Hana Financial Group's Net Profit Last Year 3.4516 Trillion KRW... 3.3% Decrease YoY

"Impact of Large-Scale Reserve Accumulation"
Cash Dividend of 3,400 Won Per Share

Hana Financial Group's net profit last year decreased compared to the previous year. Hana Financial Group explained that this was largely due to proactively setting aside provisions and recognizing non-recurring expenses such as valuation losses related to IB (investment banking) assets.

Hana Financial Group announced on the 31st that it recorded a net profit of 3.4516 trillion KRW last year. This is a 3.3% (119 billion KRW) decrease from 3.5706 trillion KRW in 2022.

However, the group's core earnings, which combine interest income and fee income, increased compared to the previous year. Last year, interest income was 8.9532 trillion KRW, and fee income was 1.7961 trillion KRW. The total of 10.7493 trillion KRW represents a 0.36% increase compared to the same period last year. The group's net interest margin (NIM) for the fourth quarter of last year was 1.76%, which is 0.2 percentage points lower than the same period last year.

The group's non-interest income was 1.907 trillion KRW, a 65.3% (753.1 billion KRW) increase compared to the same period in 2022. Fee income and trading valuation gains were 1.7961 trillion KRW and 863.1 billion KRW, respectively. Hana Financial Group explained that improvements in accumulated fees such as operating leases and retirement pensions, as well as increased trading valuation gains related to securities leveraging financial market volatility, had an impact.

To prepare for domestic and international uncertainties, a large-scale provision was set aside. The cumulative amount for the fourth quarter was 370.9 billion KRW, and the total provision including this increased by 41.1% (499.8 billion KRW) from the end of the previous year to 1.7148 trillion KRW.

The group's non-performing loan ratio for the fourth quarter last year was 0.49%, which is 0.15 percentage points higher than 0.34% at the end of the previous year. The delinquency rate rose by 0.15 percentage points to 0.45% compared to 0.3% at the end of the previous year.

By affiliate, Hana Bank's net profit last year was 3.4766 trillion KRW, a 12.3% increase compared to the previous year. Among non-bank affiliates, only Hana Securities recorded a net loss of 270.8 billion KRW. Hana Capital (216.6 billion KRW), Hana Card (171 billion KRW), Hana Asset Trust (80.9 billion KRW), and Hana Life Insurance (6.5 billion KRW) recorded net profits.

Meanwhile, Hana Financial Group's board of directors decided to pay a year-end cash dividend of 1,600 KRW per share. The cash dividend per common share, including three quarterly dividends of 1,800 KRW, increased by 50 KRW compared to the previous year to 3,400 KRW. The annual dividend payout ratio increased by 1.0 percentage point from the previous year to 28.4%. Considering the 150 billion KRW share buyback and cancellation conducted early last year, the total shareholder return ratio for the last fiscal year was 32.7%.

To secure the appropriate value of the stock price, resolve undervaluation, and continuously increase shareholder value, the group resolved to purchase and cancel 300 billion KRW worth of treasury shares within the year.

Hana Financial Group stated, “Going forward, based on excellent capital adequacy and stable asset soundness, we will continue efforts to achieve the industry's highest level of shareholder return ratio, and practice social responsibility through finance, coexisting with all stakeholders to become a trusted partner in our society.”

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