Good afternoon. I am Park Guen-hoon, Head of IR of Hana Financial Group. I'd like to welcome everyone to the Hana Financial Group's earnings presentation. I'd like to thank shareholders, analysts, and other market participants for attending today's event via phone and the internet. We'll now begin the 2022 Full Year Earnings Presentation of Hana Financial Group. For today's earnings release, we have with us the group's new CFO, Park Jong-Moo, as well as other members of the senior management from the group and subsidiaries. For today, we'll first hear a presentation on the business results for 2022, and then move on to a Q&A session. We now invite our CFO, Park Jong-Moo, to deliver the full year business results of the Hana Financial Group in 2022. Thank you. Greetings. It is great to be here. I am Park Jong-Moo, the new CFO of Hana Financial Group in 2023. At a time when uncertainty in internal and external economic conditions is deepening, and at the same time, at a juncture when interest is expanding and shareholder returns is higher than ever, I have taken on the important responsibility of being the group's CFO. I will do my best to listen to the voice of the market and continue smooth communication. Before I cover 2022 annual business results, I will touch upon our capital management and shareholder return policy, which was discussed at today's BOD meeting. For your reference, this will also be included in the business report, which will be published in March. Please refer to page three of the material. We have established the following group capital management and shareholder return policies to improve visibility of our capital policy and shareholder value. In the case of capital management policy, to comply with regulatory ratio, ratios and to prepare for changes in the internal and external economic environment, we set our CET1 ratio range between 13%-13.5% range, which can secure loss absorption capacity, and we intend to manage it at an appropriate level. Regarding the shareholder return rate policy, we have set a mid to long-term shareholder return ratio goal of 50%, and in order to gradually achieve our target, we have set specific principles so that 50% of the CET1 ratio, which has increased YOY, will be returned to our shareholders. Going forward, if the CET1 ratio exceeds 13.5%, we will return excess capital to our shareholders. Along the improvement of the shareholder return ratio, we will carry out cash dividends as well as share buybacks and cancellations to pursue diversification of our shareholder return policy. Related to this, I would like to inform you about what was resolved by our BOD today regarding the 2022 shareholder return. 2022 year-end cash dividend has been decided at KRW 2,550 per common share. If the resolution is confirmed at the general shareholders meeting in March, the cash dividend per common share for fiscal year 2022, including the previously paid interim dividend of KRW 800, will amount to KRW 3,350, and the DPS will increase by KRW 250 YOY. Annual dividend payout ratio is 27%. We plan to carry out the industry's highest level of cash dividends. Apart from this, we resolved today for KRW 150 billion of share buyback and cancellation. Going forward, our principle for share buyback will pursue cancellation in parallel, and the dividend and share buyback ratio will depend on our Group's share price level, Group's capital capacity, interest rate, and other factors in the financial market at that time, and be considered comprehensively and then be determined. For your reference, while establishing this capital management and shareholder return policy, we took into consideration comprehensively concerns about improving shareholder value, as well as the proper role of financial institutions in the economic and financial environment uncertainty, coexistence with diverse interested parties, including customers, and our Group's unique asset structure. In other words, we will strive for shareholder value, and at the same time, we will contribute to the stability of the financial system through expansion of loss absorption capacity and maintain asset quality, and also faithfully fulfill the basic functions of financial institutions such as supplying liquidity and fund brokerage to fulfill our social responsibility of enhancing our stakeholders' value. In addition, in order to be with members of society who are experiencing economic difficulties, we will provide practical support for the soft landing and leaping forward of customers who are going through economic difficulties. We will continue with our social return programs to solve social problems facing our society so that we can do our best to practice our group's mission of finance to grow together and share happiness. From now on, I will cover 2022 annual group business results. First of all, the group's financial highlights. Please refer to page four of the materials. Hana Financial Group's annual net income in 2022 recorded a 2.8% YOY increase and posted KRW 3,625.7 billion. Looking back on last year's performance, despite stagnant fee income and disposition and valuation income due to increased volatility in the financial market, on the back of solid asset growth and a favorable interest rate environment, general operating income increased significantly YOY. The annual C/I ratio also reached 42.9%, the lowest ever since the establishment of our holdings company, improving our cost efficiency. In addition, despite the large-scale provisioning, which was preemptively accumulated over several quarters, key