Hana Financial Group
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This article needs additional citations for verification. (August 2012) |
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| Type | Public (traded on the Korea Stock Exchange) |
|---|---|
| Traded as | KRX: 086790 |
| Founded | 1971 |
| Headquarters | Seoul, South Korea |
| Key people | Kim Jung-Tai, Chairman & CEO |
| Products | Financial Services |
| Employees | 12,380 |
| Website | http://www.hanafn.com/ |
| Summarized Financial Information 2011 | |
|---|---|
| Profitability | |
| Gen. Op. Income Op. Income Consolidated NI ROA ROE EPS(KRW) C/I |
4,436.1B 1,732.4B 1,222.4B 0.76% 9.12% 5,097 47.51% |
| Financial Position | |
| Total Assets Total Equity |
KRW218,623B KRW14,826.6B |
Hana Financial Group[1] (HFG) is one of the largest bank holding companies in Korea.
The company was established in 1971 as Korea Investment & Finance, the nation’s first financial company established, financed with purely private capital. 'Hana' is Korean for "one" or "unity", and its symbol is "ㅎ", the first consonant in 'Hana'.
Hana Bank,[2] Hana Financial Group’s primary banking subsidiary, was converted as a commercial bank in 1991.[3] The subsequent years were characterized by remarkable growth, driven by successful transformational M&As and operational excellence. Hana Bank went through P&A with Chungchong Bank and M&A with Boram Bank in 1998 and acquired Seoul Bank in 2002. In May 2005, it acquired Daehan Investment and Securities, Korea’s second largest asset management company. Also, Hana Financial Group acquired KEB in 2012.
Hana Bank is one of the nation’s leading lenders and has been recognized as one of the best banks in Korea by the international financial press including Euromoney, The Banker, Finance Asia, and others.[citation needed]
In December 2005, through the financial group structure, Hana Financial Group realigned the distribution channel, upgraded customer relationship management system as well as product development systems and capabilities.
Hana Financial Group is in charge of forming group-level business strategies and providing management resources to subsidiaries, including Hana Bank, Korea Exchange Bank, Hana Daetoo Securities, Hana SK Card, Hana HSBC Life Insurance, Hana Capital, Hana Daol Trust, Hana I&S, Hana Institute of Finance, and Hana Savings Bank.
The acquisition of the Korea Exchange Bank (KEB) into the Hana Financial Group reshapes the Korean financial Industry landscape. The acquisition bolsters the Group’s position as Korea’s largest financial institution and equip it with vast domestic distribution channels that are second only to KB. KEB adds its expertise in corporate and global banking as well as its extensive global network to the Group’s overseas network.[citation needed]
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Corporate Timeline [edit]
- In 1990 - No. 1 Underwriter of Corporate Bond
- In 1991 converted to a commercial bank with a nationwide branch Network
- Launched Credit Card Business in 1992
- Korea’s Best Bank Award” by Euro-money in 1993
- Acquisition of Chungchong Bank in 1999
- Merger with Seoul Bank in 2002, becoming Korea’s 3rd largest bank
- Launched Hana Life Insurance in 2003
- Establishment of Financial Holding Company in Dec. 2005 (Chairman & CEO: Seung-Yu Kim)
- Acquisition of Hana Daetoo Securities in May 2005
- Launched PT Bank Hana (Indonesia) in Dec.2007
- Established UBS Asset Management in May 2007
- Established Hana HSBC Life Insurance in Mar 2008
- Reorganized HFG to Matrix Structure in Mar.2008
- Merged Hana Daetoo Securities &Hana IB Securities in Dec. 2008
- Established Hana Credit Card JV with SK Telecom in Dec. 2009 [8]
- Acquisition of Daol Trust in Mar. 2010
- Acquisition of 18.27% share of Bank of Jilin in May 2010
- Signed SPA with Lone Star for KEB share acquisition in Nov 2010
- Signed on MOU with China Merchants Bank in Jan 2011
- Acquisition of 57.27% share of KEB in Feb 2012
Overseas Network [edit]
In early 1990, the group had planned to acquire a 25% equity stake in the California Center Bank (CCB).[4]
Hana Bank established a program called the Hana Overseas Club in 1994 as a means to provide financial services to Korean expatriates living abroad, including those living in Canada, Australia,New Zealand and the United States etc.[5] Through the Hana Overseas Club, Hana Bank managed the Korean financial assets of its overseas customers. Upon written or verbal request, Hana Bank would convert funds to U.S. dollar currency and remit the funds via wire transfer to the overseas customer. Hana Bank launched an advertising campaign for the Hana Overseas Club in July 1994. As part of this campaign, Hana Bank ran advertisements in the Korea Times in Los Angeles, New York and other major cities.[6]
To date, the Group’s strategies for global expansion have been focused on East Asia, China in particular. As early as 2007, the Hana Financial Group established a subsidiary in China, Hana Bank China, which now has 13 branches in the world’s most populous market. In 2009, Hana Bank China was licensed to perform transactions involving China’s currency, the Remnimbi, as well as debit card transactions. A year later, the Hana Financial Group acquired an 18% stake in the Bank of Jilin Co. Ltd, solidifying its growing network of retail bank outlets in the region. The largest single investment in the Group’s history, this strategic partnership will give the Hana Financial Group access to the branch network of China’s second largest bank. In January, 2011, the Group entered into a strategic alliance with the China Merchants Bank, which not only has the largest potential for growth in China, but also a competitive credit card and retail banking business in local markets.
The Group has a presence in Indonesia, another area of strategic importance in its global expansion. The Group operates 18 branches through PT Bank Hana, a local subsidiary in Indonesia set up by the Hana Financial Group in 2007. In its embrace of these markets, the Hana Financial Group is taking the concept of ‘glocalization’ as its basic strategy for expansionary growth. A combination of globalization and localization, ‘glocalization’ embodies the Group’s basic principles of openness and diversity. Indeed, the Group hires most of the employees for its overseas operations from local communities. For instance, of the 255 employees at the Group’s Indonesian subsidiary, 98% are Indonesians, including three of the five members of the Board of Directors. Such a prudent approach in local markets has proven highly effective, as PT Bank Hana is already turning a profit after only two years in operation.
The acquisition of KEB strengthens the Hana Financial Group’s overseas network. Previously clustered around East and Southeast Asia, this network will now stretch out around the globe, expanding from 10 branches in nine countries to 37 in 22 countries around the world.
Financial Results [edit]
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.
Family Companies [edit]
- Hana Bank
- Korea Exchange Bank (KEB)
- KEB Capital
- KEB Futures
- KEB Investor Services
- Hana Daetoo Securities (formerly Daehan Investment & Securities)(merged Hana IB Securities in 2008)
- Hana SK Card
- Hana HSBC Life Insurance (formerly Hana Life Insurance)
- Hana Capital
- Hana Daol Trust
- Daol Fund Management
- Hana I&S
- Hana Institute of Finance
- Hana Savings Bank
- Overseas Units: Hana Bank (China),PT Bank Hana (Indonesia),Hana Asia Limited (Hong Kong)
Former companies [edit]
- Hana IB Securities (formerly Hana Securities in 1999~2007 and HFG IB Securities in July 1~July18th 2007)(merged into Hana Daetoo Securities in 2008)
- Hana Allianz Investment Trust Management (currently Allianz Global Investors Korea)
- Qingdao International Bank
See also [edit]
References [edit]
External links [edit]
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