NongHyup Financial Group’s profitability significantly improved in the first quarter thanks to the expansion of fee income from its capital market affiliates, including its securities and asset management subsidiaries.
On April 24, the financial group announced that it posted a net profit of 868.8 billion won in the first quarter, a 21.7% increase from the same period of 2025.
NongHyup Financial Group’s affiliates showed strong performances, including NongHyup Bank with 557.7 billion won, NH Investment & Securities with 475.7 billion won, and NongHyup Life Insurance and NongHyup Property & Casualty Insurance with 67.1 billion won.
In particular, its two capital market affiliates — NH Investment & Securities and NH-Amundi Asset Management — drove the group’s performances with increases of 128.5% and 117.5%, respectively, compared to the same period in 2025.
NongHyup Financial Group’s interest income reached 2.2143 trillion won, a 7.3% rise from the same period in 2025 thanks to an improvement in the net interest margin (NIM) made through the expansion of core deposits and the strengthening of a portfolio centered on corporate loans, despite concerns over stagnant interest income growth due to tightened regulations on household loans and capital flows.
NongHyup Financial Group’s non-interest income reached 903.6 billion won, growing 51.3% year-on-year.
While the financial group’s fee income increased significantly due to rising stock trading brokerage revenue driven by the revitalization of the capital market and the expansion of assets under management (AUM), revenue from financial product sales and growth in the securities business.
Its fee income reached 763.7 billion won, a year-on-year increase of 60.5% during the same period.
Following strong performances, NongHyup Financial Group’s ROA and ROE improved compared to the end of the previous year, reaching 0.78% and 11.85%, respectively.
Furthermore, its non-performing loan ratio was 0.65%, and the loan loss reserve ratio stood at 156.54%, maintaining the highest levels in the Korean financial industry.
Meanwhile, NongHyup Financial Group is fulfilling its differentiated social responsibilities and playing a leading role in productive and inclusive finance.
In the first quarter, NongHyup Financial Group contributed to the fulfillment of NongHyup Group’s founding purpose of supporting agriculture and rural communities through 173.2 billion won in agricultural support expenses and 59.9 billion won in social contribution funds to support vulnerable groups and marginalized communities.
In addition, NongHyup Financial Group supplied a total of 7.5 trillion won to productive and inclusive finance within three months of launching the NongHyup Financial Group Productive Finance Special Committee in January.
In April, the financial group opened the Southeast Region Marine, Aviation, and Defense Industry Support Center in Changwon of Gyeongsangnam-do, establishing a collaborative system among its affiliates and drew up a plan to provide comprehensive financial services worth 10 trillion won over five years.
Expansion of Financial Support for Youths
NongHyup Financial Group announced on May 6 that it embarked on the practice of community-oriented inclusive finance by expanding financial support for young people to assist their stable economic activities and settlement in local communities.
First of all, NH Investment & Securities is significantly expanding its Agri-Food Crowdfunding Support Project to help young farmers settle into farming and increase their household income.
The purpose of this project is to help young farmers secure sales channels and lay the foundation for sustainable agriculture by strengthening their brand competitiveness.
In addition, NongHyup Financial Group will spearhead a 40-day crowdfunding campaign in collaboration with Naver.
The financial group will also provide farmers with consulting for the sale and distribution of agricultural products. Support of approximately 3.3 million won will be provided per farming household.
The financial group has helped a total of 222 farming households since 2017, contributing to the expansion of sales channels and the settlement of farming for young farmers.
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