NongHyup Financial Group posted the highest net profit on an accumulated basis in its history in the first three quarters of 2022.
Excluding the agricultural support project costs supplied by NongHyup Financial Group to farms, its net profit exceeded 2 trillion won.
Non-bank affiliates suffered difficulties due to a slump in the asset market, such as stocks and a high foreign exchange rate.
On Oct. 28, NongHyup Financial Group announced that its accumulated net profit stood at 1,971.7 billion won in the first three quarters of 2022.
It grew by 8.1 percent (147 billion won) compared to the same period of last year (1,824.7 billion won).
Including 337.9 billion won in agricultural support project expenses provided by NongHyup Finance to the Korean agricultural industry, rural areas and farmers this year, its cumulative net profit amounted to 2,202.3 billion won.
An increase in interest income led to the best-ever business performance.
Cumulative interest income from the first to third quarters stood at 6,987.1 billion won, an increase of 673.7 billion won from the same period of last year.
This was attributable to a sharp rise in the interest rate amid an increase in its loan assets and a rise in its net interest margin (NIM).
NongHyup Bank’s NIM sat at 1.7 percent in the same period. This represented an increase of 0.1 percentage point from the end of 2021.
Its cumulative non-interest income totaled 759.2 billion won, a drop of 50.5 percent (773.9 billion won) from the same period of last year.
As a result of stock market adjustments, its commission income such as its commission brokerage commissions dipped and as the market interest rate soared, gains from securities management including foreign exchange derivatives shrank.
Commission income fell 22 percent year-on-year, and securities management income fell 54.8 percent.
NongHyup Financial Group showed financial soundness indices, too.
Its ratio of non-performing loans (NPLs), which was delinquent for more than three months and believed difficult to collect, stood at 0.27 percent for the holding company and 0.21 percent for NongHyup Bank, as of the third quarter.
Compared to the previous quarter, they sank by 0.02 percentage points and 0.01 percentage points, respectively.
The bank’s delinquency rate hit 0.2 percent, a slight increase of 0.02 percentage points compared to the second quarter.
By subsidiary, NongHyup Bank logged an increase of 18 percent (222.4 billion won) in accumulated net profit from the same period of the previous year.
That is to say, its accumulated net profit amounted to 1,459.9 billion won.
NH Investment & Securities recorded 234.1 billion won in accumulated net profit, down 68.47 percent (508.4 billion won) from the same period last year.
In addition, NH NongHyup Life Insurance chalked up 242.1 billion won in accumulated net profit, up 112 percent from the same period of 2021.
NongHyup Property & Casualty Insurance’s accumulated net profit fell 5.1 percent to 83.1 billion won.
NH NongHyup Capital racked up 86.5 billion won in accumulated net profit, a decrease of 4.7 percent.
NongHyup Bank’s loan loss provisioning ratio exceeded 300 percent for the first time among major banks.
As of the end of the third quarter, NongHyup Bank’s loan loss provisioning ratio stood at 314.54 percent.
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