Hana Financial Group's headquarters in central Seoul (Hana Financial Group)
Hana Financial Group's headquarters in central Seoul (Hana Financial Group)

Hana Financial Group said Friday its annual net profit exceeded 4 trillion won ($2.8 billion) for the first time in 2025, driven by strong noninterest income growth across its affiliates.

The group's cumulative net profit reached record high of 4,002.9 billion won in 2025, up 7.1 percent from a year earlier. The figure was largely in line with market expectations.

Hana Financial has become the third financial holding firm here to hit the 4 trillion won mark, following KB Financial Group and Shinhan Financial Group.

Its fourth-quarter profit rose 11 percent on-year to 569.4 billion won.

The group attributed the robust earnings to a sharp rise in noninterest income, which climbed 14.9 percent on-year to 2.21 trillion won. Trading performance related to securities and foreign-exchange derivatives improved, it explained.

Net interest income and fee income, key sources of profit for the group, came in at 9.16 trillion won and 2.23 trillion won, respectively, totaling 11.39 trillion won, marking a 5.2 percent increase on-year.

The group's flagship Hana Bank logged 3.74 trillion won in net profit for the year, up 11.7 percent from 2024, similarly buoyed mainly by noninterest income, including trading and valuation income, setting a new high.

With record-high earnings, Hana Financial declared a year-end dividend of 1,366 won per share. Combined with the previously paid quarterly dividends of 2,739 won per share, the total dividend for the year amounts to 4,105 won per share, up 505 won from a year earlier, costing the group 1.12 trillion won in total.

Including a treasury share buyback worth 754.1 billion won, total shareholder returns for the year amounted to 1.87 trillion won.

The group's estimated common equity Tier 1 ratio, which underpins shareholder returns, stood at 13.37 percent at the end of last year, remaining stably within the target range of 13 to 13.5 percent.

"By carrying out a record-high 1.87 trillion won in shareholder returns last year, we are taking the lead in shaping the 'Korea premium,'" an official at Hana Financial said.

"The move aligns with the government's stance to enhance shareholder value and is expected to broaden the shareholder base by attracting more retail investors, while also improving trading dynamics."

During the first half of this year, the group plans to buy back and cancel 400 billion won of treasury shares to enhance shareholder value.


silverstar@heraldcorp.com