Hana Financial Group, a major South Korean banking group, said Friday its first-quarter net profit fell 16.8 percent on-year, hit by one-off costs related to severance payments.
Net profit stood at 556 billion won ($489 million) for the January-March period, compared with a profit of 668.6 billion won a year earlier, Hana Financial said in a statement.
Hana Financial said it spent 126 billion won in severance payments in February, when it cut 241 jobs.
Its interest income and earnings from commission fees rose 2.6 percent on-year to 1.9 trillion won for the quarter. Hana Financial said its net interest margin, a key barometer of profitability, fell 0.05 percentage point to 1.8 percent at the end of March.
Flagship KEB Hana Bank posted a net profit of 479.9 billion won for the first quarter, down 24.1 percent from a year earlier.
KEB Hana Bank‘s interest income and revenue from commission fees gained 4.3 percent on-year to 1.5 trillion won for the first quarter, Hana Financial said. (Yonhap)