Hana Financial Group Reports Net Profit of 1.7274 Trillion KRW in First Half of the Year

Hana Financial Board Decides on 800 Won Interim Dividend

[Asia Economy Reporter Yu Je-hoon] Hana Financial Group announced on the 22nd that its cumulative consolidated net profit for the first half of this year reached 1.7274 trillion KRW. The net profit for the second quarter was 825.1 billion KRW.

In preparation for domestic and international uncertainties such as concerns over a global economic recession, Hana Financial set aside a proactive loan loss provision of 184.6 billion KRW in the first half. The total provision including the proactive loan loss provision increased by 105.6% (216.8 billion KRW) compared to the same period last year, reaching 422.2 billion KRW. This amount is about 80% of the total provisions set aside last year (532.6 billion KRW), recognized in the first half of this year to enhance loss absorption capacity.

Furthermore, the Hana Financial Group board resolved to pay an interim dividend of 800 KRW per share to return profits to shareholders. A Hana Financial official stated, "Hana Financial will continue to pursue shareholder return policies through various capital utilization methods such as dividend expansion, share buybacks, and cancellations to repay shareholders' trust and enhance shareholder value."

Interest Income + Fee Income Up 14% Compared to Same Period Last Year

Hana Financial's core income, which combines interest income (4.1906 trillion KRW) and fee income (940.4 billion KRW), increased by 13.6% (615.9 billion KRW) year-on-year to 5.131 trillion KRW. This was driven by an increase in loan assets centered on small and medium-sized enterprises and growth in foreign exchange and credit card fee income.

In addition, Hana Financial explained that improvements in the revenue portfolio, such as an increase in the average balance of low-cost deposits, and efforts to support technology financing by providing funds to highly innovative companies also contributed to the increase in core income. Hana Financial's net interest margin (NIM) for the second quarter was 1.80%.

Moreover, as of the end of the second quarter, the group's total assets, including trust assets (156.9731 trillion KRW), amounted to 707.4812 trillion KRW.

Strong Performance by Banking and Card Affiliates, Weakness in Securities

By affiliate, Hana Bank recorded a cumulative consolidated net profit of 1.3736 trillion KRW for the first half, a 9.6% (120.6 billion KRW) increase compared to the same period last year. Hana Financial added, "Despite one-time factors such as recognition of special retirement costs and additional loan loss provisions, this result was driven by loan asset growth centered on small and medium-sized enterprises and an increase in the average balance of core low-interest deposits."

Additionally, Hana Capital posted a net profit of 163.1 billion KRW, supported by increased general operating income including retail-based fee income. Hana Card also recorded a net profit of 118.7 billion KRW, improving performance in the second quarter due to increased fee income despite adverse factors such as merchant fee reductions, proactive reduction of high-risk loan assets for risk management, and increased general administrative expenses due to special retirements.

On the other hand, Hana Securities posted a net profit of 139.1 billion KRW for the first half, affected by weak securities brokerage fees due to a decline in stock market trading volume. Additionally, Hana Asset Trust earned 50.1 billion KRW, Hana Savings Bank 14.5 billion KRW, and Hana Life Insurance 10.9 billion KRW in net profit. Hana Financial stated, "We plan to implement various programs that consider small business owners and financially vulnerable groups and promote co-growth among all members of society."

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