Hana Financial Group reports 3.63 trillion won net in 2022

Hana Financial Group Chairman Ham Young-joo speaks at an event attended by the company employees on the company’s core strategies at a hall in central Seoul on Jan. 29. [NEWS1]

Hana Financial Group reported a record net profit last year on improved earnings from interest and foreign exchange.

The company reported 3.63 trillion won ($2.88 billion) in net profit in 2022, up 2.8 percent on year, according to its consolidated preliminary earnings on Thursday.

Though a record high, the figure missed the 3.71 trillion won FnGuide consensus.

Hana Financial Group said corporate financing and trading in foreign exchange contributed to the firm’s growth in net profit, despite the additional reserving for bad debts amid internal and external economic uncertainties.

It reserved 1.11 trillion won last year.

Interest and fee income was 10.66 trillion won, up 14.7 percent on year. The company’s net interest margin was 1.96 percent in the fourth quarter.

Profit from trading foreign exchange jumped 1,246.7 percent on year to 516.1 billion won, while commissions for foreign exchange increased 37.0 percent to 207.1 billion won.

As part of the effort to raise shareholder value, Hana will buy back 150 billion won of shares and cancel them this year.

Hana Bank reported 3.17 trillion won in net profit last year, up 23.3 percent on year. Its total assets as of the end of last year grew 13.1 percent on year to 566 trillion won.

Hana Securities reported 126 billion won in net profit in the same period, down 75 percent on year. The company cited a weak securities market and reduced liquidity as the reasons for the major fall.

Hana Capital raised 298.3 billion won in net profit last year, and Hana Card 192 billion won.

Hana Financial Group announced a 3,350 won dividend, including the 800 won interim dividend.

Hana Financial Group said it will provide financial support for the socially vulnerable and implement programs to achieve shared growth with the community.

Hana was the last among the four major financial holding firms, including KB, Shinhan and Woori, to report the earnings for last year. Shinhan reported 4.64 trillion won in net profit and KB 4.41 trillion won.

Combined, the four financial firms reported 15.85 trillion won in net profit last year.

Banks have been pressured by the financial regulators to share the record earnings they raised from the rise of interest rate, saying their service has the characteristic of a “public good” and have the privileged position of oligopoly.

BY JIN MIN-JI [jin.minji@joongang.co.kr]