risk indicators such as delinquency ratio are being well-managed, and the annual credit cost ratio stopped at 0.29%. NPL coverage ratio also recorded a record high level of 187.85%, reinforcing loss absorption capacity against potential risk increase. Please go to page 5. The group's Q4 NIM for 2022, combining Hana Bank and Hana Card, recorded 1.96%, a 14 BP increased QoQ. Among this, Hana Bank's NIM recorded a 12 BP increase QoQ, recording 1.74%, and drove up our group NIM. As market interest rate continued to rise, including 2 base rate hikes during the quarter with the asset repricing effect expansion, with focused demand in the interest rate hike period for early withdrawals of low rate time deposits and transferring them into high rate time deposits, we saw our NIM grow significantly QoQ. The one-off related to early withdrawal of time deposits was about at a 7 bit level, and the normalized Q4 NIM for the group and banks posted respectively 1.89% and 1.667% respectively. The increase in interest-bearing assets due to the increase in demand for funds from large corporations and public institutions, coupled with the rise in NIMs, led to an increase in interest income QoQ. For your reference, if you look at the right-hand side of the slide, the Korean Won loans at the bank on a quarterly basis is up 2.1% and up 6.7% on a yearly basis, posting KRW 274 trillion, achieving robust asset growth. On the other hand, the group's fee income is down both on a quarterly and yearly basis. This is due to the fall in wealth management fees owing to the weakness in the stock market and rising uncertainties in the financial market as well. The drop in the IB commissions against the backdrop of contracting liquidity and worsening business environment. In 2023 as well, greater downward pressure on the economy is expected, such as low recovery and consumption, and as such, we foresee a rather challenging environment for fee income increase going forward. In response, FX and asset management, corporate finance areas in which the group has core capabilities will be further strengthened so that we continue to lay the foundation for diversified sources of income that goes beyond business boundaries. Next is page six. In Q4 of 2022, the group's NPL ratio posted 0.034%, down 1 bit QoQ. The delinquency ratio also hosted 0.00% QoQ, down two bits QoQ, and is maintained at a fair level. Meanwhile, in Q4, we had set aside KRW 480.2 billion in loan loss provisioning of KRW 303.3 billion QoQ, posting credit cost ratio of 0.29% on an annual cumulative basis for the group. The increase in loan loss provisioning in Q4 is due to the preemptive recognition of provision for the non-bank subsidiaries exposure to real estate PF, in addition to the KRW 42.1 billion in provisions that had already been set aside by Hana Bank. Hana Bank's Chinese unit has also set aside provisions for some of the companies that have become insolvent. As has been already noted, key asset quality indicators are maintained at a stable level. In 2022, as the loss absorption capacity has been strengthened due to credit loss provisionings, this year, even if additional credit cost is incurred due to macro factors such as economic downturn, we expect to manage it within the yearly target range. As of the end of Q4, the group CET1 ratio was 13.15%, and compared to the regulatory ratio, it is maintained at a fair level. During the quarter, through the payout of the year-end dividend this quarter, this caused the capital ratio to fall. However, due to the strong KRW, the Unsecured RWA declined and the CET1 ratio rose QoQ. In 2023 as well, based on a preemptive and strategic risk management, we will be putting forward timely responses to complex macro level crisis such as an economic downturn and maintain the asset quality at a stable level. Next on page nine, the income by subsidiaries. Hana Bank, a key subsidiary of the group, posted KRW 3 trillion 69.2 billion in annual net income for 2022, up 23.3% YOY. Preemptive provisioning and accumulating non-monetary effects translation losses from the weak won, and also the ERP implementation and expanding digital investment led to the growing of SG&A. However, interest income and gains from valuation and sales included the general operating profit items improved YOY to post a sound performance. Next, Hana Securities's annual net income posted KRW 126 billion, having declined from last year. Key causes are: first, the brokerage fee and other asset management fees fell due to the weak stock market. IB fees included the overall fee income also came down from last year due to the worsening market environment. In addition, rising volatilities in the financial market led to decreased gains on valuation and sales over last year. In Q4 as well, weak fee income trends continued, and the trading returns from the marketable securities such as bonds came down. As the IB assets of both permanent loss suffered valuation losses and had set aside provisions, business results were significantly down over last quarter. This year we will focus on risk management, including preemptive response to the potential NPLs and pursue qualitative growth for each business division, such as income diversification and product competitiveness. We will do our best to improve our performance over 2022. In the case of Hana Capital, despite additional provisioning in Q4, based on the increase of general operating income, we posted an annual net income of KRW 298.3 billion, which is up from last year. The annual net income of Hana Card posted KRW 192 