Hana Financial Group (086790) investor relations material

Executive summary

• Announced a revised 2026 Value Up Plan with higher targets for ROE (12%), CET1 (13%+), and shareholder return (50%+), aiming to enhance enterprise value and shareholder returns.

• Achieved record-high 1H net income of KRW 2.4 trillion, up 4.4% YoY, driven by robust core earnings and improved profitability across both bank and non-bank subsidiaries.

• Strategic partnership with Dunamu to drive digital asset-based financial services and new growth engines.

• Accelerated corporate value enhancement with a focus on differentiated profitability, disciplined RWA management, and predictable shareholder returns.

• Focus on increasing dividends and share buybacks, with a commitment to at least 10% annual dividend growth until a 40% payout ratio is reached.

Financial highlights

• 2026 first half net income reached KRW 2.4 trillion, up 4.4% YoY, marking a record high.

• Core earnings (net interest and fee income) rose 13% YoY; interest income rose 7.1% YoY to KRW 4.8 trillion.

• Fee income surged 37.7% YoY, led by asset management, brokerage, and wealth management fees.

• Group NIM expanded to 1.88% in Q2, with KRW loan growth of 2.6% QoQ.

• G&A expenses increased 9.8% YoY, mainly due to higher performance-based compensation and taxes.

Outlook and guidance

• Targeting 12% ROE in the mid-to-long term by strengthening bank competitiveness and normalizing non-bank operations.

• Targeting ROE of 10% or higher, shareholder return ratio up to 50%, and CET1 ratio in the 13.0–13.5% range.

• Expecting group NIM to remain flat in the second half around 1.60%, with neutral outlook.

• Credit cost ratio guidance for the second half is in the low 30 basis points range, assuming no major one-offs.

• Plan to expand write-off and sale of non-performing assets to increase NPL coverage ratio above 100%.