NH NongHyup Financial Group reported a net profit of 714 billion won for the first quarter of this year on the 30th. This marks a 10.7% increase compared to the first quarter of last year.
Interest income decreased by 6.0% to 2.0642 trillion won. This decline is attributed to the net interest margin (NIM) of its major affiliate bank, which fell from 2.00% at the end of the first quarter of last year to 1.75% at the end of this quarter.
Non-interest income increased by 18.3% to 597.1 billion won. Commission income among non-interest income rose by 6.4% to 475.8 billion won. NongHyup noted that "even though securities profits decreased, the growth in commission income related to bancassurance, electronic finance, and investment finance contributed to the increase in non-interest income."
The delinquency ratio, an indicator of asset soundness, was recorded at 0.72% at the end of the first quarter. This is an increase of 0.16 percentage points compared to the end of the first quarter last year and up by 0.04 percentage points from the end of last year. The return on equity (ROE), an indicator of profitability, stood at 9.16%, reflecting a rise of 0.57 percentage points from a year ago.
By affiliate, NongHyup Bank recorded a net profit of 554.4 billion won in the first quarter of this year, a 31.5% increase compared to the same period last year. Conversely, net profits for NH Investment & Securities, NH NongHyup Life, and NH NongHyup Property & Casualty totaled 208.2 billion won, 65.1 billion won, and 20.4 billion won, respectively, reflecting declines of 7.7%, 17%, and 61.8%.
NongHyup stated, "We will focus on securing a stable operational foundation while proactively responding to risk factors," and added, "We will practice customer rights protection, fulfill our social responsibilities, and do our best to support agriculture and rural areas."