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Did Shinhan Financial Group beat or miss consensus estimates last quarter?

What does Shinhan Financial Group do and what are its main business segments?

- **Stable Financial Performance**: Q3 net income of KRW 1.4235 trillion, CET1 ratio at 13.56%, and dividend policy maintained at KRW 2.35 trillion annual returns.
- **Credit Quality Management**: Credit cost ratio stabilized at 46 bp, with NIM improving to 1.56% through margin control.
- **Growth Strategy**: Corporate loans to grow 5-6% YoY, while household loans face regulatory headwinds. Noninterest income (brokerage, IB) to drive future growth.
- **Interest Rate Outlook**: NIM expected to decline with rate cuts, but prudent funding management will mitigate pressure.
- **Capital Adequacy**: CET1 ratio to remain stable at ~13.1%, with RWA growth controlled to support long-term stability.

**【Management Opening Remarks】**
- Cheol Woo Park welcomed participants and introduced the executives, including CFO Sang Yung Chun, who would present the Q3 2025 financial results. The call would follow the presentation with a Q&A session.

**【CFO Presentation】**
- **Financial Highlights**: Q3 net income was KRW 1.4235 trillion, down 8.1% Q-o-Q due to lower securities-related profits. The group maintained a stable CET1 ratio of 13.56%, supported by robust profit generation and RWA management. A cash dividend of KRW 570 per share was declared, with total shareholder returns expected to reach KRW 2.35 trillion in 2025.
- **Credit Performance**: Credit cost ratio improved to 46 bp (up 2 bp YoY), with asset quality showing signs of stabilization. The bank's NIM rose to 1.56% Q-o-Q, driven by margin control and funding cost efficiency.
- **Subsidiary Performance**: Shinhan Card and Securities showed earnings growth, while Shinhan Capital faced challenges. Overseas businesses in Japan and Vietnam performed well despite global uncertainties.

**【Q&A Highlights】**
- **Capital Policy**: The group plans to maintain its shareholder return policy, with potential adjustments to align with dividend tax reforms. The CET1 ratio will remain stable at ~13.1%.
- **Loan & Deposit Outlook**: Corporate loan growth will target 5-6% YoY, while household loans face regulatory constraints. Deposit management will focus on interest rate control to defend NIM.
- **Credit Costs**: Guidance for mid-40 bp credit cost ratio remains unchanged, with seasonal provisioning expected but no significant one-off provisions.
- **Interest Spread & Noninterest Income**: NIM is expected to face downward pressure from rate cuts, but noninterest income (brokerage, IB) will drive growth. Resource allocation will shift toward capital market activities.
- **CET1 Ratio Management**: RWA growth will be controlled, with a focus on maintaining the CET1 ratio above 13% through internal efficiency and strategic funding.


Shinhan Financial Group Co., Ltd. (SHG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SHG

SHG fundamentals

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