NongHyup Financial, Record High Cumulative Q3 Net Profit of 2.045 Trillion Won

NongHyup Financial Group announced on the 27th that its cumulative net profit for the third quarter reached 2.045 trillion KRW. This represents a 3.7% increase compared to the previous year and is the largest cumulative amount ever recorded.

NongHyup Financial explained that the significant improvement in non-interest income was due to an increase in gains from securities operations compared to the previous year. Interest income decreased due to the impact of the new accounting standard (IFRS17). Interest income was 6.3554 trillion KRW, down 9% from the previous year, while non-interest income rose 83.5% year-on-year to 1.3932 trillion KRW.

NongHyup Financial's net profit for the third quarter was 339.1 billion KRW, a 45.4% decrease compared to 621.2 billion KRW in the previous year.

The provision for credit losses increased by 827.1 billion KRW year-on-year to 1.3468 trillion KRW, resulting in an allowance coverage ratio of 206.18%. Asset quality indicators showed a non-performing loan ratio of 0.48%, a return on equity (ROE) of 9.68%, and a return on assets (ROA) of 0.58%.

Looking at the performance by major affiliates, NongHyup Bank reported a cumulative net profit of 1.6052 trillion KRW, NH Investment & Securities 467.6 billion KRW, NongHyup Life Insurance 135.8 billion KRW, NongHyup Property & Casualty Insurance 95.0 billion KRW, and NongHyup Capital 78.2 billion KRW.

NongHyup Financial plans to strengthen soundness management by preparing response strategies for different interest rate scenarios amid uncertain economic conditions in the fourth quarter and applying conservative provisioning standards. A NongHyup Financial official stated, "We will also continue to support win-win finance for socially vulnerable groups and social contribution activities."

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