Hana Bank Reports Financial Gains for Semester I-2024 with an Increase in Net Profit of 13.93% Y-o-Y to Rp260 Billion

Total credit/financing increase 12.42% to Rp36.2 trillion, mainly from the contribution of Corporate Banking (+ 90%) and Consumer Banking (+ 10%)

Growth overview for the first semester of 2024 compared to the first semester of 2023:
•    Assets grew to Rp48.2 trillion from Rp45.4 trillion
•    Net Profit Rp260 billion from Rp228 billion
•    Net Interest Margin (NIM) rose become 4.3% in line with increasing credit and improving returns from asset composition
•    Total credit grew 12.4% to Rp36.2 trillion supported by significant contributions from the corporate banking business Rp32.7 trillion (90%) and consumer banking Rp3.5 trillion (10%)
•    Digital banking growth: the performance of LINE Bank by Hana Bank (LINE Bank) has reached 1 million customers with total deposits of Rp1.63 trillion and total credit of Rp1.47 trillion
•    Capital remains strong with a Capital Adequacy Ratio (CAR) of 27.05%.

Jakarta, 1 August 2024 – PT Bank KEB Hana Indonesia (Hana Bank) announced its financial report for the first semester ending 30 June 2024 ("1H24"), with net profit (unaudited) of Rp259.52 billion, an increase of 13.93% year-on-year (“Y-o-Y”).

President Director of Hana Bank Jong Jin Park said, “This achievement is our effort in maintaining sustainable growth and profitability through healthy credit growth and risk management as well as implementing good prudential principles so that we can continue to provide better profits for shareholders, reflected in Return on Equity ("ROE") which reached 4.91%. With this positive achievement, we believe we can achieve the 2024 target well,”

In line with this growth, one thing that should be emphasized is the improvement in asset quality, as shown by the significant decline in the gross Non-Performing Loan ("NPL") ratio to 0.76% in June 2024 from 0.95% in June 2023. Bank always maintains a solid capital and liquidity position with a Capital Adequacy Ratio ("CAR") and Loan to Deposit Ratio ("LDR") of 27.05% and 139.37% respectively.

In addition, total assets were recorded at Rp48.2 trillion as of June 30 2024, an increase of 6.24% from Rp45.4 trillion last year. Total Third Party Funds ("DPK") reached Rp25.5 trillion with a CASA ratio of 64.8%, as a result of the Bank's efforts to build closer relationships while improving customer experience in utilizing Hana Bank digital services.

“Facing current challenges of the uncertainty global economic, we continue to implement a company strategy with a customer-oriented approach, so that this good performance shows that the Bank's business growth and income remains solid. We will continue to focus on providing innovative financial solutions and providing easy access to finance for all stakeholders,” added Mr. Park.

Hana Bank continues to develop various digital-based products. Currently, almost all transactions are carried out via digital channels, while there are still many transactions carried out through branchless banking services such as MyHana Mobile Banking and Internet Banking, LINE Bank by Hana Bank, Corporate Banking System (CBS), Automated Teller Machines (ATM).

MyHana Mobile Banking digital service provides various banking conveniences, starting from providing complete transactions, BI-FAST and QRIS Scan, as well as having the Hana AIdvisor feature for investment services through the digital mutual fund feature. Meanwhile, the Corporate Banking System ("CBS") is focused on serving high-valued corporate customers in carrying out various complex and mass transactions, including transfers, bill payments, purchases and top-ups. Apart from that, LINE Bank has developed the Hana Bank digital banking application which allows prospective customers to open accounts, and various transactions via their cellphones. Moreover, Hana Bank continues to strive to provide transaction services with added value for customers through collaboration with payment provider partners and various favorite merchants.

“We are committed to continue improving customer experience and comfort through various digital transformation initiatives, improving digital channels, and continuously introducing innovative banking solutions.” concluded Mr. Park.

As a form of Hana Bank's commitment to providing the best customer experience to its customers, Hana Bank is organizing the Spend2Fly program, a program with the main prize for a tour/trip package to South Korea, the program period starts from 1 June to 31 August 2024. This program specifically intended for Hana Bank and LINE Bank Visa Contactless debit card customers to optimize the use of minimum spending of Rp2 million/month for offline transactions abroad and online transactions. Winners will be selected based on the highest spending each month.

Awards

In the first six months ending June 30 2024, Hana Bank received a number of awards including:

1.   HR Asia Awards 2024, for: Best Company to Work For in Asia 2024 and Most Caring Company 2024.

2.   Top Digital Financial Award 2024 as Indonesia 20 Popular Digital Product, E-Loan in KBMI 2 Category from Warta Ekonomi.

3.   13^th Digital Brand Awards 2024 from Majalah Infobank, for: Best Bank with Digital Service in KBMI 2 Category and Best Overall Bank with Digital Service LINE Bank.

4.   21^th Indonesia Best Bank in Service Excellence Awards 2024 from Majalah Infobank & MRI, for: Best Bank in Digital Service, Best Call Center, Best Mobile Banking, Best Email Service, Best Website, Best Opening Account, 2^nd Best Chatbot.

5.   Indonesia 20 TOP Digital Financial Brands Awards 2024 as Popular Digital Product, E-Loan in KBMI-2 Category.

6.   Marketeers Editor’s Choice Awards 2024 as Product Campaign through Digital of The Year from Marketeers.

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