Good afternoon. Thank you for joining us at the Hana Financial Group's earnings presentation. I am Joo-hoe Kim , Head of the Finance and Planning Team at Hana Financial Group. I would like to thank shareholders, analysts, and other market participants for taking part in today's event via phone or through the Internet despite the reschedule. We will now begin the 2021 full year earnings presentation. Today, we have with us Hana Bank's CFO, Vice President Kwon Nam, and senior management members from the group and subsidiaries responsible for finance, risk, strategy, and digital operations. We will first begin with a presentation of our business results, and then hold a Q&A session via phone. We now invite our CFO, Kwon Nam, for the Hana Financial Group's 2021 full year earnings presentation. Good afternoon.
I am Kwon Nam, CFO of Hana Bank. I'm standing instead of the group CFO, and I will be walking you through the group's 2021 full year business results. First, the financial highlights of the group. Please refer to page three. Hana Financial Group posted KRW 3,526.1 billion, up 33.7% YOY in the full year net income for 2021. In Q3, the group had already exceeded the previous year's yearly net income of KRW 2,637.2 billion, and the net income for Q4 posted KRW 844.5 billion, up 58.5% YOY, once again proving the group's sound capability to generate profit.
In 2021, Hana Financial Group saw its profit generation capacity upgraded, achieving record high net income driven by strengthened core earnings on the back of diversified business portfolio and stable risk management in response to the continuing volatility in the capital market owing to the protracted pandemic situation. This year as well, we will make continued efforts to realize stable earnings and implement ESG-focused business practices and enhance shareholder value. Now, let me go through the business results in more detail. In 2021, the group's core earnings posted KRW 9,300.6 billion, up 15.2% YOY. The NIM improved YOY, reflecting the rise in market rate on the back of BOK rate hike, as well as our internal efforts towards portfolio improvement.
In addition, through qualitative growth focusing on high-quality assets reflecting the market demand, a solid loan growth was maintained, resulting in improved interest income YOY. At the same time, card fees and asset management-related fees grew, leading to greater contribution from non-banking subsidiaries, and thus, the group's fee income achieved a two-digit growth YOY, posting the highest group core earnings in our history. Next, the group's SG&A posted KRW 4,050.5 billion, up 3.4% YOY. This is mostly due to the base effect of the one-off recognition of banks' performance pay expenses in Q1 and the increase of general administrative costs owing to the inclusion of Hana Insurance as group subsidiaries. Through group-wide efforts to raise cost efficiencies, supplies-related expenses declined YOY, and a stable SG&A of KRW 4 trillion level was posted.
Reflecting this, the group's annual CI ratio is 44%, down 1.3% YOY. Finally, the group's credit cost ratio posted 15 basis points, up slightly over the previous quarter. However, on a YOY basis, it is down 12 basis points, maintaining a more than sufficient buffer through stable management. This is due mostly to the base effect from setting aside a large amount of countercyclical provisions, and also due to partial normalization of the shipping industry, there was write-back from a number of individual companies-related provisioning. Also, in Q4, loss absorption capacity was further bolstered through the preemptive provisioning and to respond to economic uncertainties in 2022, including the spread of the Omicron. Thus, we will be continuing to maintain a stable asset quality through preemptive risk management against uncertainties, both at home and abroad. Next, on page four.
The group's Q4 NIM, including Hana Bank and Hana Card, is up seven this QoQ to post 1.71%. The Hana Bank's NIM is up 7 basis points QoQ to post 1.47%. The asset repricing effect following BOK's rate hike was positively reflected, and the NIM improved significantly. At present, I do believe it is rather premature to elaborate in any detail the outlook for NIM for this year. Given that last month, as well as following last year's additional benchmark rate hikes were made, the asset repricing effect is expected to be maintained till the first half of the year. Also, to respond to the continuing inflationary pressures, the US Fed has shifted gears to a more hawkish policy line. Thus, the market is expecting multiple rate hikes by the Fed this year.
Should such a central bank's stance to normalize the monetary policy be reflected in the market rate, we believe, NIM will continue to steadily improve this year. Next, if you look at the right-hand side of the slide, the bank's loans in Korean won is up 0.9% QOQ and 7.3% YTD to post KRW 257 trillion. As such, based on the simultaneous growth of both profitability and asset size, the group's interest income posted meaningful improvement both quarterly as well as on a YOY basis. Meanwhile, in the case of the quarter's fee income, it is down QOQ due to a decline in the underwriting fees and other fees. However, on a yearly basis, solid improvement has been made YTD.
