Last year, Hana Financial Group Inc. beat the market consensus in its 2021 results, as like other Korean financial groups, interest income increased due to rising interest rates and the stock market frenzy and will share a portion of the returns with shareholders through a dividend and stock withdrawal program.
The major financial conglomerate said in its regulatory filing on Thursday that its consolidated net profit for the fourth quarter ended December 2021 fell 9.1% quarter-on-quarter but jumped 58.5% year-on-year to 844.5 billion won ($74.3 million). Operating profit was 1.1 trillion won, down 2.4 percent from the previous quarter but up 17.7 percent from the same period a year earlier. Revenue fell 42.9% in the quarter and 48.8% year on year to 7.6 trillion won.
For the whole of 2021, operating profit was 4.63 trillion won, up 20.7% year on year. Revenue fell 13.6 percent year on year to 41.67 trillion won, but its net income rose 33.7 percent year on year to 3.53 trillion won over the same period. The net result surprised the market, beating Yonhap Infomax’s estimate of 3.29 trillion won and surpassing the 3 trillion won mark for the first time since its inception.
Its biggest rivals Shinhan and KB Financial had raked in more than 4 trillion won in net income last year. Woori also did her best. The combined net profit of Hana Financial Group, KB Financial Group, Shinhan Financial Group and Woori Financial Group rose 34.5% year on year to reach 14.5 trillion won in 2021.
Shares of Hana Financial Group closed at 51,200 won, up 5.35% on Friday.
The main driver of Hana Financial Group’s strong performance was also higher fee income on the equity investment boom and higher interest income from improved net interest rate margin. higher loans.
Hana Financial Group’s interest income rose 15.5% year on year to 7.4 trillion won on higher fee income and interest income.
Flagship Hana Bank saw its interest income and fee income rise 14.1 percent year on year to 6.8 trillion won. Its net profit thus increased by 27.9% to 2.5 trillion won on sales of 30.1 trillion won, up 16.2%.
Hana Financial Investment, the brokerage subsidiary of Hana Financial Group, also posted a net profit of 506.6 billion won, up 23.3 percent due to an increase in individual stock market investments.
Thanks to the good performance of non-banking units, the share of net profit of other non-banking subsidiaries fell from 34.3% in 2020 to 35.7% last year.
Hana Financial Group’s board of directors approved the payment of a cash dividend of 2,400 won per share as part of its shareholder return policy. The total cash dividend payment per share, including the 700 won per share interim dividend, which has already been rewarded, is 3,100 won.
Hana Bank announced during its conference call on Thursday that it will eventually increase its annual dividend payout ratio to 30% and that it will consider a plan to withdraw some of its own shares. Its dividend payout ratio fell to the 20% level in the face of the pandemic, and this year’s ratio is expected to reach 26%.
He currently owns about 300 billion won of treasury stock, or about 8.7 million shares.
By Susan Lee
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]