Q2 2025 Shinhan Financial Group Co Ltd Earnings Call Transcript
Key Points
- 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.
- 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.
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.
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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