NongHyup Financial Logs Record 1.460.8 Tln Won in Net Profit for 1st Three Quarters
Non-banking units of financial group demonstrate a strong showing in business performances
NongHyup Financial Group Chairman Kim Gwang-soo. (Photos: NongHyup Financial Group)
NongHyup Financial Group chalked up 1.460.8 trillion won in net profit for the first three quarters of the year.
Despite low interest rates and the effects of the COVID-19 pandemic, the financial group achieved its best-ever business performance on the back of a strong showing in the non-banking business sectors.
NongHyup Financial Group said on Oct. 29 it posted 550.5 billion won in Q3 net profit.
The figure was a slight decline from 571.6 billion won the financial group chalked up in Q2 net profit, but net profit during the January-September period stood at 1.460.8 trillion won, surpassing a record high of 1.393.7 trillion won the financial group set a year before or a 4.8 percent jump.
NongHyup Financial Group posted 1.077.1 trillion won during the same period two years ago. If 321.1 billion won in agricultural support expenditures is counted, the cumulating net profit swells to 1.685.4 trillion won.
Unlike other financial groups, NongHyup Financial Group extends agricultural support money on a quarterly basis.
NongHyup Bank, the flagship unit of the financial group, posted 1.115.5 trillion won in cumulative net profit for the January-September period, a decline of 76.7 billion won from 1.192.2 trillion won during the same period a year earlier.
NongHyup Bank saw interest income increase 3 percent over a year before, but the bank raised allowances for the first nine months of the year to 312 billion won, up from 200.6 billion won in the same period last year, for risk management.
Non-banking units such as investment and securities sectors led the financial group’s business performance improvement.
The non-banking units posted 501.4 billion in net profit for the first three quarters of the year, a surge of 142.3 billion won a year before.
NH Investment & Securities’ strong performance is outstanding. The company logged 239.7 billion won in Q3 net profit, an improvement of 10.2 billion won over the previous quarter.
An NH Investment & Securities official said, “A rise in stock transaction amounts and an increase in commission and fees on the back of rising overseas stock purchases and disposals has contributed to the improving of its business performance.”
NongHyup Financial Group saw cumulative commission & fee income for the first nine months of the year surge 35.6 percent over a year earlier to 1.211.7 trillion won on the back of a net increase in stock commission and transaction fee income.
NongHyup Life Insurance, NongHyup Property & Casualty Insurance, NH Capital, NongHyup-Amundi Asset Management. and NH Savings Bank posted 64.3 billion won, 49.2 billion won, 44.8 billion won, 15.9 billion won, and 16.2 billion won, respectively, in net profit.
Their net income margin for the first three quarters of the year stood at 1.67 percent, the similar level for Q2, but interest income shot up 1.1 percent or an improvement of 67.7 billion won over the same period a year before.
A NongHyup Financial Group official said the financial group will continue to shift into digital financing till the end of this year and ramp up risk management against nonperforming assets.
A view of the National Agricultural Cooperatives Federation(NACF)building in Seoul where the financial group has offices.