Eyeing Financial Holding Co.
Hana Bank takes over Daehan Investment and Securities Co. to beef up its operations

Hana Bank launched the sales of its new financial products, "Hana,Daetu Power ELS Fund and "Hana.Daetu KOSPI Index Related Fund, for the first time following its take-over of the Daehan Investment and Securities Co.
Daehan Investment and Securities came up with the products under a joint marketing plan with Hana Bank utilizing their over 646 sales outlets around the country.
Hana Bank officials said the bank plans to take advantage of DIS, the largest asset management company in the country to draw synergistic effect from the operations of bank, investment trust and securities firms. They said from now on the Hana Financial Group will come with various financial products to suit the diversified needs of its customers to keep its commanding position in the asset management market in the country. Hana Bank signed a contract with the Korea Deposit Insurance Co. on May 2 to take over DIS, which has been regarded as a signal to set off a move to enhance competitive edge of the asset management market.
Hana Bank's share of the asset management market comes to 12.9 percent, tops among asset management market players in the country after combining Hana Allianz's 2.3 percent and DIS? 10.6 percent market shares. DIS has 730,000 customers and Hana Bank 6.6 million, which will strengthen their synergistic effect, in addition to a prospect that it would be a top beneficiary when the retirement fund market is opened, making good use of its corporate customers.
Samsung Securities projected that Hana Bank's ROE will jump at least by 2 percent when DIS operation is normalized and expand its non-interest income for the bank, which has been on the lower side.
Following the take over of DIS, the bank has officially been moving to set up a financial holding company to become a financial group. The bank will have no trouble turning itself into a leading bank in a financial group as it has been planning for a long time and the move will help expand the bank's non-interest income.
Hana is also interested in taking over LG Card and stakes in the Korea Exchange Bank when they are put on the market in the second half of the year. The bank also is considering to take over an insurance firm because Hana Life is the only insurance firm dealing with bancassurance products, When these deals are realized the Hana Financial Holding Co. will emerge as a full-fledged financial group.
The group would not hold a large scale of shares transactions in stocks to minimize risks for the group.
Lee Jae-won, analyst for Goodmorning Securities Co., reminded that when Hana merged with Seoul Bank in November, 2002, those minority shareholders who wanted to exercise their purchase rights came to only 15.7 percent.
The bank's performance is projected to recover with the first quarter as the bottom. In the first quarter, the bank's net interest margin fell due to an intense competition with Korea First Bank and Citibank, with whom they share customers. The bank is likely to suspend the intensified competition in the second half and raise its NIM to boost its interest income.
Chung Jae-kun, an analyst with Daeshin Securities, said from the second quarter, the bank's NIM is likely to improve, along with its share prices with improvement in its stability and valuation merit.
Koo Kyung-hee, an analyst with Hanhwa Securities, also said Hana's NIM would not fall further and thus its shares would be an attractive buy in the stock market due to its low PBR. nw

Hana Bank President Kim Jong-yeol, and officials of Daehan Investment and Securities(DIS) sign documents for Hana Bank's take -over of DIS.

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