Hana Financial Group Inc. (A086790) Earnings Call Transcript & Summary

Good afternoon, and thank you for participating in the earnings presentation of Hana Financial Group. I am Junghoon Lee, Head of IR. I would like to thank our shareholders, analysts and other market participants in part via phone or the Internet for your attendance today. We now begin the earnings presentation of Q1 2021. We have with us today our group CFO, Hoo-seung Lee, and the senior management members of the group and the key subsidiaries responsible for finance, risk and strategy. Today, we'll first give a presentation on our business results. And afterwards, We will hold the Q&A session via the phone. And now we will invite our CFO, Hoo-seung Lee, to deliver the presentation on 2021 Q1 business results.

Good afternoon, investors, research analysts, capital market participants and journalists. Thank you all for your interest in Hana Financial Group. Nice to meet you all. I am Lee Hoo-seung, the CFO of Hana Financial Group. On every spring, we find spring in full bloom. With May, the queen of all seasons, just around the corner, we are indeed pleased to be able to present to you business results that are in keeping with the lovely spring weather. And now let me start walking you through the business highlights of Hana Financial Group in Q1 of 2021. First, the group's key business highlights. Now please refer to Page 3. Hana Financial Group in Q1 of 2021 posted a net income of KRW 834.4 billion, up 27% on a Y-o-Y basis. In a situation where sufficient buffer have been set aside last year to absorb potential losses in the form of countercyclical provisioning and reserves for our private equity funds, the group posted healthy growth in the top line. As such, our earnings have improved significantly. And taking into account the various one-off factors and exceptional impact from lower credit costs arising from the preemptive recognition of provisions in 2020, the ordinary quarterly income of the group comes to around KRW 800 billion, demonstrating very sound fundamentals. Recently, a number of new COVID-19 cases globally had hit record highs. And also there are concerns within in Korea of a fourth wave of the pandemic spread. We believe that uncertainties both at home and abroad will continue to a certain extent in 2021. For potential external shocks, the Hana Financial Group has secured ability to respond to risks at several levels, including provisioning. And we will continue to preemptively manage the real economic situation and the financial market, both in Korea and globally. As part of this effort, in consideration of the recent regulation by the financial authorities to protect the financial consumers of PEF, we made additional provisions to the reserves related to PEF that we had already recognized last year. In addition, despite the uncertainties around our business environment, diversification of business portfolio, further cost savings and the strategy of strengthening synergies between subsidiaries will continue to be implemented so that the group's profitability will continue to grow. Next, on the group's business highlights in more detail. In the first quarter of 2021, the group's core earnings grew 6.9% Q-o-Q and 12.1% Y-o-Y to KRW 2,191.7 billion. The Hana net interest income and the fee income posted healthy growth. But it's not only the bank. Other subsidiaries, on the back of our strategy to strengthen the nonbanking global businesses, witnessed growth in their performance, thus leading the group to achieve its largest core earnings in history. As seen in greater detail, based on the steady increase of our loan assets and the strong rebound of the NIM, which had continued to fall for the past 2 years, starting from the early 2019, the group's interest income has grown 6.1% Q-o-Q. In the case of fee income, Hana Financial Investments, IB-related other commissions and brokerage commissions have improved significantly. And in addition, the tax loan-related fee items have shown a strong recovery, driving up the fee income 8.8% Q-o-Q. Next, the group's Q1 credit cost ratio fell steeply from the previous quarter to post 0.12%. The reason for the lower ratio is that in consideration of the uncertainties, both at home and abroad, efforts to strengthen the group's buffer-related capabilities has just about completed. And through our strategy to grow assets based on asset quality, the recurring loan loss provisions are being maintained at a sound level. Improving loan asset portfolio and some one-off write-backs and also due to the impact of having preemptively recognized countercyclical provisioning of KRW 240 billion in Q1 in 2020 has led to the exceptionally low levels of bank's provisioning that are set aside. As such, the group's credit cost ratio Y-o-Y is also down slightly. Since April, the number of new COVID-19 cases is again on the rise, and it appears it will take some time for the domestic economy to completely turn around to a recovery. As such, Hana Financial Group intends to provide active support to the borrowers vulnerable