Hana Financial Group (086790) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was KRW 1,138.4 billion, up 9.3% YoY, driven by robust core earnings, disciplined cost management, and stable asset quality.

• ROE improved to 10.62% (up 18 bps YoY), and ROA to 0.72% (up 2 bps YoY), reflecting enhanced profitability.

• Total assets reached KRW 644.4 trillion, with loans at KRW 394.0 trillion and deposits at KRW 381.3 trillion as of March 31, 2025.

• Dividend policy fixed at KRW 1 trillion for 2025, with equal quarterly dividends; Q1 dividend per share set at KRW 906.

• Strong capital adequacy maintained with a BIS ratio of 15.69% and CET1 at 13.23%.

Financial highlights

• Net interest income for Q1 2025 was KRW 2,272.8 billion, up 2.4% YoY, supported by a 4% YoY rise in interest-bearing assets.

• Fee income grew 1.7% YoY to KRW 521.6 billion, led by credit card and banking fees.

• Gains on valuation and disposition fell 3.5% YoY to KRW 377.6 billion, impacted by accounting changes and one-off items.

• G&A/SG&A expenses rose 4.1% YoY, mainly due to ERP costs; normalized expenses fell 3.3% YoY.

• EPS for Q1 2025 was KRW 3,879, up 11.7% YoY and 130.2% QoQ; book value per share rose 10.4% YoY to KRW 140,109.

Outlook and guidance

• Asset growth strategy will align with nominal GDP growth, focusing on qualitative over quantitative expansion.

• NIM expected to remain resilient but may slightly decline if further policy rate cuts occur; performance anticipated to exceed business plan.

• Credit cost guidance maintained at mid-30 bps for the year, with stable management expected.

• Double-digit fee income growth targeted by expanding core businesses.

• Additional share buybacks likely in H2, with total shareholder return targeted at 50% by 2027.