NongHyup Financial Group announced record semiannual net profit of 1.705.8 billion won in the first half of this year.
NongHyup Financial Group announced on July 28 that its net profit sat at 1,705.8 billion won in the first half of the year.
This is a 26.3 percent increase from 1,350.5 billion in the same period of 2022 and the largest half-yearly result ever.
Its net profit amounted to 94.71 billion won in the first quarter and 75.87 billion won in the second quarter.
In the second quarter alone, it shrank by 188.4 billion won, or 19.9 percent, from the first quarter due to an increase in provisions (257.2 billion won).
In the first half of the year, NongHyup Financial Group provided 246.4 billion won in agricultural support funds to agriculture and farming areas.
It also spent 129.3 billion on social contributions for the marginalized.
This represented an increment of 35.3 percent or 33.7 billion won from the same period of 2022.
Accordingly, NongHyup Financial Group provided the highest-ever amount of agricultural support funds and social contributions to support agriculture and farming areas in the half-year period.
Its net profit before payment of agricultural support funds reached 1,877.4 billion won during the first half of this year.
By segment, its interest income stood at 4,206.5 billion won in the first half of the year, down by 7.9 percent (360.4 billion won) year on year.
While NongHyup Bank’s interest income increased, that of NongHyup Life Insurance descended due to the introduction of a new accounting system.
Its non-interest income totaled 1.25 trillion won, up 100.0 percent (625.2 billion won) year on year.
Its securities management income climbed by 153.1 percent (554.6 billion won) to 916.8 billion won, while its commission income inflated by 8.6 percent (67.3 billion won) to 850.2 billion won.
Cost control efforts cut reduced its SG&A expenses. Its SG&A expenses in the first half of the year totaled 2,156.8 billion won, down by 2.41 percent or 53.4 billion won year on year.
Its asset quality improved as its non-performing loan (NPL) ratio stood at 0.43 percent, up 0.02 percentage points from the previous quarter.
Its NPL ratio was 213.38 percent, up 16.94 percentage points from the previous quarter, while its BIS capital ratio hit 15.91 percent and its common equity ratio was 13.11 percent.
As for the business performances of major affiliates, NH Bank, NH Investment & Securities, NongHyup Property and Casualty Insurance, and NH Venture Investment enjoyed improvements year on year, while other affiliates such as NH Life Insurance and NH-Amundi Asset Management suffered declines.
NongHyup Bank posted net profit of 1,246.9 billion won in the first half of the year, and set aside 699.7 billion won in loan loss provisions to improve its loss-absorbing capacity.
Its NPL ratio stood at 286.55 percent, stronger than 246.21 percent in the previous quarter.
NH Investment & Securities racked up net income of 366.7 billion won, a year-on-year increase of 65.1 percent (146.6 billion won).
During the same period, NongHyup Life Insurance’ net income contracted by 27.9 percent to 114.5 billion won, and that of NongHyup Property and Casualty Insurance rose by 94.9 percent to 141.3 billion won.