Hana Financial Group to Announce Additional "Value-Up" Plans Following Treasury Share Cancellation

Cancellation of Treasury Shares Worth 400 Billion Won in H1
Board Discussing Further Expansion of Shareholder Returns
Shareholder Return Ratio at 47%, CET1 Ratio at 13.37%
Early Achievement of 2027 Targets in Sight
Plan to Reduce 7.4 Trillion Won in Capital Reserve
"Full Effort to Enhance Corporate Value by Securing Dividend Resources"

Hana Financial Group, which has already committed to canceling treasury shares worth 400 billion won in the first half of the year, is set to announce additional "value-up" initiatives to enhance its corporate value. Given that the shareholder return ratio reached 47% last year—already close to the existing target of 50%—the market is now watching to see whether the company will introduce even stronger return policies.

Ham Youngjoo, Chairman of Hana Financial Group. Photo by Yonhap News

According to the financial sector on March 11, Hana Financial Group is continuing in-depth discussions with its board of directors to devise plans aimed at enhancing corporate value and strengthening shareholder returns. The announcement, originally scheduled for late February, has been slightly delayed due to extended internal reviews.

A representative from Hana Financial Group explained, "The board is currently discussing practical measures to further expand shareholder returns." The company has already decided to carry out a large-scale cancellation of treasury shares worth 400 billion won in the first half of this year. At the shareholders' meeting scheduled for this month, there is also a proposal to reduce the capital reserve by 7.4 trillion won and transfer it to retained earnings. The converted funds will be used as resources for future dividends.

The market is focused on how far Hana Financial Group will go in strengthening its corporate value enhancement plans. Last year, the company selected shareholder return ratio, Common Equity Tier 1 (CET1) ratio, and Return on Equity (ROE) as its three key indicators and set a goal to raise the total shareholder return ratio to 50% by 2027.

The CET1 ratio, calculated by dividing common equity by risk-weighted assets (RWA), is a core soundness indicator that reflects a financial institution’s ability to absorb losses. Hana Financial Group aims to manage this ratio stably within the 13.0–13.5% range. ROE, which measures net income as a percentage of equity, indicates how efficiently a financial company utilizes its capital to generate profit. The company has set a target of maintaining ROE above 10%.

The latest figures are encouraging. Last year, Hana Financial Group’s shareholder return ratio stood at 46.8%, already close to the 2027 target of 50%. During the recent earnings call, Park Jongmoo, Chief Financial Officer (CFO) of Hana Financial Group, stated, "The shareholder return ratio rapidly increased to about 38% in 2024 and about 47% in 2025," adding, "It is highly likely that we will achieve the 50% target originally set for 2027 ahead of schedule."

The CET1 ratio also reached 13.37% at the end of last year, up 0.15 percentage points from the previous year, remaining firmly within the target range. While ROE has not surpassed the 10% mark, it continues to maintain a solid level in the 9% range.

Within the financial sector, there is keen attention on whether Hana Financial Group will introduce more aggressive return policies, such as additional treasury share buybacks and cancellations using excess CET1 capital. Previously, KB Financial Group proposed a value-up plan to return surplus capital exceeding a 13% CET1 ratio to shareholders, while Shinhan Financial Group announced a plan to cancel more than 50 million treasury shares by 2027.

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