Shinhan Financial Group Co Ltd

Hello, I'm Park Cheol-woo, and I'm in charge of IR. I would like to thank everyone who attended the 1st quarter business performance presentation of Shinhan Financial Group in 2023. Before the performance presentation, I would like to give a brief introduction to the progress. The company is conducting a performance presentation on a digital platform using the Shinhan Financial Group IR YouTube channel and the Zoom app. The YouTube live channel is only carried out by the government, Thank you very much. Today, we will begin the 1st quarter performance presentation. Today's performance presentation will be attended by Group CFO Lee Tae-kyung, Group CDO Kim Myung-hee, Group CSSO Go Seok-hun, Group CRO Bang Dong-geun, Shinhan Bank CFO Kim Ki-yong, Shinhan Card CFO Kim Nam-joon, and Lee Dong-sang, CFO of Shinhan Investment Securities, and Park Kyung-won, CFO of Shinhan Life. Today's performance announcement will be held after the presentation of the overall business performance of the first quarter of 2023. Then, there will be a presentation of Lee Taek-yong's performance of the first quarter of 2023.

Hello, I'm Lee Tae-kyung, CFO of Shinhan Financial Capital. First of all, I would like to thank everyone who participated in the 1st quarter of 2023 for their participation in the performance announcement. The current performance announcement data was written under IFRS 17, which has been applied since 2023, and for comparison purposes, the business performance of 2022 was also rewritten. I will first explain the highlights on page 5 of the performance announcement data. This is page 5. In the first quarter of 2023, the group's short-term net profit was 1.388 trillion won, and despite the decrease in interest interest due to the decline in the bank margin, the non-interest interest, such as mortgages and securities, was greatly improved and the profit was strengthened. The group's first quarter business profit margin is 37.9%, and despite inflation factors, it is managed at a stable level through continuous cost efficiency and effort. The group's bankruptcy rate is at the level of 48BP, but it is maintained at the level of 29BP, except for 1,850 billion won, which was artificially recognized by the government in addition to COVID-19 and real estate PF. Lastly, I would like to talk about the Group's capital policy. In the first quarter of the year, the fund was decided by the Board of Directors for 525 won, and in the second quarter of the year, the fund was decided by the Board of Directors for 1,500 won. In the future, we will promote effective capital policies, keeping in mind the uncertainties of the future and the expectation of the management of the capital system. On the next 6th page, we will talk about the financial impact of the new life based on the implementation of IFRS 17, and on the 7th page, we will talk about the main business performance of the group in the first quarter, so please refer to it. From the 8th page, we will explain the detailed achievements of the group. In the first quarter of 2023, the interest rate of the group decreased by 10.0% compared to the previous quarter with a profit of 2.540 billion won. This is due to the decrease in the margin of the bank and the decrease in the number of people. As of the same year, the net profit of the bond increased by 3.5% and the NIM increased by 8BP. However, the net profit of the non-bank group company increased by 2.0%. The NIM, which was in the first quarter, recorded a 1.59% drop in net profit due to a short-term change in the net profit of the bond due to a drop in the market interest rate. The bank's loan growth maintained the previous year's level. The company's loan decreased by 1.0% compared to the previous year due to a decrease in demand due to an increase in the interest rate and the influence of the DSR policy, but the company's loan continued to increase by 1.0% compared to the previous year due to a decrease in demand due to a decrease in the interest rate. Please refer to page 32 for details. Next, please refer to the margin and operation delivery status of Sina Bank on the 9th page. Next is the 10th page, Group B interest rate. The Group B interest rate has increased significantly in proportion to the professional period due to the increase in interest rate and capital market related fees due to the increase in interest rate and capital market related fees due to the decrease in market interest rate along with the disappearance of non-modified factors such as replacement investment damage. In comparison to the previous year, despite the decrease in interest rates, the decline in sales due to the rise in interest rates and the increase in interest rates in the financial year and the fiscal year increased by 17.0%. Next, I would like to talk about interest rates. The interest rate for the previous fiscal year increased by 18.1%. This is mainly due to credit card interest rates, stock interest rates, and investment and financial interest rates. In spite of the decline in market sales, credit card fees have increased by 111%, while stock exchange fees have increased by 32.9% compared to the previous quarter. The net profit of the previous year decreased by 14.0%. Despite the increase in credit card fees in the new year, the net profit of the previous year decreased by 18.6% due to the regulation of the exchange rate. