Shinhan Financial Group Co., Ltd. · KRX:055550
Shinhan Financial — Q3 2024 Earnings Presentation
39 slides from Shinhan Financial's earnings presentation, Oct 25, 2024
Slide 1: Business Results 3Q 2024
Business Results 3Q 2024" Q Shinhan Financial Group
Slide 2: Disclaimer
Disclaimer The financial information contained herein has not been reviewed by independent auditors. Therefore, no assurance is given that the financial information is accurate or complete, and such financial information may differ from the financial information to be contained in our financial stat
Slide 3: Contents
목 차 Contents I. 3Q24 Result Highlights [Appendix] SFG’s Value-up Plan Assessment II. Financial Overview Ⅲ. Financial Highlights by Subsidiaries The financial information contained herein has not been reviewed by independent auditors. Therefore, no assurance is given that the financial information co
Slide 4: I. 3Q24 Result Highlights
Ⅰ. 3Q24 Result Highlights
Slide 5: 3Q24 Highlight
3Q24 Highlight Movements (Consolidated basis, QoQ) (KRW bn) Plus factors Despite reduction in one-off factors, net income fell Minus factors Net 1.24 Wtn by Δ13.1% QoQ due to sizable non-interest losses Income Accum. 3.99 Wtn +33 - Operating Income before Expenses (Δ6.4% QoQ), Credit Cost (Δ33.9
Slide 6: [Note] Earnings Trend
[Note] Earnings Trend Operating Income before Expenses / Net Income (KRW bn) TBPS (KRW) Operating Income before Expenses Net Income ※ (BPS) +4.2% 14,247 +4.4% 12,692 12,868 11,533 11,435 92,642 98,919 10,977 85,365 77,978 (104,769) (111,120) 70,363 72,349 (96,401) 66,757 (88,548) 60,201 (81,997)
Slide 7: Details of 3Q24 Result - ①
Details of 3Q24 Result - ① Group Interest Income (KRW bn) KRW Loan Growth NIM Trend Bank Non-bank Group NIM* Retail YTD Corporate YTD Total Loans YTD Group Bank Cumulative NIM 12.3% 1.96% 1.97% 1.95% 11.5% (1.4%) 11.2% 2.00% 2.00% 1.90% 10.6% 10.6% 1.99% 10.2% (3.5%) 1.97% 1.80% 1.81
Slide 8: Details of 3Q24 Result - ②
Details of 3Q24 Result - ② Non-interest Income (KRW bn) G&A Expense (KRW bn) Credit Cost (KRW bn) Fees & Commission Securities related Insurance related G&A Expenses CIR (Cost to Income Ratio) Bank Card Others Nominal CCR Recurring CCR Others Non-interest Income weight* Cumul
Slide 9: Details of 3Q24 Result - ③
Details of 3Q24 Result - ③ Group Asset Quality Net Income by Subsidiaries* (KRW bn) Real Estate PF (KRW bn) SHB Delinquency Rate SHC Delinquency Rate Bank Consumer Finance Insurance Capital Markets & Others Real Estate PF Bridge Loan Normal Precautionary Non-Bank Weight Provi
Slide 10: Details of 3Q24 Result - ④
Details of 3Q24 Result - ④ CET1 Ratio (%) RWA Movement (KRW tn) Shareholder Return Decrease Increase Total Decrease Increase Total DPS(KRW) Share buyback/cancellations Shareholder Return 150 (△13bp) +1.7 Wbn +0.37 Δ0.16 337.4 RWA Δ0.08 250 To be 4.1 Wtn Δ0.05 Δ0.01 Average 0.27 Wtn +
Slide 11: Digital, Digital to Value
