Hana Financial Group Reports Record High Net Profit of 3.6257 Trillion KRW Last Year

[Asia Economy Reporter Bu Aeri] Hana Financial Group announced on the 9th that its net profit for last year reached 3.6275 trillion KRW. This is the highest performance ever, marking a 2.8% increase compared to the previous year.

Hana Financial explained that the growth in loan assets along with a significant increase in foreign currency-related profits drove the strong performance.

Foreign exchange trading gains rose by 1246.7% year-on-year to 516.1 billion KRW, and foreign exchange fees from exports and imports increased by 37% year-on-year to 207.1 billion KRW. A Hana Financial official stated, "This is due to the activation of sales such as discovering demand for forward exchange contracts and increased profits from foreign exchange and derivative products utilizing the global foreign exchange market."

Core earnings, combining interest income (8.9198 trillion KRW) and fee income (1.7445 trillion KRW), amounted to 10.6642 trillion KRW. This represents a 14.7% growth compared to the previous year. The group's net interest margin (NIM) for the fourth quarter was 1.96%.

The group's return on equity (ROE) was 10.28%, and return on assets (ROA) was 0.67%, maintaining stable management indicators. The group's estimated Basel III (BIS) ratio was 15.64%, and the estimated common equity tier 1 capital ratio was 13.15%.

For Hana Bank, net profit last year was 3.1692 trillion KRW, a 23.3% increase compared to the previous year. The bank's core earnings, combining interest income (7.6087 trillion KRW) and fee income (771.2 billion KRW), recorded 8.3799 trillion KRW, a 22% increase year-on-year.

In the fourth quarter, Hana Bank's non-performing loan (NPL) coverage ratio was 212.1%, up 4.8 percentage points from the previous quarter, with a non-performing loan ratio of 0.21% and a delinquency rate of about 0.2%.

Last year, Hana Bank's total assets increased by 13.1% from the end of the previous year to 566.0611 trillion KRW.

The Hana Financial Group board resolved a year-end cash dividend of 2,550 KRW per share. Including the interim dividend of 800 KRW already paid, the total cash dividend is set at 3,350 KRW, an increase of 250 KRW compared to the previous year.

Additionally, to enhance shareholder value, the group decided to repurchase and retire treasury shares worth 150 billion KRW within the year. Aiming to achieve a total shareholder return ratio of 50%, the group plans to manage the common equity tier 1 capital ratio at an appropriate level and diversify shareholder return policies such as cash dividends and treasury share repurchases and retirements.