Shinhan Financial Group Co Ltd

Hello, everyone. My name is Park Chor-woo, and I'm in charge of IAR. Thank you for attending the 2nd quarter business performance announcement in 2025. Today's performance announcement includes the Group CFO, Cheon Sang-hyun, Group CSO, Group CRO, Shinhan Bank CFO, Shinhan Card CFO, Shinhan Investment CFO, and Shinhan Life CFO, Joo Sung-won. Hello, I would like to thank everyone who participated in the 2nd quarter performance announcement in 2025.

I would like to start by explaining the highlights of the 2nd quarter performance on page 2. At the end of June of 2025, the CT1 ratio of the group was temporarily increased to 13.59%, which was improved by 32BP compared to the previous quarter. This is a result of the rapid growth of the group, the effect of the exchange rate decline, and efficient RWA management efforts. Today, the board of directors agreed on a 570 won per week cash payment and an 8 billion won of self-reward based on a stable CT1 ratio. 6.5 billion won will be raised in the second half of this year, and the remaining 2.5 billion won will be raised in January next year, and we will continue to pursue a year-round self-sufficiency policy. The total amount of 2.5 billion won will be raised in the first half of this year, including 6.5 billion won in the second half of this year, including 6.5 billion won in the second half of this year. The short-term net profit of the 2nd quarter of 2025, despite the increase in cash flow costs, has increased by 4.1% compared to the previous quarter through the improvement of the interest rate. The business interest rate has maintained a stable level, but the cash flow costs have increased significantly due to delay in recovery. Next is the 3-page capital. As I mentioned earlier, the group's CET-1 ratio has been improved by 32BP compared to the previous quarter based on the decline in exchange rates and stable short-term profits. Group RWA has decreased the risk of foreign currency markings due to the decline in exchange rates, and the portfolio has decreased by 4 trillion won compared to the previous quarter, focusing on profitability with the growth of the original loan at the right level. We will do our best to provide the necessary funds for the future and to maintain a stable capital ratio through internal efficiency and strategic resource distribution. Please refer to the data on the 4-page asset list. This is Sonic of the 5-page group. This meeting is being archived. I will explain the details of each item in detail from the next page. Page 6 is interest interest. The interest interest is based on the proper growth of capital profitability based on the market interest rate. Bank loan is based on the market demand, and it has grown to a level similar to the previous quarter. Please refer to page 27 for more details. Bank NIM's interest rate, including the bond loan, has dropped 16BP compared to the previous quarter due to a drop in market interest, but it maintained its previous quarter level through proper asset growth and efficient ALM strategies. Next page is interest on non-investors. Group non-investors' interest has improved by 34.7% compared to the previous quarter. In particular, the growth of the overall interest rate of non-contractors, which have greatly increased in response to the negative market environment, has contributed to the growth of the overall interest rate of non-contractors. If you look at the fees a little more closely, credit card fees have improved compared to the previous quarter through the reduction in marketing costs, but they are still insufficient compared to the previous year. The stock exchange fees have greatly increased compared to the previous quarter as the stock market has been activated and the stock exchange fund has been expanded. Investing fees are continuing to grow, with large-scale IBDL transactions centered around banks, and product sales fees, such as funds and bank cards, are also growing in a favorable market environment for the entire year and for the entire quarter. Insurance-related profits have decreased for the entire year due to the negative effects of short-term insurance sales in the previous year, but we are showing a stable level of profit. The next page is about the budget and the commission. The budget of the group is managed at a moderate level compared to the previous year, and the sales profit-earning ratio is 36.6% in the first half of the year. The increase in commission compared to the previous quarter is mainly due to the increased commission cost, which was recognized through conservative evaluation of the goddess, while the recovery was slightly delayed. The government has been implementing real estate PF settlement plans, and is managing the additional cuts that are occurring little by little, focusing on non-banking, within the expected range. Considering that the difficulty of low-income customers will continue to increase with the increase in credit risk of companies due to the delay in recovery, it is expected that the line cost will be slightly higher than expected in terms of the size and recovery period. Up to the next 9 and 10 pages, we have included group asset sustainability indicators and loss-absorption capabilities, so please refer to them. Next, page 11, Group 4 and overseas business profits. Despite the increase in cash costs, Shinhan Bank maintained a strong performance, with a large increase in non-borrowing profits, focusing on childcare rights and IB-related fees, along with interest rates of the previous quarter. Shinhan Investment Regulatory Commission is recovering its strength through the improvement of competitiveness of stock, self-servicing, and other fundamental business areas. Shinhan Card and Capital are showing poor performance due to the continued pressure of fraud and loss, but we are expecting a gradual recovery of profitability through fundamental improvements such as asset rebalancing and self-effort. Despite the uncertainty of the domestic and foreign businesses of the Group, Sonic is still in the second quarter. From page 12 to page 13, it is an explanation of digital and sustainable business performance. Page 14 is related to rising and inclusive finance, which is being promoted at the Group level. It is an explanation of rising and inclusive finance, which is being promoted In addition to finding the hidden asset value of the customer, it is crucial to provide institutional support for the customer's financial condition improvement, such as unifying more than 10% of the Sina Bank's cash loan interest rate into one place and helping them continue their consumer lives with economic independence. In the future, the group will continue to implement the production-based financial broadcasting function of the group, We will continue to promote various programs that can coexist with customers and society, and do our best to become a sustainable financial group that can grow together with all stakeholders. From page 15 to page 18, we can say that the company is promoting the second-hand performance of the company's value-added plan. Overall, compared to the second-hand plan announced last year and this year, we can say that we are showing good second-hand performance so far. Please refer to the detailed information. From the next 19th page, we have listed the financial situation and detailed profits of each group and the operation and delivery situation, so please refer to it. We are also preparing a separate explanation for individual investors in relation to the performance of the party's first half and the policy of paying attention. We ask for your participation. This concludes the presentation. Thank you for listening.

Thank you. We will now have Q&A time with you. Please excuse me for not being able to choose the screen in the middle. We will now take questions from you. If you have any questions, please raise your hand while you are on Zoom. The first question is from Jung Joon-seop of NH Investment. Please ask your question.