1. HFG Q2 Earnings: What Happened?

HFG reported revenue of KRW 239.779 trillion, operating profit of KRW 14.933 trillion, and net profit of KRW 11.733 trillion for Q2 2025. Despite exceeding market expectations for net profit, growth remained marginal compared to the previous quarter.

2. Key Factors Influencing Performance

2.1 Sluggish Growth Compared to Q1
While revenue increased compared to Q1, operating and net profit saw only marginal gains. This suggests the continued impact of market volatility and economic slowdown observed in the previous quarter. The performance of Hana Non-life Insurance and Hana Savings Bank will be crucial to watch.

2.2 Mixed Bag of Macroeconomic Factors
Several macroeconomic factors played a role, including volatility in the KRW/USD and KRW/EUR exchange rates, declining oil prices, delayed US interest rate hikes, and rising gold prices. The drop in oil prices may have negatively impacted HFG’s commodity-linked loan portfolio. Conversely, the rise in gold prices likely benefited sales of gold-related investment products.

3. What’s Next for HFG?

HFG’s future performance hinges on factors such as US interest rate movements, the global economic outlook, and the recovery of its subsidiaries. Investors should review the final earnings report for detailed information and continue monitoring economic indicators to adjust their investment strategies.

4. Investor Action Plan

  • Review the final earnings report: Analyze subsidiary performance and risk factors.
  • Monitor Economic Indicators: Keep an eye on US interest rate changes and the global economic situation.
  • Maintain a Long-Term Perspective: Develop an investment strategy resilient to short-term market fluctuations.