[THE INVESTOR] Hana Financial Group announced on Feb.1 that it has recorded a record high net profit in 2018 on the back of solid interest income.
Net profit of the major Korean banking group stood at 2.24 trillion won (US$2.02 billion) on a consolidated basis, up 10 percent from a year earlier. It marks the largest amount since its establishment in 2005.
Hana Financial’s interest income and earnings from commission fees surged 10.5 percent on-year to 744.3 billion won last year, which also was a record high. The net interest margin, a key barometer of profitability, stood at 1.85 percent.
Flagship KEB Hana Bank posted a net profit of 2.09 trillion won last year, down 0.5 percent on year, it said.
The country’s third-most-profitable financial group after KB Financial and Shinhan Financial is expected to see higher results this year.
“This year, Hana Financial’s net interest margin is estimated to grow 1 basis point and loans by 3.7 percent to 4 percent. Net profit is forecast to grow 8 percent to 2.42 trillion won,” said Kim Soohyun, an analyst with Shinhan Investment.
Shares of Hana Financial rose more than 4 percent in morning trade following the news.
By Park Ga-young (email@example.com)