NongHyup Financial Group announced on the 31st that it recorded a net profit of 1.6287 trillion won in the first half of this year. This represents a decrease of 6.6% compared to the first half of last year (1.7436 trillion won).
Interest income decreased by 5.3% to 4.0977 trillion won during the same period, while non-interest income increased by 19.6% to 1.3296 trillion won. Among non-interest income, commission income rose by 11.3% to 982.2 billion won, and securities operating profit increased by 44.5% to 1.1318 trillion won.
NongHyup Financial noted that the significant decrease in interest income was due to falling market interest rates, and explained that the increase in non-interest income, driven by advisory and brokerage commissions based on a rising stock index, along with securities operating gains, contributed to solid performance.
NongHyup Financial's profitability indicators, namely the return on assets (ROA) and return on equity (ROE), stood at 0.65% and 10.35%, respectively, slightly lower than in the first half of last year. The ratio of non-performing loans, a measure of asset soundness, was at 0.60% at the end of the second quarter, up 0.01 percentage points from a year earlier. The common equity ratio was at 12.37%, down 0.80 percentage points compared to the same period last year.
By affiliate, NongHyup Bank's net profit for the first half was 1.1879 trillion won, a decrease of 6.2% compared to the same period last year (1.2667 trillion won). NH Investment & Securities saw its net profit rise by 10% to 465 billion won, while NongHyup Life Insurance's profit fell by 5.6% to 154.7 billion won. NongHyup Property & Casualty Insurance reported a profit of 87.5 billion won, down 21%.