이 기사는 2022년 04월 08일 08:03 thebell 에 표출된 기사입니다.

South Korea’s Hana Financial Group showed the record-breaking performance last year. The group’s flagship subsidiary Hana Bank also continued its growth, but its major overseas entities displayed lackluster performance.

Hana Bank is playing a pivotal role in Hana Financial Group’s overseas business. The group is generating profits using Hana Bank’s global networks and its non-banking affiliates are operating business in regions that Hana Bank already made inroads into.

Hana Bank operates in 637 cities across 24 countries worldwide as of the end of 2021, while Hana Financial Group operates in 788 cities across 24 countries. This means 80.84% of the group’s global networks are reliant on the bank’s business.

Hana Bank directly operates its overseas business through branches and offices. It also entered China, Canada, Germany, Indonesia, Brazil, the U.S., Hong Kong, Russia and Mexico by setting up corporate entities there. It has actively expanded its global networks to enhance its retail banking and investment banking businesses.

Yet, the overseas business’s growth and profitability started to slow down last year. Hana Bank’s 11 overseas corporate entities recorded a combined net profit of 107.3 billion won ($88 million) in 2021, down 25.33% from 143.7 billion won in 2020.

A net profit margin slightly rose from 11.16% to 12.16%, but a return on assets (ROA) decreased from 0.83% to 0.55%. A return on equity (ROE) also declined from 5.61% in 2020 to 3.69% in 2021.

The sluggish performance of the bank’s overseas corporate entities is mainly due to poor performance of Hana Bank China and PT Bank KEB Hana Indonesia. Hana Bank’s two largest overseas corporate entities dragged down the performance of the bank’s entire overseas business.

Hana Bank China posted a net profit of 57.1 billion won in 2021, down 32.43% from 84.5 billion won in 2020. Its net profit margin declined from 19.85% in 2020 to 11.86% in 2021. Its ROA declined from 0.92% to 0.53% and ROE fell from 8.10% to 4.63% in the same period.

PT Bank KEB Hana Indonesia’s net profit decreased 63.16% from 47.5 billion won in 2020 to 17.5 billion won in 2021. Its net profit margin halved from 14.06% to 7.41%. Its ROA declined from 1.43% to 0.48% and ROE decreased from 6.14% to 2.07% in the same period.

Some overseas corporate entities continued growth last year, but failed to offset the overall drop as they are smaller in size than the two corporate entities.

KEB Hana Bank Canada reported net profit of 8.2 billion won in 2021, up 382.35% from a year earlier. Its net profit margin jumped from 3.34% to 18.3%. Its ROA increased from 0.13% to 0.51% and ROE jumped from 0.84% to 3.58%, respectively.

Its Brazilian entity Banco KEB Do Brasil S.A. logged 2.7 billion won in net profit in 2021, up 350% from the previous year. Its net profit margin sharply rose from 5.61% to 17.31%. Its ROA increased from 0.3% from 2020 to 1.26% in 2021 while ROE jumped from 1.98% to 8.08%. (Reporting by Seul-bong Go)