Hana Financial Group (086790) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income rose 7.3% year-over-year to KRW 1.21 trillion, surpassing market expectations and driven by robust growth in both interest and fee income.

• Core profit expanded 13.6% YoY, with consolidated ROE reaching 10.91%, up 29bp YoY, reflecting enhanced profitability and capital efficiency.

• Core business competitiveness improved at the bank and key non-bank subsidiaries, supporting overall earnings capacity.

Financial highlights

• Interest income reached KRW 2.51 trillion, up 10.2% YoY, supported by higher NIM and asset growth.

• Fee income hit a record KRW 667.8 billion, up 28% YoY, led by asset management and brokerage fees.

• Disposition and valuation gain dropped 67.2% YoY to KRW 123.9 billion, mainly due to FX translation losses and weaker bond performance.

• G&A expense was KRW 1.1984 trillion, up 4.8% YoY; cost-to-income ratio improved to 38.8%.

• Loss provision expense fell 23.1% YoY to KRW 231.6 billion; credit cost ratio dropped 8 BP YoY to 0.21%.

Outlook and guidance

• NIM is expected to maintain an upward trajectory, though Q1's uplift may not be repeated in subsequent quarters.

• Credit cost ratio guidance for 2026 is mid-30 BP, with a possibility of staying in the high 20s BP.

• CET1 ratio is expected to remain above 13% despite regulatory and FX headwinds.

• Shareholder return ratio target of 50% is increasingly visible, with a shift toward higher cash dividends leveraging new tax-exempt dividend policies.