Digital, Digital to Value Platform Growth (in ten thousand persons) Profit Growth (Accumulated) (KRW bn) Digital Highlights (3Q24) SFG Gross MAU / Super SOL Key Achievements Digital Operating Profit before Digital Cost Efficiency3 MAU of AI Services • +15% YoY Expenses2 1,684 5.19 million users (AI
Slide 12: ESG Initiatives
ESG Initiatives CO2 Emissions Green Finance (Wtn) Inclusive Finance (Wtn) Green Finance (New) Green Finance (2020-2023 cumulative) Inclusive Finance Co-Prosperity Finance Scope 1 + 2 Emissions Target Emissions (thousand tCO2eq) 101.2 100.1 30.0 96.8 82.2 17.4 69.71) 67.5 57.3 4.1 44.7 13
Slide 13: [Appendix] SFG's Value-up Plan Assessment
[Appendix] SFG’s Value-up Plan Assessment
Slide 14: SFG's Value-up Plan Assessment_ Review of the Key Indicators
SFG’s Value-up Plan Assessment_ Review of the Key Indicators ROE·ROTCE remained at last year’s level, with CET1 ratio maintaining above 13% An improved shareholder return ratio and a reduction in the number of shares to under 500 million are expected in 2024 A consistent and accelerated shareholder
Slide 15: II. Financial Overview
II. Financial Overview
Slide 16: ① Details of Group Income
① Details of Group Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Operating Income before Expenses (a=b+c) 11,435.0 10,977.2 457.9 4.2% 3,682.8 3,676.6 6.1 0.2% 3,933.9 -251.2 -6.4% Interest Income (b) 8,492.7 8,031.3 461.4 5.7% 2,855.0 2,763.3 91.7 3.3% 2,821.8 33.1
Slide 17: ② Interest Income
② Interest Income Details of Interest Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Interest Revenue (a) 21,838.1 20,336.2 1,501.9 7.4% 7,402.6 7,028.5 374.1 5.3% 7,245.0 157.7 2.2% Loans 16,848.6 16,152.9 695.7 4.3% 5,695.6 5,534.5 161.1 2.9% 5,587.5 108.1 1.9% Secu
Slide 18: ③ Non-interest Income
③ Non-interest Income Details of Non-interest Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Non-Interest Income 2,942.3 2,945.8 -3.5 -0.1% 827.8 913.3 -85.5 -9.4% 1,112.1 -284.3 -25.6% Fees & Commission 2,109.9 1,964.8 145.1 7.4% 690.6 712.0 -21.5 -3.0% 715.9 -25.3 -
Slide 19: ④ G&A Expenses / Provision for Credit Losses
④ G&A Expenses / Provision for Credit Losses Details of G&A Expense 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % G&A Expense 4,333.1 4,296.4 36.7 0.9% 1,489.2 1,497.5 -8.3 -0.6% 1,471.6 17.6 1.2% Salary & Employee benefits 2,599.1 2,643.6 -44.5 -1.7% 892.2 904.4 -12.2 -1.3
Slide 20: ⑤ Asset Quality
⑤ Asset Quality Total Substandard & Loan Loss NPL (KRW bn) NPL Ratio Loans Normal Precautionary Substandard Doubtful Estimated Loss Below Allowance Coverage Ratio Group1 2024.9 425,534 418,329 4,191 1,408 724 882 3,015 0.71% 4,255 141% 2023.9 391,193 385,085 4,066 871 427 743 2,042 0.52% 3,731 183%
Slide 21: ⑥ Provisioning and Write-Offs
⑥ Provisioning and Write-Offs Provision for Credit Losses and Credit Cost Ratio (KRW bn) FY24 1Q24 2Q24 3Q24 4Q24 FY23 1Q23 2Q23 3Q23 4Q23 Shinhan Bank1 250.6 19.8 86.4 144.3 707.1 154.8 242.4 96.6 213.3 Retail 150.6 49.1 43.8 57.8 278.8 50.3 57.9 79.9 90.8 Corporate 100.0 -29.2 42.7 86.5 428.3 104.
