Chairman Son Byung-hwan of NongHyup Financial Group. (Photo: NongHyup Financial Group)

NH NongHyup Financial Group racked up a net profit of 604.4 billion won in the first quarter of 2021 thanks to its balanced growth in the banking and non-bank sectors.

The group enjoyed increases in non-interest income and profits in the securities and foreign exchange derivative sectors. Its non-banking affiliates, such as NH Investment & Securities, showed improved performances.

NH NongHyup Financial Group said on April 30 that its net profit increased 78.4 percent (265.7 billion won) year-on-year.

Considering NH NongHyup Financial Group’s 1115 billion won in agricultural support projects under the Agricultural Cooperative Law, the group posted 682.2 billion won in net profit.

Its Interest income, which is the core profit of the group, spiked 5.9 percent (115.7 billion won) year-on-year to 2.064.3 trillion won. Its non-interest profit stood at 594.9 billion won, a year-on-year increase of 489.4 billion won from the same period of last year.

Its commission income rose by 161.3 billion won year-on-year to 538.7 billion won on the back of a net increase in stock trade commission fees, while income in the securities and foreign exchange derivative sectors soared by 482.4 billion won due to strategic asset management and a stock market recovery.

Its asset soundness index continued to stay in positive territory, as its bad loans, meaning debts overdue for more than three months, accounted for 0.47 percent of the group’s total lending. The coverage ratio stood at 141.46 percent.

The two rose 0.01 percentage points and 1.45 percentage points, respectively, from the end of 2020.

Total assets rose 2.2 percent (10.6 trillion won) year-on-year to 494.1 trillion won. The group logged an ROE of 10.68 percent, and an ROA of 0.61 percent as profitability indicators.

Its flagship subsidiary NH Bank netted 409.7 billion won, enjoying a year-on-year increase of 29.6 percent (93.5 billion won).

The bank’s interest income rose 7.9 percent (102.7 billion won) while its non-interest income increased by 47.4 billion won thanks to an increase in income in the securities and foreign exchange derivative sector from a year before.

Among non-banking affiliates, NH Investment & Securities posted a net profit of 257.5 billion won, NH NongHyup Life Insurance a net profit of 42.5 billion won and NH NongHyup Insurance a net profit of 27.8 billion won.

“NH NongHyup Financial Group will steadily strengthen risk management for potential bad assets,” said an official at NH NongHyup Financial Group.

“We will make NH NongHyup Financial Group more sustainable by focusing on key tasks to secure strong competitiveness for the future.”

In addition, NH NongHyup Financial Group held the 2nd Asset Management Strategy Meeting of 2021 at its headquarters in Seoul on April 23, presided over by Kim Hyung-shin, head of the Business Strategy Division.

At the meeting, heads of NH NongHyup Financial Group’s major affiliates reviewed the results of the group’s business operations in the first quarter of 2021 and shared information on financial market conditions and discussed various pending issues.

In particular, they examined the current status of overseas investment and further studied the possibility of expanding synergies of NH NongHyup Financial Group through ETF market analysis in the face of growing volatility in the overseas financial market environment due to the COVID-19 pandemic.

Specifically, they discussed enhancing the profitability of overseas investments by utilizing its partnership with Amundi Global and strengthening the NH NongHyup Financial Group’s synergy process to foster theme-type ETFs expected to lead the market in the future.

In the overseas investment sector, the financial group will re-check the overall overseas investment status of the group’s operating assets at the group level and reinforce a customized support system to provide investment opportunities that meet the needs of affiliates.

In the meantime, NH NongHyup Financial Group announced on April 16 that executives and employees of NH NongHyup Financial Group visited Wangdaechu Village in Hongcheon-gun, Gangwon-do, on April 15 to help farmers.

They helped farmers who were suffering from a labor shortage by preparing rice seedbeds, fertilizing jujube trees, and making an improvement to their working environments.

After finishing their work, they listened to the farmers’ difficulties and wishes. They also delivered about 100 red ginseng gift sets to the farmers for their health.