Hana Financial Group announced on Oct. 25 that it posted 1,121.9 trillion won in net profit in the third quarter, racking up cumulative consolidated net profit of 2,849.4 billion won between the first and third quarters of 2022.
This represented an increase of 6.3 percent from the same period of 2021. Despite FX conversion loss of 136.8 billion won in the third quarter due to the weak Korean won, Hana Financial Group recorded stable performances based on the steady growth of loan assets and efficient cost management.
Accompanied by sound loan growth, its interest income rose 19.4 percent to a record 6,487.2 billion won.
Commission income amounted to 1,369.1 billion won, a drop of five percent compared to the same period, due to a drop in credit card use commissions, a slowdown in the growth of asset management commissions and decreased IB commissions.
Its cumulative profit in the third quarter totaled 7.85 trillion won, an increase of 14.3 percent compared to the same period of 2021.
The third-quarter NIMs of Hana Financial Group and Hana Bank reached 1.82 percent and 1.62 percent, respectively.
They rose by 0.02 percentage points and 0.03 percentage points from the previous quarter, respectively.
Despite Hana Card’s stagnant NIM caused by an increase in financing costs, the group’s accumulated NIM stood at 1.28 percent in the third quarter due to an increase in Hana Bank’s NIM following a benchmark interest rate hike, showing an upward trend.
Thanks to a soundness-oriented asset management strategy and risk management efforts, it stably managed loan loss provisions and its accumulated loan loss expense ratio fell by 1bp quarter on quarter to 0.21 percent in the third quarter.
Its non-performing loan ratio at the end of the third quarter hit 0.35 percent, a 2bp improvement from the previous quarter.
Its delinquency rate stood at 0.32 percent at the end of the third quarter. It was the same as the previous quarter, staying at a good level.
By affiliate, Hana Bank’s net profit for the third quarter grew by 23.2 percent to 870.2 billion won from the previous quarter.
Its cumulative net income totaled 2.24 trillion won, up 15.2 percent from the same period of last year.
Amid the steady growth of loan assets, led by corporate loan assets, the bank continued its stable earnings trend thanks to efforts to manage general administrative expenses and loan loss provisions.
Hana Securities posted cumulative net profits of 285.5 billion won from the first to the third quarter, as its earnings improved quarter-on-quarter through preemptive risk management and strategic market response amid the effects of continuous interest rate hikes spreading to the stock market.
Hana Capital posted 253 billion won in cumulative net profit during the same period as earnings improved quarter on quarter due to an increase in general operating income, such as commission income, centered on retail and transaction evaluation income.
Hana Card racked up cumulative net profit of 165.6 billion won in the same period. Its income from credit sales climbed. But its commission costs and financing costs also swelled.
Hana Asset Trust posted 70.8 billion won, Hana Savings Bank 20.9 billion won, and Hana Life Insurance 14.7 billion won in accumulated net profits during the same period, respectively.
