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HAFC (Hanmi Financial) ROE % : 8.25% (As of Sep. 2024)


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What is Hanmi Financial ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hanmi Financial's annualized net income for the quarter that ended in Sep. 2024 was $59.6 Mil. Hanmi Financial's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $721.9 Mil. Therefore, Hanmi Financial's annualized ROE % for the quarter that ended in Sep. 2024 was 8.25%.

The historical rank and industry rank for Hanmi Financial's ROE % or its related term are showing as below:

HAFC' s ROE % Range Over the Past 10 Years
Min: 5.88   Med: 11.19   Max: 16.17
Current: 8.99

During the past 13 years, Hanmi Financial's highest ROE % was 16.17%. The lowest was 5.88%. And the median was 11.19%.

HAFC's ROE % is ranked worse than
52.41% of 1536 companies
in the Banks industry
Industry Median: 9.395 vs HAFC: 8.99

Hanmi Financial ROE % Historical Data

The historical data trend for Hanmi Financial's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hanmi Financial ROE % Chart

Hanmi Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.88 7.40 16.17 15.83 11.95

Hanmi Financial Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.29 10.92 8.63 8.20 8.25

Competitive Comparison of Hanmi Financial's ROE %

For the Banks - Regional subindustry, Hanmi Financial's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hanmi Financial's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Hanmi Financial's ROE % distribution charts can be found below:

* The bar in red indicates where Hanmi Financial's ROE % falls into.



Hanmi Financial ROE % Calculation

Hanmi Financial's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=80.041/( (637.515+701.891)/ 2 )
=80.041/669.703
=11.95 %

Hanmi Financial's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=59.568/( (707.059+736.709)/ 2 )
=59.568/721.884
=8.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Hanmi Financial  (NAS:HAFC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=59.568/721.884
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(59.568 / 230.516)*(230.516 / 7649.323)*(7649.323 / 721.884)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.84 %*0.0301*10.5963
=ROA %*Equity Multiplier
=0.78 %*10.5963
=8.25 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=59.568/721.884
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (59.568 / 84.492) * (84.492 / 230.516) * (230.516 / 7649.323) * (7649.323 / 721.884)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.705 * 36.65 % * 0.0301 * 10.5963
=8.25 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Hanmi Financial ROE % Related Terms

Thank you for viewing the detailed overview of Hanmi Financial's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hanmi Financial Business Description

Traded in Other Exchanges
Address
900 Wilshire Boulevard, Suite 1250, Los Angeles, CA, USA, 90017
Hanmi Financial Corp is a Los Angeles-based bank that caters to Korean-Americans and other multi-ethnic communities across California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington. The bank mainly focuses on small businesses and commercial and real estate loans. Hanmi also offers trade-finance products. The bank has several lending offices outside California and plans to expand outside the state mainly through acquisitions. The Bank's revenues are derived from interest and fees on loans, interest, and dividends on the securities portfolio, service charges on deposit accounts, and sales of SBA loans.
Executives
Romolo Santarosa officer: SEVP, Corp. Finance & Strategy 6538 VERDE RIDGE ROAD, RANCHO PALOS VERDES CA 90275
Harry Chung director C/O IMPERIAL CAPITAL GROUP, INC., 2000 AVENUE OF THE STARS, 9TH FL. SOUTH, LOS ANGELES CA 90067
Michael Yang director 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Gloria J Lee director 900 WILSHIRE BLVD., SUITE 1250, LOS ANGELES CA 90017
Joseph Pangrazio officer: Chief Accounting Officer 900 WILSHIRE BLVD., SUITE 1250, LOS ANGELES CA 90017
Gideon Yu director 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
John J Ahn director 150 SOUTH FIFTH STREET, SUITE 1360, MINNEAPOLIS MN 55402
Patrick M Carr officer: Chief Accounting Officer 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Bonita Lee officer: SEVP & Chief Operating Officer 3731 WILSHIRE BLVD, SUITE 1000, LOS ANGELES CA 90010
David L Rosenblum director 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Anthony I. Kim officer: Chief Banking Officer 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Michael Du officer: Chief Risk Officer 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Joseph K Rho director 3660 WILSHIRS BLVD PH-A, LOS ANGELES CA 90010
Scott Diehl director 3660 WILSHIRE BLVD., PH-A, LOS ANGELES CA 90010
Kiho Choi director 3435 WILSHIRE BLVD., SUITE 2240, LOS ANGELES CA 90010