NongHyup Financial Group released earnings for the second quarter of this year showing a slight slowdown in net profit growth.
However, in the first half of 2026, the financial group achieved its highest half-yearly performance in history.
With a paid-in capital increase of 1.2 trillion won conducted through the National Agricultural Cooperative Federation at the end of the second quarter, experts say that profitability improvement will accelerate at NongHyup Financial Group starting as the capital increase begins to take effect in earnest in the second half of 2026.
On July 24, NongHyup Financial Group disclosed that its net profit attributable to controlling shareholders for the second quarter of 2026 was 910.4 billion won, a decrease of approximately 0.47% compared to 914.7 billion won in the same period of last year.
However, NongHyup Financial Group’s cumulative net profit for the first half of 2026 was 1.7791 trillion won, an increase of more than 9% (150.4 billion won) compared to 1.6287 trillion won in the same period last year.
NH NongHyup Financial Group’s interest income for the second quarter was 2.2279 trillion won, an increase of approximately 9% compared to 2.0335 trillion won in the same period of 2025.
The financial group’s non-interest income during the same period stood at 1.0563 trillion won, an increase of more than 44% compared to 732.5 billion won in the same period of last year.
Based on increased stock trading brokerage revenue and an expansion of assets under management, NH NongHyup Financial Group’s fee income in the first half of 2026 sat at 1.6814 trillion won, a 71.2% increase compared to the same period of last year. Its revenue from the securities and foreign exchange sectors was 957.3 billion won.
Despite the negative impact of rising market interest rates, the financial group managed to maintain a 0.6% increase during the same period through strategic operations.
The net interest margin of the financial group’s banking and card affiliates for the second quarter was 1.74%, down 1 basis point from 1.75% in the previous quarter but up 7 basis points from the end of 2025.
NH NongHyup Financial Group explained that it increased its high-quality assets, focusing on core deposits and corporate finance.
NongHyup Financial Group’s net increase in corporate loans in the second quarter was 8.4 trillion won compared to the same period of last year.
Compared to the end of last year, the figure swelled by approximately 3.7 trillion won.
Amidst this, NongHyup Financial Group anticipates that the financial group’s profitability will improve significantly in the second half of this year.
This is because the NACF laid the groundwork to increase the financial group’s business competitiveness by proceeding with a 1.2 trillion won capital increase for the financial group’s key affiliates at the end of last month.
Through the capital increase, capital of 500 billion won was supplied to NongHyup Bank, 400 billion won to NH Investment and Securities and 100 billion won to NH Capital.
NH NongHyup Financial Group’s return on assets (ROA) and return on equity (ROE) stood at 0.78% and 11.79%, respectively.
While its ROA remained the same as the previous quarter, its ROE fell by 0.06 percentage points compared to the previous quarter.
NH NongHyup Financial Group’s non-performing loan ratio remained at 0.65%, the same level as the previous quarter.
NongHyup Financial Group also plans to take the lead in revitalizing regional economies.
It plans to establish the “NH Miso Finance Foundation” within this year through a joint contribution of 100 billion won from its major affiliates.
Additionally, it plans to launch the “NH Financial Hub” (tentative name) in the Jeonbuk region within the third quarter of this year to begin providing full-scale financial support to industries such as bio-agriculture, artificial intelligence (AI), and renewable energy.
Meanwhile, most of NongHyup Financial Group’s subsidiaries saw an increase in net profit compared to the previous quarter.
However, its banking and insurance affiliates saw a decrease in net profit in the first half of 2026 compared to the same period of the previous year.
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