For your information, with regards to the fee income, in consideration of maintaining consistency in the group's accounting practices and to allow for peer comparability, some of the fee income of Hana Card has been reclassified into interest income. This is nothing more than an accounting reclassification between interest income and fee income, and thus has no impact on the net income of either the group or the Hana Card. For more details, please refer to page 28. Next is page five. The group's NPL ratio in 2021 posted 0.32%, down 8 basis points YTD and one dip QOQ. Delinquency ratio following last quarter posted 0.28%. Despite the protracted pandemic situation on the back of group-wide efforts to manage risk, overall, the NPL ratio was maintained at a stable level.
The group's 2021 cumulative credit cost ratio posted 0.15%, down 12 basis points YTD. Even if the COVID-19 related one-time preempted provisioning in 2020 is excluded, the recurring credit cost ratio is down 2 basis points, thus showing a downward adjustment in the overall asset quality indicators. Going forward, responding to the uncertainties both at home and abroad through enterprise-wide risk management, we will continue to do our best to maintain healthy asset quality. Finally, as of the end of Q4, the group's CET1 ratio was down 28 basis points QOQ and expected to post 13.78%. This is due to the payout of the 2021 year-end dividend. Despite the drop in CET1 ratio during the quarter, we have maintained the highest level of capital adequacy among our peers. Next is the group's business results by item.
First, on page seven, the group's consolidated income statement. Among the general operating income of Hana Financial Group in 2021, interest income grew 15.5% YOY to post KRW 7,437.2 billion. Thanks to the strong business performance of the major non-bank subsidiaries such as credit card, brokerage, IB-related fees, the annual fee income is up 14.3% YOY to post KRW 1,863.4 billion. Next, the group's gain on valuation disposal was down 56.9% YOY to post KRW 504.7 billion. The main reason for this is the non-monetary FX transaction losses of KRW 154.6 billion, which occurred because of the weak won trend that continued throughout the year. Other reasons include market rate rising due to progressive normalization of the economy and inflationary pressures in Korea that has slowed down the AFS performance and gains on valuation. Finally
The yearly SG&A is up 3.4% YoY to close to KRW 4,050.5 billion. Despite the solid earnings improvement trend, the ordinary SG&A was controlled to within the target set within the yearly business plan, and the CI ratio was downward adjusted to 44%, demonstrating once again the group's capacity to control costs. Next on page eight, subsidiaries business results. Hana Bank, a major subsidiary of the group, posted an annual net income of KRW 2,570.4 billion in 2021, up 27.9% YoY. This was mainly attributable to solid interest income from NIM improvement. Stable SG&A and the fading of large-scale countercyclical loan loss provisions partially offset the weakened disposition and valuation gain, achieving the highest performance ever.
Next, the annual net income of Hana Financial Investment was KRW 506.6 billion, up 23.3% YOY. Improvements in overall earnings fundamentals were positively reflected, such as an increase in core earnings fueled by improved asset management fees. Hana Card's annual net income also increased by 62.2% YOY to reach KRW 250.5 billion. Lastly, Hana Capital's accumulated net income for the year was KRW 272 billion, an increase of 53.5% YOY due to the overall increase in general operating profit and the fading of the provisioning effect. For other subsidiaries, please refer to the document. Pages nine through 11 discuss the details of NIM, non-interest income, and SG&A that I mentioned earlier. Page 13 deals with the group's total assets, liabilities, and equity. Please refer to the documents at your leisure.
Next on page 14, I will talk about Hana Bank's loans and deposits in Korean won. As of the end of 2021, Hana Bank's loans in won stood at KRW 257 trillion, an increase of 0.9% QOQ and 7.3% YOY. Looking at loan growth by sector, corporate loans amounted to KRW 126 trillion, an increase of 3.2% QOQ, driving the growth. As the demand for funds from non-audited SMEs and solo borrowers continued, SME loans maintained sound growth with an increase of 2.9% compared to the previous quarter end. Large corp loans grew 0.8% QOQ, reflecting raw material price hikes and preemptive financing for additional market interest rate hikes. Financial institution and other loans also increased QOQ due to year-end short-term funding demand from some public companies.
