Hana Financial, 3Q Cumulative Net Profit Surpasses 3 Trillion Won 'Record High'... Achieving 50% Shareholder Return Rate by 2027

Hana Financial Group posted a net profit of KRW 3.2254 trillion in the third quarter, achieving the highest cumulative performance in its history. Based on solid results, the group announced a more strengthened and concrete corporate value enhancement plan. Hana Financial plans to achieve a shareholder return ratio of 50% by 2027 through a phased expansion of shareholder returns.

Hana Financial Group disclosed on the 29th that it recorded a net profit of KRW 1.1566 trillion in the third quarter.

This represents an increase of 20.9% compared to the same period last year (KRW 957 billion) and 11.8% compared to the previous quarter (KRW 1.0347 trillion).

Hana Financial explained that this was the result of "an expanded customer base, increased non-interest income due to diversification of the revenue portfolio, and proactive and systematic risk management efforts."

Up to the third quarter of this year, Hana Financial's interest income was KRW 6.5774 trillion, a 2.8% decrease from the same period last year (KRW 6.7649 trillion). This was due to a contraction in net interest margin (NIM) caused by a decline in market interest rates.

The group's third-quarter net interest margin was 1.63%, down 0.16 percentage points from 1.79% in the third quarter of last year and 0.06 percentage points from 1.69% in the previous quarter.

The bank's third-quarter NIM also shrank by 0.27 percentage points and 0.11 percentage points compared to 1.68% in the same period last year and 1.52% in the previous quarter, respectively, to 1.41%.

Non-interest income reached KRW 1.8049 trillion, exceeding market expectations with a 6.4% (KRW 108.5 billion) increase compared to the same period last year.

In particular, cumulative fee income for the third quarter was KRW 1.5475 trillion, up 11.9% (KRW 165 billion) year-on-year, driving the group's performance improvement. This was due to ▲ increased bank IB fees ▲ expansion of accumulated fee bases such as retirement pensions and operating leases ▲ and increased credit card fees, reflecting the group's continuous efforts to diversify its revenue portfolio.

Additionally, cumulative trading evaluation gains for the third quarter amounted to KRW 936.7 billion, an 18.9% (KRW 149.1 billion) increase, supported by improved securities trading performance at Hana Bank, a key affiliate of the group.

Hana Bank, the group's core subsidiary, recorded a cumulative consolidated net profit of KRW 2.7808 trillion including the third quarter (KRW 1.0299 trillion), a 0.5% increase compared to KRW 2.7664 trillion in the same period last year.

The core profit, which combines cumulative interest income (KRW 5.7826 trillion) and fee income (KRW 727 billion) for the third quarter, totaled KRW 6.5096 trillion, while non-interest income was KRW 737.1 billion.

Among non-bank affiliates, Hana Securities posted a cumulative net profit of KRW 181.8 billion, and Hana Card recorded KRW 184.4 billion for the third quarter. Hana Capital posted KRW 121.2 billion, Hana Asset Trust KRW 56.8 billion, and Hana Life Insurance KRW 24.1 billion.

In this earnings announcement, the group selected three core value-up indicators for enhancing corporate and shareholder value: ▲ shareholder return ratio ▲ Common Equity Tier 1 (CET1) ratio ▲ Return on Equity (ROE), specifying concrete targets and practical implementation plans.

First, it presented a clear and specific plan to achieve a total shareholder return ratio of 50% by 2027 through expanded share buybacks and the introduction of equal quarterly dividends.

It also plans to manage CET1 between 13.0% and 13.5% through improved capital management policies, ensuring consistent shareholder returns within this range. In particular, to maintain stable CET1, the group set a risk-weighted assets (RWA) growth target at the nominal GDP level, further specifying capital management and shareholder return policies.

Lastly, through improving the business portfolio centered on risk-weighted asset returns (RoRWA), the group aims to maintain a return on equity of over 10%.

On this day, Hana Financial Group resolved to conduct a KRW 150 billion share buyback and cancellation, along with a quarterly cash dividend of KRW 600 per share, to repay shareholders' trust and enhance shareholder value.

Hana Financial Group demonstrated its proactive shareholder return commitment by conducting share buybacks and cancellations totaling KRW 450 billion annually, including KRW 300 billion canceled up to the third quarter.

Hana Financial Group stated, "The value-up plan will not end with simple goal setting but will be reviewed and improved annually to ensure it leads to substantial corporate value growth."

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