Hana Financial Group
This information contained in this presentation material is not audited by a third party independent auditor and is subject to change.
CONTENTS
Introduction to HFG
Fundamentals
KEB Acquisition
This material is for informational purposes only. The information and statements may constitute forward looking statements which represent
current expectation or forecasts of future results. These statements are not guarantees of future results or performance and involve certain risks,
uncertainties and assumptions. Actual outcomes and results may differ materially from those expressed or implied in any of these
forward looking statements. Accordingly, Hana Financial Group, its subsidiaries, and related affiliates do not accept liability from
actual outcomes related to this information and statements contained in this material.
DISCLAIMER
History
Corporate Timeline
Top Financial Group in Korea
Recognition
Business Line of HFG
Core Competencies of Hana
Introduction to HFG
History
Inception as Korea Investment Finance Corp. in 1971
In 1990 - No. 1 Underwriter of Corporate Bond
Acquisition of Chungchong Bank in 1998
Merger with Boram Bank in 1999
Merger with Seoul Bank in 2002, becoming Koreas 3rd largest bank
Launched Hana Life Insurance in 2003
In 1991 converted to a commercial bank with a nation wide branch Network
Launched Credit Card Business in 1992
Koreas Best Bank Award by Euro-money in 1993
Establishment of Financial Holding Company in Dec. 2005
Acquisition of Hana Daetoo Securities in May 2005
Launched Hana Bank China in Dec.2007
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
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
1971~1990 2010~2012 2008~2009 2005~2007 1998~2004 1991~1997
4
Corporate Timeline
5
KEB Acquisition
1) Group total assets include trust accounts
1.3 3.6 6.7
10.8 14.3 17.6
22.9 27.8
47.8
139.0
174.6 169.4
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(Unit: Wtn)
2010
195.8
2011
364.4
2012~
Acquired Chungchong
Bank
Established as Korea
Investment Finance Corp
Merger with
Boram Bank
Merger with Seoul Bank
Reorganized into Hana
Financial Group
Acquired Hana Daetoo
Securities
51.2 54.4
87.6 91.8 91.9
106.3
128.7
1971 1998
1999
2002
2005~2006
2012.2Q
218.6
Successfully weathered
financial crisis
Established credit card JV
with SKT
2008~2010
Top Financial Group in Korea
6
2. Broad Distribution Network
1. Leading Group in Korea
3. Stable Asset Quality
4. Strong Capital Base
5. High Credit Ratings (Hana Bank)
6.Leading Private Banking Business
* Total assets: KRW 352.3 trillion
(including Trust Account)
* Total # of bank branches: 1,012
(including KEB)
Group NPL: 1.27%
* Group BIS CAR: 11.64% Group Tier-1 CAR: 8.75%
Moodys: A1
S&P: A
Ranked #1 by Euromoney
NPL
1
2
3
4
5
6 1
Recognition
7
Best Fund Sales Securities Firm
2007~ 2008
Best Private Bank in Korea
2005~ 2011
International Business Leadership Award
2009
Best Domestic M&A Case
2002 New Century Leader in Asia
2003 #1 Customer Satisfaction Bank in Korea
2004
Best Bank in Korea
1997 Best Bank in Korea
1998 #1 Customer Satisfaction Bank in Korea
2001
Major Awards
Business Line of HFG
8
Distribution Channel
Hana Bank, KEB
Hana Daetoo Securities (AM)
Groups main distribution channel
Four decades of financial expertise in brokerage, fund services, & asset management
Product Development
Hana SK Card
Hana Daetoo Securities (IB)
UBS Hana Asset Management
Hana HSBC Life Insurance
Hana Capital
Hana Daol Trust
Convergence of Financial & Telecom synergies to develop new growth platform
Providing specialized IB products & services
Leading asset management company
Optimal insurance products & services
Retail financing-related specialty product development
Comprehensive real-estate trust services
Strategy & Support Hana Financial Group
Hana Institute of Finance Hana I&S
Groups strategic & financial planning
Groups think tank & research center
Groups IT support
1) Hana UBS excluded from group consolidated basis
Hana Financial Group Inc.
