-net-worth individuals reside.

In Gyeongnam Province, the number of branches of commercial banks (Kookmin, Shinhan, Woori, Hana) was 77, down by 26 from 103 in 2019. NH Nonghyup, which maintains local branches, had 575 agricultural cooperatives and 93 NH Nonghyup Bank branches compared to 562 agricultural cooperatives and 98 NH Nonghyup Bank branches in 2019. The agricultural cooperatives increased by 13, while NH Nonghyup Bank reduced only five branches.

Jo Geunsu, head of the Gyeongnam headquarters, said, “NH Nonghyup Bank Gyeongnam Headquarters will strive to become a financial institution that approaches customers so that residents of Gyeongnam can use Nonghyup services anywhere in the province,” adding, “We will become NH Nonghyup Bank that grows together with Gyeongsangnam-do, closest to our customers.”

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