Shinhan Financial Group Co Ltd

Group CFO Jang Jung-hoon, Group CFO Go Seok-hwan, Group AX Digital Choi Hyuk-jae, Group CRO Rahoon, Shinhan Bank CFO Kang Young-won Group, Shinhan Card CFO Lee Jung-bin Group, Shinhan Investment Fund CFO Lee Hye-seong Group, and Shinhan Life CFO Joo Sung-hwan Group. I would like to ask for your interest and participation. Today's performance announcement order is the first quarter of 2026. Hello, I am Jang Jung-hoon, CFO of Shinang Financial Fund.

First of all, I would like to thank everyone who participated in the 1st quarter of the year. In the 2nd and 3rd pages of the data, I will explain the new corporate value stock plan of Shinhan Financial Capital, which was announced on Friday. Through the corporate value stock plan announced in July of 2024, we have talked about three goals, 10, 50, and 50, and we have accelerated various policies to achieve them. As a result, the goal of 50% of the stock exchange rate was achieved in the early stage, and the PBR was also significantly improved. I think that the direction of the plan and the performance of the company have had a significant and meaningful effect. In addition, the tax system related to the dividend has been reformed, and the government's efforts to activate the capital market have continued, so it was decided that a general re-evaluation of the existing plan was needed. As a result, the company upgraded its existing value-of-pricing plan centered on E4L and named it as Shinhan Value-of-Triple-Plus, and established a new value-of-pricing stock plan that reflects the current market environment and the strategy direction of the company. The value-opening plan of the financial support companies that have been announced so far has been limited to increasing the value-added rate of the shareholder in order to overcome the low shareholder return rate and to offer absolute goals at a certain point or to return all shares when the ratio is exceeded. However, I think we need a change in the value-added rate system, including a sustainable growth story, as well as a shareholder return policy that can be predicted. In the past, it was not a policy to simply recover capital or to target a certain number of shareholders, but to aim for sustainable value-of-sum plans based on a solid capital ratio, a sustainable value-of-sum policy, and the growth of the company organically. Accordingly, the Party has newly set three key points of interest. First, the ROE 10% plus. We focused on speedy improvement with the goal of raising the capital cost rate. Considering the current business portfolio of Shinhan Financial Group, we expect it to improve very quickly. For the next 26 years, we will focus on the capital market, and for the next 27 years, we will focus on female businesses, and we will gradually strengthen our non-banking competitiveness, and we will manage ROE by 10% to 12% by 2028. In particular, based on the PBR-ROC logic tree that has been specifically incorporated into the value of value data, we will improve the profitability of capital ratio management and group companies with a divided action plan. Second, the total exchange rate is 50% plus. At the same time, the party proposed an intuitive formula considering the ROE and growth rate of the company at the same time, based on the principle of capital distribution based on demand-earning rate. Through this, I think that investors can easily predict the direction and level of the stock market policy along with the growth of the company. However, as of now, in the section where ROE has to do COE, we have decided to gradually expand the supply and demand ratio for the previous year. The composition of the shareholder unit has also been reorganized, taking into account the needs of the investors and the reform of the tax system related to the dividend. While maintaining a progressive expansion of the DPS and dividend size along with the dividend policy currently in operation, we plan to maximize the revenue of the investors by using the non-credit dividend resources obtained through the recognition of the General Assembly in March of this year from the final dividend in 2026 for three years. For reference, we plan to increase DPS by more than 10% every year for the next three years. We will continue to communicate with the market about the success rate of the goal of increasing self-serve by 50 million weeks, which has been distributed according to a reasonable principle based on demand-benefit ratio. Third, the CTO ratio is 13%+. Considering the macro variability, we will secure sufficient capital buffer to maintain a stable capital ratio in any environment. In addition, we will make additional payments for extra capital generated through capital efficiency improvement such as RWA and SLIMA. In addition, we will check the difference from the trend every year based on the moving average and update the three-year guidance in the future to actively communicate with the market. From now on, I will explain the business performance of the first quarter of 2026. This is the highlight of the business performance on the fourth page. The Group CETON ratio at the end of the first quarter of 2026 is 13.19%, and it maintains a stable level despite the uncertainty of the domestic and foreign markets. Based on the solid capital ratio, the board of directors of Group CETON decided on 740 won as the weekly cash deposit in the first quarter of 2026. For reference, the standard of payment for the gold and silver cash is scheduled to be paid until April 28th, April 30th, and will be paid on May 29th. Out of the 7,000 billion won of self-sufficiency that was planned to be obtained by July of 2026, 4043 billion won of self-sufficiency has been obtained, and it will be collected as soon as the acquisition of children's stocks is completed. The short-term net profit of the first quarter of 2026 was 1.6226 billion won, which increased by 9.0% compared to the previous year, based on the growth of the top-line of the non-profit center. Group ROE and ROTCE recorded 11.9% and 13.4% improvements, each 0.5% per year compared to the previous year, through the robust financial fundamentals and capital adequacy management. For the next page, please refer to the investment assessment data to gather several indicators that can express the value of the stock market. Page 6, capital. The Group CETON ratio decreased by 68BP in