Hana Financial Group (086790) Q3 2025 earnings summary

Executive summary

• Q3 net income reached KRW 1.13 trillion, with YTD net income up 6.5% year-over-year, surpassing market expectations.

• Achieved solid cumulative earnings growth, driven by balanced interest and non-interest income and stable expense and credit cost management.

• Shareholder returns increased 28% year-over-year, including KRW 921 per share cash dividend and KRW 150 billion share buyback, with annual shareholder return ratio expected to improve significantly due to additional buybacks totaling 803 Wbn for the year.

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

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

Financial highlights

• Consolidated net income for Q3 reached 1,132.4 Wbn, up 6.5% year-over-year, with general operating income rising 5.1% YoY due to balanced growth in interest and non-interest income.

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

• Q3 interest income up 3.4% QoQ; YTD interest income up 3.1% YoY.

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

• Cost-to-income ratio improved to 38.8% (cum.), and credit cost ratio was 0.28% (cum.), up 3bp YoY but within annual target.

Outlook and guidance

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

• Annual shareholder return ratio is expected to improve, supported by additional share buybacks and stable earnings.

• 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.

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