Shinhan Financial Group Reports 3Q Cumulative Net Profit of 3.5597 Trillion KRW, Up 20.7% YoY (Update)

3Q Cumulative Record High... Reconfirming Balanced Fundamental Strength
3Q Cumulative ROE 11.0%... Double-Digit for 5 Consecutive Years

[Asia Economy Reporter Kwangho Lee] Shinhan Financial Group announced on the 26th through its earnings report that its cumulative net income for the third quarter of this year reached 3.5594 trillion KRW, a 20.7% increase compared to the same period last year (2.9502 trillion KRW). This marks the highest cumulative performance ever recorded for the third quarter.

For the third quarter alone, the net income was 1.1157 trillion KRW, down 10.9% from the previous quarter.

A Shinhan Financial Group official explained, "We continuously improved recurring profit through selective asset growth and proactive risk management," adding, "Non-bank group companies such as Shinhan Life and Asia Trust, which were incorporated through inorganic growth (M&A) strategies with capital market-related subsidiaries like Capital and GIB, achieved favorable results, reaffirming the strengths of the group's diversified portfolio."

The group's cumulative return on equity (ROE) for the third quarter was 11.0%, marking five consecutive years of double-digit ROE for the third quarter.

In particular, based on strong performance in the capital market sectors such as Capital and GIB, which have high profitability, the profit contribution from the non-bank sector expanded. The group's capital market sector profit for the cumulative third quarter was 656.2 billion KRW, a 39.7% increase compared to the same period last year.

Shinhan Life, born from the merger of Shinhan Life Insurance and Orange Life on July 1st, recorded a cumulative third-quarter profit of 401.9 billion KRW, a 4.5% increase compared to the same period last year, continuously expanding the influence of the non-bank sector.

Profit from the non-bank sector increased by 30.5% compared to the same period last year, reaching 1.6544 trillion KRW, with the profit share of the non-bank sector improving by 2 percentage points to 43% compared to the same period last year.

The banking sector pursued a selective asset growth strategy focused on high-quality corporate customers. Through this, core interest income increased by 10.2% compared to the same period last year, reaching 6.6621 trillion KRW.

The group's loan loss expenses decreased by 46.2% compared to the same period last year to 565.3 billion KRW, thanks to a growth strategy centered on high-quality assets and proactive risk management efforts. The loan loss expense ratio also continued its downward stabilization trend, decreasing by 0.21 percentage points from the same period last year to 0.21%.

Shinhan Financial Group continued to support the real economy through its COVID-19 financial support programs. Additionally, in preparation for the end of the COVID-19 financial support program, it proactively responded to future uncertainties by setting aside an additional 390 billion KRW in COVID-related reserves last year.