KOSPIFinance086790

Hana Financial Group

₩129,700▲ 1.09%2026-10-02 close

Market Cap

₩35T

Turnover

₩50.9B

Volume

400,000 shares

Shares out.

270M

PER

9.2×

PBR

0.8×

EPS

₩14,597

Dividend Yield

3.06%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩4,105 per share · Prices as of the 2026-10-02 close

Report overview

A 50% Payout Target Meets Regulatory Costs

Hana Financial Group cleared the KRW 4 trillion mark in owner-attributable net profit for 2025 and kept earnings momentum through the first half of 2026 on fee income growth, yet one-off items such as fines, currency translation and insurance assumption changes sit alongside tighter household lending rules.

1
Full-year 2025 operating profit reached KRW 5.351 trillion with owner-attributable net profit of KRW 4.003 trillion, a second straight annual increase; 1Q26 posted KRW 1.654 trillion operating profit and KRW 1.210 trillion net profit, followed by KRW 1.594 trillion and KRW 1.193 trillion in 2Q26.
2
First-half 2026 core income was KRW 6.296 trillion, combining KRW 4.808 trillion of interest income and KRW 1.487 trillion of fee income, up 13% year on year, with fee income alone up 37.7%.
3
The Value-up Plan 2.0 unveiled in July targets a total payout ratio above 50%, a CET1 ratio above 13% and annual total dividend growth of at least 10% until the payout ratio reaches 40%, alongside a board-approved KRW 250 billion buyback and cancellation in the third quarter.
4
The drop to KRW 569.4 billion in 4Q25 net profit largely reflected one-off provisions tied to collusion and mis-selling cases, while 2Q26 again absorbed lower insurance income, corporate rehabilitation provisions and FX translation losses.
5
The treasury bond auction collusion case is still at the Korea Fair Trade Commission examination-report stage, and the scale of any final fine remains an open variable for capital ratios and payout capacity.

Business structure

Hana Financial Group is a holding company centred on Hana Bank, with Hana Securities, Hana Card, Hana Capital, Hana Life and Hana Insurance underneath. The overwhelming share of profit still comes from banking.

Hana Bank posted KRW 1.017 trillion of net profit in the second quarter and KRW 2.121 trillion for the first half, up 1.7% year on year, with interest income of KRW 4.465 trillion and fee income of KRW 614.3 billion for core income of KRW 5.079 trillion. Among non-bank units, the securities arm rebounded most sharply.

Hana Securities earned KRW 273.1 billion in first-half net profit, up 155.7% year on year, while Hana Card recorded KRW 125.9 billion, Hana Capital KRW 104.5 billion and Hana Life KRW 14.6 billion.

Group revenue rests on two pillars, interest income and fee income, and fee income grew 37.7% year on year on trust, brokerage and discretionary investment businesses within wealth management plus corporate finance fees.

Competitively, Hana sits among the four large financial groups alongside KB, Shinhan and Woori, where differentiation increasingly runs through capital ratios and shareholder return policy rather than loan asset growth alone.

Digital assets have been framed as a future growth axis: in May 2026 the group made an equity investment in Dunamu through Hana Bank, which is the only commercial bank among Dunamu's strategic investors and intends to link existing financial infrastructure with the digital asset ecosystem.

Capital support for the insurance arm is also under way, as July 2026 reporting noted the holding company participated with KRW 200 billion in a rights offering by Hana Insurance.

Earnings trend

Quarterly revenue · Operating profit

₩155.2B₩1.5T25Q2₩168.6B₩1.5T25Q3₩171.9B₩890.4B25Q4₩183.9B₩1.7T26Q1₩204.6B₩1.6T26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩489.2B₩4.7T2022₩552.5B₩4.7T2023₩606.1B₩4.9T2024₩648.2B₩5.4T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩155.2B	₩1.5T	962.4%
2025Q3	₩168.6B	₩1.5T	876.6%
2025Q4	₩171.9B	₩890.4B	518.0%
2026Q1	₩183.9B	₩1.7T	899.1%
2026Q2	₩204.6B	₩1.6T	779.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩489.2B	₩4.7T	₩3.6T	—	9.7%	1411.1%
2023	₩552.5B	₩4.7T	₩3.4T	—	8.7%	1373.1%
2024	₩606.1B	₩4.9T	₩3.7T	—	8.8%	1363.7%
2025	₩648.2B	₩5.4T	₩4T	—	9.0%	1377.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On disclosed figures, 2025 operating profit was KRW 5.351 trillion and owner-attributable net profit KRW 4.003 trillion, the first time group net profit cleared the KRW 4 trillion line.

