Hana Financial Group’s net profit swelled nearly 10 percent year on year during the first quarter of 2025.
This is the best first quarter performance since the company merged with Hana Bank and Korea Exchange Bank.
Hana Financial Group announced on April 25 that its net profit stood at 1,127.7 billion won during the same period. This is a year-on-year increase of 9.1 percent (93.7 billion won).
It is approximately 2.2 times higher than 513.5 billion won in the fourth quarter of 2024.
While this figure is less than 1,156.6 billion won in the third quarter of 2015 since the official merger of Hana Bank and Korea Exchange Bank in 2015, it is the largest first quarter result in the history of the bank.
Hana Financial Group’s first-quarter was also impacted by a one-time expense of 179.9 billion won, which was related to compensation for losses from equity-linked securities (ELSs) on the Hong Kong Hang Seng Index.
Its interest income stood at 2.278 trillion won in the first quarter. Compared to 2,220.6 billion won in the first quarter of 2024, this was a 2.3 percent jump.
Hana Financial Group’s net interest margin (NIM) for the first quarter was 1.69 percent, the same as the previous quarter (1.69 percent) and 0.08 percentage points lower than the first quarter of 2024 (1.77 percent).
Despite the year-on-year decline in the NIM, its interest income was higher than a year ago due to higher quality loan assets and improved interest income from non-banking affiliates.
Hana Financial Group’s non-interest income amounted to 662.7 billion won, down 7 percent from 712.6 billion won a year earlier.
Its fee income climbed by 1.7 percent due to higher credit card fees, but trading and valuation income shrank by 3.5 percent due to IPO-related base effects, among others.
Hana Financial Group’s core profit includes interest income (2,278.8 billion won) and fee income (521.6 billion won). It hit 2,794.4 billion won, up 2.2 percent, or by 60.9 billion won, year on year.
Hana Financial Group’s soundness indicators deteriorated. Its non-performing loan (NPL) ratio stood at 0.70 percent in the first quarter, up 0.08 percentage points from 0.62 percent in the previous quarter and up 0.17 percentage points from 0.53 percent in the first quarter of 2024.
The delinquency rate also grew to 0.59 percent in the first quarter, up from 0.51 percent in the previous quarter and 0.54 percent in the same period of 2024.
Hana Bank’s net profit swelled by 17.8 percent, or 149.7 billion won, year on year to 992.9 billion won in the first quarter.
The bank’s core profit, which included interest income of 1,935.9 billion won and fee income of 249.6 billion won, totaled 2,185.5 billion won.
In the first quarter, Hana Bank’s NIM touched 1.48 percent, up 0.02 percentage points from 1.46 percent in the previous quarter, but down by 0.07 percentage points from 1.55 percent in the same period of 2024.
As of the end of the first quarter, its NPL coverage ratio sat at 162.52 percent, and its delinquency rate 0.32 percent.
Non-banking affiliates’ net income in the first quarter was 75.3 billion won for Hana Securities, 54.6 billion won for Hana Card, 31.5 billion won for Hana Capital, 17.6 billion won for Hana Asset Trust, and 12.1 billion won for Hana Life Insurance.
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