Shinhan Financial Group posted another record quarterly result, reporting first-quarter net profit of more than 1.6 trillion won as strong brokerage performance and a sharp rise in non-interest income lifted earnings.
In a regulatory filing Thursday, Shinhan Financial said first-quarter net profit rose 9.0% from a year earlier to 1.6226 trillion won. Operating profit increased as net interest income stayed solid and non-interest income, led by securities, improved markedly.
Net interest income rose 5.9% to 3.0241 trillion won. The group’s net interest margin, a key profitability gauge, increased 3 basis points to 1.93%. Non-interest income climbed 26.5% to 1.1882 trillion won as fee income, gains related to securities and insurance income all grew.
Non-operating income added 66.9 billion won, up 276.5 billion won from the previous quarter as one-off costs such as bank penalties and contributions to the New Leap Fund fell away.
Loan-loss provisions increased 17.5% from a year earlier, reflecting higher credit costs tied to expanded sales and write-offs at the bank. Shinhan said its credit cost ratio was 0.46%, within its plan for the year.
As of the end of March, the group’s preliminary BIS capital ratio was 15.72% and its common equity Tier 1 ratio was 13.19%, maintaining stable capital levels.
By unit, Shinhan Bank posted first-quarter net profit of 1.1571 trillion won, up 2.6% from a year earlier. Non-interest income fell due to weaker securities-related results amid greater market volatility, but solid net interest income supported operating profit.
Shinhan Card’s net profit fell 14.9% to 115.4 billion won after recognizing costs for a voluntary retirement program. Shinhan Investment Corp. reported net profit of 288.4 billion won, up 167.4%, as a stronger stock market boosted trading value. Shinhan Life posted 103.1 billion won in net profit, down 37.6%, hit by weaker insurance profit due to a wider gap between expected and actual claims and lower financial profit amid rising market rates.
Separately, Shinhan Financial said its board approved a new corporate value plan, dubbed “Shinhan Value-Up 2.0.” The plan centers on managing an appropriate CET1 ratio while introducing a new shareholder return target that links return on equity and growth, with the payout ratio rising as growth increases.
The group also said it will pursue tax-free dividends for the next three years and aim to raise dividends per share by at least 10% annually, using remaining resources for share buybacks and cancellations to add consistency and flexibility to shareholder returns.
For the first quarter, Shinhan resolved a dividend of 740 won per share and said it is proceeding with a planned 700 billion won share buyback program scheduled to run through July.
* This article has been translated by AI.
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