Shinhan Financial Group Co Ltd

good afternoon i am charlotte of ir extend my sincere appreciation to you for participating in shenan financials group earning presentation for q2 2023 before moving on to today's presentation allow me to make some announcements for house speaking the earnings presentation of shenan financial group is taking place to the group's digital platform the youtube channel and zoom app the youtube live channel is only available in korean and q and is not available therefore if you have If you wish to have an English view or participate in the Q&A, please join through Zoom. Please refer to our website, shenangroup.com, for detailed information for access. From now on, we will start the earnings presentation of Shenan Financial Group for Q2 2023. For today's earnings release, the group CFO, Yi Taeyong. Okay. Thank you. We have to do this. We have to do this. We have to do this. We have to do this. I think that's a good question. I think that's a good question. I think that's a good question. Thank you. Thank you. Yeah. you

Thank you for your opportunity and congrats on the result. I want to have three questions from mine. The first question is on the OCI trajectory. So if you look on a 10-year basis from maybe FY12 to FY22, you can see that OCI has actually been negative for the bank over the past 10 years. So I wanted to understand the OCI trajectory which you are seeing for the, and largely the losses which are coming through OCI is from the securities so the duration of this book how you are actually thinking about this component of the OCI part that's the first question second is on your CT1 and buyback plan so you have raised the CT1 let's say target to 13% so do you think this is going to affect your buyback plan your proposed The third question is on the credit card value to keep falling down. So just wanted to get a better sense of how you're seeing the overall environment and how your business is operating in the current macro scenario. Thank you. you

Hi. Thanks for taking my question. I have two. One, if you could comment on your strategy of expansion outside Korea, how much capital we should expect you to allocate outside Korea over the next three years. That would be very helpful. And what businesses, which countries should we expect this capital allocation to go to? And the second question is more at the system level. We know recently there has been high household debt to GDP levels in Korea. To what level should this ratio fall for us to expect loan growth again comfortable? Thank you. Thank you. Thank you. And I think that's what we need to do. And I think that's what we need to do. And I think that's what we need to do. Thank you. Okay. Thank you. Thank you. Thank you. Thank you. So that's what we're looking for. So that's what we're looking for. So that's what we're looking for. Okay. Okay. Okay.

Thank you again for the opportunity. So, two questions from my end. The first is, there is a fallout on the first one. Can you just tell the duration of your investment portfolio? The second question is with respect to your non-banking subsidiaries. So, till around 2017, the card operation has contributed around 30% of net income, but that has fallen off a bit in the past five years. So, what would you understand the competitive landscape you are seeing in the Shinkan card operating segment and also with respect to the other non-branding subsidiaries, what areas are you targeting more to make more sustainable revenue? Thank you.