“It is also encouraging that NongHyup saw a profit increase in the second quarter, while most of the other banks ended up with lower-than-expected results during the same period.”

The bank’s interest earnings and non-interest income rose 33.7 billion won and 59.9 billion won, respectively, during the given period, according to officials. Its loan loss reserves fell 246 billion won.

The overall profit growth was especially attributable to the non-interest income businesses, such as bancassurance, profit securities and retirement pension, according to officials.

NongHyup’s retirement pension business is currently No. 1 both in net amount and growth rate. The total amount stood at 5.8 trillion won as of the end of June, up 430 billion won from the end of last year.

Aiming at its yearly profit target of 680 billion won, the bank will implement a number of key strategies such as expanding low-cost deposits, increasing commission profits and cutting down management expenses, officials explained.

It also pledged to place more focus on overseas markets and fintech in search of new, sustainable growth engines.

By Bae Hyun-jung (tellme@heraldcorp.com)