Slide 22: Capital Management and Profitability / Shareholder Return
Capital Management and Profitability / Shareholder Return Group BIS Ratio Total Shareholder Return (incl. preferred shares) (KRW bn) BIS ratio Tier 1 ratio CET 1 ratio Cash dividend Share cancellations (buyback) TSR 36.0% 30.0% 16.2% 27.9% 16.1% 16.0% 15.9% 26.0% 26.0% 486 15.7% 23.9% 30
Slide 23: Asset Quality
Asset Quality Group Asset Quality (%) SHB Delinquency Rate Precautionary & Below Substandard & Below SHB NPL Coverage Ratio Group NPL Coverage Ratio 0.26% 0.24% 0.26% 0.28% Loans 0.21% in KRW 0.19% 229% 209% 195% 190% 0.33% 0.39% SME 0.30% 0.32% 182% 0.26% 0.26% 168% (Incl. SOHO) 202% 163% 1
Slide 24: SFG Overseas Business
SFG Overseas Business NI Contribution by Overseas Business (KRW bn) Shinhan Bank Vietnam (KRW bn) NI Contribution (%) SBV ROE Overseas Net Income SBV Net Income 14.5% 16.3% 15.9% +12.4% 12.6% 11.0% 12.1% 13.7% 12.5% 9.8% 9.8% +38.2% 232.8 207.6 199.1 3,166 184.7 564.6 549.5 578.4 3,166 394.9
Slide 25: III. Financial Highlights by Subsidiaries
Ⅲ. Financial Highlights by .Subsidiaries
Slide 26: ① Financial Highlights by Subsidiaries
① Financial Highlights by Subsidiaries Shareholder's Profit for (KRW bn) Ownership Total Assets1 ROA ROE Equity the Period2 Bank 682,539.0 35,369.6 3,112.2 Shinhan Bank 100.0% 675,183.3 34,782.2 3,102.8 0.77% 11.96% Jeju Bank 75.3% 7,355.7 587.5 9.4 0.17% 2.13% Non-bank 410,241.1 24,590.7 1,282.1 Co
Slide 27: ② SFG Subsidiaries Asset
② SFG Subsidiaries Asset (KRW bn) 2024.9 2024.9 2023.12 2024.6 YTD YTD % QoQ QoQ % Weight % Bank 682,539.0 633,681.8 48,857.2 7.7% 668,482.6 14,056.4 2.1% 62.5% Shinhan Bank 675,183.3 626,439.4 48,743.9 7.8% 661,184.4 13,998.9 2.1% 61.8% Jeju Bank 7,355.7 7,242.4 113.2 1.6% 7,298.3 57.4 0.8% 0.7% No
Slide 28: ③ SFG Income by Subsidiaries
③ SFG Income by Subsidiaries 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Bank (a) 3,112.2 2,612.2 499.9 19.1% 1,052.5 923.0 129.5 14.0% 1,126.7 -74.2 -6.6% Shinhan Bank 3,102.8 2,599.1 503.7 19.4% 1,049.3 918.5 130.8 14.2% 1,124.8 -75.5 -6.7% Jeju Bank 9.4 13.1 -3.7 -28.5
Slide 29: ④ Shinhan Bank Income (1)
④ Shinhan Bank Income (1) 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Operating Income (a=b+c) 7,282.0 6,787.6 494.3 7.3% 2,496.0 2,248.7 247.3 11.0% 2,380.6 115.4 4.8% Interest Income (b) 6,604.5 6,256.3 348.2 5.6% 2,224.7 2,137.4 87.3 4.1% 2,195.7 29.0 1.3% Non-interest
Slide 30: ⑤ Shinhan Bank Income (2)
⑤ Shinhan Bank Income (2) 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Non-interest Income (a+b+c) 677.5 531.3 146.2 27.5% 271.3 111.3 160.0 143.8% 184.9 86.4 46.8% Fee & Commission (a) 784.2 690.0 94.2 13.6% 262.7 214.0 48.7 22.7% 257.4 5.3 2.1% Fund Fees 42.6 39.9 2.6 6.