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous year decreased by 18.6%. In the case of investment and credit card fees, the net profit of the previous In the first quarter of this year, the rate of retirement was 23.6% lower than in the previous quarter. In the previous quarter, the rate of retirement was 23.6% lower than in the previous quarter. In the previous quarter, the rate of retirement was 23.6% lower than in the previous quarter. In the previous quarter, the rate of retirement was 23.6% lower than in the previous quarter. As a result, Group CIR recorded a stable 37.9% increase in 1.0% points compared to the previous year. Group's first quarter, the 1,200,000 KRW in cash, increased the amount of cash in cash due to the deterioration of health. In order to respond to the uncertain situation, we established an additional cash of 1,850,000 KRW and maintained the level of the previous quarter. The net profit is 48BP, which increased by 22BP compared to the previous year, and the net profit is 29BP, which increased by 11BP compared to the previous year. If we look at the annual interest rate, which can be seen as a pre-priced index, the bank maintains a level of 0.28% with a 6BP increase compared to the previous quarter. However, in the case of CARD, it increased by 33BP compared to the previous quarter due to an increase in the interest rate, an increase in the request for a new starting fund, and a reduction in the credit limit for pre-priced electricity management. Please refer to the 13th page for detailed information on the group's health management status. The next 14th page is the group's profit and loss status. Despite the increase in cash, the net profit and loss of the previous year has increased with the growth of interest rates and interest rates. In the case of non-banking companies, card companies have decreased their net profit in the previous year due to the rapid increase in the cost of handling and the increase in the interest rate, including the increase in the interest rate of judges, debtors, and lenders. Securities companies have decreased their net profit in the previous year due to the decrease in the exchange rate and the increase in the net profit of financial products and self-sales. In terms of insurance, interest rates increased by 6% and interest rates increased by the same year. In terms of capital, despite the increase in business interest rates, interest rates decreased due to the rise in income and the establishment of conservative bonds related to real estate PF. In addition, in the case of capital markets such as asset management, asset collection, and REITs, interest rates decreased by the same year due to the continuous decline in capital markets. The next page is the global business status of the group. The global business record is 158.3 billion won in net profit, and we are expanding the net profit ratio within the group based on stable growth. The next 16-page is the capital and major profit indicators. The average capital ratio for the third quarter is 12.54%, which decreased by 25BP compared to the previous year. In the next 17 pages, I will explain in more detail. Considering that 54BP decreased due to the final introduction of Basel III, the average capital ratio has improved to 29BP. Also, considering the change in the average capital ratio of 7550 won, which was scheduled for May 1st this year, the average capital ratio will be improved to 12.8%. In the future, we will continue to improve the capital ratio according to the direction of the directorate's regulation as expected, such as the maintenance of the financial stability system of the regulatory authorities. Please refer to the report on the current status of the shareholders on page 18. Next, please explain the digital strategy on page 19 to Mr. Kim Myung-hee, CTO.

Hello, I am the vice president of CDO Kim Myung-hee. In 2023, we will continue the innovation of the financial industry based on the digital influence of the group and strengthen its social role. I will tell you from various points of view, not only about the positive and negative effects, but also about the positive and negative effects. First of all, Group's digital channel is growing in a balanced way with the growth of the size and the convenient platform that customers often seek. Every month, 23,510,000 people visit the digital platform in Sinan, and 4.73 million customers use the main financial platform every day, increasing by 16% compared to the previous year. The second field is more secure. To protect customers from financial accidents, we expanded the AITM to nationwide stores in January this year. In addition, by improving the approachability of senior customers to digital finance, the use rate of senior customers' financial platform has increased by 7.1% compared to the previous year. Newer finance.