NongHyup Financial reports net loss of W200b in H2

[THE INVESTOR] NongHyup Financial Group logged a net loss of 200 billion won (US$180 million) in the first half of this year on loan-loss provisions it has set aside due to its heavy exposure to debt-laden shipping and shipbuilding companies. 

South Korea’s second-largest bank by assets said on Aug. 2 that it suffered a consolidated net loss of 201.3 trillion won during the first six months in 2016, including a net loss of 290 billion won in the second quarter ended June 30 -- after posting a profit in the first quarter.

Among the country’s major financial groups, NongHyup is the only one that has posted a net loss during the first half.

The ongoing industrywide restructuring in financially troubled sectors here took a toll on NongHyup Financial Group’s revenue.

Its key affiliate NongHyup Bank put aside over 1.35 trillion won to cover soured loans extended to companies including STX Offshore & Shipbuilding and Chang Myung Shipping.

Accordingly, the lender reported a net loss of 329 billion won in the first half, against the previous year’s profit of 300 billion won.

By Park Han-na (hnpark@heraldcorp.com)