to the pandemic situation. And at the same time, it's going to exert efforts on an enterprise-wide level to control risks. Overall credit risk screening of the loans that benefit from the financial assistance program and the early credit assessments to potentially defaulting companies will be undertaken to engage in proactive measures to thoroughly manage our asset quality. Meanwhile, the group's SG&A in Q1 of 2021 posted KRW 1,020.4 billion. The absence of the base effect of the ERP and declining goods and services expense led to a decline of 13.2% over the previous quarter. On a Y-o-Y basis, the SG&A of Hana Insurance was added. And a large sum of one-off costs that had been incurred as payment for Hana Bank policies, that led to an increase of 10% Y-o-Y. However, excluding the one-off factors, recurring SG&A stands at KRW 900 billion. It is within the targeted range specified in our annual business plan and is thus being stably managed. To prepare for the risk of an economic downturn due to the protracted COVID situation and also to secure the ability to provide financing necessary to overcome the crisis, starting from last year, we have been maintaining a conservative control over our labor cost. Last year, Hana equities had sound growth, unlike the initial market concerns. And in Q1, the labor cost grew to a certain extent. But including the labor cost, the group C/I ratio posted 46.5%, showing that the cost efficiencies are still quite sound. Including the labor costs in 2021 as well in consideration of various factors in the business environment and the overall profitability of the group and to further increase our shareholder value, we'll continue to appropriately manage the SG&A. On the lower left-hand side of the page, the group's ROE and ROA in the first quarter of 2021 was 10.94% and 0.74%, respectively, showing that the profitability indicators have improved significantly over the previous year. Next, on Page 4. Hana Bank and Hana Card included, the growth of 2021, Q1 NIM posted 1.61%, up 6 bp over the previous quarter. Hana Card's NIM fell slightly in the previous quarter, and Hana Bank's NIM is up 8 bp over the previous quarter to post 1.36%. The asset repricing fact is incurred into to the renewal of time deposits, funding cost has gone down significantly. And this was one of the main causes. Aside from that, the improvement of the portfolio from the increase of core low-cost deposit also had an impact. In addition, there has been a slight change in the calculation formula of the card NIM. And starting from the second quarter of 2018, the quarterly NIM of the group has been upward adjusted by approximately 1 bp. Next, if you see the data on the right-hand side, the banking segment's Korean won loan is up 2.1% over the end of last quarter to post KRW 244 trillion. The group's interest income, on the back of a sound growth of the loan assets and also the rebound in the bank's NIM, grew 6.2% over the previous quarter. On a Y-o-Y basis, the business unit in China, Hana Card, from such equivalent nonbearing businesses, the contribution has expanded, leading to an increase of 10.3%. The quarterly fee income is up 8.9% over the previous quarter, led by IB, brokerage and the loan-related fees of Hana Financial Investment and Hana Bank. On a Y-o-Y basis, led by the credit card, is truly brokerage in the nonbanking segment, fee base has been strengthened, leading to the increase of fee income by 15%. Thus, the core income -- core earnings base of the group has all achieved healthy growth. Next, Page 5. As of the end of Q1 of 2021, the group's NPL ratio was 0.40%, down 7 bp Y-o-Y. And the delinquency ratio is down 1 bp Y-o-Y to post 0.30%, maintaining a stable level overall. Next, the group's Q1 credit cost ratio is down 1 bp Y-o-Y and down 15 bp over the previous quarter to post 0.12%. As I have already mentioned, on the back of the preemptive risk management efforts, such as the result, is mainly due to the fact that the loan loss provisioning cost of Hana Bank has temporarily -- due to the fact that the loan loss provisioning cost of Hana Bank has temporarily declined. And starting from next quarter, we expect to recover from the current levels. In 2021 as well, to prepare for any potential deterioration of the macro environment, Hana Financial Group will continue to manage its loan loss provisioning as conservatively as possible. Finally, the CET1 ratio of the group is up 2 percentage points over the end of last quarter and expected to post 14.07%. As the introduction of Basel III, credit RWA standards have been completed. On the back of strong quarterly income posted, the group's capital ratio has been improved considerably. And now I'd like to go over the group's business results by item. Please refer to Page 7 for the group's consolidated earnings. Out of Hana Financial Group's general operating income in Q1 2021, the group's interest income is KRW 1,574.1 billion, up 6.1% Q-o-Q and up by 10.2% Y-o-Y. The fee income grew 8.8% Q-o-Q and 17.3% Y-o-Y to reach KRW 617.6 billion. The group's disposition/valuation