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SEOUL, Oct. 27 (Yonhap) — Hana Financial Group Inc. reported on Friday that their third-quarter net profit had decreased 15.4 percent year-on-year to 963.4 billion won (US$711.9 million).
The company declared in a regulatory filing that their operating income for the July-September period had declined 19.4 percent compared to the same time period the prior year, with sales dropping 42.8 percent to 17.85 trillion won.
The earnings exceeded market expectations, with the average estimated net profit from analysts being 938.6 billion won according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
In the first three quarters, Hana Financial posted an accumulated net profit of 3 trillion won, up 3.51 percent from the same period in 2019. This was attributed to an increase in both interest and noninterest income, supported by a decrease in costs.
“In addition, the group has set aside an accumulated reserve of over 1.21 trillion won, including 383.2 billion won in the third quarter. This marks a 105 percent increase from the same period last year, indicating the group’s ability to manage potential losses in the future,” it said.
The primary Hana Bank had a Q3 net profit of 929.8 billion won, up 5.91 percent from the same time the year before, due to a surge in noninterest income.
The group said Hana Bank’s noninterest income had reached 575.6 billion won in the first nine months of the year, a 402.5 percent increase from the same time period in 2019, contributing to a 23.3 percent on-year increase in its accumulated net profit to 522.6 billion won.
Hana Securities, however, shifted to a net loss of 48.9 billion won in the third quarter from a net profit of 146.3 billion won a year earlier.
The corporate logo of Hana Financial Group Inc. (Yonhap)
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