In the case of household loans, in order to comply with the household loan cap imposed by the financial authorities, it decreased 1.2% compared to the end of the previous quarter by temporarily managing the limit of household loan products during Q4. On an annual basis, growth was driven by actual demand centered on jeonse loans and high-quality credit loans as it increased by about 4% QoQ, achieving a good growth rate compared to the target set at the beginning of the year. In addition, as to the growth prospects of loan in won, in 2022, we plan to maintain a balanced loan growth strategy that maintains asset quality and profitability management. By segment, we expect a little more contribution from corporate loans than from household loans.
Total loans in won are expected to grow at a level corresponding to the domestic GDP growth rate. As of the end of 2021, deposits in won stood at KRW 268 trillion, an increase of 2.2% QOQ. Term deposits and MMDA decreased slightly due to year-end withdrawal of short-term funds by large corporations and public institutions, and low-cost core deposits grew by 2.5% compared to the end of the previous quarter, thanks to abundant market liquidity, enabling a stable funding structure. However, as CD funding increased for the purpose of managing the LCR ratio, the proportion of low-cost deposits remained at the same level as the previous quarter. For your reference, as you can see at the bottom of the graph on the right, the loan-to-deposit ratio as of the end of 2021 is 99.2%.
Page 15 shows Hana Bank's loans by sector. Please refer to the material for details. Next, page 17. Group's asset quality. As of the end of 2021, the group's total loans amounted to KRW 345 trillion, an increase of 9.7% YOY, and the amount of NPL loans decreased by 11.9% YOY to KRW 1,112.6 billion. As a result, the group's NPL ratio was 0.32%, which is 8 basis points lower QoQ. If you look at the upper right-hand corner of the page, the amount of new NPL formation in the fourth quarter was KRW 146.4 billion.
Even though households and some overseas operations NPL increased slightly QoQ, it was mostly offset by the decrease in corporate NPL due to decreased amount of new defaults, maintaining the same level as the previous quarter. We will discuss the asset quality of bank in more detail on the next page 18. Hana Bank's total loans at the end of 2021 is KRW 295 trillion, an increase of 9.0% compared to the end of the previous quarter. NPL stood at KRW 757.1 billion. As a result, the NPL ratio is 0.26%, which is an 8 basis points decrease compared to the end of the previous year, just like the group's ratio had fallen. As of the end of the year, the NPL coverage ratio is 163.9%.
Hana Bank's delinquency ratio at the end of 2021 is 0.16%, down 8 basis points from the end of the previous year. Despite the strong increase in loan assets, the corporate delinquency ratio has been stabilizing downward throughout the year, leading to the stabilization of the overall delinquency rate. Pages 19 and 20 cover loan loss provisions of the group and the bank. Please refer to the materials. Lastly, on page 21, capital adequacy. By the end of 2021, the group's BIS ratio and Tier 1 ratio are expected to be 16.29% and 15.15% respectively, and the CET1 ratio is expected at 13.78%.
Although the capital ratio decreased slightly compared to the end of the previous quarter due to the year-end dividend, the highest capital adequacy of the industry was again demonstrated while maintaining a robust level of CET1 ratio after the early introduction of Basel III. We would like to inform you that at today's BOD meeting, it was resolved that the group's year-end cash dividend for 2021 is 2,400 KRW per common share. If this is approved at the general shareholders meeting, the total cash dividend per common share for fiscal year 2021 will be 3,100 KRW, including the paid interim dividend. Accordingly, the annual dividend payout ratio is expected to be at the level of 26%, and the dividend yield based on the closing price in 2021 is approximately 7%.
Despite the difficult situation under the pandemic, the dividend payout ratio recovered to the pre-COVID 2019 level due to the improved business performance and recorded the highest dividend yield in the industry. Hana Financial Group will continue to do its best to continuously increase shareholder value based on stable business performance and capital adequacy. This concludes the 2021 Hana Financial Group's annual earnings presentation. Thank you very much. Thank you very much. We will now proceed with Q&A. Let me explain how it proceeds. In order to participate in the conference call, you needed to have called in via the number notified or log into the website to listen to the webcast. For those of you participating on the Internet, if you want to pose a question, you need to call in using your phone. Now we will take questions.
We'll receive the first question. The first question comes from Hyundai Motor Securities, Mr. Jeson Kim. Mr. Kim, you are online.
