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Hana Financial Q4'17 net income rises YOY

South Korea's Hana Financial Group Inc. reported a year-over-year rise in net income for the fourth quarter of 2017.

The group posted an increase in 2017 fourth-quarter net income attributable to controlling interests to 495.80 billion South Korean won from 90.39 billion won in the prior-year period.

Net interest income climbed to 1.358 trillion won from 1.184 trillion won, while fee income rose to 523.37 billion won from 456.56 billion won.

General operating income increased to 2.182 trillion won from 1.396 trillion won. Operating income surged to 716.85 billion won from 11.82 billion won.

Net interest margin for the quarter came to 1.95%, up from 1.94% for the prior quarter and 1.80% for the prior-year quarter.

For the 2017 full year, the group reported a year-over-year rise in net income attributable to controlling interests to 2.037 trillion won from 1.330 trillion won. EPS climbed to 6,817 won from 4,421 won.

The S&P Capital IQ consensus GAAP EPS estimate for the 2017 full year was 6,648.43 won, while the normalized EPS estimate was 6,623.06 won.

The group's nonperforming loan ratio clocked in at 0.78% as of Dec. 31, 2017, up from 0.73% at Sept. 30, 2017, but down from 0.92% at Dec. 31, 2016.

As of Dec. 31, 2017, the group's BIS capital adequacy ratio was at 14.97%, up from 14.89% at Sept. 30, 2017, and 14.33% at the end of 2016. Its common equity Tier 1 and Tier 1 ratios for the period were 12.75% and 13.29%, respectively, up from 11.77% and 12.31%, respectively, at the end of 2016.

The group's unit, KEB Hana Bank, reported a year-over-year rise in 2017 fourth-quarter consolidated net income to 590.26 billion won from 111.90 billion won.

The unit's net interest income for the quarter rose to 1.276 trillion won from 1.108 trillion won, while fee income rose to 197.22 billion won from 183.06 billion won.

General operating income increased to 1.912 trillion won from 1.097 trillion won. Operating income climbed to 810.77 billion won from 30.68 billion won.

The bank's net interest margin for the quarter clocked in at 1.53%, up from 1.52% for the prior quarter and 1.38% for the prior-year quarter. Its NPL ratio was 0.73% at the end of 2017, compared to 0.66% at Sept. 30, 2017, and 0.84% at the end of 2016.

For the 2017 full year, KEB Hana Bank posted a year-over-year increase in consolidated net income to 2.104 trillion won, or 1,953 won per share, from 1.373 trillion won, or 1,271 won per share.

The group proposed a final dividend of 1,250 won per share for 2017, up from 2016's final dividend of 800 won per share. The final dividend is subject to shareholder approval.

Including an interim dividend of 300 won per share, the group's total dividend for 2017 came to 1,550 won per share, up from 2016's total dividend of 1,050 won per share.

As of Feb. 1, US$1 was equivalent to 1,071.16 South Korean won.