Over four years operating profit rose gradually from KRW 4.688 trillion in 2022 to KRW 4.693 trillion in 2023, KRW 4.855 trillion in 2024 and KRW 5.351 trillion in 2025, while owner-attributable net profit dipped from KRW 3.571 trillion in 2022 to KRW 3.422 trillion in 2023 before rising for two consecutive years to KRW 3.739 trillion and KRW 4.003 trillion.

The top line labelled insurance revenue was KRW 648.2 billion in 2025 against KRW 489.2 billion in 2022, but it captures only insurance-related revenue and should not be read as group-wide revenue.

Quarterly, operating profit and net profit moved from KRW 1.493 trillion and KRW 1.173 trillion in 2Q25 and KRW 1.478 trillion and KRW 1.132 trillion in 3Q25 to a trough of KRW 890.4 billion and KRW 569.4 billion in 4Q25, then recovered to KRW 1.654 trillion and KRW 1.210 trillion in 1Q26 and KRW 1.594 trillion and KRW 1.193 trillion in 2Q26.

Regulatory costs sat behind the fourth-quarter dip: one-off costs were booked as provisions, and Hana Bank disclosed KRW 113.7 billion of provisions related to the loan-to-value and Hong Kong equity-linked securities fines. The sequential softness in 2Q26 also came mainly from one-offs.

The company said first-half net profit still rose 4.4% year on year despite large one-off costs including KRW 52.4 billion of lower insurance income from upgraded actuarial assumptions, KRW 74.9 billion of corporate rehabilitation provisions and KRW 109.8 billion of FX translation losses.

On margins, Hana Bank's second-quarter net interest margin rose 3 basis points quarter on quarter to 1.61%.

Capital and asset quality were reported at a cumulative first-half credit cost ratio of 0.29%, a CET1 ratio of 13.21% and a total capital ratio of 15.26%, while owner-attributable equity stood at KRW 44.58 trillion at end-2025 with a liabilities-to-equity ratio of 1,377.9%, reflecting how deposits and borrowings are recorded as liabilities in banking.

Operating cash flow swung from positive KRW 25.223 trillion in 2022 to negative KRW 9.622 trillion in 2023, negative KRW 2.452 trillion in 2024 and negative KRW 1.962 trillion in 2025, so a manufacturing-style reading of that line is not appropriate.

Industry analysis

The rate environment for Korean banks changed direction in 2026. Shinhan Securities said that with consecutive domestic policy rate hikes in July and August, the trend of net interest margin improvement remains intact. Credit rating agencies took a more cautious view late last year.

With government household debt caps and mortgage-focused regulation in place, lending was expected to grow under the productive finance drive but aggressive expansion limited by asset quality management, while the possibility of policy rate cuts was flagged as a drag on net interest margins.

On the ground, lending conditions have been tightening.

Based on Korea Federation of Banks disclosures, the average July rate on newly extended amortising mortgages at the five major banks was 4.498%, up from 4.424% the previous month, and Hana Bank temporarily suspended new floating-rate mortgage origination from August 12. Regulatory costs remain an industry-wide burden.

After fines for loan-to-value information exchange were finalised, the Korea Fair Trade Commission sent examination reports on August 6 to 15 firms in the treasury bond primary dealer auction collusion case, including five banks such as KB Kookmin, NongHyup, IBK, Hana and Korea Development Bank, plus ten securities houses.

Competitively, Hana's securities unit profit rebounded quickly in the capital market recovery, and Shinhan Securities assessed that its exposure to the treasury bond case and the profit contribution of its securities affiliate are smaller than at peer banks, supporting high earnings visibility in the second half.

Overall the sector sits where margin improvement from rising rates and pressure from regulation, fines and household lending caps act at the same time.

Outlook

The company's medium-term framework was set out in the Value-up Plan 2.0 announced on July 24, 2026.

The group raised its core profitability target from above 10% to 12%, introduced a shareholder return framework linked to risk-weighted asset growth, decided to manage its CET1 ratio above 13% and use excess capital for shareholder returns, and approved a KRW 250 billion buyback and cancellation during the third quarter together with a quarterly cash dividend.

Dividend policy direction was also specified. Total annual dividends are to grow by at least 10% a year until the payout ratio reaches 40%, and the CET1 management target was changed from a 13.0-13.5% band to above 13%.

The plan also stated a principle of managing risk-weighted assets in line with nominal GDP growth and pursuing qualitative growth centred on capital efficiency. The quarterly cash dividend was set 26.5% higher than a year earlier.

On second-half earnings, Shinhan Securities in a September 2, 2026 note projected third-quarter owner-attributable net profit of KRW 1.3008 trillion, up 14.9% year on year, expected roughly KRW 150 billion of FX translation gains as the won-dollar rate fell more than 160 won during the quarter, and saw the CET1 ratio rising from 13.27% in the second quarter to above 13.5% in the third.

