What Happened?

On July 25, 2025, Hana Financial Group announced its corporate value enhancement plan. Key elements include strengthening shareholder returns, improving ROE and CET1 ratio, adapting to changing market conditions, enhancing corporate governance, and strengthening ESG management.

Key Analysis

  • Shareholder Returns: The plan proposes increasing dividends to KRW 600 in 2024 and KRW 620 in 2025. However, the declining ROE trend raises concerns about the sustainability of these increases.
  • ROE Improvement: ROE has significantly decreased from 25.86% in 2022 to 14.27% in 2024. Potential interest rate cuts and an economic slowdown may hinder ROE improvement.
  • Market Adaptation: While the plan mentions adapting to changing market conditions, it lacks specific details. The company’s strategies for navigating interest rate cuts, economic slowdown, and geopolitical risks will significantly impact its stock price.

Impact on Investors

While the value enhancement plan appears positive, considering Q1 2025 earnings and current market conditions, investors should proceed with caution. Key factors to consider include:

  • Hana Financial Group’s strategy for navigating the interest rate cut cycle
  • Risk management related to the real estate market downturn
  • Proactive response to geopolitical uncertainties

Investment Action Plan

Investing in Hana Financial Group requires careful consideration. Obtaining additional information, particularly detailed subsidiary performance and specific market response strategies, is crucial before making investment decisions. Given the current downside risks, a thorough analysis is essential.