Hyundai Commercial reported a double-digit increase in net profit for the first half of the year, driven by the expansion of its investment finance assets.
The company announced on July 23 that its net profit for the first half of the year reached 117.1 billion won, a 17.2% increase compared to the same period last year. Operating revenue rose to 745.8 billion won, marking a 14.5% increase during the same timeframe.
By the end of the first half, total assets amounted to 10.7988 trillion won, up 6.0% from the previous year. Industrial finance assets remained stable at 5.1567 trillion won, while corporate finance assets slightly decreased to 3.0575 trillion won.
Investment finance assets surged by 44.5% year-on-year to 2.5846 trillion won, primarily due to investments in overseas private equity funds, private debt funds, domestic real estate, and non-performing loans.
Operating profit was recorded at 69.7 billion won, a decrease of 3.6% from the previous year. Despite the increase in operating revenue, operating expenses rose by 16.8%. Pre-tax profit increased by 20.6% to 134.1 billion won.
The delinquency rate, a key indicator of financial health, rose to 0.90%, up 0.19 percentage points from the previous year, but remained below 1%. The ratio of non-performing loans was 1.3%, with a non-performing loan coverage ratio of 119.4%. The leverage ratio decreased from 7.6 times to 6.9 times.
A Hyundai Commercial representative stated, "As we maintain a stable asset base in industrial and corporate finance, the growth in investment finance assets has led to increases in operating revenue and net profit. We are also managing our financial health by keeping the delinquency rate below 1%."
* This article has been translated by AI.
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