gain decreased to KRW 103.8 billion. It was a decrease Q-o-Q. This is due to the base effect of the nonmonetary translation gain amounting to KRW 149 billion at the end of 2020 and also due to the FX valuation loss of KRW 82 billion in Q1 due to the exchange rate increase. On a Y-o-Y basis, the valuation gain increased by about 40% on the back of stronger S&T performance by Hana Financial Investment. The group's SG&A in Q1 increased 10% Y-o-Y with Hana Bank giving away performance compensation. Except for the nominal factor, SG&A was maintained at the lower end of KRW 900 billion, showing the cost effectively under control. Even with the performance pay included, nominally speaking, the group's SG&A slightly hovered over KRW 1 trillion, the costs being managed within the range of the annual target. Page 8, net income of subsidiaries. The group's major subsidiary, Hana Bank, recorded a net income of KRW 575.5 billion in Q1, up by 3.8% Y-o-Y. Despite the additional provisioning for the PEF-related reserves I mentioned earlier and despite the increase in SG&A, the net income was sound, thanks to a robust growth in core earnings. Hana Financial Investment's net income for the quarter increased by nearly 200% Y-o-Y to KRW 136.8 billion. Putting aside the increase in the daily trading volume on the Korean Stock Exchange, Hana's securities bond exerted efforts to expand its own internal competency to dramatically increase the brokerage fees. And with the Y-o-Y increase in interest income, its overall profit-generating capacity was greatly enhanced. Continuing from last year, Hana Card was able to improve its fundamentals through digital innovation, and it recorded a net income of KRW 72.5 billion, up by 140% Y-o-Y. Hana Capital's net income for the quarter stood at KRW 60.9 billion, up 37.8% Y-o-Y, showing an improvement in the general operating income category, including interest income and disposition/valuation gain. Please refer to the slide for other subsidiaries' results. And also, please refer to Pages 9 through 11 for the NIM, noninterest income and SG&A details. Also, please refer to Page 13 for the group's total assets, liabilities and equity. Now let us move on to Page 14, Hana Bank's loans and deposits in won. As of Q1 quarter-end 2021, Hana Bank's loans in won is KRW 244 trillion, up 2.1% Q-o-Q. Breaking down the loan growth by item, corporate loans increased 2.4% Q-o-Q to KRW 117 trillion. Of these, the large corporate loans increased by 2.3% Q-o-Q. SME loans posted a growth of 2.5% Q-o-Q with the continued supply of funds going into non-independently audited and SOHO borrowers. Household loans stood at KRW 128 trillion, a 1.8% increase Q-o-Q, [ Trans-A ] loan being the growth driver. Deposits in won in Q1 2021 rose 4.5% Q-o-Q to KRW 256 trillion. Reflective of the ample market liquidity, low-cost core deposits and MMDA increased by 8.6% and 16.9% Q-o-Q, and time deposit maintained a similar level over the quarter. This resulted in a 2.6 percentage point increase Q-o-Q in the proportion of LCF in the portfolio. As can be seen from the graph on the bottom right, the LDR in Q1 2021 is 98.8%. Please refer to Page 15 for Hana Bank's loan breakdown. And now moving on to group's asset quality on Page 17. The group's total credit grew 2.5% Q-o-Q to KRW 322 trillion, and the amount of NPL increased 1.4% Q-o-Q to KRW 1,279.4 billion. The group's NPL ratio is 0.4%, similar to the previous quarter. On the top right, you see the group's new NPL formation in Q1 was KRW 228.3 billion. Bank's asset quality in greater detail on the following page, Page 18. The bank's total credit rose 2.2% Q-o-Q to KRW 277 trillion, and NPL recorded KRW 931.6 billion. The NPL ratio stood at 0.34%, similar to the previous quarter, and the NPL coverage ratio as of quarter end was 125%. The bank's delinquency ratio as of quarter end was 0.24%, up 5 bp Q-o-Q. Household loan delinquency ratio has continued its downward trend, whereas that of corporate loan increased as some overseas loans were delinquent, but this is quite benign looking at the whole loan portfolio. Provisions have been already set aside for possible losses, and speedy normalization and/or recovery measures will be implemented such as debt restructuring and exercise our security right. Aside from these, the overall delinquency ratio is being managed at a stable level. Pages 19 and 20 talk about the group and the bank's provisions. Please refer to the pages for more information. Lastly, moving on to capital adequacy on Page 21. The group's BIS ratio and Tier 1 ratio are estimated at 16.36% and 15.16%, respectively. As for CET1 ratio, we expect it to be around 14.07%. Capital adequacy has been significantly improved, thanks to the robust results, higher capital ratios due to stable RWA management and the effect of early introduction of Basel III. We will continue to do our best to increase business results and shareholder value, armed with the industry-leading capital strength. This brings me to the end of Hana Financial Group's earnings presentation for Q1 2021. Thank you.

