Hana Bank Tops Last Year’s Net Profit, Surpassing KB and Shinhan

[Asia Economy Reporter Bu Aeri] Hana Bank surpassed KB Kookmin Bank and Shinhan Bank in net income last year.

According to Hana Financial Group's earnings announcement on the 9th, Hana Bank's net income last year was 3.1692 trillion KRW, a 23.3% increase compared to the previous year.

Shinhan Bank recorded a net income of 3.045 trillion KRW last year, KB Kookmin Bank recorded 2.996 trillion KRW, and Woori Bank recorded 2.9198 trillion KRW.

According to Hana Bank, interest income was 7.6087 trillion KRW, and fee income was about 771.2 billion KRW.

Hana Financial Group also recorded a net income of 3.6275 trillion KRW last year, which is a record high, up 2.8% from the previous year. They explained that loan asset growth along with a significant increase in foreign currency-related profits drove the performance.

Thus, all four major financial holding companies achieved record-high profits last year. During the high-interest rate period, the widened interest margin (difference between deposit and loan interest rates) led to strong interest income performance.

KB Financial recorded a total net income of 4.4133 trillion KRW last year, breaking the previous record of 4.4095 trillion KRW set in 2021.

Shinhan Financial also posted a record-high net income of 4.6423 trillion KRW.

Woori Financial recorded a net income of 3.1693 trillion KRW last year, a 22.5% increase compared to the previous year.

The combined net income of the four major financial holding companies amounts to 15.8524 trillion KRW.

As the financial holding companies achieved record-high profits, they actively pursued shareholder returns through dividends and share buybacks.

KB Financial decided on a cash dividend payout ratio (dividends as a percentage of net income) of 26% and approved a 300 billion KRW share buyback and cancellation. KB Financial stated that the total shareholder return ratio last year was 33%, up 7 percentage points from 2021.

Shinhan Financial decided on a year-end dividend of 2,065 KRW per share (including quarterly dividends of 865 KRW). The dividend payout ratio was 22.8%, and they also approved the acquisition and cancellation of 150 billion KRW worth of treasury shares.

Woori Financial will pay a dividend of 1,130 KRW per share in 2022 (interim dividend of 150 KRW + year-end dividend of 980 KRW). The market dividend yield is analyzed at 8.8%, with a payout ratio of 26%.

Hana Financial decided on a year-end cash dividend of 2,550 KRW per share last year. Including the interim dividend of 800 KRW already paid, the total cash dividend is expected to be set at 3,350 KRW, an increase of 250 KRW compared to the previous year.

Additionally, to enhance shareholder value, they decided to repurchase and cancel 150 billion KRW worth of treasury shares within the year. They aim to achieve a total shareholder return ratio of 50% by managing the common equity tier 1 ratio at an appropriate level and diversifying shareholder return policies such as cash dividends and share buybacks and cancellations.