What Happened?
On July 25, 2025, Hana Financial Group announced a cash dividend of 913 KRW per share (based on the current price of 100,356 KRW, yielding 1.0%) for Q2 2025, to be paid on August 29.
Why the Dividend?
In Q1 2025, Hana Financial Group achieved a net income of 1.1277 trillion KRW, a 9.1% increase year-over-year. Increased interest and fee income, coupled with efficient cost management, were the main drivers of this improved performance. This dividend is likely a result of these positive earnings and a way to return profits to shareholders.
What Should Investors Do?
Short-Term Investment Strategy
Purchasing shares before the ex-dividend date (August 11) may lead to short-term gains, but there’s a high probability of a price drop after. Considering the low dividend yield, macroeconomic uncertainties, the possibility of interest rate cuts, and concerns about asset quality deterioration, caution is advised for short-term investments.
Long-Term Investment Strategy
Long-term investment hinges on Hana Financial Group’s fundamental improvements, its adaptability to changing macroeconomic conditions, successful asset quality management, and the effectiveness of its digital transformation strategy. Reversing the current downward trend in ROE and net profit margin is key to long-term share price appreciation. Comparing Hana Financial Group with its competitors is also crucial to assessing its relative competitiveness. Investors should continuously monitor changes in macroeconomic indicators, such as US base interest rates, international oil prices, and commodity prices, and incorporate them into their investment strategies.