Good afternoon. Thank you very much for the strong earnings. I have two questions. In Q4, the ERP expense, I don't think it was reflected as of yet. I believe it will be reflected in Q1- If it is, then what is the approximate size? And given this amount in Q1, is it expensed in Q1? I think the performance will be lower than last year. What do you think about that possibility? And then second, Hana Bank has been the first bank to engage in interim and dividend. In terms of dividend policy, it was quite proactive. Recently, other peers have been quite proactive, you know, retiring their treasury stock, et cetera. Hana Financial, your capital policy, do you have any plans of diversifying your existing capital policy?
Thank you very much for those questions. While we're preparing the questions, please wait for a few seconds.
I'm Kwon Nam, the CFO of Hana Bank. First of all, with regards to the ERP expenses in Q4, that is not being reflected. With regards to ERP timing, not only financial considerations, but our reorganization and also HR policy and also discussions with the labor union is all required. Several different factors are considered. The specific timing is not prefixed. The overall business environment is considered. There was one ERP in 2020. There was more in 2019. The ERP programs were different for every year. For this year as well, there wasn't any particular cost for the ERP in Q1. In 2021, the special expenses for Q1 has been already reflected in the business plan.
NIM recovery and also strong high quality asset-based policy will be pursued in order to continue to maintain stable top line. In terms of bottom line as well, we're going to also engage in strong cost control and expense control. For your reference, in Q1 of 2022, the ERP is 428, and total cost is about KRW 163.7 billion is expected, and KRW 56 billion is expected to be saved because of this. Also the group's proactive dividend policy and shareholder related policy. Let me get that question. As we have already noted, in 2021, compared to previous year, we have paid out KRW 3,100, which was an increase of KRW 1,200.
The yield had also increased from 20% to 26%. We had recovered the pre-COVID-19 levels. We still have Omicron risk, and we do find it regrettable that we were not able to pay higher dividends this year. When COVID-19 is over and if everything becomes normalized, then the dividend payout ratio also needs to be higher than last year. That is our belief. The higher dividend payout ratio and with increased profits this year, we will do our best in order to increase the dividend payout. As you're well aware, the group's dividend per share compared to our peers, it's at the highest level, and also dividend yield is at the highest as well. That shows how undervalued we are.
We will place top priority on shareholder return, and we will shift away from this undervaluation. Our group's dividend payout ratio, 30% is our target. Our group's target of 30%, we will continue to move forward toward this target in an orderly and gradual manner. Also, aside from the dividends, there are diversified shareholder return policies. Through such a policy, we will transform ourselves into the most shareholder-friendly financial company in Korea. One of the peers has decided to retire its treasury stock. In the case of Hana Financial Group, we have 370,000 shares owned as treasury stocks, and KRW 4 trillion is held. We are able to engage in retirement of our treasury stocks.
In the case of treasury stock, they can be used in many ways, including M&A. There is sufficient value to hold it for future uses. However, in order to enhance shareholder return and also in consideration of our peers' cases, with regards to retiring treasury stock, we will engage in positive consideration, buyback of treasury stock as well, based on sufficient loss absorption capabilities when COVID-19 starts to fade. We will engage in close consultation with the financial authorities and pursue this matter. Yes, after our foundation, then in 2009, after the global financial crisis, we were the only financial company that had engaged in interim dividend payout. The dividend yield has been maintained at the highest level among all our peers.
Based on this, the interim dividend tradition is something that differentiates us from other financial companies, and it has been appreciated by our shareholders and also the peers. Interim dividend payout and also year-end dividend payout is something that has been benchmarking ours. This year, we will do our best in order to engage in interim dividend payout as well. In the case of quarterly dividend as well, if it helps our shareholder returns, shareholder value, we will give a positive consideration. The yearly dividend will not be spread out. Not only that, our actual shareholder value enhancement will be pursued by looking into diversified solutions. Thank you very much.
Thank you for the detailed answers. We'll take the next question. You're online, [Mr. Dekitu-san].
Hello. I have a question about the margin. In Q4, when you look at the NIM, it had risen significantly, and it was mentioned earlier in the presentation, but could you be detailed about what factors played and how the NIM was higher than the market expectation? The base rate is rising and the market rate trend looks positive, maybe in Q1 or on a yearly basis. Maybe you could have a big picture about your margin forecast or plans. Could you share that with us? Thank you.
Thank you for the question. We will be right back with the answer. Please hold.
