Dedication to Customers, Creativity

Hana Financial Group posts excellent H1 results, doing its best to be a responsible member of the community, serving its clients

Hana Financial Group posted brilliant first-half results with net profit running to 481.5 billion won, with most of it coming from Hana Bank, its major affiliate, which recorded 456.9 billion won in net income during the same period, the group said recently.
The group’s Q2 net profit fell 119.9 billion won from the first quarter to 180.8 billion won, but its core profit rose by 3.7 percent from Q1 to 932.3 billion won with interest and fee income included, they said.
Second quarter net profit fell due to increased loss provision from corporate restructuring and the absence of one-time income from the sale of properties. But total assets increased due to continued growth in corporate and household loans, boosting increases in core income to the maximum level.
The group declared a 300 won per share dividend as a result of its excellent performance records in the first half, they said.
The financial group’s total assets came to 196 trillion won, an increase of 3.2 trillion won in H1, mainly helped by increases in both household and corporate loans in Q2.
The net interest margin continued to rise from Q2 last year, but it began to slide from this year’s second quarter, reducing profits, but it remained at 2.26 percent due to efforts to keep it from sliding further.
Non-performing assets continued to run at 0.57 percent owing to the sale of debts in default and stout risk management, although the loss provision rose 0.3 percent due to corporate restructuring and conservative loss provision policies, group officials said.
Hana Bank, the major affiliate of the group, posted net profit of 456.9 billion won in H1, up 592.1 billion won YoY, and a reduction of 109.1 billion won from Q1 caused by increases in loss provision and reductions in non-recurring income.
Hana Securities and Investment recorded 114.4 billion won in net profit in the first half thanks mainly to sound management of its investment banking activities, increases in fee income from an increased number of customers, securities subscriptions and fee income from funds in trust by customers, the officials said.
The officials predicted interest and fee incomes would continue to increase in the second half with reductions in loss provisions as corporate restructuring is completed. They added that they will readjust the asset portfolio and focus on risk management, among others, to expand profit and the soundness of assets.
Hana Financial Group is one of Korea’s leading financial-services companies and one of the world’s top 100 financial groups. The company began in 1971 as Korea Investment & Finance Co., the nation’s first financial company established with purely private capital.
Throughout its history, Hana Financial Group has created value for clients with its comprehensive financial services, innovative ideas, dedication to customer satisfaction and unique products.
The group aims to become a leading name in finance not only in Korea, but also Asia and the world.
The group has always put its customers’ best interests first. The following are just a few examples of its innovative answers to client needs: The Hana Financial Plaza branches, Korea’s first one-stop, multipurpose financial service outlets with services for deposits, loans, funds and bancassurance; and dividend payments to its shareholders for 38 straight years, a feat unmatched by any other financial company in the nation. Many customers have acknowledged the quality of its service and have chosen the group to be their partner in finance. Hana Bank was voted the country’s best private bank for five consecutive years, and Hana Daetoo securities has been named the best fund retailer.
The group’s logo is a symbol of its dedication to customers. Based on the Korean alphabet letter “ㅎ” the figure welcomes clients with open arms and an open heart. It also embodies the entrepreneurial spirit of its employees as they expand their activities globally, and the deep respect they have for their fellow human beings.
Since its establishment, Hana Financial Group has participated in many activities as a responsible member of the community. These programs work to create a better society and express gratitude to the customers who made its success possible. nw

Chairman Kim Seung-yu of Hana Financial Group.