billion, down from the previous period. Funding costs have increased due to the market rate hikes and rerating of the merchant fees, led to stagnating fee income. This year we expect the funding cost and credit cost management will remain challenging, but we intend to control our cost as we diversify the portfolio and the loan portfolio will be built focusing on a high quality member to maintain fair asset quality and respond to unfavorable external environment. At the same time, we will expand collaboration-based sales, that is based on the group's overall customer base and expand digital marketing and other new business sales to diversify our sources of profit going forward. For more details of other subsidiaries, please refer to the presentation materials. From page 10 to page 12, you'll find more details on the NIM, the non-interest income, and G&A. From page 14 to 16, the group's balance sheet and the Korean Won loan and deposit of Hana Bank is explained. Please refer to it at your leisure. Finally, page 18, the group's asset quality. The group's total loans at the year-end of 2022 is KRW 372 trillion, down 1% of QTD. The fall in total loans is mostly due to the drop in Korean Won translated amount of the FX loan assets on the back of falling exchange rate and a decline in other exposure, including credit. The NPL amount posted KRW 1,260.2 billion, down 3.4% QoQ. Among the corporate loans of Hana Bank, the NPL amount has gone up QoQ due to the downgrading of credit rating and delinquencies in other banks. For the non-bank subsidiaries as well, the NPL amount, including domestic PF loans in the real estate sector, has grown, but with the increase in write-offs QoQ, the overall NPL amount has come down. The group's NPL ratio is at 0.34%, slightly down QoQ. From the next page on, please refer to the presentation materials. With this, we'd like to conclude the 2022 full year earnings presentation of Hana Financial Group. Thank you. Thank you very much, CFO. We will now have a Q&A session. I will briefly go over housekeeping rules. For our earnings release participants, you can call the number we provided previously, or you can go to our website and listen to our earnings release through our stream. If you would like to ask questions while listening to the stream, you need to call the number that we had previously informed you about. We will now take questions. The first question is from Hanwha Investment & Securities, Kim Do-ha. You're on the line. You're on the line. Thank you for the opportunity, thank you very much for your proactive announcement related to your capital policy. For the mid- to long-term policy, I think it looks very good. Do you have any plans for additional share buyback or cancellation this year? Because you mentioned KRW 150 billion in your disclosure, is that a continuation of last year, or are you utilizing the capacity for this year? In addition, regarding 13%-13.5% range, you mentioned that you will have a return for the amount that was a QoQ increase. If it goes down, for the next year, can we not expect this shareholder return? You also have not mentioned whether you are reviewing interim dividends. Can you also give us your guidance on that? Thank you for your questions. Please hold. The question was for the quarterly dividends, and if you have any plans to have them within this year. Thank you very much for your questions. Regarding the KRW 150 billion of share buyback and cancellation, of course it belongs to fiscal year 2023. Also, regarding the shareholder return ratio, we gave new guidance. From next year, regarding our shareholder return ratio, regarding our goal, we believe that we can have a more specific achievement of our goal. Regarding additional plan for share buyback or cancellation, I believe that we can have reviews of the possibilities within the second half of this year. For the quarterly dividends, it is true that we are currently reviewing the possibility, but in our AOCI, we need to reflect that, and the GSM needs to have a decision made. If that is done, then we will of course give out a disclosure on that. Thank you very much. Thank you very much for the detailed answer. We will be receiving the next question. Our next question is from Citigroup Securities, [Yafei]. Yafei, you're on line. Hi. Thank you for taking my question. Can you hear me? Right. Yeah. I have two questions. The first one is NIM. The margin is very strong compared to your peer. I just want to understand, is it driven by the very high interest rate or booking? Is interest correlated to expected net interest margin to come off from the relatively high levels that you have witnessed till now? The second one is, with the pace of cash distribution and buyback going forward, will it be possible to see a higher percentage of cash payout ratio as well, or will it more be concentrated with additional share buyback? Thank you. Thank you very much for your question. While we are preparing an answer, please hold. Among the two questions, with regards to NIM question, Kim Youn Jun, the CFO from the bank. With regards to the share buyback, I'm going to answer that question myself. Good afternoon. I'm Kim Youn Jun, the CFO of Hana Bank. With regards to the NIM, let me get that question. The rise of NIM in Q4 of last year, RSO was higher. There was a 12 basis points increase from 1.6 to 1.72. As the CFO has noted in the presentation, seven basis points was because of the early withdrawal from the time deposit. On a recurring level, there's been improvement of five basis points on a