Hana Financial Group Reports 2.6372 Trillion KRW Net Profit Last Year, Up 10.3% (Update)

Hana Bank Decreases by 6.1% to 2.01 Trillion KRW
Hana Financial Investment Increases by 46.6% to 410.9 Billion KRW

[Asia Economy Reporter Kiho Sung] Hana Financial Group recorded a consolidated net income of 2.6372 trillion KRW for the entire year of 2020, including 532.8 billion KRW in the fourth quarter.

On the 5th, Hana Financial Group announced its 2020 business performance, stating that the annual net income increased by 10.3% (245.7 billion KRW) compared to the previous year. Despite one-time expenses such as proactive provisions in response to the COVID-19 impact, costs related to private equity funds, and special retirement, the group attributed the results to company-wide cost reduction efforts, the strong performance of non-bank sectors, and diversification of portfolios and sales channels.

By affiliate, Hana Financial Investment recorded 410.9 billion KRW (an increase of 130.6 billion KRW, 46.6% compared to the previous year), Hana Capital 177.2 billion KRW (an increase of 69.4 billion KRW, 64.5%), and Hana Card 154.5 billion KRW (an increase of 98.2 billion KRW, 174.4%).

Hana Bank posted a consolidated net income of 2.0101 trillion KRW for 2020, including 355.7 billion KRW in the fourth quarter. This figure represents a 6.1% (129.7 billion KRW) decrease compared to the previous year, attributed to an unfavorable business environment caused by low interest rates and COVID-19 despite efficient cost reductions. The bank’s core income, which combines interest income (5.3078 trillion KRW) and fee income (711.3 billion KRW), decreased by 4.5% (281.3 billion KRW) year-on-year to 6.0191 trillion KRW. The bank’s selling and administrative expenses decreased by 10.2% (337.5 billion KRW) compared to the end of the previous year, due to the labor cost savings from special retirement conducted in 2019 and company-wide cost reduction efforts.

Among non-bank affiliates, Hana Financial Investment achieved a net income of 410.9 billion KRW, up 46.6% (130.6 billion KRW) year-on-year, as overall profit-generating capabilities improved amid a favorable environment with a surge in stock market trading volume, including securities brokerage, underwriting, and advisory fees.

Hana Capital recorded a net income of 177.2 billion KRW, up 64.5% (69.4 billion KRW) year-on-year, driven by growth in interest income from an increase in high-quality retail assets.

Hana Card posted a net income of 154.5 billion KRW, up 174.4% (98.2 billion KRW) year-on-year, due to increased payment-related fees and cost efficiency from digital innovation.

Hana Asset Trust recorded a net income of 80.8 billion KRW, up 23.0% (15.1 billion KRW) year-on-year, and Hana Life Insurance posted 26.6 billion KRW, up 12.3% (2.9 billion KRW) year-on-year.

This content was produced with the assistance of AI translation services.