Hana Financial posts record Q1 profit on strong fee income

Hana Financial Group said Friday its first-quarter net profit achieved a record high, driven by robust fee income as it works to diversify its banking-dependent revenue base.

The group posted consolidated net profit of 1.21 trillion won ($816 million) in the January-March period, up 7.3 percent from a year earlier and more than double the 569.4 billion won recorded in the previous quarter, beating market expectations.

The figure mark the group’s highest-ever quarter net profit, surpassing its previous record of 1.16 trillion won set in the third quarter of 2024.

Revenue jumped 71.41 percent to 29 trillion won, while operating profit stood at 1.65 trilllion won, surging 11.06 percent on-year.

Interest income, largely generated by the group's core banking business, stood at 2.5 trillion won.

Fee income, driven by a buoyant stock market, led earnings growth, surging 28 percent on-year to 667.8 billion won. Gains in trust fees, brokerage commissions, discretionary investment and management fees, as well as increased underwriting and advisory fees, drove the advance.

"Hana Financial delivered robust results, despite prolonged uncertainty in domestic and global financial markets and one-off costs, including 82.3 billion won in foreign exchange translation losses due to a weaker currency," a Hana Financial official said.

Return on equity, a key profitability metric underpinning sustainable corporate value, improved by 0.29 percentage point on-year to 10.91 percent. Its common equity Tier 1 ratio, a key capital buffer, was estimated at 13.09 percent, within its target range of 13-13.5 percent.

Backed by solid fundamentals and ample capital buffers, the board approved a 200 billion won share buyback and cancellation as part of its ongoing 400 billion won program announced earlier this year. It also declared a quarterly cash dividend of 1,145 won per share, up about 11.6 percent from last year’s average payout.