Hana Financial Group announced on April 27 that it posted consolidated net profit of 1,102.2 billion won in the first quarter, up 22.1 percent year on year and will pay an interim dividend of 600 won per share.
Commenting on the results, Hana Financial Group said that despite slowdowns in the domestic and international economies and increased risks of financial market instability, it posted consolidated net profit of 1,102.2 billion won in the first quarter by realizing profits from securities trading through appropriate responses to interest rate volatility, increasing commission income and stabilizing cost management.
Hana Financial Group said that it could ramp up the commission income by securing a customer base.
By setting the amount of its cash dividend at 600 won per share, Hana Financial Group continued its 17-year tradition of paying interim dividends since the establishment of the holding company in 2005.
Hana Financial Group’s non-interest income grew by 52.9 percent year-on-year to 77.88 billion won, the highest in the last five years, boosting its profitability and improving its financial conditions.
Trading and valuation income increased by 136.4 percent (277.1 billion won) year on year to 480.1 billion won due to an increase in foreign exchange gains and its major affiliates’ trade of securities among others.
Fee income came in at 445.2 billion won, driven by higher asset management fees from pension plans and bancassurance, and an increase in operating leases- and foreign exchange-related fees.
Its interest income decreased by 10.6 percent (257.5 billion won) compared to the precious quarter, but its improved commission income led to income of 262.2 billion, up 6.0 percent (149.2 billion won) year on year. Its net interest margin (NIM) sat at 1.88 percent.
Hana Financial Group’s return on equity (ROE) was 12.07 percent, showing Hana Financial Group’s industry-leading profitability and capital efficiency. Its return on assets (ROA) stayed at 0.78 percent.
Moreover, due to stable cost control efforts, the C/I ratio improved by 12.2 percentage points year on year to 37.5 percent, posting the financial group’s industry-leading cost efficiency.
Its NPL coverage ratio reached 172.7 percent and its NPL ratio 0.40 percent. Both remained good compared to the level before the COVID-19 pandemic.
The estimated BIS ratio and common equity ratio at the end of the first quarter remained stable at 15.31 percent and 12.84 percent, respectively.
Its total assets reached 757.22 trillion at the end of the first quarter, including 169.216 trillion won in trust assets.
Hana Bank’s consolidated net profit reached 970.7 billion won, up 45.5 percent (303.6 billion won) year on year. This was attributed to the achievement of non-interest income of 313.8 billion won, up 112.6 percent (166.2 billion won) year on year.
Hana Securities racked up a net profit of 83.4 billion won due to increased trading revenue and commission income.
Hana Capital posted a net profit of 65.6 billion won thanks to an increase in non-interest income and stable cost management.
Hana Card posted a net profit of 20.2 billion won and Hana Asset Trust a net profit of 22.1 billion won.
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