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Hana Financial Q2 net up 73.6 pct

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(Globalpost/GlobalPost)

By Lee Minji

SEOUL, July 18 (Yonhap) -- Hana Financial Group Inc., the country's third-largest banking group, said Friday its second-quarter net profit soared 73.6 percent on-year on an increased interest income and strengthened won.

Net profit reached 425.7 billion won (US$413.5 million) in the April-June period, compared with 245.3 billion won in the previous year, the group said in a regulatory filing.

Compared with three months earlier, the group's bottom line more than doubled from 207.9 billion won.

On a cumulative basis, its net profit for the first half gained 13.7 percent to 633.6 billion won.

The on-year increase in the second quarter was credited to a 94.9 billion won rise in interest income and 9.1 billion won gain in service fee profit, the financial group said in a separate press release.

The group's net interest margin (NIM), a measure of profitability, came in at 1.93 percent in the second quarter, inching up 0.02 percentage point from the previous quarter.

Stronger won also helped shore up the group's bottom line, it noted. In the second quarter, the Korean won appreciated 5.2 percent against the U.S. dollar.

Hana Bank, the group's flagship bank unit, saw its net profit for the first half jump 61.5 percent on-year to 556.2 billion won on an increase in its loan portfolio. The lender's NIM added 0.03 percentage point to 1.5 percent.

The group's other bank unit Korea Exchange Bank logged a first-half net profit of 319.5 billion won, up 63.4 percent from the previous year.

The stronger bottom line was driven by an increased loan portfolio and investment gains from SK hynix Inc. shares, according to the group. Its NIM slipped 0.03 percentage point to 2.04 percent.

The financial group's assets totaled 393.6 trillion won as of end-June, growing 10.4 trillion won from the previous quarter.

Shares of Hana Financial closed down 0.92 percent at 37,500 won. The benchmark Korea Composite Stock Price Index, or the KOSPI, dipped 0.07 percent to end at 2,019.42 points.

The earnings were announced after the market closed.

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