Hana Financial posts record Q1 net profit of 1.21 trillion won on stronger fee income

Hana Financial Group said it posted its highest-ever first-quarter net profit despite external headwinds such as exchange-rate volatility.

The company said April 24 that first-quarter net profit totaled 1.21 trillion won, up 7.3% from a year earlier.

Hana Financial said the results were notable because they came after absorbing one-off costs, including 82.3 billion won in foreign-exchange translation losses tied to a weaker won.

Net interest income rose 10.2% from a year earlier to 2.5053 trillion won. The group’s net interest margin was 1.82%, up 0.13 percentage points from the first quarter of last year, helping lift interest income.

Noninterest income fell 11.9% to 583.6 billion won. Within that, fee income climbed 28% from a year earlier, which the group attributed to higher asset-management fees amid a strong stock market and improved competitiveness at its nonbank units.

Asset quality indicators weakened slightly. The group’s estimated common equity Tier 1 ratio at the end of the first quarter was 13.09%, down 0.15 percentage points from a year earlier. Return on equity rose 0.29 percentage points to 10.91%, and return on assets was 0.73%.

By affiliate, Hana Bank posted first-quarter net profit of 1.1042 trillion won, up 11.2% from a year earlier. Its net interest income increased 12.8% to 2.1843 trillion won, while fee income rose 19.1% to 297.3 billion won. The bank’s net interest margin was 1.58%, up 0.06 percentage points from the fourth quarter of last year (1.52%).

Among nonbank affiliates, Hana Securities posted first-quarter net profit of 103.3 billion won, up 37.1% from a year earlier, driven by growth in wealth management and investment banking. Other first-quarter net profits were 57.5 billion won at Hana Card, 53.5 billion won at Hana Capital, 7.9 billion won at Hana Life, and 6.7 billion won at Hana Asset Trust.

Hana Financial’s board also approved a quarterly cash dividend of 1,145 won per share for the first quarter, up 11.6% from last year’s average dividend per share. It also approved a 200 billion won share buyback and cancellation as part of a previously announced 400 billion won program.