NongHyup Financial Group Reports 714 Billion Won Net Profit in Q1, Up 10.7% Year-on-Year

NongHyup Financial Group announced on April 30 that it recorded a net profit of 714 billion won in the first quarter of this year. This represents an increase of 10.7% (69.2 billion won) compared to the same period last year.

Although interest income (2.0642 trillion won) decreased year-on-year due to a decline in securities-related profit and loss amid worsening market conditions, non-interest income (597.1 billion won) increased, driven by the growth of fee income related to bancassurance, electronic finance, and investment finance, especially from major subsidiaries such as the bank and securities company.

Provisions for credit losses amounted to 221.1 billion won, and the provision coverage ratio stood at 169.2%, marking a decrease of 35.5 percentage points compared to the same period last year.

Chanwoo Lee, Chairman of NongHyup Financial Group. Provided by NongHyup Financial Group

The ratio of substandard and below loans, an indicator of asset quality, was 0.72%, up by 0.16 percentage points year-on-year. As for profitability indicators, return on assets (ROA) and return on equity (ROE) were 0.59% and 9.16%, respectively, increasing by 0.07 percentage points and 1.18 percentage points compared to the end of the previous year.

The net profit of NongHyup Bank, the main subsidiary, was 554.4 billion won, while NH Investment & Securities recorded 208.2 billion won, NongHyup Life Insurance 65.1 billion won, NongHyup Property & Casualty Insurance 20.4 billion won, and NongHyup Capital 15.7 billion won in net profit.

NongHyup Financial Group stated, "We will focus on proactively responding to growing risk factors, such as the increasingly concerning real estate project financing (PF) market, interest rate policy uncertainties, and intensifying trade conflicts, while securing a stable business management foundation. We will also strengthen ethical and compliant management, internal controls, and consumer protection systems to safeguard customer rights. In addition, we will fulfill our social responsibilities, such as providing rapid assessment and payment of crop and livestock disaster insurance and emergency management stabilization funds for disaster-affected businesses to support recovery from the recent Yeongnam wildfires, while continuing to do our utmost to fulfill NongHyup Financial's core mission of supporting agriculture and rural communities."

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