Shinhan Financial Group Co Ltd

This meeting is being archived.

Hello, it's been a while. I'm Park Cheol Woo, in charge of IRPART. Are you preparing for your vacation? Before the summer vacation season, I would like to thank everyone who attended the 2nd quarter performance announcement in 2026. Today's performance announcement includes Group CFO Jang Jung-won, Group CSO Ko Seok-heon, Group AX Digital, Choi Yeok-jae, Group CRO Na Eun-pa, Shinhan Bank CFO Kang Young-hoon, Shinhan Card CFO Lee Jung-bin, Shinhan Investment CFO Lee Jae-sung, and Shinhan Life CFO Joo Sung-hwan. I would like to ask for your interest and participation in today's meeting. Today's performance announcement is about the 2nd quarter of 2016. Group CFO's presentation will be held first, and then we will have a Q&A time with you. Then, we will have a presentation on Jang Jong-won's management performance.

Hello, I'm Jung Hoon Jang, CFO of Shinang Financial Group Co Ltd. First of all, I would like to thank everyone who participated in the 2nd quarter of 2026. Now, I would like to explain about the business performance of the 2nd quarter of 2026. This page is the highlight of the business performance. As of the end of the second quarter of 2026, the Group CET1 ratio remains stable at 13.43% despite the uncertainty of the exchange rate. On Friday, the Group's board of directors agreed to receive 7,000 billion won of their own stocks for about three months based on a solid capital ratio and to pay 740 won of the second quarter's main cash deposit. As of October 2026, the amount of self-subsidized stocks became a total of 1.4 trillion won, and we are planning to announce additional self-subsidized stocks in the fourth quarter considering the expected annual performance and capital accuracy. For reference, the original delivery date is July 30th, and the 7,000 won promised in the first half of the year has been acquired and sold. If the same amount of cash payment continues until the end of the year, the annual TPS will increase by 14.3% compared to the previous year with 2,960 won, and even if you calculate the amount you promised by the end of October, you will increase by 12.0% compared to the previous year. In the future, we will continue to promote flexible and expectant stock policy according to the company's stock plan that leads the industry. The short-term net profit of the second quarter of 2026 was 1.820.1 billion won, which increased by 12.2% compared to the previous quarter, and ROE and ROTCE recorded 12.4% and 13.9% improvements per percent compared to the previous year by ROE and ROTCE through profitable stock efforts in the group. Next page, please refer to the investment judgment by collecting various indicators representing the stock value of Shinhwa. The fourth page is capital. First of all, the CET1 ratio at the end of the first quarter was changed to 13.30% with an increase of 11BP compared to the peak. This reflects the effect of the completion of some of the items in the capital regulation agreement for the expansion of productive finance, which is due to the reduction of 3.2 trillion won by Group RWA. In the end of the second quarter of 2026, the CET-1 ratio recorded a 13.43% improved 13BP compared to the changed figures, showing a strong short-term profit even in the effect of an increase in exchange rates. We will continue to provide the necessary funds for the supply and demand, but we will do our best to maintain a stable capital ratio through internal efficiency and strategic resource distribution. Please refer to the information on assets and bonds on page 5. This is the profit of the group on page 6. The 2nd quarter of the group's economic profits from the stock market were increased by 8.8% as the non-profit profits grew once again based on strong interest profits. I will explain the details of each item from the next page. This is the interest profit on page 7. Group's interest rate has improved, and it has grown by 3.6% compared to the previous quarter due to the increase in loan asset prosperity. The NIM of the bank has quickly improved its loan asset profitability as the market interest rate has risen, and it has increased 1BP compared to the previous quarter. Financial Group Co Lt, Young-Taeg Heo, Dong-ki Jang, Keun Soo Jung, Ok-Dong Jin, Cheol Woo Park, Jung Hoon Jang, Keun Soo Jung, Ok-Dong Jin Investments have increased in all areas compared to the previous quarter, but due to the rise in the stock market, WM product sales, which increased by 29.5% compared to the previous quarter, and WM product sales, which increased by 60.8% compared to the previous quarter, have been affected by the overall growth rate, and IB-related investments, which were somewhat negative in the previous quarter, have turned around and improved by 151.3% compared to the previous quarter. In terms of interest-related profits, interest-related profits increased by 30.9% compared to the previous quarter due to the increase in the market price. In terms of insurance-related profits, interest-related profits increased by 44.6% compared to the previous quarter due to the increase in the market price and the influence of change in the guider line. Next, it is the payment fee and the payment fee. The group's budget has increased by 8.1% compared to the previous quarter with an increase in education tax, asset tax, taxable income increase, and recognition of credit performance. However, the business interest rate has been managed at a stable level due to an increase in business interest due to an increase in business interest. Group's loss was reduced by 14.7% compared to the previous quarter due to the negative effect of the short-term policy, and the loss cost was recorded at 42BP, which was improved by 8BP compared to the previous year. The company is well managed within the planned range of the year, but with the uncertainty of the standard interest rate impact and high interest rate continuation, while the specified risk continues, it will be managed from a conservative point of view. Next is the asset volatility index of the 10-page group. The NPL coverage ratio of the group was improved by 2% points compared to the previous quarter, according to the reduction in fixed and asset value and conservative cost perception through the group's asset volatility management efforts. In the case of banks, the annual interest rate increased significantly compared to the first quarter, but it recorded the lowest annual interest rate in the industry, and the card recorded the previous year's end level by decreasing 9BP compared to the previous quarter through continuous management efforts, along with an increase in interest rates. Thank you for watching. Shinhan Bank's net worth has increased by 12.5% compared to the previous quarter due to the top-line expansion and the reduction in cash inflows. Shinhan Investment Fund, which has shown high strength since the previous quarter, and Shinhan Wealth Management, which has increased its net worth by 12.5% compared to the previous quarter, Thank you for watching. Thank you for watching. The R.O.C. of the banking industry is maintained at a stable level, and the R.O.C. of the Group Co Lt. belonging to the capital market industry has been greatly improved, mainly in terms of fees and revenues compared to the previous year. In the case of the 여전 industry, the R.O.C. continues to carry out profitable supply activities, such as reducing RWA in a lower area with cost efficiency. This is an overseas business profit that shows the differentiated performance of Sinan in 13 pages. Group's foreign business profits have increased by 13.0% compared to the previous quarter, based on the growth rate of major countries such as Japan and Vietnam. In the case of SBJ, interest rates are expanding due to the rise in the real estate market and the rise in the standard interest rate, and the bank MMC is trying its best. On the other hand, the party is also carrying out efficient work on global business for profit-making, such as withdrawing New York law of the regime. From the next 14 pages to the 16th page, digital sustainable business activities. From the 17th page, we have listed the financial status of each group and the current profits, operations, and delivery status, so please refer to them. This concludes the presentation. Thank you for listening.