[라이센스뉴스 정재혁 기자] Hana Financial Group (Chairman Jeong-Tae Kim) announced on the 5th that it achieved a consolidated net income of 2.63 trillion won last year. This is the highest performance since the establishment of the holding company in 2005. Net profit in the fourth quarter of last year was 5328 billion won.
An official from Hana Financial said, “This is an increase of 10.3% (245.7 billion KRW) compared to the previous year. Despite the recognition of preemptive provisions for the aftermath of Corona 19, private equity expenses, and one-off expenses due to special retirement, It is a result of the advancement of the non-banking sector and diversification of portfolios and sales channels.”
The group’s core income, which combined interest income (5,8143 billion won) and commission income (2,255.7 billion won), increased 1.8% (145.4 billion won) over the previous year to 870 trillion won.
The group’s buffering capacity was sufficiently secured at 8473 billion won in 2020, including the accumulation of 2769 billion won in transfers such as provision for bad debts during the fourth quarter.
In particular, in the fourth quarter following the last three quarters, an additional provision for bad debt related to COVID-19 was accumulated of 108.2 billion won, accumulating 337.7 billion won. Recognized KRW billion.
At the end of 2020, the Group’s ratio of NPLs (NPL ratio) improved by 8bp (1bp=0.01%) from the previous year to 0.40%, and the delinquency rate was 0.26%, down 4bp from the end of the previous year.
Despite the special retirement, the group’s sales and management expenses decreased by 4.6% (189.4 billion won) from the previous year thanks to the group’s overall cost reduction efforts. The operating income expense ratio (CIR) also fell 5.3%p year-on-year to 45.3%, improving cost efficiency.
ROE and ROA, which are key indicators of management efficiency, have also been improved. Return on equity (ROE) rose 24bp year-on-year to 8.96%, and return on assets (ROA) rose 1bp year-on-year to 0.61%.
The group’s BIS ratio estimate rose 23bp year-on-year to 14.18%, while the common stock capital ratio estimate rose 7bp year-on-year to 12.03%. When Basel III is introduced in March, the capital ratio is expected to rise significantly.
The group’s net interest margin (NIM) for the fourth quarter is 1.54%, and the group’s total assets including trust assets of 133 trillion won as of the end of 2020 are 593 trillion won.
In terms of performance by affiliates, Hana Bank achieved an annual consolidated net profit of 2,101 billion won in 2020, including 355.7 billion won in the fourth quarter of 2020. This is a decrease of 6.1% (129.7 billion won) from the previous year, and it is analyzed that it was due to the low interest rate and the unfavorable business environment caused by Corona 19.
In addition, last year’s performance by non-bank affiliates was ▲Hana Financial Investment KRW 4109 billion (up 46.6% year-on-year) ▲ Hana Capital KRW 177.2 billion (up 6.45%) ▲ Hana Card KRW 155.4 billion (up 174.4%) ▲ Hana Asset Trust KRW 26.6 billion (up 23.0% ) ▲ Hana Life Insurance is 26.6 billion won (12.3% increase).
Meanwhile, Hana Financial’s board of directors decided to pay a dividend of 1350 won per share (1850 won including interim dividend, 20% dividend payout ratio), taking into account the economic recession and market uncertainty caused by the prolonged COVID-19 outbreak, and the financial authority’s recommendations on dividend payout ratio. Dividend per share in 2020 decreased by 16% compared to 2019.