Shinhan Financial Group Co Ltd

This meeting is being archived.

Hello, everyone. The weather is getting cooler today, so we are going to have the last performance announcement of the year. I am Park Cheol Woo, in charge of the IR part. Thank you to all of you who attended the 3rd quarter performance announcement of the 26th year of Shinhan Financial Group Co Ltd. while you were busy. Today's performance announcement includes Group CFO Jang Jung-hoon, Group CSO Ko Seok-heon, Group AX Digital Choi Ok-Jae, Group CRO Na Hoon, 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. The order of the performance announcement is the presentation of Group CFO's 3-minute business performance in the 26th year. We will have a Q&A session with the participants. Then, we will have a presentation about the management performance of Mr. Jang.

Hello, I am Chang Jung Hoon, CFO of Sinan Financial Group. First of all, I would like to thank everyone who participated in the 3rd quarter of the year of 2026. Now, I will explain the performance of the 3rd quarter of the year of 2026. This page is the highlight of the performance of the year. In the end of the 3rd quarter of 2026, Group CET won 13.62% and maintained a stable level. Based on this, the Board of Directors agreed to pay a total of 4.5 billion won of self-sufficiency interest and a 3rd quarter of 740 won in cash. The self-sufficiency rate will be divided into 2.5 billion won by the end of next year, and the annual self-sufficiency rate will be increased by 28% to 1.6 trillion won. On the other hand, the annual DPS will be 2,960 won, which is expected to increase by 14.3% compared to last year. Thank you very much. Thank you. In the 3rd quarter of 2026, the short-term net profit decreased by 12.9% compared to the previous quarter and was 1.5846 billion won. Group's ROE and ROTCE recorded 11.9% and 13.4% improvement of 0.9% compared to the previous year. As you can see from the official statement, the party has decided to purchase about 77% of Lotte's loss insurance at 6,933 billion won. This is a decision to strengthen the portfolio of the group's insurance business and use its capital to increase medium-term profitability and capital efficiency, and the purchase loan will be made through the relocation of capital owned by the group without any external contributions. Group's CET1 ratio is estimated to be about minus 19BP, and we believe it will be able to be managed when considering the current CET1 ratio. The fundamental factor is the decision made after reviewing various alternatives, and we expect it to be helpful in improving the continuity of the Group's ROI by normalizing Lotte's loss insurance and removing profitability. There is still a lot of work to be done to complete the procedures related to acquisition and integration, but we will communicate and listen to the market at every necessary time. Please give a lot of support and feedback to the investors. Please refer to the investment judgment as a collection of various indicators representing the stock value of Shinhwa. This is 4-page capital. In the end of the third quarter of 2026, the Group CET1 ratio recorded 13.62% and was improved by 12BP compared to the previous quarter. This is a result of the reduction of the Group RWA by 1.6% compared to the previous quarter due to the decline in the exchange rate and the additional effort of selective asset growth at the center of profitability. We will do our best to maintain a stable capital ratio through internal efficiency and strategic resource distribution while providing enough funds for the future. Please refer to the data on assets and bonds on page 5. This is the profit of the group on page 6. In the third quarter of the Group, the net profit of the 경비차감전 영업이익 decreased by 13.2% compared to the previous quarter due to the reduction of the non-profit profit. The short-term profit decreased by 12.9% due to the reduction of the net profit of the 경비차감전 영업이익 and the well-managed cost factor. I will explain the details in detail from the next page. The interest rate of the group is 1.8% compared to the previous quarter, despite the fact that the NIM of the bank fell 3BP compared to the previous quarter. The NIM of the bank rose by 3BP compared to the previous quarter, while the NIM of the bank rose by 3BP compared to the previous quarter, while the NIM of the bank rose by 3BP. Thank you for watching. Please subscribe and like. The group's interest rate decreased by 45.5% compared to the previous quarter due to the deterioration of the capital market and the uncertainty of the financial environment. The interest rate decreased by 27.7% compared to the previous quarter due to the deterioration of the capital market. The interest rate decreased by a large extent