[Infostock Daily= Reporter Lee Kang-wook] NH Nonghyup Financial Group announced on February 14 that its net profit reached 1.77 trillion won last year, the highest since the launch of the financial holding company in 2012.
The Nonghyup Financial Group announced on the day that its net profit for 2019 increased by 46 percent (560.7 billion won) compared to 2018, and achieved net profit of 1 trillion won for the second consecutive year.
In addition, interest income reached 7,830.4 billion won, while non-interest income increased by 532.6 billion won from the previous year due to securities and foreign exchange derivatives. The provision of credit loss amounted to 358.2 billion won, down 51.35% (377.3 billion won) from the previous year.
Net interest margin (NIM) was 1.72 percent as of the end of last year, down slightly from the same period last year (1.84%). Under the low interest rate trend, other banks also failed to avoid the NIM decline.
The ROE and ROA indexes, which show profitability, were 8.65% and 0.41%, respectively, which were better than the previous year. In particular, ROE, excluding agricultural support projects, rose 2.13% point year-on-year to 10.06%.
Total assets rose 2.4 percent year-on-year to 427.1 trillion won, while asset soundness indexes were also good, while the ratio of non-fixed and sub-fixed (NPL) increased by 0.28 percent p to 0.63 percent. The delinquency rate was 0.40%, down from the same period of the previous year (0.43%).
Despite bad conditions such as lending regulations, the won's loans grew 5% year-on-year, while household loans and corporate loans grew 8.7% and 6.2%, respectively.
NH Bank, a core subsidiary, recorded net profit of 1.517 trillion won, which is the result of an increase in both interest and non-interest income.
NH Investment & Securities achieved a net profit of KRW 475.5 billion, a growth rate of 31.8% over the previous year, and NH Nonghyup Life succeeded in turning to profit thanks to improved management structure. Other affiliates posted net profit of KRW 6.8 billion in non-life insurance, KRW 50.3 billion in capital, KRW 21.7 billion in asset management, and KRW 18.1 billion in savings banks.
An official of the NH Nonghyup Financial Group said, "Although the economic growth will continue to slow due to global uncertainty, low interest rates and low growth this year, we will establish a sustainable management system through digital management innovation and global management expansion."
Reporter Lee Kang-wook email@example.com