Thank you very much. We will now proceed with the Q&A. [Operator Instructions]

We will invite the first question, Mr. Jin-Sang Kim from Hyundai Motor Securities. I think we have some connection issues. We will receive the next question from Citi Securities, Yafei Tian.

I have 2. The first one is on asset quality. I noticed there is a small pickup in the delinquency ratio, looks like it's from the corporate segment. Would it be possible to give us more color? Is this something that we should be concerned? Or is this a credit case? And what is that related to? And given that small increase, at the same time, loan losses continue to trend at a very low level this quarter, so how do you think about the credit costs for the rest of the year? Is there any chance that loan losses would be lower than the around 20, 25 bps that you guided for previously? So that's the first question. Second is on the overall capital position. After the implementation of Basel III, CET1 ratio of Hana, 14%, is the highest among all the Korean banks. So how do you think about utilizing that capital? Are there any acquisition opportunities on the agenda?

So thank you very much for your question. We will be preparing the answer. With regard to the first question, the asset quality, I'm the CRO, I will be taking that question. With regards to the delinquency from the corporate sector in relation to the COVID-19, there has been some defaults that occurred overseas. However, those loans are secured loans. And there are written guarantees from the policy banks for those loans, and so there are no actual losses that have occurred for these loans. And also, with regards to loan, the borrowers, debt restructuring is taking place. So when the restructuring is over, the delinquent amount will be recovered. In the case of the credit cost ratio, in the first quarter, it's quite low. And last year -- or early on, in preparation of this year, given the provision that we had set aside last year with regards to this year's provisioning, we think we'll be -- it will be managed below 0.25. Thank you very much.

With regards to the CET1 ratio, yes, it is the highest among all our peers. Well, internally, the capital efficiency strengthened. And then through interim dividends, shareholder return policy is something that we will focus on going forward. And last year -- given last year, dividend per share was KRW 1,850. That was the highest among all our banking peers. And this year as well, we will implement the interim dividend so that we can continue our policy for shareholder returns. And in the case of the CET1 ratio, it's quite high. And M&A is something that we're also considering. And the CSO will be taking that part of the answer.

I'm Ahn Seun-Jong, the CSO of the group. In the case of the M&A status of our group, in the nonbanking sector, if we compare the earnings and the capital, you can see that there is a very close relationship between the capital level and the earnings. And so in the case of Hana Financial Group, in the case of the capital and securities where we have continued to invest, we have been able to achieve equal level of competitiveness. However, in the case of card and insurance, compared to our competitors, we still have a significant gap. The competing groups have -- they're focusing on increasing their size. But in the case of Hana Financial Group, going forward, we're going to closely monitor the fundamental changes undergoing in the industry. And with our capital, market competitiveness and capital efficiency and group synergy, from this perspective, we intend to seek opportunity that can enhance these synergies. And we will continue to communicate on the relevant information with the market.

Thank you very much. We will invite the next speaker, Kim Han-Jin from KTB Securities.

I am Kim. You talked about the margin, and you said that the asset pricing effect is near completed. The funding cost has been lowered. And is -- when do you believe that the lending rate will rebound?

Thank you very much. Please hold. Thank you for the questions. In Q1, the group's NIM grew 6 bp to 1.6% over the quarter. And the reasons being, in Hana Card, the NIM has fallen, but in Hana Bank, the NIM grew by 8 bp. And looking into detail about the 8 bp, in -- there was the 6 bp from asset pricing and 2 bp from effective portfolio management. And as far as the lending rate, it is linked to the market rates. As of now, there is a schedule. And I think the effect has already kicked in. And in Q2, we will continue to manage the NIM so that on the funding side and the lending side, we will try to manage the control. Thank you.

And let me add to that. As for the asset pricing, we were mentioning that the -- it was a repricing effect of the loans. And we need to have some kind of momentum for that asset pricing, but the market rates are flat. And of course, the market rates could go up incrementally. But we don't think that the lending rates will pick up significantly. And as for the margin rates, in Q1 and Q2, there will be some incremental increase. And in the second half, we believe it will be flat unless there is a change in the market rates. We will have to wait and see what the market rates will do.

