NongHyup Financial, 1Q Net Profit 947.1 Billion KRW... Up 58.8% YoY

Impact of Expanded Non-Interest Income

NH Nonghyup Financial Group announced on the 28th that its net profit for the first quarter amounted to 947.1 billion KRW. This represents a 58.8% (350.8 billion KRW) increase compared to the same period last year.

Nonghyup Financial's interest income for the first quarter was 2.0298 trillion KRW, a decrease of 7.5% (165.1 billion KRW). On the other hand, non-interest income rose by 129.9% (407.7 billion KRW) to 721.6 billion KRW. In particular, gains from securities operations within non-interest income surged by 216.9% (401.7 billion KRW) to reach 586.9 billion KRW.

The Nonghyup Financial Group explained, "Interest income decreased compared to the same period last year," adding, "The expansion of non-interest income due to increased gains from securities operations was the main factor behind the improved performance."

Additionally, the credit loss provisions, including proactive reserves of 93.5 billion KRW to respond to economic uncertainties, totaled 293.2 billion KRW, an increase of 220.1 billion KRW from the previous year. The loan loss provision coverage ratio stood at 205.33%.

Other asset quality indicators showed a non-performing loan ratio of 0.39%, while profitability indicators recorded a return on equity (ROE) of 14.29% and a return on assets (ROA) of 0.80%.

By subsidiary, Nonghyup Bank posted the highest net profit at 672.1 billion KRW, followed by NH Investment & Securities with 184.1 billion KRW, Nonghyup Life Insurance with 114.6 billion KRW, Nonghyup Property & Casualty Insurance with 78.9 billion KRW, and Nonghyup Capital with 24.6 billion KRW.

A representative from Nonghyup Financial stated, "We have established a management crisis response strategy to proactively address the worsening business environment, including an increase in non-performing loans due to economic slowdown and expanded financial market uncertainties," adding, "We will continue to strengthen our future loss absorption capacity through appropriate levels of provision accumulation."

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