Shinhan Financial "Minimal Impact from Safe Conversion Loans... Will Increase Jeonse Loans"

[Asia Economy Reporter Kwon Haeyoung] Shinhan Financial Group stated that the impact of the fixed interest rate refinancing loan with an annual interest rate in the 1% range on the bank's interest margin is minimal. They also shared plans to increase household loan assets this year, focusing on Jeonse deposit loans.

On the 5th, Park Cheolwoo, Vice President of Shinhan Financial Group, said during a conference call held after the announcement of the '2019 Business Performance Status,' "We expect the impact of the refinancing loan on the margin to be about 0.4 basis points, which is minimal."

He explained, "By the fourth quarter of 2019, 1.2 trillion KRW of refinancing loans were received and executed," adding, "Out of the 3.7 trillion KRW allocated to Shinhan Bank, 2.5 trillion KRW remains, which will be carried out in the first and second quarters of this year."

Amid domestic and international economic uncertainties and household loan regulations, which have cast a gloomy outlook on the banking industry this year, the household loan sector plans to increase Jeonse deposit loans.

Vice President Park stated, "We believe Jeonse deposit loans can achieve additional growth," and added, "We plan to pursue growth in areas where there is market demand."

This content was produced with the assistance of AI translation services.