NH NongHyup Financial Group posts a record net profit in the first half of this year, supported by combined growth in interest income and non-interest income. Net profit at NH NongHyup Bank and its insurance units falls, but a stronger stock market boosts results at NH Investment & Securities and NH-Amundi Asset Management, lifting group earnings overall.

NH NongHyup Financial said on Thursday first-half net profit attributable to controlling shareholders rises 9.2 percent from a year earlier to 1.78 trillion won. Operating profit increases 14.0 percent to 3.2 trillion won over the same period. Second-quarter net profit totals 910.4 billion won, up 41.7 billion won from the first quarter.

Joint growth in interest and non-interest income

Interest income rises 8.4 percent from a year earlier to 4.44 trillion won. The group cites an expansion of high-quality assets centred on core deposits and corporate finance, along with management of funding costs.

Net interest margin (NIM) for its bank and card units rises to 1.74 percent at end-June from 1.67 percent at end-2025. Corporate loans increase by 840.0 billion won from a year earlier, and by 370.0 billion won from end-2025.

Non-interest income climbs 47.4 percent from a year earlier to 1.96 trillion won. Fee income surges 71.2 percent to 1.68 trillion won, driven by higher brokerage revenue from stock trading and an expansion in assets under management. Securities and foreign exchange-related gains rise 0.6 percent to 957.3 billion won.

NH Investment & Securities leads results

By subsidiary, net profit at NH Investment & Securities rises by 500.2 billion won from a year earlier to 965.2 billion won. The increase rate is 107.5 percent, with net profit more than doubling. Net profit at NH-Amundi Asset Management rises by 53.7 billion won to 69.4 billion won from 15.7 billion won.

Net profit at NH NongHyup Bank falls 25.0 billion won from a year earlier to 1.16 trillion won. Interest income and fee income increase, but lower securities investment gains and higher credit loss provisions weigh on results.

NH NongHyup Life posts 35.1 billion won, down 119.6 billion won, and NH NongHyup Property & Casualty Insurance records 71.7 billion won, down 15.8 billion won. NH NongHyup Capital also falls 8.7 billion won to 35.4 billion won. NH Savings Bank posts a net profit of 3.8 billion won, swinging to profit from a 4.3 billion won net loss a year earlier.

Higher provisions and selling and administrative expenses

First-half credit loss provision expenses total 408.8 billion won, up 77.6 billion won from a year earlier. Selling and administrative expenses rise 483.2 billion won to 2.96 trillion won.

The group’s ratio of substandard or below loans stands at 0.65 percent at end-June, up 0.02 percentage point from 0.63 percent at end-2025. The loan loss reserve coverage ratio falls 9.49 percentage points to 155.31 percent from 164.80 percent over the same period.

NH NongHyup Financial injects a total of 1.0 trillion won into key affiliates, based on a 1.2 trillion won paid-in capital increase by National Agricultural Cooperative Federation in June. It allocates 500.0 billion won to NH NongHyup Bank, 400.0 billion won to NH Investment & Securities and 100.0 billion won to NH NongHyup Capital.

NH NongHyup Financial said, "As the paid-in capital increase was carried out at the end of June, the effects of business expansion and improved profitability from the capital boost will begin in earnest from the second half."