Hana Financial Group: One-off provisions weigh on earnings; new value-up plan supports shareholder returns

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Hana Financial Group: One-off provisions weigh on earnings; new value-up plan supports shareholder returns

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Hana Financial Group

One-off provisions weigh on earnings; new

value-up plan supports shareholder returns

Reiterate Rating: BUY | PO: 165,000 KRW | Price: 130,800 KRW

Earnings miss vs. our estimate on higher credit costs 24 July 2026

Hana reported 2Q26 net profit of W1,193bn, up 1.7% YoY but down 1.4% QoQ, missing Equity

both Bloomberg consensus of W1,266bn and our estimate of W1,299bn. The miss vs.

our estimate was primarily driven by higher-than-expected credit costs, reflecting a one-

Key Changesoff provision related to JoongAng Group exposure. While net interest income came in

below our estimate—despite a 5bp QoQ improvement in NIM and solid loan growth (W) Previous Current

during the quarter—non-interest income exceeded expectations, largely due to 2026E EPS 16,861.61 15,742.03

accounting reclassifications within the insurance subsidiary's variable insurance account. 2027E EPS 17,853.54 17,705.25

That said, excluding this effect, we view the top line as broadly in line with our 2028E EPS 19,623.19 19,354.58

expectations. Hana reported a CET1 ratio of 13.21% as of end-June and announced a

W250bn share buyback and cancellation for 3Q26. We reiterate our Buy rating. Jisun Lee >>

Research Analyst

Merrill Lynch (Seoul)

+82 2 3707 0418Announces updated Value-up plan jisun.lee@bofa.com

Hana also introduced a new shareholder return framework based on the formula 1 − Simon Woo, CFA >>

(RWA growth/RoE), under which shareholder returns increase as RoE improves. Research Analyst

Management mentioned RoE as a key metric and raised its mid-term RoE target to 12% Merrill Lynch (Seoul) +82 2 3707 0554