Won Jaewoong from HSBC Securities.

I have 2, actually. First, yesterday, Hana Financial Group had a rights issue. Already, equity capital is KRW 4.4 trillion. You're a very large securities company. In this situation, is there -- was there really any need to do another rights issue to increase the size? Of course, in the case of promissory notes, the market itself is not that favorable at present. And also, the stock market fee is going strong, and you can gain some good performance. However, you can also see some losses in terms of efficiencies and ROA. So Hana Financial, was there any reason for doing this rights issue? Was it for IB reasons? What was the reason? And my second question is, in the market, there is demand for loan, and so we're seeing some growth in the loan segment. However, if in the post-COVID era, the corporate sector and the household sector, in which sector do you think we'll see greater growth? Or even in the post-COVID-19 era, asset quality will still be a priority so that you'll be conservatively managing your loan growth. I would like to hear some insights about these questions.

Yes. Mr. Hwang, yes?

Thank you very much for those questions. Yes, that's what I was expect your questions. In the case of the Hana Financial Investment rights issue, well, in the case of Hana Financial Investment, we will have a plan to nurture this company into the #1 company in the industry. That is a top priority for our group. And so becoming a top-tier company in the industry and also leveraging our exposition in the promissory note segment, that's the reason why we had done this rights issue, unless you will add any color into that. In case of loan growth, well, we are all thinking about striking the right balance between the corporate and the consumer sector, but also considering our asset quality. In which direction we should go? Well, Mr. Kim, Director Kim from the bank will be answering that question.

[indiscernible] from the research center of Hana. Well, to the rights issue, our equity capital will be from KRW 5 trillion and the KRW 4.4 trillion. And if that happens, we will be able to compete in earnest with the top 5 companies in the field. In the IB, we have continued to post good performance in ESG and overseas alternatives and new deals. This year, in the deal competition, Hana Financial Investment will be able to secure a category. That is our goal going forward. And also, in the case of the wealth management area, that foundation, we compare from peers. And so through further investment, we intend to strengthen our competitiveness in this field. That's our goal as well. And recently, the securities companies over the past 2 to 3 years, they have been expanding their global exposure. And so through global collaboration, a lot of efforts made to increase the performance in the overseas market. And this is also another segment that is being targeted by the Hana Financial Investment. That's also one of the reasons why we did a rights issue.

Jeong from Hana Bank. With regards to loan growth, we will know -- we said the target for this year was KRW 14 trillion, and it was KRW 8 trillion for the corporate and [ KRW 6 trillion ] for the households. And reason for those goal was to increase the trust guaranteed loans for the small business orders. And in the first quarter, we had KRW 5 trillion and -- so KRW 2.8 trillion for the corporate and KRW 2.2 trillion for the households. And we have Basel III introduction completed, and we do have to set a certain target for the corporate segment. And so in the case of this year, our loan growth will be coming probably from the corporate sector, especially the loans with written guarantees. And so I don't think this will cause any question or issues with the asset quality segment.

Thank you. Next question from Mr. Kim Jin-Sang from Hyundai Motor Securities.

I have 2 questions. Well, leaving out the redundant questions. As for the group NIM, it rose less than the bank NIM. And in Q2, the card business is good. So usually, it's the group NIM that's better than the subsidiary NIM. So is it because the card's NIM market share was decreased? You are working on beefing up the securities arm. Do you have plans for card reinforcement? And the second question is, there are government support programs, and some of your assets are relevant, and the support program has been extended to September. And so how will that affect your asset portfolio? What will be the overall trend?

Thank you for the questions. Please hold. Yes, as for the card NIM, it fell by 12 bp, and that's because of the card services, the profitability had fallen in the quarter. And Mr. Kim Tae Hong from Hana Card will explain in greater detail. And as for the second question, The -- Mr. Hwang Hyo-Sang from the group will answer the question.

Yes, I am Kim Tae Hong from Hana Card. We have been following the NIM, and it has had an upward trend with higher profitability. But as was mentioned by the CFO in the presentation, the NIM calculation method has been changed. And so under the new formula, last year compared to 2019, the annual profitability has been decreased slightly, and that was reflected, and it looks as if the card NIM was reduced. But starting last year, we have had improved fundamentals, and we're diversifying our profit-oriented portfolio. And so in 2021, we believe that we will have better results.