Slide 31: ⑥ Shinhan Card Income
⑥ Shinhan Card Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Operating Revenue (a) 4,341.7 4,120.1 221.6 5.4% 1,259.2 1,446.1 -186.9 -12.9% 1,552.5 -293.3 -18.9% Card business 2,435.1 2,343.8 91.3 3.9% 821.3 807.1 14.3 1.8% 806.5 14.9 1.8% Installment Finance 180.3 1
Slide 32: ⑦ Shinhan Life Insurance Income
⑦ Shinhan Life Insurance Income 3Q24 3Q23 (KRW bn, %) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % APE1 1,215.5 745.9 +469.6 +63.0% 411.2 308.2 +103.0 +33.4% 288.8 +122.4 +42.4% Protection 1,158.4 725.0 +433.3 +59.8% 387.7 298.7 +89.0 +29.8% 279.9 +107.8 +38.5% Savings, Annuities 57.1 20.9 +
Slide 33: ⑧ Shinhan Securities Income
⑧ Shinhan Securities Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Operating Revenue 1,060.2 1,137.8 -77.6 -6.8% 283.8 388.5 -104.7 -27.0% 459.7 -175.9 -38.3% Fee & Commission 585.0 565.3 19.6 3.5% 190.7 202.3 -11.6 -5.7% 203.3 -12.5 -6.2% Brokerage fees 298.8 278.2
Slide 34: ⑨ Shinhan Capital Income
⑨ Shinhan Capital Income 3Q24 3Q23 (KRW bn) 3Q24 3Q23 2Q24 YTD YTD Y/Y Y/Y % Q/Q Q/Q % QoQ QoQ % Operating Income before Expenses (a=b+c-d-e) 322.2 506.8 -184.6 -36.4% 72.0 153.3 -81.3 -53.0% 122.6 -50.6 -41.3% Interest Income (b) 415.8 438.6 -22.8 -5.2% 132.0 150.5 -18.5 -12.3% 142.3 -10.3 -7.2% No
Slide 35: ⑩ Shinhan Bank Loans & Deposits
⑩ Shinhan Bank Loans & Deposits 2024.9 (KRW bn) 2024.9 2023.12 2024.6 YTD YTD % QoQ QoQ % Weight % Loans in KRW 319,902.3 290,336.3 29,566.0 10.2% 308,962.5 10,939.8 3.5% 100.0% Retail 140,790.8 129,652.9 11,137.8 8.6% 132,389.6 8,401.2 6.3% 44.0% Mortgage 72,554.8 61,244.2 11,310.6 18.5% 64,918.2 7
Slide 36: ⑪ Shinhan Bank Loans (Retail, Large Corporates)
⑪ Shinhan Bank Loans (Retail, Large Corporates) Delinquency (KRW bn, %) 2024.9 Weight % 2023.12 2024.6 YTD YTD % QoQ QoQ % 2023.9 2023.12 2024.3 2024.6 2024.9 Mortgage Loans 72,554.8 51.5% 61,244.2 11,310.6 18.5% 64,918.2 7,636.6 11.8% 0.17% 0.19% 0.21% 0.18% 0.19% Personal Loans 68,236.0 48.5% 68,4
Slide 37: ⑫ Shinhan Bank SME Loans
⑫ Shinhan Bank SME Loans Delinquency (KRW bn, %) 2024.9 Weight % 2023.12 2024.6 YTD YTD % QoQ QoQ % 2023.9 2023.12 2024.3 2024.6 2024.9 SME Total 139,132.6 100.0% 129,954.2 9,178 7.1% 137,627.5 1,505.1 1.1% 0.34% 0.32% 0.42% 0.36% 0.39% SOHO 68,858.7 49.5% 65,733.4 3,125 4.8% 68,599.0 259.7 0.4% 0.3
Slide 38: ⑬ Shinhan Card Assets and Funding
⑬ Shinhan Card Assets and Funding 2024.9 (KRW bn, %) 2024.9 2023.12 2024.6 YTD YTD % QoQ QoQ % Weight % Earning Assets 39,088.7 39,388.0 -299.3 -0.8% 38,512.5 576.2 1.5% 100.0% Credit Purchase 17,952.7 18,055.8 -103.1 -0.6% 17,686.4 266.2 1.5% 45.9% Cash Advances 1,523.2 1,585.4 -62.2 -3.9% 1,523.0
Slide 39: Additional Notes
Additional Notes Notes on ‘Digital, Digital to Value’ (p.11) Note1) SFG Gross MAU’ is the sum of the MAU of Shinhan’s financial platforms and the MAU of Shinhan’s non-financial platforms. The MAU figures are based on managed data. * The MAU figures for financial platform represent the sum of MAUs of
Shinhan Financial Group — Q3 2024 Earnings Presentation on 6ix