iM Securities announced on July 27 that it has raised its target price for Hana Financial Group from 150,000 won to 153,000 won, citing the company's solid earnings despite provisions for bad debts and foreign exchange burdens, as well as expectations for increased shareholder returns. The investment recommendation remains a 'buy.'
Research analyst Seol Yong-jin stated, "In the second quarter, the net profit attributable to shareholders was 1.1928 trillion won, a 1.7% increase compared to the same period last year, aligning with estimates. Despite the impact of rising exchange rates and significant bad debt provisions, the company demonstrated stable earnings."
He added, "The net interest margin (NIM) improved for both the group and the bank due to rising market interest rates, and both household and corporate loans showed solid growth."
Furthermore, he noted, "Non-interest income saw a significant increase, particularly in the bank and securities asset management sectors, driven by higher commission income. In the second half of the year, considering the current exchange rate levels, we expect further earnings improvement from non-monetary foreign exchange gains and reversals of provisions for equity-linked securities (ELS)."
Seol also mentioned, "The group's common equity tier 1 (CET1) capital ratio has maintained its stability despite the impact of exchange rates, and the company announced a share buyback and cancellation plan worth approximately 250 billion won for the second half of the year, with additional buyback announcements expected during the third quarter earnings release."
Additionally, he stated, "With a new value-up policy, the company aims to maintain a target return on equity (ROE) of 12%, a CET1 ratio of over 13%, and a total shareholder return rate of over 50%. Dividends are expected to increase by 10% annually, with a long-term dividend payout ratio target of 40%."
* This article has been translated by AI.
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