Hana Financial Group Posts Record High Net Profit of 3.7 Trillion KRW in 2024... Shareholder Returns Also 'All-Time High'

Net Income Up 9.3%
Shareholder Rewards Reach Record High of KRW 400 Billion
KRW 200 Increase Per Share Compared to Previous Year

Hana Financial Group achieved a record high annual consolidated net income of KRW 3.7388 trillion in 2024. Riding on this historic performance, Hana Financial responded generously to its shareholders with a bold decision to repurchase and retire treasury shares worth KRW 400 billion, the largest scale since the group's inception.

Net Income Up 9.3% in 2024... 'All-Time High'

On the 4th, Hana Financial Group announced through its earnings disclosure that it recorded a consolidated net income of KRW 3.7388 trillion for the full year 2024, including KRW 513.5 billion in net income for Q4 2024. This represents a 9.3% (KRW 317.1 billion) increase compared to the previous year (KRW 3.4217 trillion). Since first joining the '3 trillion club' in consolidated annual net income in 2021, Hana Financial has once again set a new record high.

Hana Financial explained that this result was achieved despite increased uncertainties in domestic and international financial markets and a decline in interest income due to falling market interest rates, thanks to ▲expansion of customer base ▲increase in fee income from diversification of revenue portfolio ▲proactive and systematic risk management.

Specifically, despite large one-time expenses such as a KRW 211.9 billion FX translation loss caused by exchange rate increases and decreased interest income due to lower market interest rates, the group posted solid profits.

The group's core earnings, combining interest income (KRW 8.761 trillion) and fee income (KRW 2.0696 trillion), totaled KRW 10.8306 trillion, up 1.5% (KRW 155.1 billion) from the previous year. In particular, fee income increased by 15.2% (KRW 273.5 billion) year-on-year, driving the group's performance. This was the result of the group's continuous efforts to diversify its revenue portfolio, including ▲increased IB fees from the bank ▲expansion of accumulated fee bases such as retirement pensions and operating leases ▲growth in credit card fees.

At the end of last year, the loan loss cost ratio was stably managed at 0.29%, down 0.11 percentage points from the previous year, despite uncertain domestic and international conditions.

The delinquency rate improved by 0.04 percentage points from the previous quarter to 0.51%, thanks to stable delinquency management by the bank and company-wide efforts to enhance asset soundness.

The estimated BIS ratio stood at 15.50%, while key management indicators, return on equity (ROE) and return on assets (ROA), were 9.12% and 0.61%, respectively.

The group's total assets amounted to KRW 815.511 trillion, including trust assets of KRW 177.6634 trillion.

Generous Rewards to Shareholders... Treasury Share Repurchase and Retirement at Record High KRW 400 Billion

In line with achieving record-high performance, the group generously rewarded its shareholders. Hana Financial Group announced a plan to repurchase and retire treasury shares worth KRW 400 billion to enhance corporate value. This is the largest scale since the group's launch and reflects the strong determination of the board and management to steadily pursue the corporate value-up plan announced last October based on solid fundamentals.

Hana Financial Group stated, "This is a sincere shareholder return measure to repay shareholders' trust and achieve a total shareholder return ratio of 50% by 2027."

On the same day, the group’s board resolved a year-end cash dividend of KRW 1,800 per share for 2024. Including the quarterly dividend of KRW 1,800 paid last year, the total cash dividend per common share for 2024 amounts to KRW 3,600, up KRW 200 (5.9%) per share from the previous year. Accordingly, the annual total shareholder return ratio rose by 4.8 percentage points to 37.8% compared to the previous year.

The estimated common equity tier 1 (CET1) ratio, which forms the basis for stable shareholder returns, was managed steadily at 13.13% as of the end of 2024, within the target range of 13-13.5% for executing the corporate value enhancement plan.

Hana Financial Group explained, "Despite the rise in exchange rates last year, this was the result of group-wide efforts to manage risk-weighted assets (RWA) and an asset growth strategy focused on profitability."

Hana Financial Group plans to maintain a fixed total annual cash dividend and quarterly equal cash dividends in 2025 to increase dividend predictability. Additionally, by expanding the proportion of treasury share repurchases and retirements, the group aims to improve key corporate value indicators such as earnings per share (EPS) and book value per share (BPS), and gradually increase dividends per share due to a reduction in the number of issued shares.

Hana Bank Net Income KRW 3.3564 Trillion... Life and Savings Banks Post Losses

Meanwhile, Hana Bank, the group's core affiliate, recorded a consolidated net income of KRW 3.3564 trillion for 2024, including KRW 575.6 billion in Q4 2024. Fee income rose 8.5% (KRW 74.1 billion) year-on-year to KRW 945 billion. The bank's core earnings, combining interest income (KRW 7.7385 trillion) and fee income, totaled KRW 8.6835 trillion. As of the end of 2024, Hana Bank's total assets amounted to KRW 633.121 trillion, including trust assets of KRW 100.7031 trillion.

Other affiliates posted net incomes as follows: Hana Securities KRW 225.1 billion, Hana Card KRW 221.7 billion, Hana Capital KRW 116.3 billion, and Hana Asset Trust KRW 58.8 billion.

On the other hand, Hana Life and Hana Savings Bank recorded net losses of KRW 700 million and KRW 32.2 billion, respectively.

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