Shinhan Financial Group Co Ltd (NYSE:SHG)

Q2 2025 Shinhan Financial Group Co Ltd Earnings Call Transcript

Jul 25, 2025 / 05:00AM GMT

Release Date Price: $50.91 (+1.17%)

Transcript

Key Points

Positve

Shinhan Financial Group Co Ltd (SHG) reported a net income increase of 4.1% quarter-over-quarter, driven by strong growth in non-interest income.
The gross CET1 ratio improved by 32 basis points quarter-over-quarter, indicating enhanced capital stability.
The group announced a cash dividend of KRW571 per share and a share buyback program amounting to KRW800 billion, reflecting a commitment to shareholder returns.
Non-interest income grew by 34.7% quarter-over-quarter, with significant contributions from securities and FX derivatives gains.
The group's overseas business continues to perform well despite external uncertainties, showcasing resilience in international operations.

Negative

Credit costs increased due to delayed economic recovery, impacting overall profitability.
The bank's net interest margin (NIM) declined by 16 basis points quarter-over-quarter, reflecting challenges in maintaining interest income amid falling market rates.
Shinhan Card and Shinhan Capital faced sluggish performance due to funding and credit cost pressures.
The group anticipates rising credit risk for corporates and vulnerable customers, potentially leading to higher credit costs than initially expected.
Asset quality metrics showed signs of deterioration, with increasing non-performing loans and challenges in managing write-offs and disposals.

Cheol Wu Park

Shinhan Financial Group Co Ltd - IR Contact Officer

ood afternoon. I am Park Cheol Woo, Head of IR. I would like to thank everyone for attending the 2025 Q2 Shinhan Financial Group's earnings presentation. In today's earnings presentation, what we have with us, the Group's CFO, Chun Sang-Yong; Group CSO, Go Suk-Hyun; Group CRO, Bang Dong-kwon; Shinhan Banks CFO, Lee Jeong Bin; Shinhan Credit Card CFO, Park Hae-Chang; Shinhan Investment Securities CFO, Jang Jeonhoon; and from Shinhan Life CFO, Joo Sung-Hwan is with us.

Today's earnings releases will proceed as follows. We will hear a presentation on the Q2 business results by our CFO, which will be followed by a Q&A session. I now invite our Group CFO, Chun Sang-Yong for a presentation on the quarter's business results.

Sang Yeong Cheon

Shinhan Financial Group Co Ltd - Chief Financial Officer, Vice President

ood afternoon. Thank you for participating in the 2025 second quarter earnings presentation. Let me begin on Page 2 with the highlights of our business performance. As of the

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