Shinhan Financial Group Reports Q1 Net Profit of 932.4 Billion KRW...Maintains Leading Bank Position

1.5% Increase Compared to the Same Period Last Year

[Asia Economy Reporter Kim Min-young] Shinhan Financial Group announced on the 24th that its consolidated net profit for the first quarter reached 932.4 billion KRW, a 1.5% increase compared to the same period last year, maintaining its position as a 'leading bank.'

However, Shinhan Financial explained that considering one-time factors and the effect of acquiring shares of the insurance company Orange Life, which was acquired last year, the recurring net profit is in the mid-800 billion KRW range.

The group's core income, interest income, recorded 2.0039 trillion KRW, a 5% (96 billion KRW) increase compared to the same period last year (1.908 trillion KRW). Fee income also rose to 531 billion KRW, up 10.8% (51 billion KRW) from 480 billion KRW in the same period last year, supported by increases in securities custody fees and lease business income fees.

Non-interest income slightly decreased. Due to stock price declines and other factors, gains from securities and foreign exchange derivatives significantly dropped, resulting in 734 billion KRW, a 10.6% (88 billion KRW) decrease compared to 822 billion KRW in the same period last year.

With the strengthening of the non-bank business division, the profit ratio of the non-bank sector increased from 34% to 35%.

Profitability indicators were also favorable. Return on equity (ROE) and return on assets (ROA) were 9.75% and 0.68%, respectively.

Shinhan Financial stated that it has expanded support for small and medium-sized enterprises (SMEs) and households and strengthened inclusive financial policies to overcome crises. SME loans increased by 2.3% compared to the previous year, and investments in innovative companies (80 billion KRW) also expanded.

A Shinhan Financial official said, "The first quarter results did not fully reflect the impact of the novel coronavirus infection (COVID-19), but from the second quarter, the economic crisis caused by COVID-19 is expected to intensify." Accordingly, Shinhan Financial continues its efforts to overcome the crisis through the 'Group Joint Crisis Management Response Plan' and the 'Basic Strengthening Strategy based on One Shinhan.'

The core subsidiary, Shinhan Bank, posted solid results, recording a net profit of 626.5 billion KRW, a 1.4% increase compared to 618.1 billion KRW in the same period last year.

The non-bank sector showed mixed results. Shinhan Card grew by 3.6% (4.3 billion KRW) to 126.5 billion KRW compared to the same period last year. Orange Life posted a net profit of 59.5 billion KRW, a 25.1% increase.

Net profits of Shinhan Investment Corp. and Shinhan Life Insurance were 46.7 billion KRW and 39.7 billion KRW, respectively, down 34.1% and 26.3% compared to the same period last year.

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