Thank you. As for the financial support program for COVID-19, the CRO will respond.

As for the moratorium, KRW 370 billion has been under our care, and the balance is only KRW 160 billion. The rest has been paid. And so things are settling down as we speak. And this year, as for the extension of the support program, the amount will not be higher than last year. It will be lower. And so it will have minimum impact on credit cost and the asset quality. Thank you.

From BNK Securities, Mr. [ Kim ] is the next -- would ask the next question.

With regards to estimations, I have a question. First, in the interest income for first quarter, NIM has grown better than our expectation and growth as well. However, I think it's very difficult to give such a result on Y-o-Y and Q-o-Q basis. And so your projections for the second quarter is something that I would like to know. And secondly, in the case of Hana, the loan loss provisioning has been maintained at below KRW 100 billion. Is this going to be maintained going forward in the second quarter? And also, the operating profit, what's the content, the details of this operating income? Can you provide an explanation?

Is your last question pertaining to nonoperating income or operating income? Okay, nonoperating income. Thank you very much. We will prepare the answer. So yes, in the case of interest income, the trends going forward, in our view, we can't really say for sure the exact bp, exact numbers, but going forward, several bps. In the second quarter and the third quarter, we believe that it will rise by several bps. That is our expectation. And Mr. Kim, Director Kim, will answer that question in more detail. In the case of the credit cost ratio as well, maintaining the current level is something that we do expect to be possible. However, maybe a slight increase in order -- and our CRO, Mr. Hwang, will be answering that question as well. And with regard to the third question, the nonoperating income, that will also answer in detail.

I'm Director Kim. With regards to the trends for interest income, in the case of first quarter, compared to the previous quarter, there has been an increase of APP. And the reason for that was because in Q1 last year, there was high interest rate time deposit that we've sold, and they matured in first quarter. And so that impacts about 1 to 2 bp, and the rest is pricing. [ Another ] bp increased the portfolio improvement. And in the second quarter, compared to the first quarter, the results will improve. So that -- last year, it was 3.7 -- 1.37, but this year, it's going to be improved from that figure. So last year, it was about 1.3, and we believe that on a full year basis, it will be pretty much similar.

With regards to credit cost ratio, in the first quarter, the loan loss provisioning was about KRW 100 billion less than what we had expected. And in relation to that, the cost for that was that in the bank, there were items that we thought would [ be easily predict ], but there weren't such items. And also, compared to last year, the loan provision was less by KRW 200 billion compared to last year. And this is because in last year, for the household loans, we had [ ML ] model in order to strengthen our strategy, and that is seeing some effect. And in the case of corporate loans, the credit rating has been focused mostly on the high-quality rating. And so there was this burden for loan loss provisioning. And because the results of these efforts have been produced in the first quarter, and so in the second half of the year, there might be a slight increase, but we don't think there will be any significant increase from the current level.

Director Kim from the bank. Well, with regards to nonoperating income, there's a PEF issue. In March of this year, the financial regulators have announced a recommendation to increase the protection for the financial consumers. And so to provide revenues for financial consumers, we have changed our method of calculating estimated loss. And so we have been able to satisfy KRW 43 billion in additional provisioning for PEF. And with regards to provisioning and with regards to credit cost ratio, let me provide some of the general comments. Internally, we do have a guidance on the target. And as CRO said, that the actual number was less by about KRW 100 billion than what we had expected. But our internal guidance is a very conservative scenario. And also, the COVID-19 situation is still ongoing, and the recovery is still not happening. And so given all possible scenarios, we have set this internal guidance. And that is, internally, about 25 bp. That is our guidance. However, if you look at last year, compared to similar guidance, the current level of credit cost ratio was quite low. And so as has been mentioned by the CRO, in the second half of the year -- the first and second quarter will rise a bit. And in the second half of the year, if we achieve -- focusing on quality, there will be much difference. But if there is a significant disruption in the economic cycle, this is -- that was assumption forward, our answers were provided.

We don't have any more questions coming in. We will wait for a while for further questions. We seem to have no further questions coming in. We would now like to conclude the Hana Financial Group's earnings results of Q1 2021. You may see the IR material on our website, and the IR data will also be uploaded. If you have any outstanding questions, please contact the IR team, and we will answer your questions to the best of our ability. Thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]