“Credit Checkpoint” is a column that assesses the credit rating risks of companies preparing to issue corporate bonds by examining their financial structure and cash flow. It evaluates a company’s short- and medium-term financial stability by focusing not only on the figures in the financial statements but also on the quality and sustainability of its cash flow. We highlight key financial indicators and potential risk factors to help corporate bond investors and market participants assess a company’s creditworthiness from a more comprehensive perspective. <Editor’s Note>

[Edaily Marketin Reporter LEE GEON-EOM ] Attention is focused on whether Hana F&I will be able to attract investor demand, buoyed by the boom in the non-performing loan (NPL) market. As the company has significantly expanded its operating assets and solidified its market position through the increased sale of NPLs by banks, there is growing confidence that its corporate bond bookbuilding will also yield solid results. However, some observers note that concerns over the link to the real estate market—which lies behind the continuously declining purchase rate—and the lengthening recovery period could become variables affecting actual profitability.

Abundant Deal Pipeline… Clear Growth in Scale

According to the financial investment industry on the 24th, Hana F&I will conduct a bookbuilding process on the 27th for the issuance of unsecured corporate bonds totaling 150 billion won. The bond offering consists of 30 billion won in 1.5-year notes, 70 billion won in 2-year notes, and 50 billion won in 3-year notes. Depending on the results of the bookbuilding, the total amount raised could increase to as much as 300 billion won. Hana F&I’s unsecured corporate bonds carry a credit rating of ‘A+ (Stable).’

The market views Hana F&I’s rapid revenue growth positively. Driven by the recent expansion of NPL sales by commercial banks, Hana F&I has maintained operating assets in the mid-to-high 2 trillion won range, solidifying its position among the industry leaders. As of the end of March this year, operating assets stood at 2.7178 trillion won, and the company appears to be continuing its growth momentum based on a robust deal pipeline, with cumulative acquisitions since 2023 reaching 5 trillion won.

In fact, Hana F&I is maintaining solid profitability. The company’s net income for the first quarter of this year was 10.1 billion won, and its return on assets (ROA) stood at 1.4%, in line with previous years. ROA is a profitability metric that measures how much net income a company generates using its total assets.

The fact that this metric has remained at the same level as in previous years—even as Hana F&I’s non-performing loan (NPL) portfolio has expanded significantly to the mid-to-high 2 trillion won range—suggests that the company is generating stable profits by managing its assets efficiently in proportion to its increased scale.

Return on Equity (ROE) also remained stable at 7%. ROE is a profitability metric that shows how much profit a company generates using shareholders’ equity. In the case of Hana F&I, ROE fell by 5.3 percentage points (p) compared to the 12.3% recorded in the same period last year; however, this is largely attributed to a base effect, given the high returns generated from financial investment assets in the first quarter of last year.

The Double-Edged

Sword

of Declining Purchase Rates… Concerns Over a Slowing Real Estate Market

Despite its strong profit-generating capacity, the company’s inherent sensitivity to the real estate market is cited as a potential risk factor. In fact, Hana F&I’s average purchase rate for NPL assets fell sharply—from 94% in 2022 to 90.4% in 2023, 69.8% in 2024, and 62.5% in 2025—before rebounding to 79.3% in the first quarter of this year.

The NPL purchase rate refers to the ratio of the actual purchase price to the outstanding principal balance (OPB) of non-performing loans held by banks. While a decline in this indicator suggests that assets were acquired at lower prices—which could positively impact future profitability—it also implies that collateral values are falling due to the slowdown in the real estate market and that the recovery period required to liquidate assets is lengthening.

In particular, the fact that a significant portion of Hana F&I’s NPL collateral consists of non-residential properties—such as commercial and industrial facilities—is another key factor. With the sale price ratio in the real estate auction market having fallen from approximately 70% in 2023 to around 60% in 2026, some observers point out that if the decline in the sale price ratio—particularly in the non-residential sector—continues, recovery performance and volatility could increase further.

Kim Kyung-geun, a senior analyst at Korea Credit Rating, noted, “Since the company is focusing on rebalancing its operating assets and selective new investments rather than expanding its scale, it is expected to maintain solid profitability for the time being.” However, he added, “Whether profitability can be substantially improved in the future will largely depend on whether the effect of lower acquisition costs translates into actual improvements in recovery performance—that is, on the recovery of the real estate market and improvements in the recovery environment.”