Shinhan Financial Group enjoyed its best-ever business performances in 2021, posting a net profit of 4,019.3 billion won.
The results were attributable to asset growth, increased interest income from interest rate hikes and growth in the non-banking sector.
Shinhan Financial Group announced on Feb. 9 that its net profit reached 4,019.3 billion won last year. This was a year-on-year increase of 17.7 percent.
Therefore, Shinhan Financial Group succeeded in increasing its net profit for the eighth consecutive year.
Interest income rose 11 percent on-year to 9.535 trillion won while its non-interest income 3,638.1 billion won.
This growth was driven by an increase in Shinhan Bank’s interest income, which was ignited by asset growth, higher benchmark interest rates, and improved performance in the non-banking sector, such as credit cards, securities and capital.
Its annual sales and general administrative expenses rose 10.2 percent on-year to 5,743.1 billion won, but were well managed except for one-time factors including the voluntary retirement costs.
Annual bad debt costs amounted to 996.4 billion won, down 28.3 percent from a year before due to the base effects of the disappearance of additional provisions related to COVID-19 in 2020.
In addition, Shinhan Financial Group recognized 467.6 billion won in annual loss of investment products.
By affiliate, Shinhan Bank’s annual net profit amounted to 2,494.4 billion won.
Interest income rose 11.5 percent on year due to increased high profitable assets based on selective loan growth and net interest margins driven by an increase in operating returns, while non-interest income from a year earlier due to a reduction in gains related to securities.
In addition, the bank’s annual sales and general administrative expenses increased due to factors such as voluntary retirement costs, but the amount of loan loss provisions fell 49.8 percent year on year.
In addition, Shinhan Card’s net income reached 675 billion won, up 11.3 percent.
Shinhan Financial Investment posted 320.8 billion won in net income, 107.3 percent up from a year before. Shinhan Capital racked up 274.9 billion won income, chalking up a year-on-year increase of 71.2 percent.
However, Shinhan Life posted a net profit of 391.6 billion, down 14.3 percent from a year earlier, due to a rise in business costs.
Shinhan Financial Group announced on Jan. 26 that it made it to the “CDP Korea Hall of Fame Platinum Club” for the first time as a Korean financial company in the CDP Climate Change announced by the Carbon Disclosure Project (CDP) Korea Committee.
The CDP is a global project that requests major companies around the world to disclose information on responding to climate change issues under the delegation of global financial investment institutions and publishes annual reports based on such information.
The CDP is used as an investment guide for global financial institutions. They consider the CDP the most trusted global sustainability evaluation index along with Dow Jones Sustainability Index (DJSI) and Global 100.
Shinhan Financial Group first entered the CDP Hall of Fame Gold Club in 2018 and received the highest points for the third consecutive year since then.
At the same time, Shinhan Financial Group has been striving for eco-friendly finance since announcing “Zero Carbon Drive,” the first carbon-neutral eco-friendly strategy in East Asian finance in 2020.
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