NH NongHyup Financial Group Sets New Annual Net Profit Record in 2021

Son Byung-hwan, chairman of NH NongHyup Financial Group, has time to check and discuss the status of overseas stores’ business operations in a New Year’s meeting with heads of overseas branches on Jan. 26. (Photo: NH NongHyup Financial Group)

NH NongHyup Financial surpassed 2 trillion won in net profit for the first time in the company’s history. It is quite meaningful given that it is the best-ever business performance recorded by NH NongHyup Financial Group.

NH NongHyup Financial Group said on Feb. 16 that its consolidated net profit stood at 2,291.9 billion won in 2021, up 32 percent (556 billion won) from a year earlier.

Unlike other financial groups, NH NongHyup Financial Group’s net profit will rise to 2,603.4 billion won if includes the 446 billion won in agricultural support projects provided for the agricultural industry, farming villages and farmers every year. This is the best performances ever.

NH Investment & Securities, a securities affiliate of NH NongHyup Financial Group, played a big role again this time. It posted 577 billion won in net profits in 2020 thanks to a stock market boom.

NH Investment & Securities posted a net profit of 931.5 billion won, up 61.5 percent from the previous year, driving the growth of NH NongHyup Financial Group profits.

In particular, the financial group’s interest income rose 6.6 percent (524.4 billion won) year-on-year to 8,511.2 billion won, while non-interest income grew 17.8 percent to 1,731.4 billion won.

Its commission income climbed 11.6 percent year-on-year to 1,814.7 billion won due to a boom in the stock market and an increase in securities commission income, thanks to increased investment banking (IB) competitiveness.

Its asset soundness indicators also improved. NH NongHyup Financial Group’s NPL coverage ratio ascended from 0.48 percent in 2020 to 0.36 percent in 2021.

Its loan-loss provision rate soared from 140.01 percent to 188.23 percent during the same period.

NongHyup Bank, a key subsidiary of NH NongHyup Financial Group, posted 1,555.6 billion won in net profits, up 13.5 percent (184.9 billion won) from a year earlier.

In the meantime, NH NongHyup Financial Group announced on Feb. 14 that it held a seminar organized by NH WM Masters at its headquarters in Jung-gu, Seoul on Feb. 11.

NH WM Masters is a top asset management expert group assembled with experts from five NongHyup Financial Group affiliates including NH Bank, NongHyup Life Insurance, NH Investment & Securities and NH Amundi Asset Management.

On the same day, Kim Hwan, a WM Masters expert, gave a lecture on global stock investment strategies. He is the team leader of the Investment Strategy Department at NH Investment & Securities.

After the lecture, WM Masters advisors and WM asset management-related employees discussed difficulties in establishing customer asset investment strategies and response cases.

“In the rapidly changing financial market, NH NongHyup Financial Group will put its utmost into increasing customers’ assets through NH WM Masters,” said Vice President Kim Yong-ki, head of the Business Strategy Division.

“You should become experts who can satisfy any customers by managing their assets comprehensively and systematically,” Kim told employees who attended the event.