Shinhan Financial Group Co Ltd

Hello. Happy New Year. I am Park Cheol-ho, in charge of the IR part. Thank you to all of you who attended the annual performance announcement of Shinhan Financial Group in 2025. Today's performance announcement includes the newly appointed Group CFO Jang Jung-won, Group CRO Na Eun-pa, Shinhan Bank CFO Kang Yong-hong Group, Shinhan Card CFO Lee Jung-bin Group, Shinhan Investment CFO Lee Jae-sung Group participated. And last October, the Group AX Digital Department, which was newly launched, also participated. And as before, the Group CSO Go Seok-heon Department and Shinhan Life CFO Joo Sung-hwan Group participated, so I hope that many of you who participated today Thank you for your interest and participation. Today's performance announcement will be held after the group CFO's presentation on the annual performance announcement in 2025. Then, we will have a Q&A time with the participants. Then, we will have a presentation on Jang Jung-hoon's performance.

Hello, my name is Jang Jung-hoon and I am the CFO of Shinang Financial. We will do our best to communicate with the market about the continuous efforts and consistent promotion of the group's sustainable value acquisition. From now on, I will explain the annual business performance of 2025. This is the highlight of the second page of the business performance. As of the end of 2025, Despite the increase in the exchange rate, the Group CET-1 ratio was managed within the planned range of the Group RWA and was set at 13.33%. The Group's board of directors agreed on a well-managed capital ratio of 570 won per share and 310 won per share. With the approval of the Board of Directors, the amount of the total share price of 25 years will be 2.5 trillion won, and the total share price will be 50.2%, which is the goal of 50%. Meanwhile, the Board of Directors has also agreed to acquire 5.5 trillion won of their own stocks, including 2.5 trillion won of their own stocks, which will be acquired in January, and 7.5 trillion won of their own stocks, which will be purchased by July. The short-term net profit of the year in 2025 was 4.9716 trillion won, which increased by 11.7% compared to the previous year, based on top-line growth and well-controlled cost factors. Group's R&D and ROTC have recorded 9.1% and 10.3% improvement of 0.7% each year compared to the previous year. The next page is the direction of the capital policy in 2026. As I mentioned earlier, the Party's Secretary of State recently considered the reform of the tax reform bill, and according to the resolution of the addition of 570 won of cash payment and 310 won of additional payment, the total amount of cash payment increased by 14.9% compared to the previous year, and the payment tendency was recorded at 25.1%. Through this, the individual shareholders who invested in our company will be able to receive a separate tax benefit according to their own conditions. For reference, the fundamental cash payment standard is that you will be able to receive the corresponding cash payment when you apply until February 13, as there is a Lunar New Year holiday on February 20. On the other hand, the amount of money paid by the government will also be approved by the Executive Directorate and will be used as a payment resource. In addition to the speedy self-sufficiency policy to continuously improve the value of the stock, we will also prepare for the upgrade of the value of the value of the company as we have achieved 50% of the target share of the stock in a very early stage. In the process, we will listen to the market's opinions and actively communicate with them by sharing our relatives' opinions. This is the 4-page capital. The Group CETON ratio is managed at a stable level, with a 22BP drop compared to the previous year due to an increase in RWA and a decrease in short-term interest rates. Group RWA increased by 5.1 trillion won compared to the previous year due to an increase of exchange rate increase, but it increased by 10.9 trillion won and 3.2% compared to the previous year and was well managed within the planned range. In the future, we will do our best to provide enough funds needed for local and local governments, and to maintain a stable capital ratio through internal efficiency and strategic resource distribution. Please refer to the data on the 5-page asset fund. 6. Group Profit Group's annual short-term profit grew in terms of business profits, and despite over-wage recognition such as ELS, the cost factors were well controlled, and 4.9716 billion won, which was improved by 11.7% compared to last year, was applied. In the middle of the quarter, there was a 64.1% decrease in the interest on the stock market due to the recent rise in market interest rates and the increase in the rate of return, such as the expansion of hopeful retirement. I will explain the details of each item in detail from the next page. This is the interest interest on page 7. The group's interest rate has increased by 2.6% compared to the previous year due to proper asset growth and cost efficiency. The bank loan has increased by 4.4% compared to the previous year. The business sector has increased by 5.0% and 6.9 trillion won per year based on policy funds, The corporate sector has increased by 3.9% and increased by 7.1%. Please refer to page 28 for more details. Bank NIM has recorded a 1.56% decrease in EBP compared to the year-on-year decline in debt asset profits, reflecting the movement of the market interest. This is the next page. Group's interest rate has grown 14.4% year-on-year, with growth of 14.4% year-on-year. Interest rate has grown 7.6% year-on-year, with growth of 7.6% year-on-year, with growth of 7.6% year-on-year. In terms of the interest on the stock market, the interest on the stock market has recently increased rapidly, and the interest on the stock market has decreased by 53% compared to the previous quarter, but it has increased by 13.5% compared to the previous year. The interest on the insurance sector has also increased by 7.4% compared to the previous year, and it is expected to show stable levels of interest in the future through large-scale CSM management. Next, the 9-page review and the cost of payment. The review of the group increased by 4.7% compared to the previous year, as the cost of human resources increased in the process of cost-efficiency optimization, such as hope retirement of major group companies, but the increase in business profits added to the reduction of general management costs, and the annual business profit margin recorded 41.5%, still maintaining a stable level. Even though the annual loss cost has increased, reflecting the difficult