NongHyup Financial Group Posts 1.6 Trillion Won in Net Profits in First Half of 2025

NongHyup Financial Group announced on July 31 that its net profit for the first half of 2025 reached 1.6287 trillion won. This represents a 114.9 billion won (6.6%) decrease compared to the same period of 2024.

NongHyup Financial Group’s interest income contracted by 231.5 billion won (5.3%) year-on-year to 4.0977 trillion won, due to a continued decline in its net interest margin (NIM).

By contrast, its non-interest income swelled by 217.5 billion won (19.6%) to 1.3296 trillion won, driven by increases in its commission income and losses on marketable securities and foreign exchange derivatives.

“While NongHyup Financial Group’s interest income decreased due to the impacts of falling market interest rates, its non-interest income drove the financial group’s performances drove performance,” a NongHyup Financial Group official explained.

“The non-interest income includes commissions on underwriting advisory services and brokerage commissions stemming from the revitalization of the capital market.”

NongHyup Financial Group’s asset quality also showed improvement. Its substandard and below loan ratio fell 0.08 percentage points year on year to 0.6%.

Its loan loss provision ratio, designed to prepare for future default risks, reached 180.8%, the highest among major financial holding companies in Korea.

Profitability indicators, such as return on assets (ROA) and return on equity (ROE), stood at 0.65% and 10.35%, respectively, slightly lower than in the first half of 2024.

By affiliate, NongHyup Bank logged the highest net profit within the financial group, posting 1.1879 trillion won. However, a decline in the base rate led to a year-on-year drop of 78.8 billion (6%).

NongHyup Property & Casualty Insurance racked up a net profit of 87.5 billion won, a year-on-year decrease of 22.9 billion won (20.7%) thanks to the impacts of wildfire damage.

NH Investment & Securities posted a net profit of 465 billion won, driven by rising stock prices and other factors.

This represents a year-on-year increase of 42.3 billion won (10%).

Lee Chan-woo, Chairman of NongHyup Financial Group, visits a farm in southern Gyeonggi Province on July 18 to listen to their concerns and troubles. (Photo: NongHyup Financial Group)

Chairman Lee’s Visit to Farming Areas Hit by Natural Disaster

On July 18, NongHyup Financial Group Chairman Lee Chan-woo visited a farm in southern Gyeonggi Province with Park Kyung-sik, head of Ansan NongHyup to inspect sites hit by heavy rain.

Lee listened to concerns amid widespread damage to crops and livestock caused by recent frequent natural disasters, such as heat waves and heavy rain.

Lee has always emphasized the importance of listening to the voices of customers and those in the field.

He visited the site to urge the minimization of damage and the establishment of support measures in preparation for future natural disasters, following his visit to a forest fire site in Gyeongbuk Province in April.

“NongHyup Financial Group will conduct prompt damage assessments and provide financial support to damaged farms,” Lee said during his visit.

He also called for efforts to minimize recovery time through proactive natural disaster prevention measures and swift damage assessments in the event of disasters.

Subsequently, Lee visited the Gyeonggi Branch of NongHyup and the NongHyup IT Integration Center to strengthen communications with those in the field and emphasize the importance of seamless IT system operations.