Hana Financial Group Inc (XKRX:086790) Q2 2024 Earnings Call Highlights: Navigating Growth ...

GuruFocus News
5 min read

In This Article:

  • Net Income: KRW2,068.7 billion for the first half of 2024, a 2.4% increase YoY.

  • Fee Income: KRW1,034.7 billion for the first half, a 12.6% increase YoY.

  • Credit Cost Ratio: 0.24% YTD for the first half, the lowest since late 2022.

  • Cost Income Ratio: 38.7% for the first half, a 0.6 percentage point increase YoY.

  • ROE: 10.36% for the first half of 2024.

  • ROA: 0.69% for the first half of 2024.

  • Net Interest Margin (NIM): 1.69% for the second quarter, an 8bp decrease QoQ.

  • Interest Income: KRW2,161 billion for the second quarter, a 2.7% decrease QoQ.

  • Non-Interest Income: KRW556.4 billion for the second quarter, a 22% decrease QoQ.

  • Bank Loans in Won: KRW308 trillion, a 3.9% increase QoQ.

  • NPL Ratio: 0.56% for the first half, a 3bp increase QoQ.

  • Delinquency Ratio: 0.49% for the first half, a 5bp drop QoQ.

  • CET-1 Ratio: 12.79% for the first half, a 10bp decline QoQ.

  • Dividend: KRW600 per share for the first half, unchanged from the previous period.

Release Date: July 26, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Hana Financial Group Inc (XKRX:086790) reported a 2.4% year-over-year increase in net income for the first half of 2024, reaching KRW2,068.7 billion.

  • The group's fee income saw a significant year-over-year increase of 12.6%, driven by growth in credit card fees, investment banking fees, and asset fees.

  • The credit cost ratio remained stable at 0.24% year-to-date, the lowest since late 2022, due to pre-emptive provisioning and write-backs.

  • The group's return on equity (ROE) remained in double digits for two consecutive quarters, supported by consistent net income levels.

  • Hana Financial Group Inc (XKRX:086790) plans to focus on risk-weighted asset (RWA) control and profitability in the second half of 2024, aiming to improve interest income based on risk-adjusted return metrics.

Negative Points

  • The group's net interest margin (NIM) decreased by 8 basis points quarter-over-quarter to 1.69%, with Hana Bank's NIM dropping by 9 basis points.

  • Second quarter interest income fell by 2.7% quarter-over-quarter, and first half interest income decreased by 0.6% year-over-year.

  • Non-interest income in the second quarter decreased by 22% quarter-over-quarter, impacted by FX translational losses and decreased valuation gains.

  • The group's CET-1 ratio declined by 10 basis points quarter-over-quarter to 12.79%, with plans to recover to target levels in the second half.

  • Hana Financial Group Inc (XKRX:086790) anticipates a limited level of additional loan asset growth in the second half, focusing instead on portfolio rebalancing and efficient management of pre-emptively secured loan assets.

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