On target prices, Shinhan Securities raised its target to KRW 160,000 from KRW 150,000 on September 2, 2026, maintaining a buy rating and naming the stock its top bank sector pick, and LS Securities said on July 27, 2026 that it lifted its target to KRW 160,000 from KRW 155,000 while maintaining a buy rating.

These are the brokerages' own views, and verifiable execution will show up in third-quarter buyback progress and the year-end dividend decision.

Valuation

PER

9.2×

PBR

0.8×

ROE

9.1%

EPS

₩14,597

BPS

₩168,066

Dividend per share

₩4,105

Hana Financial Group has traded at a price-to-book multiple below one, a feature common across Korean bank shares and the starting point of the value-up debate.

On earnings, owner-attributable net profit dipped once in 2023 and then rose in both 2024 and 2025, showing a profit recovery pattern, while quarters such as 4Q25 and 2Q26 illustrate how regulatory, currency and actuarial one-offs can disturb the quarterly trajectory.

Shareholder returns combine level quarterly dividends with buybacks and cancellations, and Shinhan Securities projected total 2026 shareholder returns of KRW 2.23 trillion for a total payout ratio of 51.0%.

Because dividends are resolved quarterly, the annual payout level can shift with any additional fourth-quarter buyback and the year-end dividend decision.

Market discussion has moved toward the predictability of payout execution rather than earnings persistence alone, and Shinhan Securities said concerns about a quarterly earnings peak-out are limited.

Real-time multiples and dividend metrics shown on the data card move with the share price daily, so they are best read alongside the facts above.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Double-digit core income growth and fee diversification

First-half 2026 core income reached KRW 6.296 trillion, made up of KRW 4.808 trillion of interest income and KRW 1.487 trillion of fee income, up 13% year on year, with fee income rising 37.7% on wealth management and corporate finance growth to lead the earnings improvement.

A broader fee base alongside interest income can be read as an added buffer against earnings volatility. Disclosed results also show quarterly operating profit holding in the KRW 1.5 trillion range, at KRW 1.654 trillion in 1Q26 and KRW 1.594 trillion in 2Q26. On margins, Hana Bank's second-quarter net interest margin rose 3 basis points quarter on quarter to 1.61%.

Rule-based shareholder return framework

The company set a medium-to-long-term total payout target above 50%, introduced a return framework linked to risk-weighted asset growth to improve predictability, decided to manage CET1 above 13% and treat the excess as payout resources, and said risk-weighted asset growth will be kept near nominal GDP growth.

On execution, the board approved a KRW 250 billion buyback and cancellation, lifting cumulative 2026 buybacks to KRW 700 billion. Share cancellation reduces the outstanding share count, working on shareholder value differently from dividends. Tying returns to a capital ratio threshold gives outside observers a checkable metric for follow-through.

Non-bank recovery and a digital asset foothold

Hana Securities recorded KRW 273.1 billion of cumulative first-half 2026 net profit, up 155.7% year on year. With bank earnings shaped by regulation and rates, recovery at the securities, card and capital units broadens the group's profit mix.

On new business, Hana Bank made an equity investment in Dunamu in May 2026, becoming the only commercial bank among Dunamu's strategic investors, and set out a plan to expand its medium-term revenue base by connecting financial infrastructure with the digital asset ecosystem. Media coverage in May 2026 described the investment as being around KRW 1 trillion in scale.

Bear factors

Unresolved fines weigh on capital and payout capacity

On August 6 the Korea Fair Trade Commission sent examination reports to 15 treasury bond primary dealers over alleged auction collusion, with Hana Bank among them, and estimated the affected auction volume at about KRW 76.2 trillion.

Fines are booked as non-operating losses, reducing net profit and, through lower retained earnings, common equity capital, which in turn shrinks lending capacity. Earlier cases are not closed either.

On March 20, 2026 the four major banks filed administrative suits seeking cancellation of the combined KRW 272 billion in fines imposed over loan-to-value information exchange.

Household lending caps and growth constraints

With government household debt caps and tighter mortgage-centred rules in force, lending may grow under the productive finance drive but aggressive expansion is limited by asset quality management. Indeed, Hana Bank temporarily halted new floating-rate mortgage origination from August 12.

When one leg of asset growth is constrained, interest income growth leans more on margins and portfolio reshaping. A rating agency assessed that loan growth across the banking sector would keep slowing as risk asset quality management continues.

Recurring one-off swings in reported profit

In disclosed quarterly data, 4Q25 operating profit was KRW 890.4 billion and owner-attributable net profit KRW 569.4 billion, roughly half the prior quarter, and 2Q26 net profit eased to KRW 1.193 trillion from KRW 1.210 trillion in 1Q26.

