Hana Bank's First Half Net Profit 1.7509 Trillion KRW... 4.8% Decrease YoY
Impact of ELS Loss Compensation and FX Translation Loss Due to Exchange Rate Increase
Hana Financial Group announced on the 26th that it recorded a consolidated net profit of 2.0687 trillion KRW for the first half of this year. This represents a 2.4% (47.8 billion KRW) increase compared to the same period last year.
Hana Financial attributed the profit growth to efforts such as expanding its customer base, diversifying its revenue portfolio, and proactive and systematic risk management, despite large one-time expenses including 114.7 billion KRW in losses from equity-linked securities (ELS) compensation and 128.7 billion KRW in foreign exchange (FX) translation losses due to rising exchange rates amid increased uncertainty in domestic and international financial markets.
The Hana Financial Group board resolved to implement a quarterly cash dividend of 600 KRW per share as part of an active shareholder return policy to repay shareholders' trust and enhance shareholder value.
Additionally, the group fulfilled its shareholder return commitment by completing early the 300 billion KRW share repurchase plan announced at the beginning of the year within the first half. The repurchased shares are scheduled to be fully canceled in August. In the second half, the group plans to pursue various activities to enhance corporate and shareholder value, including disclosing corporate value-up plans.
Hana Financial's core income for the first half, which is the sum of interest income (4.3816 trillion KRW) and fee income (1.0328 trillion KRW), totaled 5.4144 trillion KRW, marking a 1.7% (90.3 billion KRW) increase compared to the same period last year.
Fee income in the first half increased by 12.6% (115.9 billion KRW) year-on-year, driving the group's performance improvement. This was attributed to increased investment banking (IB) fees from the bank, expansion of accumulated fee bases such as retirement pensions and operating leases, and increased credit card fees, reflecting the group's continuous efforts to diversify its revenue portfolio.
Hana Financial's credit cost ratio at the end of the first half was 0.24%, down 0.18 percentage points from the same period last year. Despite additional provisions related to domestic real estate project financing (PF) risks during the first half, this was the lowest level since the end of 2022. The group judged that it is being managed stably within the management plan level. The delinquency rate improved by 0.05 percentage points from the previous quarter to 0.49%, turning downward.
The group's estimated capital adequacy ratio (BIS) and common equity tier 1 ratio (CET1) were recorded at 15.09% and 12.79%, respectively. It was explained that stable capital adequacy is being maintained through active risk-weighted asset (RWA) management and a profitability-focused asset growth strategy.
Key management indicators showed a return on equity (ROE) of 10.36% and a return on assets (ROA) of 0.69%.
As of the end of the first half, the group's total assets amounted to 802.8364 trillion KRW, including trust assets of 175.0406 trillion KRW.
Hana Bank reported a consolidated net profit of 1.7509 trillion KRW for the first half, down 4.8% year-on-year due to large one-time expenses such as ELS loss compensation and FX translation losses from exchange rate increases. However, Hana Financial assessed that the bank maintained solid operating strength through customer base expansion and increased fee income.
The bank's core income, the sum of interest income (3.8824 trillion KRW) and fee income (483.3 billion KRW), was 4.3657 trillion KRW.
As of the end of the first half, the delinquency rate was recorded at 0.27%, the lowest in the industry. The non-performing loan (NPL) ratio was 0.23%, and the NPL coverage ratio was 209.44%.
Hana Bank's total assets as of the end of the first half were 623.369 trillion KRW, including trust assets of 94.7271 trillion KRW.
Hana Securities posted a net profit of 131.2 billion KRW for the first half, driven by increased customers in the wealth management (WM) division and improved revenues from IB and sales and trading (S&T). Hana Card recorded a net profit of 116.6 billion KRW, Hana Capital 111.1 billion KRW, Hana Asset Trust 36.4 billion KRW, and Hana Life Insurance 9.2 billion KRW, respectively.
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