Hana Financial Group (086790) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income rose 8.1% year-over-year to KRW 1,230.7 billion, driven by strong growth in interest and fee income, surpassing market expectations.

• Core profit and operating income expanded, with consolidated ROE at 10.91%, up 29bp YoY, reflecting improved profitability and capital efficiency.

• Total assets reached KRW 685.4 trillion, and total equity was KRW 46.4 trillion at quarter-end.

• The group maintained robust capital adequacy and liquidity, with a BIS ratio of 15.22% and liquidity coverage ratios well above regulatory requirements.

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

Financial highlights

• Interest income reached KRW 2.505 trillion, up 10.2% YoY, supported by higher NIM and asset growth.

• Fee income hit a record KRW 1,121.7 billion, with net fee income at KRW 771.2 billion, up 28% YoY, led by asset management and brokerage fees.

• Operating income was KRW 1,653.6 billion, and EPS for the quarter was KRW 4,322.

• G&A expense was KRW 1.1984 trillion; cost-to-income ratio held at 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.

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

• Shareholder return ratio target of 50% is increasingly visible, with enhanced after-tax dividend yield from 4Q dividends.

• Management expects continued growth in core banking, wealth management, and digital services, while closely monitoring credit and market risks.

• Shareholder return strategy will shift toward higher cash dividends, leveraging new tax-exempt dividend policies.