Hana Financial Group
January 2017
section 1 2016 Financial Highlights section 2 Profitability section 3 Total Lending & Funding section 4 Asset Quality & Capital Adequacy section 5 Appendix Section 1
2016 Financial Highlights (1) 2016 Financial Highlights (2) 2016 Financial Highlights (3)
Group Net Income (Unit: Wbn) ▪ Group's cumulative net income surged 46.2% YoY recording 1.331 trillion, the highest full year earnings since 2012, driven primarily by stable core earnings and reduction on loan loss provisioning and SG&A expenses ▪ Reported stable 4Q16 earnings of KRW 90.4 billion in the face of the recognition of major one-offs ▪ Despite sizeable increase of C/I ratio in 4Q16 due to the expansion of year-round ERP, group-wide cost savings and realization of bank integration synergy contributed reduction of full year SG&A cost by 10% YoY Group Major Indices (Cumulative) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
3Q16
4Q16
NIM • While low interest downward pressure on  NIM  from environment persisted in 2016, resilient NIM reflects the benefits from loan portfolio improvement as well as growth of low cost fund (LCF) ◾ Group's interest income increased by 2.3% and fee income decreased by 5.6%, YoY respectively, summating the core earnings (interest income + fee income) in line with previous year ◾ KEB Hana Bank’s KRW loan in 2016 grew 3.9% YTD driven by households (mortgages) and SMEs (SOHOs). While large corporation exposure further contracted in 4Q16, exposures on healthy large corporation grew selectively
KRW Loan & KRW Deposit
(Unit: Wtn) KRW Deposit KRW Loan 4
Group NPL Ratio & Delinquency Ratio ○ NPL Ratio ○ Delinquency Ratio 1.41% 1.41% o 1.19% 1.27% 1.30% 1.23% 1.11% 0.92% 0.67% 0.66% 0.70% 0.75% o 0.68% 0.67% 0.57% 0.50% 1Q15 3Q16 2Q15 3Q15 1Q16 2Q16 4Q15 4Q16
Group Provision
○ Credit cost (Cumulative) ■ Loan Loss Provision (Quarterly) (Unit: Wbn) (Unit: Wbn) ▪ Group's NPL ratio and delinquency ratio in 4Q16 further improved continuing the downtrend of this year •  Loan loss provision dropped in 2016 with credit cost dipping below 35bp, -13bp YoY, reflecting high-risk exposure reduction on the back of proactive risk management ◾ Strong group CET1 ratio growth in 2016 driven by proactive RWA reduction with loan portfolio rebalancing and adoption of IRB (internal ratings-based) approach ◾ Group's 4Q16 CET1 improvement due to the classification of credit loss reserve as common equity capital was partially offset by RWA increases from loan growth and weakened KRW plus reduction in OCI due to market interest rate hike
Group Capital Adequacy
Section 2 Profitability Group Consolidated Earnings Business Results of Subsidiaries NIM SG&A Expenses
General Operating Income SG&A Expenses -10.0% yoy * Credit Loss Provision -19.8% yoy → 2016 (Unit Wbn) 2015
December 2015) performance of KEB Hana Bank. The financial data under "KEB Hana Bank" before the integration is the performance of (formerly) KEB. Note2) Separate, the simple sum of (formerly) Hana Bank and (formerly) KEB's performance data before and after the two banks' integration. Note3) Induding net income of (formerly) Hana Bank Note4) Equity attributable to equity holders of the parent
η  Hana Financial Group
NIM NIM KEB Hana Bank ¹) Note1) The figures, prior to the integration, represent the simple sum of (formerly) Hana Bank and (formerly) KEB's performance. (Unit: Wbn)
NIS Trend
Group
O NIM Int. Income KEB Hana Bank ¹）
η Hana Financial Group

Group Fee Income Trend (Unit: Wbn) (Unit: Wbn) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

SG&A Expenses

(Unit Won)
Group Cost Income Ratio (Cumulative)
(Unit Won) ● Including NGW Excluding NGW | SG&A Expenses Section 3
Group Total Assets / Total Liabilities & Equity KEB Hana Bank KRW Loan / Deposit

