NH NongHyup Financial Group posted a net profit of 868.8 billion won in the first quarter of this year. That is an increase of more than 21% from the same period last year.
According to the financial sector on Apr. 24, NH NongHyup Financial's first-quarter net profit was 868.8 billion won, up 21.7% from the same period a year earlier (714.0 billion won).
Interest income was 2.2143 trillion won, up 7.3% from the same period last year. Improvement in the net interest margin (NIM) had a major impact.
Boosted by growth in the nonbanking institutional sector, noninterest income came to 903.6 billion won. It grew 51.3% from the same period last year. Fee revenue rose sharply on increased stock trading brokerage revenue from an active capital market and expansion of assets under management (AUM) in asset management. In addition, revenue from financial product sales and marketable securities also increased.
Helped by this performance improvement, return on assets (ROA) was 0.78% and return on equity (ROE) was 11.85%. Both improved from the end of last year.
However, the ratio of substandard-or-below loans, an asset soundness indicator, was 0.65%, up 2 bps from the end of the previous year (0.63%), showing some deterioration.
By affiliate, NongHyup Bank had the largest net profit at 557.7 billion won. It was followed by NH Investment & Securities at 475.7 billion won. NH Investment & Securities increased net profit by more than 118% from the same period a year earlier (208.2 billion won).
NH NongHyup Property & Casualty Insurance and NH NongHyup Life Insurance posted net profits of 39.9 billion won and 27.2 billion won, respectively. NH-Amundi Asset Management recorded 17.4 billion won, higher than NH NongHyup Capital (16.3 billion won). NH Savings Bank, which posted a net loss of 4.9 billion won last year, swung to a profit with 1.4 billion won in net profit in the first quarter.