In Q4, I'd like to talk about the NIM. The NIM in Q4 was, as the base rates were risen twice last year, there was repricing effect and the deferred loans and interest were collected, and it had risen. Looking at the details, relatively speaking, the lending part had an effect, and the repricing was improved by 5 basis points . At the year-end, the deposits reached maturity, and due to fierce competition between the companies, in order to reduce the cost, we had tried to manage the funding cost. As for the deferred interest of KRW 14.7 billion, that had an effect of 2 basis points, and the recurring NIM had risen by 5 basis points . Compared to our peers, we had a very positive NIM improvement.
This year, there is expected to be base rate hike again, and it will have an effect on the interest income and also on the NIM. What we think is, in January this year, BOK had raised the interest rate again, the base rate again, and it had risen back to 1.25%, the pre-COVID level. The BOK governor had mentioned possibilities of additional rate hike and has turned to a hawkish stance and the end of tapering of the US Fed and announcement of possible three more interest hikes by the U.S. We've seen that there's going to be upward pressure on the policy rate.
We think that in the latter half of the year, we think there's going to be another BOK rate hike once, and the market rates will be carried, and the NIM will show a gradual upward trend. For your reference, according to our ALM structure, when the base rate goes up 25 basis points, then it will have a positive effect on our NIM by KRW 100 billion. Thank you. Yes. To add to that, as for Hana Bank, we have 77% of our loans that take on the floating exchange rate scheme. In January this year, there was a rate hike, and that's going to have an effect on Q2. When there is another rate hike in the second half, we believe that the NIM will be pushed further. Thank you.
We'll receive the next question. The next question comes from Taejin Jung from Yuanta Securities. Mr. Jung, you are online.
Good afternoon. I'm Taejin Jung from Yuanta Securities. Thank you for the excellent earnings. I have a question on the credit cost. So, when the financial assistance program is terminated, what kind of impact would that have? And also, can you share with us any guidelines on the loan loss provisions?
Thank you very much for those questions. Please wait a few seconds while we prepare the answers.
I'm Jisun Kim, the Group CRO. Let me answer that question. Because of the spread of COVID-19, the financial authorities have extended the interest suspension program and the financial assistance program, a maximum of one-year grace period. Or, the repayment can be made in installments over five years. As is reported, after the program is terminated, the small business owners and the marginal companies, the NPL can rise or the loan loss provisioning can rise. However, for these people, they are companies that suffer from temporary cash shortages. We have actually extended loans to sustainable companies.
We don't believe that asset quality will deteriorate that significantly. For your reference, in our group, the suspension program related amount is about KRW 860 billion, and 85% is covered by collateral. Only the KRW 130 billion is exposed to unsecured loans. For these people, one month before the program is terminated, through SMS messages, we provide guidelines. We'll check at the collaterals and also monitor the risk on a regular basis. In the month of January, reflecting such a risk compared to last year, a slightly higher credit cost is expected. The credit cost that we expect, we believe that we can actually manage the risk with that amount of credit cost levels.
Thank you. We'll take the next question. The next question is from Director Won Jae Woong from HSBC Securities. Please go ahead.
Thank you for a good year. I have two questions about NIM and credit cost. You talked about the guidance for this year. This year, what is the loan growth and SG&A forecast? Could you give us a guidance for reference? The second question is LDR and LCR regulations could have an effect on NIM. How do you think the NIM will be affected by the regulations?
Thank you for the questions. We'll be right back with the answer.
Hello, I am the Hana Bank CSO, Namgung Won. As for 2022 loan growth, I'd like to share the outlook with you. In 2022, we want to focus more on the corporate loans instead of household loans. The loan in won will be growing at a rate of 3%-4%, which is the GDP growth rate. As for household loans, the financial authorities have put in place regulations to put a cap on it. We expect a loan growth rate of 2%-3%. There is restriction on household loans, profitability and quality growth will be maintained for the household loans. To cope with the household loan cap, we will be flexible with other measures. As for the corporate loans, we will focus on the quality growth, focusing on the prime borrowers.
We expect the growth rate to be in the 4%-5% range. The government is going to implement social distancing and it is going to raise the base rate. We're going to focus on the loan growth of the SMEs and sound companies. Along with the loan growth, we are going to take on new customers, and we are going to improve profitability, looking for new revenue sources. As for the SG&A in 2022, the forecast is as follows. In 2021, the core earnings had risen 15% and there was group-wide cost cutting, and so supplies related cost was reduced.
