NH NongHyup Financial Group recorded the highest net profit since the inauguration of the holding company in the second quarter of 2022, veering away from sluggish growth in the previous quarter.
Son Byung-hwan, chairman of NH NongHyup Financial Group, emphasized that the banking and non-banking affiliates should realize growth while they sincerely play their roles as profit generators of the NH NongHyup Financial Group.
Analysts said that the chairman’s efforts to make it happen have begun to pay off.
According to business results released by NH NongHyup Financial Group on July 26, it posted an operating profit of 1,188.8 billion won and a net profit of 754.2 billion won on a consolidated basis in the second quarter.
Its operating profit swelled by 15.3 percent and its net profit by 26.4 percent, respectively compared to the second quarter of 2021.
In the first half of the year, NH NongHyup Financial Group posted a net profit of 1,350.5 billion won. This represented an increase of 5.3 percent compared to the same period of last year.
This amount of net profit was the largest-ever both on a quarterly basis and on a semi-annual basis since the establishment of NH NongHyup Financial Group in 2012.
NH NongHyup Financial Group was the only financial holding company to report a 1.3 percent decrease in net profit in the first quarter among the five major Korean financial holding companies, but it exited the slump in the second quarter.
Looking at the second-quarter earnings of major affiliates of NH NongHyup Financial Group, most of the affiliates logged an increase in their net profit.
This compares with cases where other financial holding companies performed poorly in the non-banking sector in the same period.
Its affiliates’ growth is attributable to Chairman Son's efforts to boost the competitiveness of the non-banking sector.
Chairman Son said that the balanced growth of all affiliates is the key to NH NongHyup Financial Group playing its role as the profit-making center of the financial group.
In his New Year's message, Chairman Son emphasized the even growth of all affiliates, saying to employees of the affiliates of NH NongHyup Financial Group, "Please faithfully fulfill your responsibilities in making your workplaces serve well as profit generators for NH NongHyup Financial Group."
Accordingly, NH NongHyup Financial Group has been sharpening the competitiveness of non-banking affiliates by establishing strategies tailored to the characteristics of each business area.
In particular, NH NongHyup Financial Group received 1,112.1 billion won in support funds from the National Agricultural Cooperative Federation this year, and invested it to increase capital of its non-banking affiliates.
By doing so, it is seeking to achieve the qualitative growth of its affiliates.