Hana Financial Group Reports 1Q Consolidated Operating Profit of 1.0757 Trillion KRW... Strong Performance in Non-Banking Sector

[Asia Economy Reporter Kiho Sung] Hana Financial Group announced on the 23rd that it recorded a consolidated net income of 834.4 billion KRW in the first quarter of this year. Despite uncertainties caused by the prolonged COVID-19 pandemic, this figure represents a 27% (177.4 billion KRW) increase compared to the same period last year, driven by solid growth in loan assets, increased securities brokerage fees due to revitalization of the capital market, overall growth in core earnings, and strong performance in the non-bank sector.

According to the electronic disclosure on the day, Hana Financial Holdings achieved stable earnings through growth in the group's non-bank sector and diversification of its business portfolio, including Hana Financial Investment with 136.8 billion KRW (an increase of 90.1 billion KRW, 192.9% compared to the same period last year), Hana Card with 72.5 billion KRW (an increase of 42.2 billion KRW, 139.4%), and Hana Capital with 60.9 billion KRW (an increase of 16.7 billion KRW, 37.8%).

Specifically, the group's core earnings, which combine interest income (1.5741 trillion KRW) and fee income (617.6 billion KRW), recorded 2.1917 trillion KRW, a 12.1% (237.3 billion KRW) increase compared to the same period last year.

In preparation for external shocks related to COVID-19, the group proactively set aside approximately 340 billion KRW in economic response reserves last year to ensure sufficient loss absorption capacity. During the first quarter, the provision for loan losses was 91.3 billion KRW, a 1.7% (1.6 billion KRW) decrease compared to the same period last year. The group's loan loss cost ratio for the first quarter was 0.12%, down 1 basis point from the previous year.

At the end of the first quarter, the group's delinquency ratio was 0.30%, down 1 basis point compared to the same period last year, and the ratio of non-performing loans classified as substandard or below was 0.40%, down 7 basis points from the previous year, maintaining stable asset quality.

Key management indicators showed a return on equity (ROE) of 10.94%, up 1.56 percentage points from the same period last year, and a return on assets (ROA) of 0.74%, up 0.11 percentage points. The group's net interest margin (NIM) rose 6 basis points from the previous quarter to 1.61%. Despite one-time expenses, the group's cost-to-income (C/I) ratio recorded 46.5%, down 2.3 percentage points from the same period last year, maintaining sound cost efficiency.

As of the end of the first quarter, the group's total assets, including trust assets of 140 trillion KRW, amounted to 615 trillion KRW.