NH NongHyup Financial Group posted a 59 percent year on year improvement in net profit in the first quarter of this year despite a sharp drop in its interest income.
Credited were a turnaround in NongHyup Life Insurance and strong sales by non-banking affiliates including NH Investment & Securities.
NH NongHyup Financial Group announced on April 28 that it posted 947.1 billion won in net profit in the first quarter of this year.
The figure represented an increase of 58.8 percent from 596.3 billion won in the same period a year earlier.
NH NongHyup Financial Group’s interest income for the first quarter reached 229.8 billion won, down 21 percent year on year.
NongHyup Bank’s net interest margin (NIM) amounted to 1.96 percent in the first quarter, up 0.08 percentage points from 1.88 percent in the previous quarter.
Excluding credit cards, its NIM climbed by 0.10 percentage points to 1.83 percent. Nevertheless, interest income declined as interest bearing assets declined due to stagnant loan growth, mainly that of household loans.
NH NongHyup Financial Group’s non-interest income surged 811.1 percent year-on-year to 721.6 billion won in the first quarter.
This was largely due to gains on securities and foreign exchange derivatives which stood at 586.9 billion won. In the previous month, the financial group lost 78.1 billion won in the securities and foreign exchange derivative business. Its commission income rose 28 percent on year to 392.8 billion won.
NongHyup Bank posted a net profit of 672.1 billion won in the first quarter, up 50.6 percent from a year earlier. NH Investment & Securities also posted 184.1 billion won in net profit, a 79.8 percent increase from a year earlier.
Net profit for NongHyup Life Insurance surged 166.3 percent to 114.6 billion won, compared to 43 billion won a year before. NongHyup Property & Casualty Insurance posted a net profit of 78.9 billion won, up 129.9 percent from the same period of the previous year.
NH NongHyup Financial Group’s NPL ratio sat at 0.39 percent at the end of the first quarter, up 0.09 percentage points from 0.30 percent at the end of the previous year and 0.30 percent at the end of the same period of the previous year respectively.
That of NongHyup Bank stayed 0.3 percent, up 0.04 percentage points from the previous quarter.
Meanwhile, NH NongHyup Financial Group announced on May 16 that its family volunteer group, including Chairman Lee Seok-joon shared agricultural products to celebrate Family Month of May in Korea.
The family volunteer group which included Lee and the children of employees held an event at the headquarters of NongHyup Supermarket’s Main Branch in Seocho-gu, Seoul, on May 15.
Chairman Lee and about 50 volunteers hand-packed packages of agricultural products, including rice, sweet potatoes, potatoes, and onions.
The packages will be delivered to the elderly living alone, malnourished children, and families with developmental disabilities through community centers in Seoul and the Korea Association of Persons with Disabilities.
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