Hana Financial Group (086790) investor relations material

Executive summary

• 3Q26 consolidated net income was KRW 1,221.4bn, up 2.4% QoQ; 9M net income reached a record KRW 3,624.3bn, up 5.6% YoY.

• 9M core earnings grew 14.2% YoY, while quarterly net income stayed near KRW 1.2tn for a third consecutive quarter.

• Fee income supported revenue growth, while Q3 expenses and provisions declined QoQ.

Financial highlights

• 9M core earnings were KRW 9,626bn, up 14.2% YoY; interest income rose 10.4% and fee income 29.8%.

• 9M general operating income increased 9.6% YoY to KRW 9,648.2bn; operating income rose 9.4% to KRW 4,879.3bn and PPOP rose 10.2% to KRW 5,944.8bn.

• Q3 interest income was KRW 2,674.9bn, up 16.2% QoQ due to Hana Life variable-insurance accounting; excluding this effect, it was flat QoQ and up 9.3% YoY.

• Q3 fee income was KRW 655.4bn, down 20% QoQ but up 15% YoY; 9M fee income was KRW 2,142.8bn, up 29.8% YoY.

• Q3 G&A expenses fell 5.9% QoQ to KRW 1,214.4bn; 9M credit loss provisions were KRW 1,065.5bn, up 14.3% YoY.

Outlook and guidance

• Q4 bank NIM is expected to rebound from the Q3 low as lending yields improve; funding costs and seasonal deposit shifts remain offsets.

• NPL coverage is expected to exceed 100% in Q4 as sales resume; credit costs may rise modestly from 30bp but are expected to remain manageable.

• CET1 is expected to remain near Q3 in the base case, with a 13% minimum goal and a buffer for FX movements and efficient RWA growth.

• 2026 annual cash dividends are expected to increase more than 10% YoY; tax-exempt dividends are planned from the 2026 year-end payout.