Shinhan Financial Group Reports 3.4 Trillion KRW Net Profit Last Year... 3rd Consecutive Year in the '3 Trillion Club' (Update)

Seven Consecutive Years of Net Profit Growth Despite Uncertain Domestic and International Business Environment
Minimizing Future Financial Volatility Through Proactive Cost Recognition

[Asia Economy Reporter Kwangho Lee] Shinhan Financial Group achieved a net profit of 3.4146 trillion KRW last year, marking its third consecutive year in the '3 trillion club.' As a result of diversifying its global and non-bank profit bases, Shinhan Financial Group continued its net profit growth for seven consecutive years.

Shinhan Financial Group announced on the 5th through its earnings report that the group's net profit for 2020 was 3.4146 trillion KRW, with a fourth-quarter net profit of 464.4 billion KRW.

This represents a 0.3% increase compared to the previous year (3.4035 trillion KRW). Although it decreased by 59.4% compared to the previous quarter (1.1447 trillion KRW), considering the non-recurring expenses incurred in the fourth quarter, the group maintained solid performance for four consecutive quarters.

A Shinhan Financial Group official stated, "The main feature of this performance is the continued stable generation of recurring income based on consistent execution of mid- to long-term strategies."

He added, "Despite the downward trend in net interest margin (NIM) due to market interest rate impacts in the banking sector, we secured a sustainable growth foundation through solid asset growth from the beginning of the year. The non-bank sector also played a pivotal role in improving group performance by pursuing a diversified business portfolio strategy centered on non-interest income."

In particular, he mentioned, "Based on Shinhan's unique differentiated matrix organization, the capital markets (GIB +33%, GMS +125%) and global (+9%) sectors continued to grow, upgrading the group's ability to generate recurring profits to a new level."

Shinhan Bank's assets grew for four consecutive quarters, and the net interest margin decreased by only 2 basis points compared to the previous quarter, resulting in a 1.9% growth in the group's interest income compared to the previous year.

The group's non-interest sector saw a 125% increase in securities custody fees compared to the previous year due to increased stock trading volume in the second half of the year. Additionally, fees from investment banking and leasing, Shinhan's new growth engines, grew by 6.9% and 72.6% respectively compared to the previous year, reflecting multifaceted performance improvements.

A Shinhan Financial Group official expressed, "In 2021, based on this foundation, we plan to make it a year of achieving even more visible results."

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