April 19, 2024

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[THE INVESTOR] NongHyup Financial Group is projected to record more than 1 trillion won  (US$885 million) in net profit this year, backed by its banking and securities units, analysts said on July 16.

The financial unit of the National Agricultural Cooperative Federation has accumulated 600 billion won in net profit in the first five months, industry sources said. It is expected to have made another 100 billion won in June. The projected six months of net profit this year already matches the combined net profit of 2015 and 2016, when it logged 401.3 billion won and 321 billion won, respectively. 

NongHyup Financial Group, which has eight affiliates under its umbrella, including NH Nonghyup Bank and NH Investment & Securities, is expected to see a record profit of 1 trillion won this year, an official at the financial group said.

The financial group’s performance was driven by its two biggest units -- the banking unit and investment unit.

NH Nonghyup Bank reeled in a net profit of 500 billion won in the first five months.

“NH Nonghyup Bank’s performance may not be as good as other major financial groups such as Shinhan Bank and Woori Bank, but our profitability is getting closer to them,” said the official. “It is very possible that we hit the 1 trillion won milestone this year.”

The bank’s earnings were due to a decrease in the reserve fund against non-performing loans.

NH Investment & Securities Co is expected to log 122 billion won in net profit in the second quarter, up 14.5 percent from a year earlier, according to a report by Ebest Investment & Securities Co. The company made 128 billion won in net profit in the first quarter.

By Park Ga-young (gypark@heraldcorp.com)