Hana Financial Group Also Decides to 'Reduce' Dividend Payout Ratio to 20%

Reduced from 26% to 20%
"Due to authorities' recommendations and COVID-19 response measures"

[Asia Economy Reporter Kiho Sung] Hana Financial Group recorded 2.6372 trillion KRW, an increase of 10.3% last year, while deciding to reduce the dividend payout ratio to 20%.

On the 5th, Hana Financial Group announced through its earnings report that it resolved a dividend per share of 1,350 KRW (including interim dividend 1,850 KRW, payout ratio 20%). The dividend per share decreased by 16% compared to 2019. Considering that Hana Financial Group's payout ratio was 26% in 2019, it dropped by 6 percentage points.

Regarding this, Hana Financial Group stated, "We comprehensively considered the prolonged economic recession and market uncertainty due to the COVID-19 pandemic, as well as the financial authorities' recommendation on the payout ratio."

Previously, the financial authorities recommended that domestic banks lower their payout ratio (dividends/net income) to within 20% until June this year as a measure to respond to COVID-19. This was intended to ensure capital management in the banking sector in preparation for the prolonged COVID-19 situation.

Meanwhile, Hana Financial Group announced that it achieved a consolidated net income of 2.6372 trillion KRW for the year, including 532.8 billion KRW in the fourth quarter of 2020. This figure represents a 10.3% (245.7 billion KRW) increase compared to the previous year.