Hana Financial Group recorded a cumulative net profit of 3.6243 trillion won for the first three quarters, setting a new all-time high in earnings. The scale of share buybacks and cancellations also approached 1 trillion won, expanding shareholder returns to an all-time high level.
On the 23rd, Hana Financial disclosed that its consolidated net profit for Q3 reached 1.2214 trillion won. This represents a 2.4% increase from the previous quarter and a 7.8% year-on-year increase. It is the highest figure since the merger with Hwason Bank in 2012.
The cumulative net profit for Q1 through Q3 was tallied at 3.6243 trillion won. This amount, which is a 5.6% year-on-year increase, marks an all-time high.
Cumulative interest income rose 10.4% year-on-year to 7.4832 trillion won. Non-interest income jumped 6.9% to 2.1650 trillion won, thanks to the stock market boom in the first half of the year. Among these, fee income increased by 29.8%, driving the growth in non-interest income. This was due to a significant increase in commissions related to securities brokerage, discretionary asset management, and trust products in the Wealth Management (WM) division.
Meanwhile, trading gains fell back by 15% due to decreased bond management profits and losses resulting from rising interest rates. In Q3, the account substitution effect of Hana Life's variable insurance acted as a one-time factor.
By affiliate, Hana Bank’s cumulative consolidated net profit increased 5.8% year-on-year to 3.3157 trillion won. The bank achieved fee income of 874 billion won, an 11.5% increase, marking an all-time high on a Q3 cumulative basis. This was driven by the expansion of accumulation-type fee revenues such as retirement pensions and bancassurance, as well as growth in foreign exchange fees and trading profits due to increased import and export transactions.
The bank’s interest income increased 14.1% from a year earlier to 6.7773 trillion won. While the Q3 Net Interest Margin (NIM) fell by 0.04 percentage points (P) from the previous quarter to 1.57%, increased loans supported interest income. Household loans (1.0%) and corporate loans (2.3%) both expanded, with Q3 won-denominated loans growing 1.7% from the previous quarter, thereby supporting interest income.
Hana Securities, Hana Card, and Hana Capital each recorded cumulative net profits for Q3 of 283.4 billion won, 175.3 billion won, and 144.5 billion won, respectively.
Hana Financial’s estimated Common Equity Tier 1 (CET1) ratio at the end of Q3 rose by 0.18%p from the previous quarter to 13.45%. This met the target of over 13% proposed in the Corporate Valuation Enhancement Plan 2.0.
Return on Equity (ROE) was maintained at the previous quarter’s level of 10.62%. Return on Assets (ROA) was 0.71%, and the estimated BIS ratio was tallied at 15.45%.
On this day, Hana Financial’s board of directors resolved to conduct a share buyback and cancellation of 250 billion won and pay a quarterly dividend of 1,165 won per share to expand shareholder returns. The dividend per share is up 26.6% from the same period last year.
Including the 699 billion won completed in Q3 share buybacks, the annual cumulative scale of share buybacks and cancellations reaches a total of 949 billion won. This is a 25.8% increase compared to last year’s annual share buyback cancellation scale (754.1 billion won), marking an all-time high.
Hana Financial Group announced that its cumulative credit cost ratio for Q3 was 0.30%, being managed within the group’s management plan target range. The Q3 operating expense ratio (CIR) improved by 0.38%p year-on-year to 38.38%.
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