Hana Financial Group reported a net profit of 1.22 trillion won for the third quarter of this year, marking the highest quarterly performance since the merger of Hana and Korea Exchange Bank. The increase in commission income, particularly from wealth management (WM) and investment banking (IB), contributed to the improved results. Hana Financial also announced a plan to expand shareholder returns through an additional 250 billion won in share buybacks and cancellations.
On October 23, Hana Financial announced that its consolidated net profit for the third quarter increased by 7.9% compared to the same period last year and by 2.4% from the previous quarter. The cumulative net profit for the third quarter reached 3.62 trillion won, a 5.6% increase from the same period last year, setting a new record.
The improvement in performance was largely driven by an increase in commission income. The cumulative commission income for the third quarter reached 2.14 trillion won, a 29.8% increase compared to the previous year. Growth in commission-based businesses such as retirement pensions and wealth management has reduced reliance on interest income. The proportion of commission income in total core earnings rose from 19.6% in the same period last year to 22.3%.
Hana Financial also expanded its shareholder return initiatives. The board of directors approved an additional 250 billion won in share buybacks and cancellations, along with a quarterly cash dividend of 1,165 won per share. Including the shares repurchased by the third quarter, the total buyback and cancellation amount for the year will reach 949 billion won, a 25.8% increase from last year, marking the highest level ever.
Capital adequacy has also improved. As of the end of the third quarter, the group's common equity tier 1 (CET1) capital ratio stood at 13.45%, up 0.18 percentage points from the previous quarter, exceeding the target of 13% set in Hana Financial's corporate value enhancement plan. The loan loss ratio remained stable at 0.30%.
Hana Bank, the group's main subsidiary, reported a cumulative net profit of 3.33 trillion won for the third quarter, a 5.8% increase from the same period last year. The growth in commission income from retirement pensions, bancassurance, and foreign exchange contributed to the improved performance. Hana Bank's net interest margin (NIM) for the third quarter was recorded at 1.57%.
Cumulative net profits for non-banking subsidiaries were reported as follows: Hana Securities at 283.4 billion won, Hana Card at 175.3 billion won, and Hana Capital at 144.5 billion won.
* This article has been translated by AI.
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