[Click eStock] "Hana Financial Group, 1Q Profit Exceeds Market Expectations... Target Price Up"

[Asia Economy Reporter Song Hwajeong] On the 26th, SK Securities raised the target price for Hana Financial Group from 47,000 KRW to 53,000 KRW, reflecting improved earnings. The investment rating was maintained at 'Buy.'

Goo Kyunghoe, a researcher at SK Securities, explained, "Considering the improved performance in the first quarter of this year, we revised the annual controlling shareholder net profit estimate to 2.94 trillion KRW, a 6% increase," adding, "The target price was also raised to reflect the earnings improvement."

Hana Financial Group posted strong results in the first quarter. The controlling shareholder net profit for Q1 was 834 billion KRW, significantly exceeding market expectations (consensus). The group's net interest margin (NIM) rose by 6 basis points from the previous quarter to 1.61%, and credit costs were 99 billion KRW, well below the market forecast of 168 billion KRW. Researcher Goo evaluated, "Like other bank holding companies that announced quarterly results, they recorded solid performance across interest income, non-interest income, and credit costs."

Supported by a favorable stock market and expanded various fees, non-interest income in Q1 improved by 31% year-on-year to 621 billion KRW. Goo said, "The ratio of non-performing loans was 0.34%, maintaining a very stable asset quality trend," and added, "Bank loans increased by 2.1% compared to the end of last year, and deposits grew by 4.2%."

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