Financial Results
Hana Financial Group achieved laudable performance in 2011. Operating income and consolidated net income increased 27.08% and 22.78% yoy, respectively, while profitability indices including ROA, ROE, and EPS improved compared to the previous year. As a result of the business expansion, however, the C/I ratio increased 2.81% points.
HFG improved the quality as well as the quantity of its total assets. Boosted by increased loans at Hana Bank, the flagship subsidiary of the Group, and improved sales in credit card and real estate finance operations, HFG's total assets grew 11.49% over the course of 2011. Though the balance of the Group's beneficiary certificates decreased due to a growing preference for safety among investors, total sales rose 2.54% thanks to a jump in deposits taken. Credit card membership increased 9.48% to 4,540,000.
HFG's asset quality indices all improved as well. The NPL ratio decreased 0.48% points to 1.12% while the NPL coverage ratio soared 42.43% points to 148.92%, with loans to creditworthy borrowers making up most of the increase in total loans. Hana Bank's delinquency ratio also decreased, to 0.48%, reflecting the Bank's successful risk management efforts. HFG reached 13.22% in BIS ratio and 9.43% in Tier 1 ratio, representing sound capital adequacy, and correspoing indices at the Group's subsidiaries hovered above government-set requirements.
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