NH NongHyup Financial Group Posts Record-High First Half Net Profit of 1.7791 Trillion Won

First-Half Net Profit Up 9.2% Year-On-Year
NH Investment & Securities Achieves 107% Growth, Reaching 965.2 Billion Won

NH NongHyup Financial Group posted a net profit of 1.7791 trillion won in the first half of this year, marking the highest performance for a first half in its history.

On July 24, NH NongHyup Financial Group announced that its first-half net profit increased by 9.2% year-on-year to 1.7791 trillion won. Net profit for the second quarter reached 910.4 billion won, up 4.8% from 868.7 billion won in the same period last year.

The group's flagship affiliate, NH NongHyup Bank, posted a net profit of 1.1629 trillion won, a decrease of 2.1% from the same period last year. In contrast, NH Investment & Securities saw a 107.5% surge to 965.2 billion won, and NH-Amundi Asset Management recorded 69.4 billion won, up 342.7% from the same period last year.

Net interest income rose by 8.4% year-on-year to 4.4422 trillion won, supported by core deposit growth and the expansion of high-quality assets centered on corporate banking. The net interest margin (NIM) of the bank and card businesses improved from 1.67% at the end of last year to 1.74% at the end of June this year. Corporate loans also increased by 3.7 trillion won compared to the end of last year.

Non-interest income grew at an even faster pace on the back of a strong stock market. Non-interest income for the first half jumped 47.4% year-on-year to 1.9599 trillion won. In particular, fee income increased by 71.2% due to expanded brokerage activity and growth in assets under management (AUM). Gains from securities trading amounted to 957.3 billion won, up by 6 billion won from the same period last year.

However, net profit from insurance affiliates declined. NH NongHyup Life Insurance posted a net profit of 35.1 billion won for the first half, a decrease of 77.3% year-on-year, while NH NongHyup Property & Casualty Insurance recorded 71.7 billion won, down 18.1% from the same period last year.

NH NongHyup Financial Group explained that it secured future growth drivers and strengthened its profit base through a paid-in capital increase of 1.2 trillion won last month. Previously, NH Cooperative Federation carried out a paid-in capital increase of 1.2 trillion won, allocating 500 billion won to the core affiliate NongHyup Bank, 400 billion won to the securities arm, and 100 billion won to the capital business.

The group's return on assets (ROA) and return on equity (ROE), before deducting agricultural support expenses, stood at 0.78% and 11.79%, respectively. As of the end of last month, the ratio of non-performing loans (NPL) stood at 0.65%, and the loan loss coverage ratio was 155.31%.

Looking ahead, NH NongHyup Financial Group plans to enhance its competitiveness by improving performance, fulfilling its social responsibility, and expanding regionally focused, inclusive, and productive finance. To this end, the group plans to establish the NH Microfinance Foundation using a 100 billion won contribution from major affiliates and to launch the NH Financial Hub in the Jeonbuk region in the third quarter of this year.

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