Shinhan Financial Group Co Ltd

Hello, I'm Park Cheol-ho, the head of IRPART. Thank you for attending the 3rd quarter financial performance announcement in 2025. Today's performance announcement includes Group CFO Cheon Sang-hyun, Group CFO Go Seok-heon, Group CRO Bang Dong-hoon, Shinhan Bank CFO Lee Jung-bin, Shinhan Card CFO Park Hae-chang, Hello everyone.

I would like to thank everyone who participated in the 3rd quarter of 2025. I will start with the highlights of the 2nd page of the data. As of the end of September of 2025, the proportion of group CTOs has been reduced to 13.56% and is managed at a stable level. Despite the increase in exchange rates and the growth of loan assets for future preparation, The total amount of 1.1 trillion won and 1.25 trillion won, which is the total amount of 1.2 trillion won per self-employed person, will be estimated at 2.35 trillion won, and if we consider the current stable CETON ratio and solid financial fundamentals, we will be able to continue to carry out unwavering and progressive policies in the future. In the third quarter of 2025, the short-term net profit of the group was 1.4235 trillion won, with a good management of the cash flow for the reduction of interest-related interests. The business interest rate also maintains a stable level, and the loss cost is 46BP, which is an increase of 2BP compared to the previous quarter. However, compared to the previous quarter, it seems to have improved a little. However, it is decided that we need to wait a little longer when considering the current conditions, such as the uncertainty of the macro environment and the domestic market situation. The next page is the capital. As I mentioned earlier, the group CET1 ratio was managed at the level of falling 6BP compared to the previous quarter based on stable short-term profits despite the fact that there were many factors of increase in RWA. The RWA increased the risk of foreign currency signage, increased assets, and increased 8 trillion won compared to the previous quarter. In the future, we will do our best to provide sufficient funds that are necessary for each and every situation, and to maintain a stable capital ratio through internal efficiency and strategic resource distribution. Please refer to the data on the 4th page of the asset fund. The 5th page is the group's short-term profit. The group's short-term profit in the 3rd quarter was a decrease in the profits related to childcare rights, which reflected the movement of market currencies, It was calculated at a rate of 8.1% reduction compared to the previous year. The key management indicators of the company's value management plan, ROE and ROTC, recorded 11.1% and 12.5% increase of 0.7% points per year compared to the previous year. I will explain the details of each item from the next page. This is the second part of the sixth page. Group interest profits increased by 2.9% compared to the previous quarter through the growth of assets centered on profitability and efficient ALM management. Bank loan interest increased by 2.7% compared to the previous quarter. As the market demand expanded, the business sector increased by 3.1% based on policy funds, and the corporate sector increased by 2.3% by promoting an active growth strategy from July to provide productive funds. Please refer to page 26 for more details. NIM has recorded a 1.56% increase of 1BP compared to the previous quarter, although the interest rate, including the bond loan, has dropped 12BP compared to the previous quarter due to market interest rates. The next page is interest-free interest. Group B's interest rate has decreased as the market environment has been reflected and the interest rate on child care and foreign exchange has been reduced compared to the previous quarter, but the interest rate has reached a stable level. In order to respond to seasonal factors such as Chuseok, the interest rate has increased and has decreased compared to the previous quarter, Securities collection fees, IV-related fees, and fund sales fees have increased significantly compared to the previous quarter due to the recent activation of the capital market. Insurance-related profits have decreased by 2.4% compared to the previous quarter, but they are providing stable-level profits through large-scale CSM management. The next page is the fee for viewing and shipping. As a result of the hope-return cost of the card company, the group's revenue was increased by 2.2% compared to the previous quarter, but the sales profit margin was recorded at 37.3% according to the cumulative standard, and it is still maintaining a stable level. The cash flow cost decreased by 30.1% compared to the previous quarter due to the loss of the company's credit evaluation influence recognized in the previous quarter and the group's financial stability management efforts. In addition, the increase in the amount of additional funds generated by implementing the government's real estate PF settlement plan has also been greatly reduced compared to the previous quarter and is being managed within the predicted range. With the increase in the risk of credit by companies due to the recovery of the economy, the difficulties of the lower class customers are also continuing, so it is thought that conservative asset sustainability management will be necessary with sufficient funding supply in the future. Next is the asset sustainability index of the group on the 9th page. The group NPL coverage ratio has increased by 2.8% compared to the previous quarter due to the increase in the fixed interest rate of non-banking. However, the NPL coverage ratio has been improved by 12.17% compared to the previous quarter due to the strategic market angle and the strengthening of volatility management. The interest rate of banks and cards is also improving gradually. Please refer to the next page for details of the loss absorption capacity of the group and the sale price. The next 11 pages are the profits of Group 4 and overseas businesses. The profits of Shinhan Bank have decreased significantly compared to the previous quarter due to the influence of non-debtors, such as child protection. Please refer to the 21st page for details. In spite of the reduction in the profit from the supply chain and the cost of retirement, Sinan Card's profit has increased compared to the previous quarter due to the reduction in the cost of management through the improvement of productivity. Sinan Investment's profit has decreased compared to the previous quarter due to the reduction in the cost of management, but it is continuing to recover its strength compared to the previous year through the improvement of competitiveness in the business area. Shinhan Capital continues to face pressure in terms of supply and demand, and is still struggling. Groups such as CARD and CAPITAL are continuing to improve their fundamentals through asset rebalancing and various self-improvement efforts, and are looking forward to recovering their profitability gradually. In spite of the uncertainty of domestic and foreign businesses, Group's foreign business profits have been differentiated in the last three quarters, focusing on major countries such as Japan and Vietnam. The following 12 to 13 pages explain the performance of digital sustainable business activities. From page 15 to page 18, it is the second performance of the company's value-added planning. Overall, we can say that we are showing good results in all aspects, such as performance and speed compared to last year and this year's plan. Please refer to the data for more details. From page 18, we have listed the financial status of each group and detailed profits, operation and delivery status, so please refer to them. Lastly, the current Korean financial industry We are preparing for an important task called a major change in the production finance for Korea's economic reform and sustainable growth. In the future, the financial group will continue to maintain the capital distribution expansion structure of corporate finance, which has been consistently promoted so far, and will carry out the role of financial support, such as financial communication, risk burden, and growth support, based on the efficient management influence and the supply of funds to the right places. 이상으로 전체적인 발표를 마치겠습니다. 경청해 주셔서 감사합니다. 네, 감사합니다. 그러면 지금부터 여러분의 질문을 받도록 하겠습니다.

질문이 있으신 분은 줌의 손들기 기능 눌러주시기 바랍니다. 질문 받겠습니다. 네, 첫 번째 질문은 This is Jung Joon-seop from NH Investment. Please ask your question.