Hana Financial Group Pulls in 1.2 Trillion Won in Net Profit in Q2

Chairman Yang Jong-hee of KB Financial Group. (Photo: KB Financial Group)

Hana Financial Group racked up a net profit of 1.2 trillion won in the second quarter of 2026.

Despite one-time expenses such as foreign exchange translation losses due to rising exchange rates and provisions related to corporate workouts, the financial group drove its performance by combining solid interest income centered on corporate loans with non-interest income such as fee income from portfolio diversification.

Hana Financial Group announced through its earnings report on July 24 that it posted a net profit of 1.1928 trillion won in the second quarter of this year.

This represents a 1.66% increase (1.1733 trillion won) compared to the same period of 2025.

This figure falls slightly short of market expectations. According to the Yonhap Infomax Consensus Composite (Screen Number 8031), Hana Financial Group’s net profit for the second quarter was projected to increase by 6.54% year-on-year to 1.2622 trillion won.

On a cumulative basis for the first half, Hana Financial Group posted 2.4029 trillion won, a 4.4% increase compared to the same period of 2025, setting a new half yearly high.

In the first half of this year, Hana Financial Group incurred large one-time expenses, including a decrease in insurance profit and loss (52.4 billion won) due to the implementation of the Actuarial Assumptions Advancement Plan, provisions for corporate workouts (74.9 billion won), and FX translation losses (109.8 billion won) due to a rise in exchange rates.

Nevertheless, Hana Financial Group achieved a performance improvement compared to the previous year, driven by increased fee income resulting from portfolio diversification and robust interest income.

The financial group brought in interest income (4.8082 trillion won) and non-interest income (1.4874 trillion won) for the first half.

Therefore, its income totaled 6.2956 trillion won, a 13% increase from the same period of 2025.

In particular, fee income in the first half ascended by 37.7% (406.9 billion won) compared to last year, driving the financial group’s growth.

This result is due to the expansion of asset management-related fees, such as trust fees, securities brokerage fees, and discretionary investment and management fees, combined with increased underwriting and advisory fees resulting from the strengthening of blue-chip IB portfolios.

Hana Financial Group’s net interest margin for the second quarter was 1.88%, up 0.06 percentage points from the previous quarter.

The financial group’s estimated Common Equity Tier 1 and BIS ratios stood at 13.21% and 15.26%, respectively, maintaining stable levels thanks to active management of Return on Risk-Weighted Assets and an improvement in the profitability-focused asset portfolio.

The financial group’s return on equity swelled by 143 basis points from the end of last year to 10.62%, while its return on assets by 9 basis points to 0.71%.

Hana Bank’s cumulative net profit for the first half of the year was 2.1211 trillion won, including 1.0169 trillion won in the second quarter on a consolidated basis.

This represents a 1.7% increase compared to the same period of last year.

Hana Bank’s core profit for the first half of the year, combining interest income (4.4645 trillion won) and fee income (614.3 billion won), stayed at 5.0788 trillion won.

Hana Securities’ net profit for the first half of this year touched 273.1 billion won, a 155.7% increase compared to the same period of last year.

This is due to increased brokerage commission revenue driven by growth in trading volume and proactive risk management regarding market volatility.

During the same period, Hana Card netted 125.9 billion won, Hana Capital 104.5 billion won, and Hana Life 14.6 billion won.