ID :
45335
Thu, 02/12/2009 - 17:10
Auther :
Shortlink :
https://www.oananews.org//node/45335
The shortlink copeid
Hana Financial Q4 net tumbles 93.6 pct on increased reserves
SEOUL, Feb. 12 (Yonhap) -- Hana Financial Group Inc., South Korea's No. 4
financial services company, said Thursday its fourth-quarter earnings plunged
93.6 percent from a year earlier due to higher loan-loss reserves.
Net profit came to 12.4 billion won (US$8.87 million) in the October-December
period, compared with 192.8 billion won the previous year, the group said in a
regulatory filing. But the group swung to the black from a 73.3 billion won loss
three months earlier, it added.
Sales soared 375 percent on-year to 18.3 trillion won while operating profit
nosedived 96.4 percent to 10.9 billion won, it added.
For all of 2008, the group posted a net profit of 483.5 billion won, down 62.8
percent from 2007, it added.
"The bottom line declined from a year earlier as the group put aside 495.5
billion won last quarter in loan-loss reserves to brace for the slowing economy
and corporate restructuring," an official at the group said. "But compared with
three months earlier, the group swung to the profit on increased interest
income."
Hit by the weaker earnings, shares of Hana Financial Group closed 5.34 percent
lower at 20,400 won on the main bourse.
South Korean lenders have been increasingly wary of providing lending to
households and smaller firms because the slowing economy and the credit crunch
are increasing the amount of bad loans.
As part of a corporate restructuring drive, local banks decided in mid-January to
end support to two ailing companies and reschedule debts at 11 builders and three
shipbuilders.
The group's total assets reached 174.6 trillion won as of the end of December, up
25.6 percent from the previous year, it said.
Hana Bank, the group's flagship unit, logged a net income of 25.7 billion won
last quarter, down 86.1 percent from a year ago.
The banking unit's capital adequacy ratio stood at 13.3 percent as of the end of
December, up from 10.66 percent three months earlier. The banks' net interest
margin (NIM), a key barometer of profitability, came in at 1.93 percent in the
fourth quarter, down from 2 percent in the preceding quarter.
The group said it will pay a dividend of 100 won per common share.
sooyeon@yna.co.kr
(END)
financial services company, said Thursday its fourth-quarter earnings plunged
93.6 percent from a year earlier due to higher loan-loss reserves.
Net profit came to 12.4 billion won (US$8.87 million) in the October-December
period, compared with 192.8 billion won the previous year, the group said in a
regulatory filing. But the group swung to the black from a 73.3 billion won loss
three months earlier, it added.
Sales soared 375 percent on-year to 18.3 trillion won while operating profit
nosedived 96.4 percent to 10.9 billion won, it added.
For all of 2008, the group posted a net profit of 483.5 billion won, down 62.8
percent from 2007, it added.
"The bottom line declined from a year earlier as the group put aside 495.5
billion won last quarter in loan-loss reserves to brace for the slowing economy
and corporate restructuring," an official at the group said. "But compared with
three months earlier, the group swung to the profit on increased interest
income."
Hit by the weaker earnings, shares of Hana Financial Group closed 5.34 percent
lower at 20,400 won on the main bourse.
South Korean lenders have been increasingly wary of providing lending to
households and smaller firms because the slowing economy and the credit crunch
are increasing the amount of bad loans.
As part of a corporate restructuring drive, local banks decided in mid-January to
end support to two ailing companies and reschedule debts at 11 builders and three
shipbuilders.
The group's total assets reached 174.6 trillion won as of the end of December, up
25.6 percent from the previous year, it said.
Hana Bank, the group's flagship unit, logged a net income of 25.7 billion won
last quarter, down 86.1 percent from a year ago.
The banking unit's capital adequacy ratio stood at 13.3 percent as of the end of
December, up from 10.66 percent three months earlier. The banks' net interest
margin (NIM), a key barometer of profitability, came in at 1.93 percent in the
fourth quarter, down from 2 percent in the preceding quarter.
The group said it will pay a dividend of 100 won per common share.
sooyeon@yna.co.kr
(END)
