Shinhan Financial Group Racks Up 4.6 Tln Won in Net Profit in 2024

Chairman Jin Ok-dong of Shinhan Financial Group. (Photo: Shinhan Financial Group)

Shinhan Financial Group posted a net profit of 4,571.5 billion won in 2024, an increase of 3.4 percent from the previous year.

Shinhan Bank, in particular, is expected to become the number one bank with the largest profit ever.

This year, Shinhan Financial Group will raise its total shareholder return ratio to 40 percent via a return of over 1.75 trillion won to shareholders.

“Our net profit increased year on year due to stable growth in operating income and a decrease in bad debt expenses,” a Shinhan official said in a business results announcement on Feb. 6.

In the fourth quarter of last year, net profit fell 63.5 percent year-on-year to 473.4 billion won.

The decrease was blamed on lower non-interest income on securities, higher one-time expenses such as voluntary severance costs and provisions.

By segment, Shinhan’s annual interest income ascended while its annual non-interest income descended.

The former increased 5.4 percent to 11,402.3 billion won.

Its fourth quarter interest income plummeted to 1.86 percent, but its asset growth offset this.

Its non-interest income declined 5 percent to 3,257.5 billion won compared to 2024, driven by lower gains and losses on securities and foreign currency derivatives due to capital market volatility in the fourth quarter.

The Common Equity Tier 1 (CET1) stood at 13.03 percent at year-end while the BIS capital ratio 15.76 percent albeit it is provisional.

“We are maintaining our CET1 at a stable level with adequate risk-weighted assets (RWAs),” a Shinhan official said.

Shinhan Financial Group emphasized “enhancing shareholder value” in its earnings announcement.

Its Board of Directors resolved to pay a dividend of 540 won per share for the fourth quarter.

Among Shinhan Financial Group’s subsidiaries, Shinhan Bank logged a record net profit of 3,695.4 billion won.

Analysts say that Shinhan Bank will beat Hana Bank (3,356.4 billion won) and KB Kookmin Bank (3.2518 trillion won) in terms of net profit.

Shinhan Bank’s loans grew 10.3 percent over the year, boosting both interest and non-interest income.

Shinhan Card racked up net profit of 572.1 billion won, down 7.8 percent from the previous year.

Shinhan Life posted 528.4 billion in net profit, up 11.9 percent year on year, due to higher interest and dividend income.

Shinhan Investment & Securities posted a net profit of 245.8 billion won, up 143.6 percent year on year, despite a loss of 3 billion won in the fourth quarter.

Shinhan Capital posted a net profit of 116.9 billion won for the full year due to lower interest income. This was a year-on-year decrease of 61.5 percent.

“Shinhan Financial Group maximized its loss-absorbing capacity by reserving provisions for risky assets such as real estate PF and responsible completion-type land trusts,” a Shinhan official said.

“We proved our solid fundamentals despite spending on measures to boost structural cost efficiency such as funds for voluntary retirements.”