Hana Financial Group (086790) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income reached KRW 1,127.7 billion, up 9.1% YoY and 119.6% QoQ, surpassing market consensus due to strong core earnings and disciplined cost management.

• ROE improved to 10.62% (up 18 bps YoY), and ROA to 0.72% (up 0.11%p YoY), reflecting enhanced profitability.

• Dividend policy fixed at KRW 1 trillion for 2025, with equal quarterly dividends; Q1 dividend per share set at KRW 906, up from KRW 600 in Q1 2024.

• Early Retirement Program at Hana Bank and Hana Card led to a one-off pre-tax expense of KRW 80.8 billion in Q1 2025.

Financial highlights

• Group NIM held steady at 1.69% QoQ; Hana Bank NIM rose 2 bps QoQ to 1.48%.

• Interest income increased 4.1% YoY to KRW 2,272.8 billion, 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.

• SG&A expenses increased 4.1% YoY to KRW 1,143.0 billion, mainly due to ERP costs; recurring G&A 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.

• ROE target set at 10% or higher.