normalized level. In the case of Hana Bank, compared to our peers, as we understand it, the variable interest rate was actually the share was higher, and that is the reason why our NIM was higher. In the case of 2023, Fed or BOK, they have raised their interest rate in the month of January. In the market it was already reflected. Our market rate is coming down. In the case of last year, when we predicted the business plan in the months of March to May, we thought that there will be reversal in the interest rate regime. Already in January, the CD and the 6-month rate has been adjusted. This is actually weighing down on us already. However, last year and in January, the interest rate hike has been conducted, this will have an impact for the first half of the year at least. From 1.62 of last year, I think NIM can raise a bit more than that by the end of the year. Thank you. Following that, with regards to the share buyback. As you are well aware, in the case of our company, in order to raise our shareholder return ratio and also the method of shareholder return, something that we give a lot of thought to, dividends and the share buyback portion, depending on the earnings and also the stock price level, and also the capital capability of the company will be considered comprehensively and be determined. In the case of the share buyback, even if the portion is raised, the dividend DPS will be maintained or increased. Our company places a high priority on sustainability in order to maintain trust with our shareholders, and that we have been practicing on that principle from the past and now as well. Thank you very much for your answer. We will take the next question. The next question is from JP Morgan, [Jo Jiheon]. You're on the line, please. Thank you very much for the opportunity. I have two questions. First, regarding the CET1 ratio, if it's between 13%-13.5%, you mentioned that 50% of the excess capital will be going toward shareholder return. I'm a little bit confused about this calculation formula. For example, if we compare YOY, if there's 20 basis points, 0.2% CET1 increase, does it mean that you will have RWA 0.1% that will be returned to shareholders? I just wanted to check if my understanding was correct. Second question is, compared to your peers, for a non-interest business, I think relatively it is a bit weak recently. We saw some articles regarding M&A possibilities, regarding organic growth and inorganic growth for non-interest income business. Do you have any plans to further solidify your non-interest business? Thank you very much for your questions. Please hold until we will answer your questions. Thank you very much, [Jiheon Jo], for your questions. There was the answer that I wanted to add it to. Thank you for reminding me that I needed to answer that. Just to confirm what we just said, we will actually calculate the amount into the ratio that has increased and then give back to our shareholders. What you said is correct. To strengthen our non-banking business, our CSO will answer your question. I am the group CSO. My name is Yang Jae- Hyuk. Thank you for the opportunity to answer your question. With the pandemic, we have various risk factors such as the high interest rate and high FX rate and so on. We believe that this will continue in 2023 as well. As you aforementioned, compared to our peers for the profitability earnings, it is true that we are a little bit behind relatively, and it is in our non-banking sector, and we want to strengthen our business portfolio, and we want to expand other businesses continuously, and we want to strengthen our corporate value and M&A and new business entry are being reviewed. We want to have continuous growth and sustainable growth, and we also want to strategically strengthen our priority businesses. That is why we are always reviewing M&A possibilities and keeping an eye on the market. Of course, in this process, we need to think about growth possibility, profitability, future potential and synergy possibility. We will need to look at everything from a very efficient perspective as well. Thank you very much. Thank you very much for your answer. We will be receiving the next question. Next question is from Daishin Securities, Park Hye-jin. Hye-jin, you're online? Yes. Good afternoon. I'm Hye-jin from Daishin Securities. Thank you for giving me this opportunity. I have two questions myself. First question is about the dividend. As you have noted in your presentation, that presentation was well understood, but this year alone, the CET1 ratio has been risen by 30 basis points. If that is translated into the shareholder returns, I think that amount is significant. If you were to pay out 50% of that, the amount is quite significant. The dividend payout ratio, can it be raised to 30%? That is my question. Can we expect that? Secondly, I would like to ask for the loan guidance for this year. Thank you very much for that question. Please hold while we prepare the answer. Thank you very much for those questions. Regarding dividend payout ratio of 30%, of course, in 2022, our CET1 ratio had exceeded 13% level. It's not based on this ratio. Today, we have announced a shareholder return policy. That is for 2023, CET1 ratio. The 2023 ratio will be used as the basis, and using this as a basis, we will implement our shareholder return policy. Regarding dividend payout ratio, whether it can exceed 30%, well, if we include the share buyback, it may exceed 30%. That kind of situation is possible. The Group CRO. With regards to the guidance about this year's