NH Financial Group had more than its 3rd anniversary to celebrate on March 2. It now ranks among the top three in total assets in the financial industry with last year’s takeover of Woori Investment and Securities Co.

According to the financial group, its assets totaled 393 trillion won at the end of last year, overtaking Hana Financial Group’s 392 trillion won, which includes the assets of Korea Exchange Bank to be ranked as the financial group with third largest assets, followed by Shinhan Financial Group and KB Kookmin Financial Group. 

Former Chairman Yim Jong-yong, who has been nominated to head the Financial Services Commission as chairman, had a big hand in the financial group’s growth, by leading the group’s takeover of Woori Investment and Securities at the end of last year.

But the group has yet to catch up with its rivals in profitability. Its operating profit trails Hana Financial Group (9,377 billion won), KB Kookmin Financial Group and the Shinhan Financial Group. Its operating profit was lower than the much smaller BS Financial Group, whose operating profit in 2014 came to 809.8 billion won.

The group’s profit against its asset ratio has a large room for improvement with ROA standing at 0.16 percent, much smaller than the average ratio among other banks, which sit at 0.32 percent. That shows NH Financial Group’s asset management has not been as good as it should be compared with other financial groups. The group’s ROE amounted to 2.38 percent, coming in at half of what other financial groups have recorded, 4.19 percent, with some banks having much higher ROE ratios, such as the Bank of Busan, which has an ROE ratio of 9 percent.

The group has to name a successor to the former chairman as soon as possible to get the group moving again. Among the leading candidates are President Kim Ju-ha of NH Bank; Vice President Lee Kyung-seob of NH Financial Holdings; and acting chairman of NH Financial Group, Kim Tae-young — all from inside the group. The leading contenders outside the group include former Chairman Kim Seok-dong of the Financial Services Commission; former Chairman Kim Yong-hwan of the Korea Export and Import Bank; former president Yun Yong-ro of KEB; former Vice Chairman Lee Dong-kul of Shinhan Financial Investment;  and former president Cho Joon-hee of the Industrial Bank of Korea, among others. 

Who gets the nomination will become clearer in the middle of this month, reports said.

Expectations for the next chairman have been rising, with Chairman Choi Won-byung of the National Agricultural Cooperatives Federation declaring the next chairman should be much better qualified than its predecessor. Many prefer a person outside the group due to the fact that personnel matters inside the NACF have often been swayed by political connections. The chairman of the financial group should have strong connections to be able to manage the group freely and independently from inside and outside pressure, reports said. 

Top executives of the financial group and the heads of its affiliates also don’t want to see the plans and strategies involving some 130 projects set up by the former chairman to go astray.

NH Bank President Kim Ju-ha, who took the helm of the bank in January, has spent over 33 years with the National Agricultural Cooperatives Federation, or Nonghyup for short.

Sources both in and outside the bank now say his management style, which is both warm and tough, began to show results six months after his inauguration.

During his first year, he pledged to increase non-interest income, solidify the bank’s position as a lender, strengthen its risk management, boost the BIS ratio, expand synergy-creating businesses and strengthen its credit card operation.

The CEO wants to attract low-cost deposits to secure stable interest income and provide sound loans from the early stages of his tenure.