NongHyup Bank to close underperforming branches

NongHyup Bank will shut down low-profit branches to enhance the margin rate, its holding company NongHyup Financial Group said Monday.

The group said it will shut down, integrate or transfer around 30 branches with low profitability, as part of the annual “branch efficiency booster plan.”

“We enforced the branch efficiency booster plan to 30-some branches last year, and we are expecting to do the same to a similar number this year as well,” a spokesperson of NongHyup Financial Group said.

The number of voluntary retirees this year will be close to last year’s 280, the spokesperson added.

NongHyup Financial Group and NongHyup Bank refused to reveal the exact number and location of the branches that will be shutdown. However, the bank hinted that some Seoul branches with low profitability may be included in the restructuring plan.

“There are some branches at bad locations in the capital and the surrounding metropolitan regions, while we need more branches in growing regions like Sejong City,” the NongHyup Bank spokesperson said.

The branch efficiency booster plan is a routine feature to readjust the banking operations to changing demands, the bank official added.

By Chung Joo-won (joowonc@heraldcorp.com)