Hana Financial Group delivered results that surpassed market expectations, with non-interest income (1,804.9 billion won) increasing by 6.4 percent (108.5 billion won) year on year, despite a decline in interest income thanks to a drop in market interest rates.
In particular, Hana Financial Group’s cumulative fee income stood at 1,547.5 billion won in the third quarter, up 11.9 percent (165 billion won) year on year, leading the way in improving the financial group’s performance in the quarter.
This was attributable to the group’s continued efforts to diversify its revenue portfolio, including higher IB fees from banks, an expanded base of accumulated fees such as retirement pensions and operating leases, and an increase in credit card service commissions.
Its cumulative trading and valuation gains swelled by 18.9 percent, or 149.1 billion won to 936.7 billion won in the third quarter, driven by better securities trading performances by Hana Bank, which is one of Hana Financial Group’s major affiliates.
Financial Group’s credit cost ratio at the end of the third quarter sat at 0.25 percent, down 0.17 percentage points from the same period of 2023.
The financial group is stably managing the ratio within a level set by the group’s business plan through proactive and systematic risk management against internal and external uncertainties.
Hana Financial Group’s estimated common equity tier 1 (CET1) ratio improved by 0.37 percentage points quarter on quarter to 13.17 percent, reflecting the financial group’s aggressive risk-weighted asset (RWA) management efforts and profitability-driven asset growth strategy.
Its estimated BIS ratio is 15.42 percent, while its return on equity (ROE) and return on assets (ROA) hit 10.62 percent and 0.71 percent, respectively. Its total assets as of the end of the third quarter were 801,965.8 billion won, including 176,377.4 billion won in trust assets.
Hana Bank and Non-Banking Affiliates
Hana Bank realized cumulative consolidated net profits of 2,780.8 billion won, marking a year-on-year increase of 0.5 percent, including 1,029.9 billion won in the third quarter.
This was the result of increased non-interest income due to efforts to diversify revenue, including increased IB fees and improved securities trading performances in spite of a decline in interest income due to lower market interest rates and solid sales power.
Hana Bank’s core profits combining interest income (5,782.6 billion won) and fee income (727 billion won) amounted to 6,509.6 billion won while its non-interest income inflated by 2.6 percent (18.6 billion won) year on year to 737.1 billion won.
Hana Bank’s total assets touched 622,886 billion won as of the end of the third quarter, including trust assets of 98,957.6 billion won.
Hana Securities posted a cumulative net profit of 181.8 billion won in the third quarter on the strength of an increase in the number of customers in the WM segment and improved performances in the IB and S&T business.
Hana Card racked up a net profit of 184.4 billion won, Hana Capital 121.2 billion won, Hana Asset Trust 56.8 billion won, and Hana Life 24.1 billion won.
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