1. The Share Buyback: What Happened?

Hana Financial Group has decided to repurchase and retire 2,197,802 shares (approximately KRW 200 billion) of its own stock through open market purchases. This represents 0.77% of the company’s market capitalization.

2. Why the Buyback?

Share buybacks are a common method of returning value to shareholders. By reducing the number of outstanding shares, earnings per share (EPS) increase, and the scarcity of shares can drive up the stock price.

3. The Impact on Stock Price: What to Expect?

Share buybacks generally have a positive impact on stock prices. However, the relatively small size of this buyback relative to market capitalization, coupled with current macroeconomic uncertainties (high interest rates, exchange rate volatility, and concerns about economic slowdown), could limit the extent of any price increase. Hana Financial Group’s Q1 2025 earnings were positive, showing a 9.1% year-over-year increase to KRW 1.1277 trillion, but the sustainability of this performance requires further analysis. While the banking sector showed robust growth, the securities sector experienced a decline in profits due to market volatility. The card sector faces concerns about weakening consumer sentiment despite platform growth, while the capital sector continues to perform well.

4. What Should Investors Do?

Before making any investment decisions, investors should review the 2024 annual report to assess the sustainability of Q1 2025 earnings and carefully analyze the performance and risk factors of each business segment. It is also crucial to monitor macroeconomic variables (exchange rates, interest rates, and international oil prices) and evaluate Hana Financial Group’s risk management strategies.