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

NH NongHyup Financial Group racked up 1,281.9 billion won in net profit in the first half of 2021. According to an announcement by NH NongHyup Financial Group on July 23, its net profit in the second quarter stood at 677.5 billion won, up 12.1 percent (73.1 billion won) from the previous quarter.

Its cumulative net profit in the first half of this year swelled 40.8 percent (371.7 billion won) on-year, to 1,281.9 billion won.

Net income in the first half of the year, before the cost of supporting agriculture projects, was 1,437.6 billion won.

Under the National Agricultural Cooperative Federation Act, NH NongHyup Financial Group subsidiaries, other than the holding company itself, pay their share to the National Agricultural Cooperative Federation every quarter to support farmers, agriculture and farming areas.

The cost of agricultural support projects in the first half of this year amounted to 223 billion won.

Interest profit, the financial group’s core profit, rose 6.3 percent (245.1 billion won) from a year ago to 4,165.2 billion, while non-interest profit rose 81.6 percent (529.2 billion won) from a year ago to 1,178.0 billion won.

Among them, commission profit increased 28.5 percent on year to 983.7 billion won due to a spike in brokerage commissions. Securities and foreign exchange derivative gains also ascended 114.7 percent to 898.1 billion won as a result of strategic asset management.

The financial group’s provisions for Credit loss allowances stood at 187.5 billion won, down 135.3 billion won from the same period of last year.

Its selling and administrative expenses totaled 2,242.0 billion won, up 161.5 billion won from the same period last year. Its total assets, including assets under management (AUM), added up to 502.5 trillion won.

Its return on total assets (ROA) and return on equity (ROE), stood at 0.64 percent and 11.24 percent, respectively. The two management indicators improved by 0.18 percentage points and 2.84 percentage points compared to the same period last year.

The net profit of NH Bank, a key affiliate of NH NongHyup Financial Group, amounted to 856.3 billion won, up 17.8 percent (129.5 billion won) from a year before.

NH Investment & Securities’ net profit rose 101.7 percent (266.2 billion won) on-year to 527.9 billion won, driving an increase in the financial group’s profit.

As for other non-banking affiliates, NH NongHyup Life Insurance posted 98.2 billion won in net profit.

NH NongHyup Insurance’s profit was 57.3 billion won and NH NongHyup Capital’s profit was 58.3 billion won. All of the affiliates posted growth in their earnings.

Meanwhile, NH NongHyup Financial Group held a management strategy meeting in the second half of 2021 on July 22nd.

More than 40 people, including Son Byung-hwan, chairman of the NH NongHyup Financial Group, executives of the financial group and affiliates, and heads of major departments, participated in the meeting through a video conferencing system.

The participants of the meeting focused on the strategic direction and establishment of key strategic tasks for the new decade at a time when they marked the 10th anniversary of the launch of the holding company system as they analyzed the results of the first half of 2021 and prepared for the second half.

NH NongHyup Financial Group switched to a financial holding company system in March 2012.

NH NongHyup Financial Group's strategic goal in the second half of this year is to establish a future foundation for a new decade.

To this end, the financial group selected three sectors and seven major tasks. The three sectors are securing core competitiveness, sharpening business competitiveness and strengthening business bases.

The seven major tasks are the implementation of digital services across the board, building a strong environment, society, governance management system, securing a future-oriented global network and building a sophisticated risk management system and realizing a stable value-oriented insurance business and creating practical and profit-generating synergies.

“Now is the time for us to make thorough preparations and draw up strategies and establish detailed strategies to survive in the fast change of our management environment and various crises without being complacent about our financial group’s growth over past 10 years,” Chairman Son said.

“We have to play our roles more faithfully and contribute to the growth of the nation, agriculture and farming towns in the next new decade.”