NH Financial Group aims to log 1 trillion won in net profit in 2018 by strengthening the Wealth Management and Corporate Investment Banking sectors of its operation.
The group will improve its competitiveness to compete with rival financial groups like Shinhan, KB and Hana by finding new businesses and streamlining its structure.
This is the gist of the financial group’s 2018 management plan, which was approved at the board’s meeting held Nov. 27, along with a structural reform plan.
Chairman Kim Yong-hwan said the group prepared its foundation in 2017 for another leap forward. Next year, NH will consolidate its operations and be recognized from financial markets as a leading financial group in the country, challenging the major groups.
The group has decided to set up a new unit to manage its wealth management sector. It will strengthen its wealth management operation to challenge the similar units of the large-scale financial groups, with a specific aim to expand the sector’s operation with marketing moves targeting the baby boomer generations.
Its strategies for the corporate investment banking sector involve issuing notes to secure funds, which NH will use to provide loans to SME customers through its nationwide financial network.
The group also will seek to find new businesses to beef up its operations, and the REITs management is a possible area that it might take up as its new business in next year.
NH Capital will take up a long-term car rental business as well as its offshore operation in 2018, while NH Investment and Securities will set up a Global Strategy Headquarters to strengthen its overseas operation. The company will also expand the number of employees at its Hong Kong branch.
The bank will broaden its operation in Asian retail financial markets in China, Indonesia, Malaysia, Myanmar and Cambodia, among others, with its Hong Kong branch as a base.
Also included in the plan is a digitalization strategy. The first move will be to promote the vice president in charge of the digital finance of NH Bank to CDO to take charge of the entire digitalized financial transactions of the bank.
The digital financial officer will be assigned to each of the bank’s branch office and the digital financial sector will have robots installed to help the operation amid manpower shortages. There also will be a digital team which can take care of both face-to-face and non-face consultations at each branch office around the country.
The board members also discussed important personnel matters, including the appointment of CEOs at some affiliates whose terms are up at the end of this year, such as the CEO of NH Bank.
The board agreed to finish the appointments of affiliate CEOs and other executives before the year is out.