Hana Financial Group (086790) Q3 2025 earnings summary

Executive summary

• Consolidated net income for the first nine months of 2025 was KRW 3,433.4 billion, up 6.5% year-over-year, surpassing market expectations and driven by balanced growth in interest and non-interest income.

• Shareholder returns increased 28% year-over-year, including KRW 921 per share cash dividend, KRW 150 billion share buyback in Q3, and total buybacks of KRW 803.1 billion for the year.

• Maintained robust capital adequacy and asset quality through proactive risk management and RWA optimization.

• The group expanded its global network and diversified business portfolio, operating 14 subsidiaries in 27 countries.

• Focus remains on expanding shareholder return, maintaining stable capital ratios, and improving profitability.

Financial highlights

• Net interest income for the period was KRW 6,780.3 billion, up from KRW 6,577.4 billion year-over-year, with general operating income rising 5.1% year-over-year.

• Q3 NIM improved: group NIM at 1.74% (+1bp QoQ), Hana Bank NIM at 1.5% (+2bp QoQ).

• Fee income increased 2% QoQ and 6.7% year-over-year, supported by product diversification and M&A advisory growth.

• Credit loss provisions decreased to KRW 923.1 billion from KRW 1,236.5 billion in the prior year.

• G&A expenses up 3.1% year-over-year; cost-to-income ratio improved by 0.7ppt to 38.8%.

Outlook and guidance

• Corporate loan growth expected to continue in Q4, with household loan growth leveling off.

• Nonbanking segment performance expected to normalize by 2027, with ongoing efforts to strengthen fundamentals.

• Credit costs and delinquencies anticipated to rise in Q4 and remain elevated into next year.

• Guidance includes maintaining a capital adequacy ratio above regulatory requirements and expanding digital and global business lines.

• NIM improvement expected to persist into Q4, though incremental gains may slow.