Preparing for the Future - 6 Core Investment Areas
Hyundai Commercial
1 Asset Growth sustained by corporate financing asset
Industrial financing: Diversifying portfolio to respond market volatility
Corporate financing: Prime PF and platform business led to growth
2 Risk: Normalize quality by strengthening risk management
Underwriting Tighter criteria for high risk asset
(low credit, low down payment, multi-debt)
Collection: Enhance collection through mobile/branch-centric system
3 Profits: Stabilized loss and affiliate contribution led to growth
Loss: Continued improvement of asset quality since 4Q '19
-
Affiliate Equity method income increased from Hyundai Card
4 Treasury
Funding: Utilized bank loan and ABS during market crunch
in early COVID19
Liquidity: Increased focusing on cash
(Year-end 6M Coverage 110%, ALM 130% target)
Industrial finance
39
Asset Portfolio (KRW tn)
49.0%
45.0%
47.0%
Pen, rate
43.0%
Corporate
2,2
1.9
2.6
2.7
finance
4.2
4,5
4.2
4.2
Industrial
Finance
'17
'18
'19
Q2 20
Asset Quality
0.74%
0.65%
0.48%
0.46%
30+% DQ
40.4%
46.8%
Risk-free
asset
21.3%
25.5%
volume mix1
'17
'18
'19
Q2 20
Profits (KRW bn)
1,73%
1.68%
0.99%
0.81%
Bad debt
expense ratio
106
80
96
70
IBT
'17
'18
'19
Q2 20
Liquidity (KRW tn)
143.8%
125.1%
135.7%
136.3%
ALM
1.1
1.3
0.7
0.8
Cash
0.9
0.5
0.5
0.9
Credit line
'17
'18
'19
Q2 20
HYUNDAIView entire presentation