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Hana Financial Group swings to Q4 profit

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Hana Financial Group swings to Q4 profit

Hana Financial Group Inc. on Jan. 24 posted consolidated net income attributable to equity holders of 105.00 billion South Korean won for the fourth quarter of 2016, compared to a net loss of 93.90 billion won in the prior-year quarter.

Net interest income for the quarter rose to 1.184 trillion won from 1.150 trillion won, while fee income climbed to 456.8 billion won from 417.5 billion won.

General operating income declined to 1.397 trillion won from 1.663 trillion won. Operating income clocked in at 31.60 billion won, compared to an operating loss of 144.2 billion won in the prior-year period.

Net interest margin for the quarter was 1.80%, down from 1.82% in the prior-year quarter. Credit loss provision declined to 149.00 billion won from 365.00 billion won.

For the full year, the group's net income attributable to equity holders rose 47.9% year over year to 1.345 trillion won from 909.7 billion won. EPS for the year rose to 4,444 won from 2,990 won.

The group's nonperforming loan ratio was 0.92% as of Dec. 31, 2016, down from 1.11% at Sept. 30, 2016, and 1.27% at Dec. 31, 2015.

As of Dec. 31, 2016, the group's BIS capital adequacy ratio was 14.26%, compared to 14.53% in the prior quarter and 13.31% in the prior-year period. Its common equity Tier 1 and Tier 1 ratios for the period were 11.73% and 12.27%, respectively, compared to 9.97% and 10.43%, respectively, in the prior-year period.

The group's unit, KEB Hana Bank, posted consolidated fourth-quarter net income of 126.30 billion won, compared to a net loss of 27.70 billion won in the prior-year quarter.

Net interest income for the quarter fell to 1.108 trillion won from 1.110 trillion won, while fee income rose to 183.10 billion won from 173.20 billion won.

General operating income declined to 1.097 trillion won from 1.441 trillion won. Operating income came to 49.90 billion won, compared to an operating loss of 101.90 billion won in the prior-year period.

Net interest margin for the quarter was 1.38%, down from 1.41% in the prior-year quarter. Credit loss provision fell to 71.00 billion won from 365.00 billion won.

For the full year, the banking unit posted a 229.5% year-over-year rise in net income attributable to equity holders to 1.387 trillion won from 421.00 billion won. EPS rose to 1,285 won from 585 won.

The bank's NPL ratio was 0.84% as of Dec. 31, 2016, down from 1.02% at Sept. 30, 2016, and 1.21% at Dec. 31, 2015.

As of Dec. 31, 2016, the bank's BIS capital adequacy ratio was 16.79%, compared to 16.96% in the prior quarter and 14.65% in the prior-year period. Its common equity Tier 1 and Tier 1 ratios for the period were 13.90% and 14.04%, respectively, compared to 11.37% and 11.48%, respectively, in the prior-year period.

As of Jan. 23, US$1 was equivalent to 1,165.93 South Korean won.