Hana Financial Group (086790) Q4 2024 earnings summary

Executive summary

• Net income for 2024 reached KRW 3,768.5 billion, up 9.3% year-over-year, driven by strong fee income and risk management despite FX translation losses and lower interest income.

• Shareholder return ratio for 2024 increased to 37.8%, with a KRW 3,601 per share dividend and KRW 400 billion share buyback, aiming for a 50% return ratio by 2027.

• CET1 ratio at year-end was 13.13%, managed within the 13.0–13.5% target range despite KRW depreciation.

• Total assets as of Dec. 31, 2024, were KRW 637.8 trillion, up from KRW 591.9 trillion a year earlier.

• Management is shifting to a quarterly equal dividend policy and increasing focus on share buybacks.

Financial highlights

• Q4 net income was KRW 513.5 billion, down 55.6% quarter-over-quarter due to FX losses and one-off provisions.

• Annual non-interest income from fees rose 15.2% YoY to KRW 2,069.6 billion, driven by loan, FX, and credit card fees.

• Net interest income for 2024 was KRW 8,761.0 billion, slightly down from KRW 8,879.4 billion in 2023.

• Group NIM in Q4 rebounded to 1.69%, up 6 bps QoQ; annual NIM fell 13 bps YoY.

• SG&A expenses increased 2.8% YoY, with cost-to-income ratio at 40.6%.

Outlook and guidance

• 2025 guidance targets NIM at 1.43% and double-digit fee income growth, with loan growth to align with nominal GDP.

• Targeting a 2025 annual credit cost ratio in the mid-30 bps range, maintaining proactive risk management.

• ROE target set at 10% or higher, with CIR to remain in the low 40% range.