We were able to manage the SG&A growth by 3%, and the CIR ratio was 44%, which is in a downward trend. There is fast change in financial environment. Digital platform needs some investment. IT system and digital product development requires cost. Including the new businesses and to increase the competitiveness of the non-bank sector, we are now faced with some cost management issues. We would like to focus on cost management to stably manage the CIR. As for the LCR, a partial withdrawal, how that would affect the bank. The financial authority is of the basic stance. It had relaxed by 15%, and their plan is to do it phas- by- phase, and the market expectation is a normalization of 5% by every six months.
For example, when there is 5% normalization in March, the market confusion could be minimized and so the BOK would relax the LCR regulation for the collateral, and that would be in the range of 3%-5%. Immediate LCR withdrawal or if it is done phase- by- phase, that will not have a huge impact on the bank. As for LDR, it is now relaxed to 105% from 100%. For the purpose of internal risk management, we are managing the LDR under 100%. The LDR regulation will not greatly affect our operation. That is our expectation.
Thank you for the detailed answers. We will take the next question. Our next question comes from Citi Securities. Ms. Yafei. Yafei, you're online.
Yes. Can you hear me? Hello?
Yes, we can hear you. Please go ahead.
Hello, can you hear? Yeah. I have two questions. The first question is a follow-up on the operating expenses. Looks like you are walking away from the KRW 4 trillion guidance that you have been holding for quite a number of years. Is it possible to give us a kind of magnitude, what kind of cost growth that you are looking at for this year? What will be the incremental spending going into? Is that technology or is that people? Secondly is on the valuation and other revenue line item, the disposition and valuation line items. Last year was a low base because of the FX as you flagged. What is a normalized run rate that you are forecasting for that line item for this year, please? Thank you.
Thank you very much for those questions. Please wait for a few seconds while we prepare the answers.
With regards to IT and digital expenses, let me answer your question. The operating expense, KRW 4 trillion, we do not use it as a guideline actually. When there are investments, that's necessary to be made, we do make those investments. Basically, more than KRW 4 trillion of expenses will occur in 2022 in our expectations, especially in the digital and IT sphere. The financial sector's digitization efforts have continued to be made, and we have continued to increase our investments in the IT system. Based on these plans, in 2022, to establish the platform business model, key technology alliances. Also in the asset management area through digitization, we're going to increase our contact with our customers.
Also, for the non-bank subsidiaries, in order to enhance our competitiveness, the Hana Insurance, their IT system will also be subject to proactive investment. IT-related expense, compared to last year, we expect investment that is 40% larger than last year. However, the depreciation of IT-related expenses, increased expenses in consideration of that. Aside from these investments, the recurring level of cost there will be, efficiencies in this area will be maximized so that overall, the group level expenses will be maintained at a very stable level, that is all.
Thank you very much for those answers. We'll receive the next question. The next question is from Kim Suyun, Shinhan Investment. Please go ahead.
Hello. I am Kim Suyun from Shinhan Investment. Thank you for the good dividend and for the good result. Starting in Q1, the other financial holding companies will execute and make regular the quarterly dividends, and they will be changing the articles of incorporation. Hana has been active in the shareholder return policies. Starting in Q1 this year, will there be the same change in Hana? Second, maybe you could not tell us right away, but for a while, there has not been a huge scale M&A. Do you have any plans for inorganic growth? Are you interested in a certain business area? Thank you.
Thank you for the questions. We'll be right back with the answers. Please hold.
As for the quarterly dividend, it was mentioned in the presentation. Shareholder value, if it is enhanced, then we will review it positively, and it will not be an installment pay of just yearly dividend. If there is the stock price boosting effect and if there is shareholder value return, then we will review it carefully. Yes, to answer your question about M&A plans, COVID-19 is now changing from pandemic to endemic, and the financial market is sluggish, and we are now facing risks, and the contactless industry is growing, and we see diversified market. Hana Financial Group is interested in settlement and in the capital market, because we are lagging behind our peers, and we want to strengthen our capacity.
It was a supplier based M&A in the past, but we are going to watch out for the market changes. If we think that it helps our business foundation further and enhance our businesses, then we will be looking into areas that will give us some more synergies. We will be looking at the non-bank candidates. This is the principle under which we are reviewing our M&A strategies, and that will be our inorganic growth plan.
Thank you for the answers. I think we have had our share of questions and answers. If you have other outstanding questions, please contact the IR team for further information. This concludes the 2021 Hana Financial Group full year earnings presentation. You can listen to the webcast again on the website, and the IR data book will also be uploaded. If you did not have a chance to ask your questions, please contact the IR team, and we'll do our best to answer your questions. Thank you for your participation.