Hana Financial Group (086790) Q2 2025 earnings summary

Executive summary

• Achieved strong 1H25 results with net income of KRW 2,301.0bn, up 11.2% year-over-year, driven by robust non-interest income and well-controlled expenses.

• ROE improved to 10.76%, up 40bp year-over-year, and EPS rose 14.2% to KRW 7,972.

• Announced additional share buyback and cancellation, with quarterly DPS increasing due to reduced outstanding shares.

• Solid performance supported by quality asset growth, portfolio rebalancing, and disciplined risk management.

Financial highlights

• General operating income increased 4.2% year-over-year to KRW 5,889.3bn; interest income up 2.5% to KRW 4,491.1bn.

• Fee income grew 4.6% year-over-year, and disposition/valuation gains surged 28.1% year-over-year.

• SG&A expenses rose 3.5% year-over-year, but normalized expenses stabilized excluding one-off ERP costs.

• Credit loss provision increased 18.3% year-over-year, but credit cost ratio remained within guidance at 0.29%.

• Group CET1 ratio improved to 13.39%, up 59bp year-over-year.

Outlook and guidance

• Loan growth strategy remains aligned with nominal GDP growth, focusing on portfolio quality and profitability over volume.

• CET1 ratio managed within 13%–13.5% target range, supporting the Group's Value Up Plan.

• Ongoing cost rationalization and risk control expected to maintain stable credit costs and efficiency.