[Click eStock] Thanks to 'Nim' and Treasury Shares... Hana Financial Maintains 'Buy'

Hana Financial Group defended its target stock price through solid profit margins and share buybacks despite lower-than-expected earnings.

On the 5th, Korea Investment & Securities maintained a buy rating and a target price of 93,000 KRW, citing the bank's rising net interest margin (NIM) and a 400 billion KRW share buyback, even though Hana Financial Group's Q4 net profit announced the previous day was 513.5 billion KRW, falling 5% short of the market consensus.

The quarterly NIM of Hana Bank, Hana Financial Group's main subsidiary, rose 5 basis points from the previous quarter to 1.46%. However, regarding the lower-than-expected net profit, analyst Baek Doosan explained, "Despite steady fee income, other non-interest income fell short of expectations."

On the same day, Hana Financial Group announced plans for a 400 billion KRW share buyback and cancellation. Analyst Baek Doosan stated, "Annual share buybacks and cancellations in 2025 are expected to increase by 65% year-on-year to 653.1 billion KRW," adding, "Despite exchange rate and political uncertainties, fundamentals remain solid, so we suggest focusing more on shareholder return momentum."

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