Finance giant to repurchase largest-ever 400 billion won in treasury shares to boost shareholders' return

Hana Financial Group headquarters in Myeong-dong, central Seoul. (Hana Financial Group)
Hana Financial Group headquarters in Myeong-dong, central Seoul. (Hana Financial Group)

Hana Financial Group on Tuesday reported a record net profit of 3.74 trillion won ($2.56 billion) in 2024, marking an increase of 317.1 billion won, or 9.3 percent from the previous year. The figure includes a fourth-quarter net profit of 513.5 billion won.

The group attributed its strong performance to an expanding customer base, higher fee income from a diversified revenue portfolio and proactive risk management. It also emphasized that these results were achieved despite market uncertainty, declining interest income from falling rates and a 211.9 billion won foreign exchange translation loss due to a weaker won.

Hana Financial’s core income, combining 8.76 trillion won in interest income and 2.7 trillion won in commission income, totaled 10.83 trillion won. Commission income rose 15.2 percent on-year, significantly driving the group’s earnings.

Key profitability metrics, return on equity and return on assets, stood at 9.12 percent and 0.61 percent, respectively. The Common Equity Tier 1 ratio, a measure of financial stability, came in at 13.13 percent, aligning with the group's target range of 13 to 13.5 percent.

The company added its board approved a year-end cash dividend of 1,800 won per share, bringing the total dividend per common share for 2024 to 3,600 won -- an increase of 200 won, or 5.9 percent, from the prior year. The total shareholder return ratio rose 4.8 percentage points on-year to 37.8 percent.

To further enhance shareholder returns, the board approved a 400 billion won share buyback and cancellation, the largest in the group’s history.

"This reflects the board and management’s strong commitment to executing the ‘Value-Up’ plan announced in October, backed by the group’s solid fundamentals," the company stated.

Under the plan, Hana Financial aims to increase shareholder returns to 50 percent by 2027 through improved earnings per share and higher dividends while maintaining a return on equity above 10 percent.

Among its key subsidiaries, Hana Bank posted an annual net profit of 3.34 trillion won, including 575.6 billion won in the fourth quarter.