Second-quarter one-offs included lower insurance income from changed actuarial assumptions, corporate rehabilitation provisions and FX translation losses on a weaker won.

LS Securities attributed this to about KRW 200 billion of additional losses from large-corporate provisions, actuarial assumption changes and currency moves. Currency effects can reverse when the direction changes, but they also reduce the predictability of quarterly profit.

Risk factors

Regulatory and legal risk

Sanctions related to mis-selling of Hong Kong index-linked equity products remain pending, and the Financial Services Commission is reported to be weighing fines of around KRW 600 billion across five banks.

Market estimates put Hana Bank's related burden at about KRW 166 billion, combining roughly KRW 79 billion for the equity-linked products and KRW 86.9 billion for loan-to-value.

The company has already provisioned part of this, as Hana Bank's CFO explained that for the loan-to-value case a portion was set aside with the coming administrative litigation in mind, while for the equity-linked product fine an appropriate amount was booked given the possibility of reduction since it is not final. If final amounts differ from provisions, additional costs or reversals could follow.

Credit and asset quality risk

The company reported a cumulative first-half credit cost ratio of 0.29%, described as stable. Still, in 2Q26 KRW 74.9 billion of corporate rehabilitation provisions were booked, showing how a single large borrower event can move quarterly profit.

Sector-wide, downward pressure on asset quality indicators centred on vulnerable borrowers is expected to persist, while conservative collateral valuation and pre-emptive provisioning on sole-proprietor loans were cited as supports. Rising rates can also add to borrower repayment burdens.

FX, rate and capital market volatility

Currency moves affect both Hana's profit and its capital ratio.

In the first half of 2026 FX translation losses of KRW 109.8 billion arose as the won weakened, while conversely Shinhan Securities projected about KRW 150 billion of FX translation gains in the third quarter from a stronger won, with the effect also supporting capital ratios and payout expansion and lifting CET1 above 13.5%.

Fee income is likewise tied to capital market conditions, and the same note expected third-quarter fee income to fall slightly from first-half levels given greater capital market and macro volatility. The rate direction may help margins, but funding cost pressure exists at the same time.

What to watch next

Late October 2026
The third-quarter results release should be checked for the direction of net interest margin, the size of the fee income decline and FX translation gains or losses. Shinhan Securities projected KRW 1.3008 trillion of owner-attributable net profit and a CET1 ratio above 13.5% for the quarter, so the gap versus actual figures matters.
During 4Q 2026
Watch for the Korea Fair Trade Commission's decision in the treasury bond auction collusion case and any final fine on the Hong Kong index-linked product mis-selling case. Fines flow through net profit and common equity capital, tying directly into payout capacity.
During 4Q 2026
Check any additional buyback and cancellation decision and the size of the year-end dividend. LS Securities noted that after the KRW 250 billion second-half buyback, a further KRW 200 billion or more of buybacks or an enlarged year-end dividend could be envisaged in the fourth quarter. Whether the 50% annual payout target is actually met will become visible then.
Bank of Korea rate meetings in 4Q 2026
Policy rate decisions and the repricing pace of deposit and loan rates will drive the net interest margin path. Shinhan Securities noted funding cost pressure from rising corporate deposits, so funding costs should be tracked alongside loan growth.
Late January to early February 2027
This is when full-year 2026 results arrive alongside the annual total payout ratio, risk-weighted asset growth management outcome and the final CET1 level. Since the company said it would manage risk-weighted assets near nominal GDP growth, the actual outcome will test the framework's credibility.

Overall view

Hana Financial Group's disclosed owner-attributable net profit moved from KRW 3.571 trillion in 2022 to KRW 3.422 trillion in 2023, KRW 3.739 trillion in 2024 and KRW 4.003 trillion in 2025, a single dip followed by recovery, with operating profit expanding to KRW 5.351 trillion in 2025.

In 2026 the company posted KRW 1.210 trillion of net profit in the first quarter and KRW 1.193 trillion in the second, while first-half core income rose 13% to KRW 6.296 trillion as fee income climbed 37.7%.

On the other side, one-off costs such as actuarial assumption changes, corporate rehabilitation provisions and FX translation losses disturbed quarterly profit in both 4Q25 and 2Q26.

On policy, Value-up Plan 2.0 set a payout target above 50% and a CET1 target above 13%, with a KRW 250 billion third-quarter buyback and cancellation approved.

At the same time, the treasury bond auction collusion case sits at the examination-report stage and sanctions tied to equity-linked securities remain outstanding, leaving uncertainty around capital and payout capacity.

What needs watching is how the rate and currency environment feeds into margins and capital ratios, and whether the announced return framework is executed through fourth-quarter buybacks and the year-end dividend. This report is for information purposes and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.