By Kwanwoo Jun

Hana Financial Group Inc.'s third-quarter net profit fell 8.9% from a year earlier, weighed by weaker net interest margins amid a lower policy rate.

Net profit for the quarter ended Sept. 30 was 772.22 billion Korean won ($680.3 million), the South Korean company said Friday. That beat a FactSet consensus forecast for a KRW615.88 billion net profit.

Revenue during the quarter fell 43% to KRW6.522 trillion, while operating profit gained 37% to KRW1.069 trillion.

The company said its net interest margins weakened during the quarter as the central bank kept the policy rate at a record low after rate cuts earlier this year.

Increased loans to small businesses and additional provisions to cover bad debts in response to the Covid-19 pandemic have also weighed on earnings, it said.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

10-23-20 0401ET