loan growth, as you're well aware, last year in Q4, there were a lot of uncertainties in the financial market, and after the end of last year, those uncertainties were resolved, most of them. In the case of the unsecured loan market and the loan market itself, there is a lot of uncertainty still. In the case of this year, similar to last half of last year, the loan market is expected to grow, focusing on the corporate loans, including Hana Bank and the Hana Group. The target for the loan growth is set at the nominal GDP growth rate level. In the second half, when the retail rate comes down or the market situation changes, and in keeping with those changes, you know, preemptive strategies or working capital strategies can be employed. We will take the next question. The next question is from HSBC, Won Jae Woong. You're on the line, please. Thank you for the opportunity, and thank you for your great performance despite the difficult environment. I have two questions. My first question is about CET1. I know that it has risen quite significantly, and I think a lot of it is on the back of FX rates. When you have shareholder return policy, because you have higher sensitivity to FX, it may occur because of the changes of FX, the CET1 ratio. Going forward, do you think there could be some predictability about FX regarding its impact on CET1 ratio? Because I think it will help us more clearly understand shareholder return policy. If you can give us some guidance on that, it will be greatly appreciated. My second question is about your shareholder return policy, which you have clearly stated, and you mentioned that you will gradually increase dividends. For shares, you will have prudent decisions made based on many considerations. If there is more than 50% of the excess capital or others, well, I believe that going forward, a lot of this can be utilized for the share buyback and cancellation. Do you think you will have, you can have more weight on dividends going forward? Is there that possibility? Thank you for your questions. Please hold until we will answer your questions. Thank you very much for your insightful questions. First, regarding RWA sensitivity, regarding its influence by the FX rate changes, if there's KRW 100 of change, then there could be 25 basis point CET1 ratio impact. As I aforementioned, in our case, compared to competitors, we have 0.5% higher than others, because if there is KRW 200 fluctuation in the FX rate, we need to take that into consideration. That is why we have that FX buffer that is existing in our case compared to peers. In addition. Well, you asked about the proportion of share buyback cancellation and dividends, and basically, regarding our cash dividends, well, our current base is within 30%. In addition, in the case of share buyback, if we have a low valuation of our share prices, we need to take into consideration many other situations and policies. I think you can contact our IR team for more details. Thank you very much for that answer. We'll receive the next question. Next question is from Goldman Sachs Securities, Park Shin Yeong. Park Shin Yeong, you are on line. Good afternoon. I'm Park Shin Yeong from Goldman Sachs. It seems to be that they are iterative questions. We need to check, first of all, with regards to changes in the capital ratio or improvement, I think you said that there will be additional shareholder returns. On a quarterly basis, are you going to review it on a quarterly basis or at the year-end will there be a full-year review? That's my first question. Secondly, the foreign exchange rate is having a significant impact. For instance, the FX related capital ratio. If there are changes to the capital ratio because of the foreign exchange rate, then that would not be considered in the shareholder return ratio. Also with regards to your treasury shares, in the case of share buyback and the method, in the case of other companies on a quarterly basis, they seem to be moving toward a more regular share buyback trend. It can be a year-end event that is an annual event, so there are different methods of share buyback. In the case of Hana Financial Group, what's your view, what's your position? Can you share with us anything you can on this subject matter? Thank you. Thank you very much for those questions. While we are preparing our answers, please hold. It seems that repeated questions are coming in. Maybe my explanation was not that clear, so let me repeat myself. In the case of capital ratio or whether it will be, you know, a full year or quarterly review, this is going to be on an annual basis. The capital ratio changes will be considered. That year, the shareholder return ratio will be determined. The shareholder return ratio, the planned shareholder return ratio implemented in QT or, you know, there can be changes in terms of timing. With regards to foreign exchange rate changes, whether the volatility of our FX have been considered, buffer of 0.5% has been included, has been reflected already. Any additional reflection related to the FX volatility and deducting that from the shareholder return, no, that is not going to happen. Thank you. I hope that answered your question. It seems that there are no other questions in the queue yet. We will conclude 2022 annual business results presentation by Hana Financial Group. Please visit our website for more details. You can listen to this presentation again, and you can also find our IR book at the website. Please contact our IR team for more questions. Thank you very much for your attention. Thank you.