NongHyup Financial Group posted the largest cumulative net profit in its history in the third quarter of 2024.
The financial group announced on Oct. 29 that its cumulative net profit for the third quarter of this year stood at 2,315.1 billion won, a year-on-year increase of 13.2 percent.
The cumulative net profit for the third quarter is the largest ever recorded by NongHyup Financial Group. Its net income for the third quarter hit 5,613 billion won, down 49 percent from 1,102.6 billion won in the previous quarter. But on a year-on-year basis, it demonstrated the even growth of both the banking and non-banking affiliates.
The non-banking affiliates’ contribution to net profit increased from 27 percent at the end of 2023 to 33 percent in the third quarter of 2024, even as NongHyup Bank’s business performances continued to grow.
Year-on-year cumulative net income by major affiliates increased evenly in the third quarter.
That of NongHyup Bank grew by 3.2 percent to 1,656.1 billion won, that of NH Investment & Securities by 23.3 percent to 576.6 billion won, that of NongHyup Life Insurance by 37.1 percent to 247.8 billion won, and that of NH Property and Casualty Insurance by 59.8 percent to 151.8 billion.
NH Capital’s profit contracted to 70.9 billion won (down 9.3 percent); NH-Amundi Asset Management’s grew 12 percent to 23.3 billion won; NH Savings Bank’s profit increased to 12.4 billion won, an increase of 16.3 billion won; NH REIT Management’s profit increased to 1.3 billion won, up 2.1 billion won; NH Venture Investment’s profit grew to 400 million won, an increase of 200 million won.
By segment for the third quarter, the key results were: interest income of 2,065.9 billion won (a drop of 3.3 percent) and non-interest income of 444.3 billion won (a drop of 26.8 percent). The third quarter showed a significant increase in non-interest expenses. Its provision for credit losses surged by 366.1 billion won (an increase of 240.8 percent) and SG&A expenses swelled by 1,320.7 billion won (an increase of 13.2 percent).
As a result, NongHyup Financial Group’s agricultural support expenses amounted to 458.3 billion won through the third quarter of this year, up 24 percent from a year earlier. Agricultural support expenses are contributions paid by NongHyup affiliates to support farmers, agriculture and farming areas in accordance with the Agricultural Cooperative Act.
A breakdown of NongHyup Financial Group’s profit and loss by major items on a cumulative basis (a year-on-year change) for the third quarter showed 6,407.3 billion won (0.83 percent) in interest income, 1,556.3 billion won (11.7 percent) in non-interest income, 681.3 billion won (-49.4 percent) in provisions for credit losses, and 3,692.7 billion won (9.8 percent) in SG&A expenses.
While its interest income through the third quarter of this year was similar to that of the same period of 2023, thanks to a decline in its net interest margin (NIM), its non-interest income improved as its securities management income and fee income ascended by 1,339.2 billion (a year-on-year increase of 6.6 percent) and 1,084.6 billion (a year-on-year increase of 10.7 percent), respectively.
The return on assets (ROA) and return on equity (ROE) were 0.64 percent and 10.09 percent, respectively, at the end of the third quarter, down 0.09 percentage points and 1.48 percentage points, respectively, from the previous quarter.
The net interest margin (NIM) for the third quarter was 1.91 percent for NongHyup Financial Group and 1.77 percent for NongHyup Bank. They were 0.05 percentage points lower than the same period of the previous year, respectively.
_농협금융 이석준.jpg)
_농협도표_대지 1.jpg)
