Solid Strategies Pay Off

Hana Financial Group nets record profit in H1 with total assets rising to 122.2 tln won

The Hana Financial Group posted net profit of 585.1 billion won in the H1 this year with its major affiliate Hana Bank recording 558 billion won in net profit in the same period, the largest H1 net profit in its history. The figure is up 19.7 percent from the same period last year. Its affiliate Daehan Investment and Securities Co. netted 37.3 billion won in profit in the H1 also.
The financial group's total assets amounted to 122.2 trillion won at the end of June, up 15 percent(15.9 trillion won) from the end of last year with ROA marking 1.15 percent and ROE 15.64 percent.
The group attributed the excellent performance record to upsurge in Hana Bank's operations and the Hana Financial Plaza totaling 38 in strategic locations around the country, which provided one-stop financial services for banking and securities transactions in the form of joint marketing among the group's affiliates. Non-banking affiliates recorded a 32 percent jump in net profit with commissions from handling securities alone rising 18 percent.
Hana Bank's total assets amounted to 118 trillion won with ROA at 1.22 percent and ROE 17.77 percent in the H1. The ratio of non-performing assets registered 0.74 percent, well below the targeted level of 1 percent.
To look at Hana Bank's detailed financial results, its loans increased 13.3 trillion won from the end of last year during the H1 including SOHO loans of 2.7 trillion won and 6.4 trillion won provided to SMEs. Personal loans on credit amounted to 1.3 trillion won during the period. Deposits increased 10 trillion won to perk up the bank's both deposit taking and lending activities, resulting in 171.8 billion won in interest earnings during the H1 period.
Hana Bank aims to increase its profit this year by expanding its market share, maximizing synergy and systemic personnel management. The bank plans to increase its LCF business, including CMS, escrow and salary transfers, in addition to making retirement trust and pension funds its major area of transactions. It also plans to attract the customers who sever their transactions with other banks.
The bank also plans to expand the development of special financial products, especially those tailored to the needs of its customers. It will also strengthen its linkage business in the area of RM and IB, along with increasing market share in the growth area and the number of growth industries.
In order to increase synergy in its operation, the bank will evaluate the performance results of its operation units, especially, their progresses in meeting assigned business targets, which is aimed at building an organized cooperative system. Through the system, it plans to strengthen its support to lending large amounts of loans, joint search for business development, and personnel exchanges. The bank will also expand the lending authority of its unit managers. The personnel management will be professionalized and systematized to improve its personnel management.
In the household banking sector, the bank plans to expand its marketing to raise its profitability. It plans to increase core low-interest deposits and increase its indirect financial products. Hana will expand its operation of SOHO and loans on credit. It will also expand the weight of its fee income, hike sales through its credit card operation and promote stable growth of its bancassurance business.
Hana will also strengthen its capacity to develop new financial products. It will upgrade the quality of existing highly profitable products and make them its representative products. It will also try to double it's the market penetration of its new financial products by maximizing its strategy to take advantage of the 2006 World Cup in Germany, diversifying its mortgage products in cooperation with the derivative finance team. The bank will also develop representative financial products under its new marking strategy for new financial products.
Hana Bank's ultimate vision is to be developed enough to be a superior financial network to provide an integrated financial service in this rapidly changing financial environment and based on its core capacity. The bank will try to go about achieving the vision through the four missions of customer satisfaction, the maximization of shareholders'value, and the creation of employee value and contribution to the common entity. The bank aims at making the 100 list of best banks in the world by 2009, the 50th anniversary of its founding, in terms of asset and market and capitalization value. The bank will shoot for maintaining such key indicators as ROE at upwards of 20 percent, ROA more than 1.25 percent, and NPL below 1 percent under the slogan of "Achieve Excellence Together."By 2009, the bank will be among the 100 largest banks in terms of market capitalization and become a bank with quality excellence with superior integrated financial services. nw

President Kim Jong-yeul of the Hana Bank