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Global Operations

The year 2021 was marked by unstable externalities induced by the continuing COVID-19 pandemic and a resulting global economic downturn. Hana Financial Group however turned the crises into an opportunity and made noticeable achievements in its global operations.

OVERSEAS BUSINESS PERFORMANCE
  • MAINTAINING GROWTH MOMENTUM OF GLOBAL CHANNELS Hana Financial Group achieved an overseas income of KRW 687.1 billion in 2021, a YoY increase of 23.6% or KRW 131.3 billion. Overseas channels, including branches and subsidiaries, recorded a net income of KRW 310.9 billion, a 26.2% (KRW 64.5 billion) increase from the previous year. Gains on valuation using equity method from equity investments rose 104.8% (KRW 70.1 billion) to KRW 137 billion, but investment income from global investments, such as marketable securities and alternative investments, decreased 1.4% or KRW 3.3 billion YoY to KRW 239.2 billion.

    The increased net income of global channel operations can be attributed to a KRW 133.7 billion rise in interest income thanks to the loan growth by the Chinese subsidiary of Hana Bank in collaboration with a local platform company. Valuation gains grew significantly mainly attributable to the outstanding performance of Bank for Investment and Development of Vietnam (BIDV), in which Hana Bank had invested in 2019. BIDV continues its excellent business performance and, as a result, its stock price is on a steep incline, reflecting the market’s strong confidence.

    Vietnam has high economic growth potential, recording a real GDP growth rate of 2.58% in 2021 despite a COVID-19-induced economic lockdown in the third quarter. The nation repeated its positive GDP growth performance of 2020, an exceptional performance considering the pandemic-stricken global economy of the past two years. Its leading stock price index, VN-Index, hit a record high in 2021, and the income growth momentum of listed companies is expected to continue. Considering the low stock account ownership of the citizens (around 4.31 million accounts, 4.3% of the population), the stock market is expected to grow rapidly.

    In particular, the average age of the population is 31, thanks to the nation’s relatively large portion of youths, and smartphone ownership stands at a relatively high 61%, two indicators of an ideal environment for rapid growth of mobile-based securities business. Under these circumstances, a successful entry into the Vietnamese stock market through a strategic equity investment in a BIDV-affiliated securities firm is expected to create synergies in diverse areas that will further boost Hana Financial Group’s diversification of its global income sources.

    INCREASING PRESENCE IN THE GLOBAL MARKET Hana Financial Group continues to take on various challenges to develop into a global digital financial group. Hana Bank’s Chinese subsidiary has been selling non-face-to-face retail loan products in collaboration with a local e-commerce platform since 2020, building up retail assets and boosting interest incomes. To leverage its digital finance advantages to secure a solid market presence, the Chinese subsidiary will make continuous efforts to develop more business partners. In July 2021, Hana Bank’s Indonesian subsidiary launched LINE Bank, the Korea’s first mobile platform-based overseas digital bank, in alliance with LINE, a global ICT company. LINE Bank is progressing smoothly, the number of new customers exceeding 300,000 in only six months in operation. Encouraged by the better-than-expected growth of its customer base, the digital bank is preparing to launch loan products and add various convenience functions, including payment services.

    Hana Financial Group is continuously striving to strengthen its global business and expand the non-banking business. As part of these efforts, we completed the process of establishing an asset management company in Singapore in 2021 and are measuring the option of an equity investment in a securities firm in Vietnam. Singapore is rapidly emerging as Asia’s new financial hub, and establishing an asset management company in Singapore is to diversify the Group’s income portfolio and to secure a marketing hub in Asia’s key market. Going forward, by making full-fledged inroads into the securities, consumer finance, and asset management and other high growth-potential financial services sectors of Vietnam, Indonesia, and Thailand, we plan to raise the proportion of non-banking in our global operations and solidify our financial value chains by linking affiliates.


OVERSEAS BUSINESS STRATEGY
  • GLOBAL GROWTH STRATEGY A.B.C Hana Financial Group has adopted “alliance”, “balance”, “consolidation” (ABC) as key words for its 2022 global growth strategies, based on which we pursue growth through global alliance and partnership, expand a balanced growth of non-banking sector overseas, and consolidate the human resources and material infrastructures.

    Specifically, we will build alliances and partnerships with global big tech, fintech, and IB companies, in order to diversify business in digital finance, IB, networking, and other related areas and to strengthen existing growth engines. In addition, we will actively enter high growth potential industries in Asia, such as securities, consumer finance, and asset management, as a way to diversify overseas channels and solidify value chain finance linking all affiliates that have an overseas presence. Lastly, to enhance global business competitiveness, we will improve the caliber of our global manpower through upgrade of global talent management and nurturing systems, and expand support for local subsidiaries’ capital increases, IT system upgrades, and other infrastructure expansions.