NH Investment & Securities Files Registration for 300 Billion Won Debentures and Discloses Q1 2026 Financials
NH Investment & Securities has filed a securities registration statement for the issuance of its 77th unsecured debentures worth 300 billion won. The bonds carry an AA+ rating with stable outlook, and all proceeds will be used to repay existing borrowings.
As of end-Q1 2026, the standalone non-performing loan ratio improved to 0.73% from 1.59% at year-end 2025, while the consolidated net capital ratio stood at a robust 2,449.4%. However, the leverage ratio remained high at 677.4%, and the balance of derivative-linked securities reached 91.92% of equity, posing potential risks.
For fiscal 2025, common stock dividends were 1,300 won per share and preferred 1,350 won, with a standalone payout ratio of 53.71%. The company has consistently repurchased and cancelled shares, with 3.4 million shares in 2025 and 4.17 million in 2024. Dilution from rights issues occurred via 32.3 million new shares in August 2025 and 12.9 million in June 2026.
The largest shareholder, Nonghyup Financial Group, holds a 63.26% stake, and the National Pension Service owns 8.49%, ensuring stable governance. Litigation risks include 28 defendant cases totaling 143.5 billion won, which is manageable relative to operating net capital of 8.6 trillion won.
[AI Summary]NH Investment & Securities' bond issuance for refinancing reflects its strong credit rating of AA+. Capital adequacy is solid, but high leverage and large derivative-linked securities exposure are key risk factors. Shareholder returns through dividends and buybacks are consistent, though prior rights issues have diluted equity. Overall financial stability is maintained, but market volatility and derivative risk management remain critical.