270 Billion Won Conditional Subordinated Bond Issuance and Investment Risks

Hana Financial Group issued 270 billion won in 19th series conditional subordinated perpetual bonds (new type capital securities) with expected coupon of 4.20%-4.80%
Key investment risks: full permanent write-down if designated as insolvent; interest payments may be suspended, limited, or canceled; no maturity; subordinated status; limited liquidity
BIS ratios (consolidated Q1 2026): total capital 15.22%, Tier1 14.59%, CET1 13.11%; post-issuance estimated at 15.31%, 14.68%, 13.11% respectively
Shareholder returns: interim dividend 1,145 won per share (306.9 billion won); treasury share cancellation up to 200 billion won; distributable profit approx. 3.4 trillion won
Contingent liabilities: KRW financial guarantees 1.5 trillion won, foreign currency guarantees 93.6 billion won, confirmed payment guarantees 19.4 trillion won; litigation amounts: 1.88 trillion won (defendant) and 551.2 billion won (plaintiff)
Subsidiary dependence: Hana Bank accounts for 90.15% of consolidated net income; Hana Bank BIS ratio 17.35%, NPL ratio 0.37%, loan loss reserve ratio 123.48%
Interest rate risk: potential NIM decline amid base rate cuts, stricter household loan regulations
Regulatory risks: Basel III, IFRS17, K-ICS, D-SIB additional capital (1%), capital conservation buffer (2.5%)

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