NongHyup Financial Group posts 2.25 trillion won in accumulated net profit for the third quarter, benefiting from a bullish stock market.
NongHyup Financial Group announced on Oct. 31 that it racked up 2.2599 trillion won in accumulated net profit for the third quarter of this year.
This represents a 1.8% (42.1 billion won) decrease compared to the same period of 2024.
The decline was blamed on a 76.5 billion won decrease in NongHyup Bank’s net profits in the same period as the bank posted 1.5796 trillion won in net profit.
A continued drop in NongHyup Financial Group’s net interest margin (NIM) due to interest rate cuts significantly impacted the financial group’s interest income compared to the previous year.
NongHyup Financial Group’s cumulative interest income for the third quarter stood at 6.1863 trillion won, a 205 billion won decrease from the same period of last year.
During this period, its NIM fell by 0.24 percentage points to 1.67% from 1.91%.
Instead, NongHyup Financial Group’s cumulative non-interest income (1.8766 trillion won) grew by 20.6% year on year, offsetting a drop in its interest income.
Thanks to the revitalized Korean capital market, NongHyup Financial Group’s securities trading income surged by 264.1 billion won year on year and its commission income also rose by 167.9 billion won.
Underwriting advisory and brokerage commissions also contributed to expanding its non-interest income.
In particular, the revitalized Korean capital market had a decisive impact on the strong performances of NH Investment & Securities, an affiliate of NongHyup Financial Group.
While the financial group’s banking, life insurance, and non-life insurance affiliates all saw their cumulative net income decline year on year in the third quarter, only its securities subsidiary saw its cumulative net income climb.
NH Investment & Securities logged its highest-ever quarterly profit of 283.1 billion won, a year-on-year surge of 84%. Cumulatively, the figure also ascended by 29.7% year on year.
NongHyup Financial Group also benefited from proactive risk management measures to prepare for economic volatility.
Its substandard and below loan ratio stood at 0.58% at the end of the third quarter, a 0.10 percentage point improvement from the end of 2024.
NongHyup Bank also saw its substandard and below loan ratio drop by 0.07 percentage points to 0.44% over the same period. Its loan loss reserve ratio hit 186.4%, higher than each of the four major financial groups.
Furthermore, NongHyup Financial Group affiliates spent a total of 487.7 billion won on agricultural support projects during the first three quarters of this year.
The amount was a 29.4 billion won (6.4%) increase from the same period of 2024.
The National Agricultural Cooperative Federation (NACF) took the funds as a percentage of operating profits from the affiliates including NongHyup Bank in accordance with the Agricultural Cooperatives Act.
‘Love Kimchi Sharing’ Event
NongHyup Financial Group announced that it held the “Love Kimchi Sharing” Event in Wangdaechu Village, Yeonggwimi-myeon, Hongcheon-gun, Gangwon Province on Nov. 11.
NongHyup Chairman Lee Chan-woo and the NongHyup Financial Group Volunteer Team worked tirelessly to make approximately 1,000 heads of kimchi with villagers.
Following the event, they held a discussion to listen to the voices of those in the rural community. The kimchi made on that day was donated to a welfare organization by the Yeonggwimi Agricultural Cooperative and the volunteer team on Nov. 13.
NongHyup Financial Group has been hosting this kimchi sharing event with Hongcheon Wangdaechu Village for 13 years since establishing a sisterhood relationship with the village in 2013.
In particular, they make kimchi using agricultural products from the sister village and deliver it annually to various marginalized groups, including people with disabilities, elderly people living alone, children, and single mothers, furthering the meaning of win-win growth.
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