Increased Earnings Driven by Bank NIM Growth and Improved Non-Bank Performance
Quarterly Equal Amount Payments Under Review...Resolution Expected at August Board Meeting
[Asia Economy Reporter Kwangho Lee] Shinhan Financial Group posted a net profit of 2.4 trillion KRW in the first half of this year, achieving the largest quarterly performance since its founding. Analysts attribute the profit increase to portfolio diversification, including the bank's net interest margin (NIM) growth and improved performance in the non-bank sector.
On the 27th, Shinhan Financial announced a net profit of 2.4438 trillion KRW for the first half of the year. This represents a 35.4% increase compared to 1.806 trillion KRW a year earlier.
The group's total assets reached 861.7 trillion KRW, up 7.4% from 802 trillion KRW a year ago. The group maintained stable asset soundness and capital adequacy with a non-performing loan (NPL) ratio of 0.52%, a Basel Committee on Banking Supervision (BIS) capital adequacy ratio of 16.5%, and a common equity tier 1 (CET1) ratio of 13.4%.
A Shinhan Financial Group official stated, "The key feature of this performance is that the group upgraded its fundamental strength once again through balanced profit growth across all divisions. In particular, the achievements in the non-bank sector, where the group invested with a long-term perspective, stood out."
Capital market-related subsidiaries with high capital profitability, such as securities, capital, and asset management, showed remarkable growth, and the non-interest income segment recorded a 13.1% increase compared to the same period last year, mainly driven by fees and securities-related gains and losses.
Shinhan Financial, which recorded its highest performance since its establishment, is considering paying equal quarterly dividends to shareholders as of the end of June, based on the previous year's dividend per share, to implement a predictable shareholder return policy. Details regarding the quarterly dividend will be finalized through a board resolution scheduled for August.
A Shinhan Financial Group official added, "To respond to the rapidly changing digital environment, we plan to continuously strengthen the group's digital platform competitiveness. Through the promotion of ESG (Environmental, Social, and Governance) strategies, we will accelerate environmental management and continuously create social value."
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