NongHyup Financial Group racked up 1,824.7 billion won in cumulative net profit in the first three quarters of 2021, the highest ever for the company.
The financial group already crossed last year’s annual net profit (1,735.9 billion won) in the period.
NongHyup Financial Group has been performing well, setting new records since Chairman Son Byung-hwan took office. Its digital innovation and global business expansion are expected to gain momentum based on this strong business performances.
NongHyup Financial Group announced on Oct. 25 that it logged a cumulative net profit of 1,824.7 billion won by the third quarter of 2021.
Its net profit in the third quarter sat at 542.8 billion won, up 24.9 percent from a year earlier.
Interest income rose 5.9 percent year on year to 6,313.4 billion won on the back of increases in low-cost deposits and loan assets.
Its non-interest income rose 30.2 percent year on year to 1,533.1 billion won. Commission income rose 17.7 percent year on year to 1,426.5 billion won.
Income from securities and foreign exchange derivatives also rose 33.6 percent year on year to 1,098.3 billion won as a result of strategic asset management in response to increased volatility.
The group’s asset soundness index continued to fare well, recording an NPL ratio of 0.37 percent and a coverage ratio of 176.30 percent.
As for profitability indicators, NongHyup Financial Group logged a return on equity (ROE) of 10.57 percent and a return on total assets (ROA) of 0.60 percent.
NongHyup Bank, a key subsidiary, posted 1,237.5 billion won in net profit, up 10.9 percent from a year earlier.
Its Interest income rose 8.2 percent year-on-year, while its credit loss provisions fell 30.4 percent. Its soundness indicators also improved, with an NPL ratio of 0.30 percent and a coverage ratio of 187.89 percent.
Among non-bank affiliates, NH Investment & Securities posted a net profit of 742.5 billion won, up 48.1 percent from a year before, NH NongHyup Life Insurance 114.2 billion won, NH NongHyup Insurance 87.6 billion won, and NH NongHyup Capital 90.8 billion won. All of them maintained earnings growth, driving up NongHyup Financial Group’s profit.
“We plan to strategically respond to market volatility such as interest rates and exchange rates in the fourth quarter and continue to strengthen risk management for potential insolvent assets,” said an official of NongHyup Financial Group.
“We will focus on key tasks such as securing key growth drivers through qualitative growth and boost the efficiency of management. Based on this, we will strengthen our agricultural and rural support capabilities.”
Meanwhile, many analysts expect that the expansion of global business and digital innovation, which Chairman Son pursued since his inauguration will also gain bigger momentum thanks to this nice business scorecard.
As next year marks the 10th anniversary of the establishment of NongHyup Financial Group, it is predicted that all affiliates will muster up their capabilities for the expansion of global business and digital innovation.
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