Hana Financial Group: Solid 2Q26 earnings outlook and progressive Value-Up measures to extend valuation recovery; OW

Research evidence excerpt

Hana Financial Group: Solid 2Q26 earnings outlook and progressive Value-Up measures to extend valuation recovery; OW

J P M O R G A N Asia Pacific Equity Research

08 July 2026

Hana Financial Group Overweight

086790.KS, 086790 KS

Solid 2Q26 earnings outlook and progressive Value-Up Price (08 Jul 26):W123,200

measures to extend valuation recovery; OW ▲Price Target (Jun-27):W180,000 Prior (Jun-27):W165,000

Hana is likely to deliver a solid net profit of W1.2T, broadly in line with Street

estimates, supported by (1) sharper NIM expansion ( ~4bps) with steady loan Diversified Banks

growth; (2) non-bank earnings recovery with strengthened fee income; and (3) Jihyun Cho AC

well-contained credit costs to more than offset Joongang Group-related provisions (82-2) 758-5480

despite FX headwinds. With resilient results, investor focus should shift to its jihyun.cho@jpmorgan.com

shareholder return policy. We are also looking for an upcoming update on the Tae Wook Kim

Value-Up plan, potentially introducing a formula-based TSR framework and (82-2) 758-5719

taewook.kim@jpmorgan.com

refreshed operating targets to lift ROE ahead. Under the new return formula, Hana J.P. Morgan Securities (Far East) Limited, Seoul

is likely to conduct an additional share buyback/cancellation program (JPMe Branch

~W600bn) after completing the W400bn program in 1H26, targeting 50% TSR in

2026E (from 47% in 2025). Overall, we see balanced earnings across the interest

Key Changes (FYE Dec)

and non-interest lines and view its efforts to improve visibility on the operating

Prev Cur Δ

outlook and shareholder returns as positive. We adjust up our earnings estimates Adj. EPS - 26E (W) 16,224 16,827 3.7%

and raise our PT to W180K on sustainable ROE trending up. At 0.7x 12MF P/B (vs