Hana Financial Q1 2021 net income beats analyst forecasts with a 27% year-on-year rise to KRW834.4bn ($750.4m).
The Hana Financial Q1 2021 earnings are notable for solid net interest income. Specifically, Hana’s net interest income is ahead by 6.1% from the prior quarter mostly led by a decrease in funding cost.
Go deeper with GlobalData
The bank’s net interest margin of 1.61% is up from 1.55% but inches down 2 basis points year-on-year.
At the same time, the bank posts strong fee income growth. This is thanks to greater revenues from non-bank subsidiaries.
Hana Q1 2021: record fee income despite Covid
Indeed, Hana reports record fee income for the first quarter, despite the pandemic, up by 17.3% y-o-y.
Hana is successfully stabilising credit costs, driven by pre-emptive pandemic-related provisioning.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe group NPL ratio and delinquency ratios both move in the right direction y-o-y. The group NPL ratio falls by 7 basis points with the delinquency ratio down 1 basis point to 0.30%.
Within the group, Hana Bank net income rises by 3.8% y-o-y to KRW575.5bn. Meantime, net income at Hana Card rises by 139% to KRW72.5bn.
Group total assets are ahead by 8.8% to KRW615.3bn. At Hana Bank, total loans are up by 9.7% with deposits up by 8.3% y-o-y.
Digital banking highlights
Hana ends the first quarter with just over 12 million mobile banking subscribers, up 8% y-o-y. The bank also reports strong digital inclusion metrics for key sales. For example, 86.9% of all unsecured loans are now sold digitally. Corresponding digital sales metrics for time/instalment deposits and funds management are 70.7% and 92.8% respectively.
At group level, the bank ends the first quarter with a CET1Ratio of 16.36% up from 14.2% in the prior quarter. This is partly due to implementation of the final Basel III regulations.
Of the six major South Korean banks, Hana ranks the fourth-largest by assets. It slots in behind KB Financial, Shinhan and Nonghyup Bank and ahead of Woori and Industrial Bank of Korea.
