'Balanced Growth in Interest and Non-Interest Income'... NongHyup Financial Group Reports 868.8 Billion Won Net Profit in 1Q

Up 21.7% Year-on-Year in Q1
Interest Income Grows 7.3%, Non-Interest Income Surges 51.3%

NongHyup Financial Group reported a net profit of 868.8 billion won for the first quarter, marking a 21.7% increase compared to the same period last year.

On April 24, NongHyup Financial Group announced through a public disclosure that its first-quarter net profit rose by 154.8 billion won from last year’s first quarter (714.0 billion won).

By subsidiary, NongHyup Bank posted a profit of 557.7 billion won, up 3.3 billion won; NH Investment & Securities recorded 475.7 billion won, an increase of 267.5 billion won; NH NongHyup Property & Casualty Insurance achieved 39.9 billion won, up 19.5 billion won; and NH-Amundi Asset Management posted 17.4 billion won, up 9.4 billion won. NH NongHyup Life Insurance, however, recorded 27.2 billion won, a decrease of 37.9 billion won compared to the same period last year.

Interest income at the bank rose by 7.3% year-on-year to 2.2143 trillion won, while non-interest income from securities and asset management businesses increased by 51.3% to 903.6 billion won, driving the surge in net profit.

NongHyup Financial Group explained that despite concerns about stagnating interest income growth due to tighter household loan regulations and money movement, NongHyup Bank saw improved net interest margin (NIM) and increased interest income, thanks to expansion of core deposits and a portfolio focused on corporate lending.

The bank and card NIM was 1.75%, up by 8 basis points (1bp=0.01 percentage point) from the previous quarter’s 1.67%. Corporate lending grew by 6.1% year-on-year.

The increase in non-interest income was attributed to higher brokerage revenue from revitalized capital markets and the expansion of assets under management (AUM) in asset management.

As a result of the improved performance, return on assets (ROA) and return on equity (ROE) before deduction of agricultural support business expenses stood at 0.78% and 11.85%, respectively—up 0.11 percentage points and 1.21 percentage points from the end of last year.

The non-performing loan (NPL) ratio decreased to 0.65% at the end of the first quarter, down from 0.72% at the end of the same quarter last year. However, this is an increase of 0.02 percentage points compared to 0.63% at the end of last year.

In the first quarter, NongHyup Financial Group provided 173.2 billion won for agricultural support projects and 59.9 billion won in social contributions to support vulnerable and underprivileged groups. In addition, just three months after launching its Productive Finance Special Committee in January, the group supplied a total of 7.5 trillion won in productive and inclusive finance.

A NongHyup Financial Group official stated, “Going forward, based on our network of more than 1,200 offices nationwide, we will pursue a region-focused inclusive finance model. We will also accelerate our unique approach to productive and inclusive finance for corporate co-prosperity—simultaneously improving the group’s portfolio and securing future growth engines.”

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