Hana Bank
(100%)
Hana SK Card
Hana I&S Hana
Institute of Finance
Hana Capital
Hana HSBC Life
Hana Daetoo
Securities
1
Hana Daol Trust
(51%) (50.1%) (100%) (100%) (50%+1share) (100%) (65%)
KEB
(60.00%)
Hana Bank China
(100%)
PT Bank Hana
(75.1%)
UBS Hana1) Asset Mgt.
(49.9%)
KEB Capital
(100%)
KEB Futures
(100%) (99.31%)
KEB Investor Services
Hana Savings Bank
(100%)
Core Competencies of Hana
9
Successful track record of partnerships
with major global & domestic players
(UBS, HSBC, SKT, Kolon Group)
Localization strategy implemented for strong franchise in
foreign markets
(PT Bank Indonesia Employees 98% locals)
Openness
Customer centric focus Delivering products & services by
assessing market trend
Established Matrix Structure to adapt quickly to market
conditions (First domestic company to implement Business Unit
Model)
Market Based Competitiveness
Full disclosure of Groups vision and strategic direction to
stakeholders
Independence imparted to Board of Directors (Of the total 15
BOD members 11 are non-executives directors)
Corporate Governance Integrity employees uphold as defining value
Autonomy Strong sense of responsibility and accountability
Flexibility Adaptive to the changing needs of customers and
the market place
Teamwork Foster environment of cooperation and mentorship
to produce optimal financial products and highest quality of
customer service
Corporate Culture
Resilient Performance
Fundamentals
11
Resilient Performance
Unit: Wbn
KRW Loans
Group
1Q11 2Q11 3Q11 4Q11 1Q12
92,020 92,784 97,704 97,244
142,414
0.70% 0.61% 0.63% 0.63%
NPL Ratios Group
1Q11 2Q11 3Q11 4Q11 1Q12
Delinquency Ratios Group
1Q11 2Q11 3Q11 4Q11 1Q12
Credit Cost Group
1Q11 2Q11 3Q11 4Q11 1Q12
1.65%
1.30% 1.21% 1.12% 0.57% 0.42%
0.36% 0.43%
0.74% 1.27%
0.49%
Unit: wbn
NIM
Group
760 801 837 808
Int. Income NIM
2.24% 2.31%
1,040
2.27%
2.06% 2.01% (Excl. KEB)
2.18% (Incl. KEB )
1Q11 2Q11 3Q11 4Q11 1Q12
Unit: wbn
Net Income
Group (Consolidated)
1Q11 2Q11 3Q11 4Q11 1Q12
379 490
205 148
NGW 1,039*
1,320
281
*Negative Goodwill
Scaling Up And Standing Tall Among Peers
Optimal Complementary Business Fit
Synergy Creation Progress
Adding to Strategic Global Growth
KEB Acquisition
Scaling Up And Standing Tall Among Peers
Foreign Branches (Bank)
H+K WFG SFG KB Hana KEB
312.8 288.1 278.7
277.6
178.2
100.5
202.2 191.6
175.6 166.4
118.5
73.1
KB H+K Woori Shinhan Hana KEB
189.3 181.5
168.4 150.4
104.0
64.4
KB Woori H+K Shinhan Hana KEB
Domestic Branches (Bank)
Shinhan KB H+K Woori Hnan KEB
1,165
1,012 970 942
653
359
Staff (Bank)
KB H+K Woori Shinhan Hana KEB
21,718
KB Woori H+K Shinhan Hana KEB
As of end of December. 2011 As of end of December. 2011 As of end of December. 2011
16,945
15,011 14,342
9,255 7,690
Total Assets* (Group) KRW Loans (Bank) Total Deposits (Bank) (Wtn) (Wtn) (Wtn)
As of end of December. 2011 As of end of December. 2011 As of end of December. 2011
*Excluding trust assets
36
18
16
12 9
27
13
Optimal Complementary Business Fit
Business Portfolio Analysis
Hana Retail, PB
Indicators
