Hana Financial Group posted its highest-ever nine-month net profit this year, lifted by higher interest income and expanding fee revenue. Woori Financial Group also booked more than 1 trillion won in quarterly net profit for a second straight quarter, helped by a recovery in corporate lending and improved earnings at its non-banking units.
Hana Financial said on the 23rd that third-quarter net profit rose 7.9% from a year earlier to 1.2214 trillion won ($853 million). Cumulative net profit for the first nine months reached 3.6243 trillion won, a record for the period.
Interest income drove the increase. Third-quarter interest income climbed 16.7% from a year earlier to 2.6749 trillion won. The gain reflected growth in loan assets, led by corporate lending, as well as accounting effects from the transfer of variable insurance accounts at Hana Life.
Both interest and non-interest income improved over the nine-month period. Fee income rose 29.8% for the nine months as wealth management and investment banking lifted commission revenue. Core earnings, combining interest and fee income, grew 14.2% to 9.626 trillion won.
Hana Bank, the group's main subsidiary, reported third-quarter net profit of 1.1946 trillion won, up 14% from a year earlier, on higher fee income from retirement pensions and foreign exchange services. Hana Securities posted 10.3 billion won, Hana Card 49.4 billion won and Hana Capital 40.1 billion won in third-quarter net profit.
Hana Financial's common equity Tier 1 ratio stood at 13.45% in the third quarter, while its capital adequacy ratio under Bank for International Settlements standards was 15.45%. The group's board resolved the same day to buy back and cancel 250 billion won worth of shares and pay a quarterly cash dividend of 1,165 won per share as part of its shareholder return program. Including the 699 billion won in buybacks completed through the third quarter, total share repurchases and cancellations for the year amount to 949 billion won, the largest on record. A Hana Financial official said the group will press ahead without wavering on the Corporate Value-Up Plan 2.0 announced in July.
Woori Financial Group, which reported results the same day, posted third-quarter net profit of 1.0492 trillion won. Excluding a one-off bargain purchase gain recognized during its acquisition of an insurer last year, net profit rose 18.7% from a year earlier. Cumulative net profit came to 2.6581 trillion won.
Loan growth centered on corporate finance and broad-based gains at non-banking units drove the strong results. Third-quarter interest income rose 7.2% from a year earlier to 2.3762 trillion won. Non-interest income increased 4.4% to 581.4 billion won. Fee income grew 9.9%, helped by expanded business in wealth management and corporate and investment banking. The addition of the insurance unit also contributed to the improvement. Net operating revenue for the nine months hit a record 8.6803 trillion won.
Among subsidiaries, Woori Bank (000030) earned 1.0276 trillion won in the third quarter, a record quarterly performance. Woori Financial's third-quarter CET1 ratio improved to 13.80% from 13.72% in the previous quarter. The group also plans to pay a quarterly dividend of 220 won per share. A Woori Financial official said the group is currently the only banking holding company in South Korea that continues to pay tax-exempt dividends.