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| NongHyup Financial Chairman Kim Gwang-soo / Yonhap |
By Park Hyong-ki
NongHyup Financial Group posted record earnings in 2018 on the back of an increase in interest income and brokerage commissions, the holding company said, Thursday.
The group's consolidated net profit reached 1.2 trillion won ($1.1 billion) last year, up nearly 42 percent from the year before. It was the first time that its annual earnings exceeded the 1 trillion won mark.
The record profit came as the group saw a decrease in funds set aside for bad debt. The costs stemming from such funds dropped more than 22 percent in the same period.
Also, the group saw an increase of nearly 10 percent in interest income, and a 4.5 percent increase in brokerage commissions, all thanks to NongHyup Bank and NH Investment & Securities' expanded portfolio, the group added.
To this end, it marked the highest profit since the group transformed into a holding company in March 2012.
The record earnings were achieved, even though the group spent 400 billion won for the development of the agriculture industry, and 100 billion won on charity and donations last year.
This year, NongHyup Financial said it will focus on two things ― risk management and digital transformation.
"We will seek growth by boosting risk management in the face of an economic slowdown," the group said in a press statement.
"The group will also seek to change its organization and further expand our support for agriculture."
NongHyup Financial Chairman Kim Gwang-soo has vowed to boost its capability to mine and analyze massive amounts of data to enhance its customer service and develop new business at home and abroad.
It is seeking to expand in key markets of Northeast Asia, Southeast Asia and Western Asia.
By 2022 when Kim's term ends, it is aiming to set up not only its financial but also agricultural beachheads in the regions through strategic ties and equity investments.
Kim was previously a commissioner of Korea Financial Intelligence, and general manager of the Financial Services Commission.