compared to the previous quarter due to the loss of bond evaluation due to the rise in market interest. The profit of the insurance-related interest continued to increase the loss of old cars and the influence of change in the guider line, and it decreased compared to the previous quarter. As such, the profit of the 3-minute visa showed a overall deterioration due to the change in the market, but each business sector responded to this and is planning to focus on securing stable revenue base. Next is the 9-page review fee and the commission fee. Group's budget has been reduced by 5.0% compared to the previous quarter due to a decrease in seasonal tax revenue and a decrease in the recognition of the stock market as reflected in the previous quarter. As a result, the net profit margin is recorded at 37.6% and is still managed at a stable level. Group's loan costs have increased for the first half of the year due to the continued settlement of preemptive deposit. However, the loan cost was recorded at 42BP, which was improved by 4BP compared to the previous year, and has been maintained stably within the planned management range of the year. In the meantime, while maintaining conservative deposit policy, we will continue to conduct preemptive volatility management and risk assessment. Next is the 10-page Group's asset volatility index. The NPL coverage ratio of the group was reduced by a small margin, but it was recorded to be 115.48%, which was reduced by a small margin compared to the previous year due to the impact of the bank's loss of financial assets and asset recalibration. The bank interest rate has improved by 5BP compared to the previous quarter, and the card interest rate has increased by 2BP compared to the previous quarter, but overall, it maintains a manageable level. However, while the recovery rate of the economy is still difficult, as the credit risk continues to be centered on some interest rates, we plan to continue thorough monitoring and preemptive risk management of asset volatility in the future. Please refer to the next page for details on Group's loss absorption capacity and sales. Next is the 12th page, Group's profit. Shinhan Bank's profit from product sales, such as funds, bank cards, and credit cards, has decreased, but it has decreased by 5.9% compared to the previous quarter, minimizing the actual change in profit based on strong interest. Group companies in the capital market, such as Shinhan Investment Fund and Shinhan Wealth Management, have decreased their performance compared to the previous year due to the reduction in stock trading interest and the increase in market volatility, but they are still maintaining a strong profitability compared to the previous year. Shinhan Card has improved 68.4% compared to the previous year due to the increase in business sales while the uncertainty of the business environment continues. SHINHWAN CAPITAL's revenue has decreased by 29.7% compared to the previous quarter due to the continued burden of payment costs and the diminishing profitability of SHINHWAN LINE. SHINHWAN LIFE's revenue decreased by 31.3% compared to the previous quarter due to the decrease in the number of insurers and the decrease in the evaluation of SHINHWAN LINE. SHINHWAN LIFE's revenue decreased by 31.3% compared to the previous quarter due to the decrease in the evaluation of SHINHWAN LINE. SHINHWAN LIFE's revenue decreased by 31.3% compared to the previous quarter due to the decrease in the evaluation of SHINHWAN LINE. SHINHWAN LIFE's revenue decreased by 31.3% compared to the previous quarter due to the decrease in the evaluation of SHINHWAN LINE. SHINHWAN LIFE's revenue decreased by 31.3% compared to the previous quarter due to the decrease in the evaluation of SHINHWAN LINE. Group's foreign business profits have decreased by 9.9% compared to the previous quarter, despite the strong profit-making power of major foreign lawmakers. SBC has continued to grow stably despite the decline in the exchange rate due to the growth of the real estate market and the increase in interest rates due to the rise in the standard interest rate. Bank MMC is also continuing a good performance trend, focusing on IB business growth. On the other hand, due to the uncertainty of the global financial market, such as the rise in interest rates in major countries, the cost of delivery and delivery in some countries is increasing, but it is managed at a level that can be controlled overall. Next, from page 14 to page 15, we will discuss digital and sustainable business activities. From page 16, we will discuss the financial status of each Group Co Lt and detailed benefits, operations, and delivery status, so please refer to them. This concludes the presentation. Thank you for listening. Thank you.