total with an increase in RWA and a decrease in the stock market, but it was managed at a level of 16BP at the end of last year based on stable profits. Compared to the end of last year, Group RWA increased by 7.3 trillion won in asset growth and increased by 3.1 trillion won in exchange rate, but it was well managed within the planned range. We will do our best to provide enough funds needed for the future and to maintain a stable capital ratio through internal efficiency and strategic resource distribution. Please refer to the data on the 7-page asset list. This is the hand of the Group on page 8. In the first quarter of the group, the business profit of the car insurance company grew by 11.0% compared to the previous year, with a large growth of non-profit profits based on strong interest profits. I will explain the details of each item in detail from the next page. This is the interest profit on the 9th page. The group's interest interest has improved, and the interest interest on bonds has increased, and it has grown by 5.9% compared to the previous year. The NIM of the bank has improved its loan asset profit rate due to an increase in market interest, and the payment cost has also been well managed, and the EBP has improved compared to the previous quarter. The bank's original loan has been reduced due to the influence of the regulation, but it has increased by 1.4% compared to the previous year by strengthening the role of producing funds for the company. Please refer to the 26th page for more details. The next page is about interest rates. The group's interest rate has increased by 26.5% compared to the previous year, while the interest rate of the group has improved evenly in other areas along with the weakening of the interest rate. The interest rate has increased by 21.5% compared to the previous year, while the interest rate of the group has increased by 21.5% compared to the previous year, overall growth, and the government's capital market revitalization policies, including funds and unit fees, have also increased by 54.7% compared to the previous year, and have been continuously improving. The interest in the stock market has decreased due to the recent rapid rise in market prices, but the increase in the interest in the stock market has also increased. The benefit related to insurance has also increased by 8.7% compared to the previous year, and we expect it to be profitable at a stable level through large-scale CSM management in the future. This is the next 11th page. In the meantime, the cost-saving efforts of group companies have continued to increase by 10.4% compared to the previous year due to the impact of the education tax, while the net profit-saving ratio has decreased by 36.7% compared to the previous year due to the increase in net profit. In the first quarter, the loss rate increased by 17.5% compared to the previous year due to the increase in the number of shares sold by the bank and the decline in the number of shares sold by the company. In the meantime, the loss rate of real estate PF, which has been recognized as conservative, has decreased, and the one-time cost seems to be stable. With the recent uncertainty of the high-price rate and the recent uncertainty of the stock market, while the market risk continues, the big hand rate recorded 46BP, which rose by 5BP compared to the previous year, but it is a plan to take better care of the big hand rate, which was planned for 40BP in the middle of the year, as a goal. Next is the 12-page group's asset volatility index. The NPL coverage ratio of the group decreased by 12.4% compared to the end of last year, despite the group's active trading policy and conservative recognition of the loss. However, this has already been reflected in the previous year's loss cost, as a result of the increase in the group's fixed-interest assets due to the PF raise of the New Tak's responsibility for the mid-term and mid-term business. The annual interest rate of banks and cards, which improved gradually, has increased slightly in the first quarter, but in the case of banks, it records the lowest annual interest rate in the industry, and I think that the card has been able to be managed sufficiently by decreasing the overall assets and increasing the small-scale regulation of loans. However, due to the delay in recovery, the company's credit risk has increased, and the difficulties of the vulnerable customers have also continued, so it is thought that conservative asset sustainability management will be necessary in the future. Please refer to the details of the group's loss absorption capacity and the market price in the next page. The next 14th page is the group's profit. Shinhan Investment's stock market has expanded due to the rise of the capital market, and the interest rate has increased significantly, and the profit of self-sales has also improved, increasing by 167.4% compared to the previous year. Shinhan Bank's net profit grew by 2.6% compared to the previous year, despite the decrease in interest rates due to the increase in market interest and the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in interest rates due to the increase in In the case of Sinan Capital, it was greatly improved compared to the previous year due to the increase in interest rates, such as dividend funds, due to the increase in interest rates due to the increase in market interest rates. Sinan Life was further improved compared to the previous year due to the decrease in interest rates due to the increase in market interest rates and the increase in market interest rates. From the recent performance announcement, investors have marked the short-term interest rates of each group, RWA, and ROC for each quarter, so please refer to it. On the 15th page, we have listed the details of the overseas business, Sonic, which has shown distinguished results in the past. Please refer to it. From the next 16th to 17th pages, we have listed the financial status of each group and the details of Sonic's operation and delivery status from the 19th page of the digital sustainable business activity. We will end the presentation here. Thank you for listening.

Thank you. Then we will proceed with the Q&A session with you from now on. If you have any questions, please raise your hand while you are connected to Zoom. Then we will take the first question. Yes, the first question has come in.