Hana Financial Group has reported a stable financial performance for the first half of 2024, with net income rising by 2.4% year-over-year to 2,068.7 billion won (approximately $1.6 billion). This growth was largely driven by robust fee income and stringent cost control measures, despite facing various economic challenges.
The group’s fee income surged by 12.6% year-over-year, reaching 1,032.8 billion won. This increase was supported by improved card fees due to higher sales and a growing base of cumulative fee income. Additionally, Hana Financial Group maintained its cost-to-income ratio under 40%, demonstrating effective cost discipline across its operations.
Despite a challenging environment, including additional provisions related to project financing, the group’s preemptive provisioning in the previous year and subsequent write-backs from Hana Bank helped stabilize the overall performance. The credit cost ratio rose slightly to 0.24%, reflecting the ongoing adjustments in provisioning.
Hana Financial Group’s consolidated general operating income fell by 2.2% to 5,650.6 billion won, while interest income saw a slight decline of 0.6%. However, the group’s strong fee income and cost management strategies compensated for these decreases.
The group continues to focus on enhancing shareholder returns, with plans to return 50% of excess capital if the CET-1 ratio remains within the target range of 13% to 13.5%. This policy reflects Hana Financial Group’s commitment to maintaining financial stability while rewarding shareholders.
Overall, Hana Financial Group’s first-half results underscore its resilience and strategic focus on fee income growth and cost efficiency, positioning it well for future challenges and opportunities.
