Hana Financial Group Inc., Korea’s fourth-largest financial company, said its first-quarter profit fell 2.6 percent from a year earlier after it changed accounting standards.
Net income was 389.5 billion won ($357 million) in the three months to March 31, compared with a revised 400 billion won a year earlier, the company said in a regulatory filing yesterday.
Hana Financial switched to Korea International Financial Reporting Standards this year from Korean GAAP, or generally accepted accounting principles.
Loan margins for Korean banks have widened after the central bank raised interest rates four times since July to tackle inflation. Hana’s planned takeover of Korea Exchange Bank will further improve the company’s profitability, analysts including Shim Hyun Soo at KB Investment & Securities Co. said.
“First-quarter earnings slightly beat my estimate of around 350 billion won. Acquiring Korea Exchange Bank will boost its growth potential,” said Shim.
Hana is awaiting Korean regulatory approval on its 4.7 trillion won takeover of KEB.
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