Traditional banks face new shifts in risk and capital. NH NongHyup stands at a key point. The bank must manage asset growth and profit under tougher rules. Data shows its risk-weighted assets (RWA) climbed quickly. RWA measures asset risk and sets capital rules.
By the end of the third quarter of 2025, RWA grew 9.7% year-over-year to about 212.5 trillion won. That rise came with lower capital ratios. The Common Equity Tier 1 (CET1) ratio, which shows a bank’s core equity against risky assets, fell from 13.1% to 12.34%. The Basel III international capital ratio dropped 0.6 percentage points to 15.57%.
Other major Korean banks such as KB Financial, Shinhan Financial, and Hana Financial kept CET1 ratios above 13%. Woori Financial improved its ratio from 11.95% to 12.92%. Analysts point out that NH NongHyup, as a non-listed bank, has more room for fast asset growth without market pressures. This fact helps explain its strong push to expand.
The rise in RWA calls for more capital buffers. These buffers can cut into profit. NH NongHyup’s net profit in the first nine months of 2025 dropped 0.7% to 2.26 trillion won. Key profit measures like return on equity (ROE) and return on assets (ROA) fell to 9.48% and 0.60%. Administrative costs climbed 5.9%. The cost-to-income ratio went up by 2.33 percentage points to 49.6%, which shows tighter margins.
New bank rules have changed how risk is measured for loans. The Financial Services Commission raised the minimum risk for household loans from 15% to 20%. This step has a strong effect on banks with many mortgage loans, like NH NongHyup. Risk weights on equity in unlisted stocks fell from 400% to 250%, which gives the bank some relief.
NH NongHyup plans to watch and manage RWA more closely. The bank will align asset growth with profit. It will focus on numbers such as Risk-Weighted Asset Return (RoRWA). This move shows a shift toward more steady and risk-aware work that balances the need for capital with yield.
These events show the hard work banks face in meeting strict rules, handling shifting asset numbers, and keeping enough capital. NH NongHyup’s experience gives a view of how banks adjust to firm policies while working to digitize and vary assets. Such trends may hint at future shifts in banking work and asset tokenization, as more banks turn real-world assets into digital forms.
As finance and digital assets mix more, managing risk and capital will remain a top task. This work will shape the money field and new chances for investment in the years ahead.
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This article was generated by Hivebox AI in collaboration with AuCan Gold.
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