Hana Financial Posts KRW 3.6 Trillion in Cumulative Net Profit Through Q3, Sets Another 'Record High'

Up 5.6% year over year
Board approves 250 billion won share buyback and cancellation; 1,165 won cash dividend per share
CET1 at 13.45%, ROE at 10.62%... "Shareholder returns on track"

Hana Financial Group once again set a record for its highest-ever earnings, posting net profit of more than KRW 3.6 trillion on a cumulative basis through the third quarter of this year. The results are attributed to higher fee income, particularly in wealth management, and companywide cost-efficiency measures. To enhance corporate value, Hana Financial will also carry out share buybacks and cancellations totaling about KRW 1 trillion this year, including KRW 250 billion in the latest round.

A view of Hana Financial Group's Cheongna headquarters. Photo provided by Hana Financial Group.

In a regulatory filing on Oct. 23, Hana Financial said it posted consolidated net profit of KRW 3.6243 trillion through the third quarter, including KRW 1.2214 trillion in the third quarter (July-September).

Quarterly net profit rose 2.4% from KRW 1.1928 trillion in the previous quarter. The cumulative figure was up KRW 190.9 billion, or 5.6%, from the same period a year earlier. It was the group's highest-ever result for the first three quarters of a year.

Hana Financial said the results reflected increased fee income, particularly in wealth management and investment banking, as well as companywide cost-efficiency measures supported by proactive risk management and systematic budget management.

The group's total interest income reached KRW 7.4832 trillion on a cumulative basis through the third quarter, up 10.4% from KRW 6.7803 trillion in the same period a year earlier. A 14.1% increase in the bank's interest income over the same period led the improvement.

Fee income rose 29.8% to KRW 2.1428 trillion from KRW 1.6504 trillion in the same period a year earlier. Fees related to wealth management, including brokerage commissions and trust fees, increased by KRW 395.6 billion year on year, driving the growth in fee income. Third-quarter fee income totaled KRW 660 billion, down 20% from KRW 820 billion in the second quarter, due to reduced stock market trading volumes.

Core earnings, comprising interest income and fee income, reached KRW 9.626 trillion on a cumulative basis through the third quarter, up KRW 1.1953 trillion, or 14.2%, from the same period a year earlier. Fee income accounted for 22.3% of core earnings, up from 19.6% in the same period last year.

As for the group's asset quality, its non-performing loan (NPL) ratio stood at 0.93% at the end of the third quarter, while its delinquency rate was 0.70%. Both figures worsened from the end of last year, when they were 0.70% and 0.52%, respectively.

Key management indicators included a return on equity (ROE) of 10.62% and a return on assets (ROA) of 0.71%. The group's estimated common equity Tier 1 (CET1) ratio was 13.45%, above the target of at least 13% set out in its Corporate Value Enhancement Plan 2.0.

Hana Bank, the group's key subsidiary, posted net profit of KRW 1.1946 trillion in the third quarter. Including this, its consolidated net profit for the first three quarters totaled KRW 3.3157 trillion, up KRW 182.4 billion, or 5.8%, from the same period a year earlier. These were the bank's highest-ever results both for the quarter and for the first three quarters of the year. Hana Financial said the results reflected the bank's solid business performance, including growth in recurring fee income from retirement pensions and bancassurance, as well as higher foreign exchange fees and trading gains resulting from an expanded base of import and export customers, despite increased uncertainty in domestic and overseas financial markets.

The bank's core earnings, comprising cumulative interest income of KRW 6.7773 trillion and fee income of KRW 874 billion through the third quarter, totaled KRW 7.6513 trillion. Its net interest margin (NIM) was 1.57% in the third quarter, down 0.04 percentage points from 1.61% in the previous quarter as funding costs rose following a decline in low-cost deposits.

Among the group's nonbank affiliates, Hana Securities posted cumulative net profit of KRW 283.4 billion through the third quarter, Hana Card KRW 175.3 billion, and Hana Capital KRW 144.5 billion.

On Oct. 23, Hana Financial's board resolved to buy back and cancel KRW 250 billion worth of shares and pay a quarterly cash dividend of KRW 1,165 per share, up 26.6% from the same period a year earlier, to faithfully implement its corporate value enhancement plan and increase shareholder returns.

Including KRW 699 billion worth of shares repurchased through the third quarter, the annual total will reach KRW 949 billion, up 25.8% from KRW 754.1 billion last year and a record high. 

A Hana Financial official said, "The decision reflects the board's and management's commitment to steadfastly pursue the Corporate Value Enhancement Plan 2.0 announced in July, building on the group's solid fundamentals, and to further strengthen the foundation for sustainable corporate value growth. Along with the relocation of the group's headquarters to Cheongna, Incheon, we will also accelerate the transition to productive finance and expand inclusive finance."

This content was produced with the assistance of AI translation services.