Shinhan Financial Group Reports Q3 Net Profit of 1.1447 Trillion KRW... First Quarterly Profit Exceeds 1 Trillion KRW

[Asia Economy Reporter Kangwook Cho] Shinhan Financial Group announced on the 27th through its earnings report that the group's net profit for the third quarter of this year reached 1.1447 trillion KRW, marking the first time quarterly net profit surpassed 1 trillion KRW. This amount represents a 16.6% increase compared to the same period last year and a 31.1% increase compared to the previous quarter.

In particular, the cumulative net profit up to the third quarter this year recorded 2.9502 trillion KRW, a 1.9% increase compared to the same period last year (2.896 trillion KRW), achieving the highest performance ever in the financial sector.

Shinhan Financial explained that based on a diversified portfolio, it upgraded its profit-generating capabilities and achieved the highest ever financial sector performance on a cumulative third-quarter basis, including surpassing 1 trillion KRW in recurring quarterly revenue for the first time since the establishment of the holding company.

A Shinhan Financial representative said, "The main feature of this performance is that despite concerns over earnings decline due to the resurgence of COVID-19, efforts to turn the crisis into new opportunities based on the expansion of the capital market area and a diversified non-bank portfolio have translated into financial results."

In particular, Shinhan Financial's GIB, GMS, and Global divisions conducted various investments accompanied by systematic risk management and profitability, resulting in operating profit growth of 24%, 128%, and 7% respectively compared to the same period last year. This is said to play a foothold role for the group's sustainable growth.

Shinhan Financial announced that the investment funds raised through a third-party paid-in capital increase last month will be used as growth resources for the group (organic/inorganic growth, digital transformation, etc.). Shinhan Financial explained that expanding the profit-generating base through this will act as a catalyst for improving the group's ROE and ROA.

Shinhan Financial Group is strengthening its social responsibility role as a financial company by supporting 'innovative growth' to create a digital ECO ecosystem and supporting 'financial stability' to overcome the COVID-19 crisis.

As a result of practicing 'inclusive finance' to overcome the COVID-19 situation, bank loan assets grew by 11.4% year-on-year, centered on small and medium-sized enterprises and small business owners (non-audited SMEs 9.5% / SOHO 12.6%).

The innovative growth sector is also steadily promoting the 'Shinhan N.E.O Project,' recording approximately 22 trillion KRW (loans/investments) in funding supply as of the end of September, continuing efforts to discover new business opportunities.

A Shinhan Financial representative emphasized, "In a situation where concerns such as economic slowdown forecasts are increasing, we are continuing efforts for proactive risk management," adding, "Capital management will also be operated and managed in the existing conservative manner without considering the temporary increase effect due to the early adoption of Basel 3 credit risk."

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