Group Total Liabilities & Equity
(Unit: Won)
Note 1) Total Assets = Group Asset + Trust Asset (Unit: Wtn) Total Assets 1) of Subsidiaries (Consolidated) (Unit Win) 355 437
Hana Financial Group

Deposit (Ending Balance) 1)
and (formerly) KEB'.s balance. (Unit: Wbn) 2015 (Unit Win) Low Cost Funding Trend 1) (Core Deposit + MMDA) ○ LCF Weight(%) MMDA ■ Core Deposit 32.8% 35.2% 34.3% o 1Q15 3Q15 4Q15 3Q16 4Q16 Loan to Deposit Ratio 1) 2) (LDR) 4Q16 34.3% 1Q15 2Q15 1Q16 3Q16 4Q15 2Q16 3Q15 Note 2 ) Excluding Policy Loan
Hana Financial Group
Section 4
Group Asset Quality KEB Hana Bank Asset Quality Provision  Analysis Capital Adequacy

Group New NPL Formation Trend
(Unit: Won) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Group NPL / Precautionary & Below Ratio
○ NPL Ratio   ○  Precautionary & Below Ratio 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 the end of 2016 is 82.4% Hana Financial Group
NPL / NPL Coverage Ratio Trend 1), 2) ○ NPL Ratio ○ NPL Coverage Ratio 134.4% 143.1% 166.1% 0.84% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Delinquency Ratio Trend  ¹）
○ Total  ○ Corporate  ○ Household 3Q16 4Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Note 2) The figures, prior to the integration, represent the simple sum of  (formerly) Hana Bank and (formerly) KEB'.s balance the end of 2016 is 72,8% Hana Financial Group

Group Provision Overview
Group ○ Credit Cost  (Cumulative) KEB Hana Bank (Separate) 1) (Unit: Wbn) ● Credit Cost (Cumulative) ■ Loan Loss Provision (Quarterly) Hana Bank and (formerly) KEB'.s provision data.

KEB Hana Bank

(Unit: Wbn)
Group
O BIS Ratio        Tier 1 Ratio 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
KEB Hana Bank
O BIS Ratio   O Tier 1 Ratio   O CET 1 Ratio 1Q15 1Q16 2Q16 3Q16 2Q15 3Q15 4Q15 4Q16 Section 5 Appendix Net Income Contribution by Subsidiaries Provision Analysis by Subsidiaries Dividend Major Indices
Statements of Comprehensive Income (2016 Cumulative, Consolidated)
Subsidiaries' Provision Overview (2016) KEB Hana Bank Provision Break-down (Unit: Wbn) (Unit: Won)

Group Capital Position 1)
(Unit: Wbn)
Group Capital Return
(Unit: Won) O CET 1 Ratio ■ CET 1 Capital O Payout Ratio ○ Dividend Yield Ratio | Interim Dividend ■ Year-end Dividend Note 1) 2011, 2012  Core Tier 1 Capital and Core Tier 1 Ratio under Basel 2ףHana Financial Group
Group (Consolidated)

KEB Hana Bank (Consolidated)  1)
(Unit: Won)
Notel) Major indices prior to Sept.2015 represent that of (formerly) KEB.
η Hana Financial Group
DISCLAIMER
Some of the information in this presentation constitute 'forward looking statements' which reflect Hana Financial Group's current intensions, plans, forecasts, and assumptio about future events or results, and are subject to risks, uncertainties and other factors. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and often are bey the Hana Financial Group's control. This presentation material is provided for the convenience of investors in advance, prior to being reviewed by external auditors. Therefo is subject to change based on final review by external auditors. This English translation is not an official translation. In the event of any conflict or inconsistencies may arouse due to English translation, the original "Korean" version prevail. The accuracy, reliability and timeliness of this translation are not guaranteed. Should any error in translation of this presentation occur, Hana Financial Group sh liable for the error.
Investor Relations
55, Eulji-ro, Jung-gu, Seoul, 04539  Republic of Korea +82-2-2002-1110 hanair@hanafn.com www.hanafn.com/ir " T Hana Financial Group