Hana Financial Group Fee Income Surges 22.7% in Second Quarter
Asset management and M&A advisory fees drove group fee income to 819.6 billion won in the second quarter.
Hana Financial Group (HANA), a leading South Korean financial holding company, reported a 22.7% quarterly increase in group fee income for the second quarter of 2026, reaching 819.6 billion won. The growth was led by a 29.7% quarterly rise in asset management fees and a 222.9% surge in M&A advisory fees.
Net interest income for the first half of 2026 increased 7.1% year-over-year. While the second quarter saw a decline due to a non-operating accounting effect related to the variable insurance business at Hana Life, NII increased 3.6% quarterly when excluding that effect. Group net interest margin expanded 6 basis points quarterly, supported by a 3 basis point increase in Bank NIM from portfolio optimization and improved Card NIM on higher purchase volumes.
Loan and deposit volumes trended higher during the period. KRW loans grew 2.6% quarterly in the second quarter, supported by funding for large corporates, SMEs, and mortgage loans. Bank KRW deposits grew 3.1% quarterly, with core deposits increasing 3.6% and MMDA declining 6.8%.
Performance diverged across the group's subsidiaries. Hana Securities net income grew 64.4% quarterly to 169.8 billion won. Conversely, Hana Life net income declined 97.2% quarterly to 0.2 billion won. Group G&A expenses rose 7.7% quarterly to 1,290.7 billion won, primarily due to higher performance-based compensation at Hana Securities. The group's cost-to-income ratio remained stable at 38.8%.
Credit quality metrics showed mixed movement. The group delinquency ratio declined 2 basis points quarterly to 0.59%. However, the group NPL ratio increased 13 basis points quarterly to 0.93%, and the NPL coverage ratio declined 9.2 percentage points quarterly to 86.4%.
Capital levels and shareholder returns shifted as the group managed its balance sheet. The CET1 ratio declined 2 basis points quarterly to 13.21%, impacted by an 11 basis point reduction from the Dunamu equity investment and RWA pressure from KRW weakness. The group approved a cash dividend of 1,155 won per share, a 26.5% increase year-over-year, and announced an additional 250 billion won share buyback for the third quarter.