Hana Financial Group announced on Oct. 22 that it racked up 13,195.3 billion won in sales, 1,147.4 billion won in operating profit and 942 billion won in net profit on a consolidated basis in the third quarter of 2021.
Compared to the third quarter of 2020, sales jumped 102.48 percent, operating profit 7.48 percent and its net profit 22.25 percent.
Cumulative net profit in the first three quarters of 2021 stood at 2,681.5 billion won, up 27.4 percent from a year before. It also exceeded the group’s total net profit of 2,637.2 billion won in 2020.
Hana Financial Group continued to solidly grow core profit by increasing corporate-centered loan assets and diversifying commission income.
Cumulative core profit in the third quarter, including interest income (4,994.1 billion won) and commission income (1,879.8 billion won), rose 14.2 percent year on year to 6.8739 billion won. Its net interest margin (NIM) sat at 1.64 percent.
Sales and general administrative expenses stabilized below 1 trillion won, following the second quarter due to improved cost efficiency through digital innovation and corporate cost reduction efforts. Its cost income ratio stood at 44.2 percent, maintaining good cost efficiency.
As a result of securing enough loss absorption capacity last year, such as preemptively setting aside COVID-19-related provisions for economic responses, Hana Financial Group logged a loan-loss cost ratio of 0.11 percent, up 0.13 percent points from the third quarter of last year, despite maintaining conservative reserving standards this year.
Return on equity (ROE) stayed at 11.23 percent and return on total assets (ROA) 0.76 percent.
At the end of the third quarter, Hana Financial Group's NPL ratio stood at 0.33 percent, up 0.03 percentage points from the end of the second quarter.
Its NPL coverage ratio hit 156.8 percent, up 5.5 percentage points from the second quarter. Its delinquency rate hit 0.28 percent, the same level as in the previous quarter.
Hana Bank posted consolidated net profit of 694 billion won in the third quarter, and cumulative net profit of 1.947 billion won in the first three quarters of 2021. The latter improved 17.7 percent from a year before.
This is attributable to an increase in loan assets centered on small and medium-sized companies and an increase in core low-interest deposits that offset one-time costs such as non-monetary conversion losses triggered by rising exchange rates.
Hana Bank’s cumulative core profit hit 5.266 billion won by the third quarter, up 10.5 percent from a year ago. The bank also chalked up a net interest margin (NIM) of 1.40 percent in the third quarter.
Non-banking affiliates also showed strong business performances. Hana Financial Investment posted cumulative net profit of 409.5 billion won from the first quarter to the third quarter of 2021.
They ascended 43 percent year on year. An increase in asset management fees and others drove their growth.
In the first three quarters of 2021, Hana Card posted cumulative net profit of 19.9 billion won, up 73.9 percent from its cumulative net profit in the same period of 2020. Its settlement commission income shot up.
Hana Capital earned cumulative net profit of 193.1 billion won, Hana Life Insurance 22.8 billion won, and Hana Asset Trust 69.2 billion won in the same period of 2021.
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