Hana Financial Group, under the leadership of CEO Ham Young-joo, is making significant strides in enhancing shareholder value through its Value Up strategy, a move aimed at increasing its Price-to-Book Ratio (PBR) above 1. In a groundbreaking step for Korean financial holding companies, Hana has released a CEO interview video, demonstrating its commitment to corporate value enhancement and shareholder engagement. This initiative comes as the Group's stock price witnessed an impressive surge of over 30% in 2024, the highest annual growth rate in three years.
In the video, Ham outlines the Group's progressive shareholder return policy, which is designed to uplift undervalued share prices. He stated, "As Group CEO, my top priority over the past three years has been Value Up. We have made significant efforts to enhance shareholder returns and achieve Value Up based on the Group's strong fundamentals." This strategic focus is reflected in the substantial increase in the Group's shareholder return ratio from 26% in 2021 to 38% in 2024.
Hana Financial Group plans to further bolster shareholder returns by fixing the total annual cash dividend amount starting in 2025 and paying equal cash dividends quarterly. This approach aims to provide shareholders with a stable cash flow, enhancing predictability in returns. Additionally, the Group is set to increase the proportion of share buybacks and cancellations, a move that will improve key valuation metrics such as Earnings Per Share (EPS) and Book Value Per Share (BPS).
Ham also emphasized the importance of strengthening the non-banking portfolio to build a sustainable profit structure and maximize synergies across its 14 subsidiaries. "The core of Value Up lies in efficiently utilizing limited capital and establishing a sustainable profit structure. To achieve this, we will focus on strengthening our non-banking business portfolio," he explained. This initiative aims to increase the contribution of non-banking businesses to 30% of total Group profits, reinforcing the Group's strategic capital management approach.
Furthermore, Hana Financial Group has established a capital management strategy that aligns its risk-weighted asset growth rate with Korea's nominal GDP growth rate. This strategy will maintain the Common Equity Tier 1 (CET1) ratio within the 13.0%–13.5% range, ensuring financial stability while expanding shareholder returns.
Recognizing the diverse global investor base, with approximately 70% of its shareholders being international investors, Hana has provided an English-subtitled version of the CEO interview video. This effort underscores the Group's commitment to effective communication with its global investors.
In conclusion, Hana Financial Group's stock price, which has risen by 10% from a closing price of 56,800 KRW on December 30, 2024, to 62,500 KRW on February 26, 2025, highlights its market-leading role in driving the value up trend among Korean financial stocks. CEO Ham's strategic vision and commitment to enhancing shareholder value through the Value Up strategy position Hana Financial Group as a frontrunner in the financial sector.
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