real-world competition, the loss cost of real estate PF, which has been recognized as conservative and preemptive, has decreased by a large margin and decreased by 4.1% compared to last year. As a result, the annual loss cost was also recorded at 45BP, which was improved by 4BP compared to last year. In the quarter, the loss cost was reduced by the overall self-sustaining management efforts of the group, but it increased by 15.7% due to seasonal influences such as the adjustment of the RC price. Next is the self-sustaining index of the 9-page group. The group's NPL coverage ratio has been improved by 1.89% compared to the previous year, with the group's overall active trading policy including the launch of the bad bank and the loss of large-hand cash and fixed-in-line goddess balance at the same time, but compared to the previous year, the fixed-in-line assets related to Sintaxa's book-sale business have increased and decreased by 16.89% compared to the previous year, recording 125.98%. The repayment rate of banks and cards is gradually improving. With the increase in credit risk of companies due to the delay in recovery, the difficulties of low-income customers are also continuing, so it is thought that conservative asset sustainability management will be necessary along with the supply of funds to low-income countries in the future. Please refer to the details of the group's loss absorption capacity and the market price in the next page. Next is the 12-page group summit of overseas business profits. Despite the increase in loan and payment costs, the top-line has grown with interest rates centered on debt, and has increased by 2.1% compared to the previous year. The credit card has decreased by 16.7% compared to the previous year, due to efforts to improve the cost structure, such as hope retirement, while the pressure continues in terms of payment and loan costs. With the rise of the capital market, the stock exchange rate has been expanded, and the interest rate has increased significantly, and the profit of self-sales has also improved, and the speed of recovery is increasing. In addition, we are looking forward to additional performance improvements through the promotion of the recently approved launch business. Shinhan Capital's pressure on the payment side and the loss side continued for a year, and it was delayed compared to the previous year. Groups such as Card and Capital and other goddess-professional financial companies are continuing to improve their fundamentals through asset rebalancing and various self-improvement efforts, and are looking forward to recovering their profitability gradually. Despite the uncertainty of domestic and foreign business profits, the group's overseas business profits have shown differentiated results, including 1 trillion won, which is the first in the history of private finance, based on major countries such as Japan and Vietnam, and is gradually increasing the share of group profits. Next is page 13, the outlook for 2026. The GDP growth rate is expected to rebound from 1.0% to 1.8% this year, and there will be a slight recovery in the year, but it still seems to be at the level of potential growth rate. In order to prevent the rise in the price of real estate and the weakening of the stock market, It is expected that this financial environment will be favorable for maintaining the bank's ranking margin, but it is expected that it will have a negative effect on the management of liquidity. In the case of the exchange rate, it is expected that the policy uncertainty of the U.S. government will weaken the trust in dollar assets, and that it will continue to fall from 1,400 won to 1,400 won, based on the rich dollar mobility, such as foreign investment funds and 경상수지 흑자. Finally, I will talk about the real estate market. This year, it is expected that market polarization will continue in Seoul and the metropolitan areas, and government policies aimed at strengthening the government's policy framework to convert real estate funds into productive finance will be strengthened. In the end, it is expected that the company loan growth at the center of Judam University will be limited this year, while the competitive competition for productive finance will be strengthened. The next page is the direction of financial management in 2026. First, based on stable capital ratio management, we will try to maintain more than 50% of the share price per share, while the ROE will reach the middle of 9%, and in 2027, we will be able to exceed 10% of the ROE, which is the goal of the company's financial planning. In the case of commercial profits, we will expand the area of non-profit interests and seek additional opportunities in the expansion of productive finance. In addition, we will implement cost structure efficiency and cut-off efforts at the same time to manage the commercial profit margin at a level similar to the present, and we expect that the cost-saving rate will be stabilized for the year-on-year basis based on the asset sustainability management strategy that has been differentiated since the beginning. Next, from page 15 to page 16 is an explanation of digital sustainable business activity performance. From page 17 to page 19 is the performance of the company's corporate value management plan. Looking back on 2025, we have achieved a goal of 50% of the stock market share, while maintaining the CETON ratio at a stable level through robust financial fundamentals and risk management capabilities. The number of self-subsidized shares is decreasing towards the target of 4.5 billion shares, and ROE and ROTCE, which still have a lot of room for improvement, are also rising at a rapid pace. There have been major changes in the current laws and regulations, and as the efforts of various stakeholders to promote capital markets and increase corporate value have continued, Shinhan Financial Group will also seek new opportunities for profit by actively interacting with the market to activate the Korean capital market and promote productive finance. Based on this, we will upgrade the current value-of-sum plan to the ROE stock center that is sustainable. From the next 20 pages, we have listed the financial status of each group and the total profit, operation, and delivery status, so please refer to them. This concludes the presentation. Thank you for listening.

Yes, then we will have a Q&A session with you from now on. We will take questions. If you have any questions, please raise your hand while you are on Zoom. Please ask a question. Yes, if you have any questions, please raise your hand at the zoom function. Yes, Mr. Jung Joon-suk of NH Investment. Yes, please ask a question.