Shinhan Financial Group held its 2016 Management Forum at Shinhan Bank's Training Institute in Kihung, Gyeonggi Province on Feb. 8-9 with CEOs and key executvies of the group number some 510 attending led by Chairman Han Dong-woo.
At the forum, the group announced its six major management strategies for the new year including the ways to cope with the changes in the financial environment in Korea brought on by such new modern information technologies as digital finance
The six major strategies also include one to keep the financial group's position as a leading financial group in Korea, the creation of value through the creative reform such as digital finance, securing new chances for growth thru overseas operation, building One Shinhan thru reform of the group's management system.
Upgrading risk management to deal with the impact of low growth, reduction of costs to reform high expense structure and maintaining the Shinhan Way as the base to build strong corporate structure.
Chairman Han, in his speech at the forum, thanked every one in the forum for the group's very good record in 2015 despite the poor financial environment. The top manager warned that the financial environment would not be so friendly to the financial industry in general in Korea for this year, too.
The global financial market will be in confusion with a number of major countries including those in EU, China and Japan, pursuing quantitative money policies, except the U.S. which lowered the key interest rates. The customers' financial needs are changing, too, due to the aging society expansion in addition to low growth and low interest rates.
He also noted Fintech business firms led by Internet banks are entering the financial market to make the competition heat up more, changing the competition patterns with the financial authorities easing the financial regulations to liberalize the financial market. These changes mean that a new age in arriving in the financial industry in Korea.
We have to change to keep growing coping with changes and reform our operations in order to advance in the new age, the chairman said. We have to work on the six new management strategies this year to build a base for our successful operation.
Shinhan Financial Group posted more than 2 trillion won in net profit for the second straight year in 2015, thanks to huge boosts in earnings from securities and credit card operations, the group said on Feb. 4.
In the announcement of its performance last year, the group said its net profit amounted to 2.372 trillion won, up 14 percent from the previous year and up 7 percent more than the average net profit the group recorded in the past eight years.
The group’s Q4 net profit came to 409.1 billion won, up 30.7 percent YoY, attributed to the outstanding performances of its non-banking affiliates, which exceeding market estimates, officials of the group said.
Securities and credit card affiliates did exceedingly well last year among the group’s non-banking affiliates to boost the group’s net profit, despite low interest rates in the financial sectors. The non-banking affiliates net profits totaled 1.925 trillion won, up 18.3 percent YoY, raising the non-banking share in the group’s net profit to 42 percent from 39 percent in 2014.
Shinhan Bank’s net profit came in at 1.489 trillion won, up 2.4 percent YoY in 2015 with net interest margin falling to below the key loan interest rate.
The bank topped all nationwide commercial banks in earnings.
Shinhan Financial Investment did the best among non-banking affiliates, with its net profit rising to 215.5 billion won, up 82.2 percent YoY in 2015, most of it coming from fee income owing to the rise in securities transactions last year. Shinhan Card also did well with its net profit, rising to 694.8 billion won, up 9.4 percent in 2015 from the previous year.
Shinhan Financial Group Co., Ltd. (SFG), incorporated on Sept. 1, 2001, is a financial holding company. The Company operates through eight segments: retail banking; corporate and investment banking; international banking; other banking services; credit card services: securities brokerage services; life insurance services; and other. The company’s retail banking segment offers loans to or deposits from individual customers, wealth management customers, and institutions, such as hospitals, airports and schools.
The company’s corporations and investment banking segment offers loans to or deposits from corporations including small or medium sized companies and business related to investment banking.
The company’s international banking segment offers internal asset and liability management, trading of securities and derivatives, investment portfolio management and other related business supervision on overseas subsidiaries and branch operations and other international business.
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