[Click eStock] "Hana Financial Group Records Earnings Surprise"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating and a target price of 42,000 KRW for Hana Financial Group on the 24th, stating that it recorded an earnings surprise in the first half of the year and an upward revision of annual profits is also expected.

Park Hyejin, a researcher at Daishin Securities, said, "The controlling shareholder net profit reached 1.34 trillion KRW by the first half of the year," adding, "This surpasses the 1.2 trillion KRW recorded in the same period last year."

An upward revision of annual profits is also anticipated. Although the profits of the subsidiary securities company increased by nearly 170% compared to the first quarter, the bank's performance has remained very solid, according to the analysis.

Concerns about loan loss provisions in 2021 exist, but a loss buffer of over 500 billion KRW has been secured. Additionally, maintaining an interim dividend of 500 KRW at last year's level is also seen as encouraging.

Researcher Park explained, "The controlling shareholder net profit in the second quarter achieved an earnings surprise, exceeding consensus and our estimates by 18.4% and 27.4%, respectively," adding, "The reasons for the strong performance appear to be the limited contraction of net interest margin (NIM), improvement in trading valuation gains, and a reduction in selling and administrative expenses."

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