Hana Financial Group (086790) Q3 2026 earnings summary

Executive summary

• Q3 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; ROE was 10.62%, broadly in line with the prior year.

• Quarterly net income stayed near KRW 1.2tn for a third consecutive quarter; lower G&A and provisioning offset weaker quarterly fee income.

Financial highlights

• 9M interest income rose 10.4% YoY to KRW 7,483.2bn; fee income increased 29.8% to KRW 2,142.8bn.

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

• Q3 fee income was KRW 655.4bn, down 20% QoQ on lower trading-linked asset-management fees, but up 15% YoY.

• Q3 G&A fell 5.9% QoQ to KRW 1,214.4bn; 9M G&A rose 8.5% YoY to KRW 3,703.4bn, while the C/I ratio improved to 38.38%.

• 9M PPOP rose 10.2% YoY to KRW 5,944.8bn; credit loss provisions were KRW 1,065.5bn, up 14.3% YoY.

Outlook and guidance

• Q4 bank NIM is expected to rebound from Q3 lows as lending yields reset higher; time-deposit costs and seasonal liquidity needs remain offsets.

• Q4 NPL coverage is expected to exceed 100% following increased NPL sales; credit costs may rise slightly from 30 bps but are expected to remain manageable.

• CET1 is expected to remain near Q3 levels in the base case, with a 13% target and capacity to absorb FX changes and efficient RWA growth.

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

• 2027 shareholder-return mix remains under consideration, with priorities including higher ROE, enterprise value growth, buybacks and dividends; no specific TSR target was given.