Hana Financial’s Q2 net down on increased loan-loss reserve

SEOUL– Hana Financial Group Inc., a major financial holding group in South Korea, said Friday its earnings shrank in the second quarter on increased loan-loss reserves.

Consolidated net income came to 847.6 billion won (US$645.5 million) in the April-June period, down 9.14 percent from a year earlier, the company said in a regulatory filing.

Operating profit decreased 11.14 percent on-year to 1.14 trillion won, while revenue more than tripled to 20.9 trillion won.

In the first six months of this year, Hana Financial’s net profit contracted 1.26 percent on-year, to 1.76 trillion won. Its operating income fell 5.1 percent on-year to 2.24 trillion won, while revenue increased 66.62 percent to 34.59 trillion won over the cited period.

The group attributed the fall in its quarterly earnings to increased loan-loss provisions, as well as one-time expenses for special retirement plans.

Hana Bank, the group’s flagship subsidiary, saw its net income swell 4.3 percent on-year to 709.2 billion won in the second quarter, thanks to a steep rise in interest rates. Operating profit grew 1.21 percent and revenue surged 225.86 percent from a year ago.

Hana Financial closed at to 36,150 won on Friday, down 3.34 percent from the previous session’s close.

Source: Yonhap News Agency

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