Shinhan Financial Group reported a record net profit exceeding 3.4 trillion won for the first half of 2026, driven by significant growth in non-interest income despite a slowdown in household loan growth.
On July 23, Shinhan Financial announced that its net profit for the first half of the year reached 3.4427 trillion won, a 13.3% increase compared to the same period last year. This figure surpasses market expectations of 3.3087 trillion won. The net profit for the second quarter was 1.8201 trillion won, up 12.2% from the previous quarter.
A Shinhan Financial representative stated, "We generated stable earnings based on balanced growth in interest and non-interest income, while effectively managing credit costs to maintain solid profit growth."
Interest income for the first half of the year totaled 6.1585 trillion won, a 7.7% increase from the same period last year. In the second quarter, interest income rose 3.6% from the first quarter to 3.1344 trillion won. The net interest margin (NIM), a key profitability indicator, increased to 1.93% for the first half, up from 1.90% last year.
Non-interest income also saw robust growth, reaching 2.6381 trillion won, a 19.7% increase year-on-year, driven by gains from fees and securities. In the second quarter, non-interest income was 1.4499 trillion won, a 22.0% increase from the previous quarter.
Other income for the first half was recorded at 106.6 billion won, reflecting a decrease of 12.6 billion won compared to the same period last year, influenced by the reversal of provisions for equity-linked trusts (ELT).
Provisions for credit losses in the first half amounted to 949.8 billion won, a 10.8% decrease from the previous year. In the second quarter, provisions also fell to 437.3 billion won, down 14.7% from the first quarter.
As of the end of June, the group's provisional BIS capital adequacy ratio stood at 15.74%, with a common equity tier 1 (CET1) ratio of 13.43%, indicating stable capital levels.
By subsidiary, Shinhan Bank reported a net profit of 2.4585 trillion won for the first half, an 8.5% increase from the previous year. Although non-interest income decreased due to reduced gains from securities amid rising market interest rates, stable interest income from loan growth helped defend profits. In the second quarter alone, the bank earned 1.3014 trillion won, a 12.5% increase from the first quarter.
Shinhan Card's net profit for the first half was 254.3 billion won, up 2.8% year-on-year, benefiting from increased credit card sales and a reduction in provisions for credit losses, despite rising interest expenses and selling, general, and administrative costs. Shinhan Investment Corp. reported a net profit of 577.7 billion won for the first half, a 123.1% increase from the previous year, driven by a surge in commission and product sales revenue amid a booming stock market. Shinhan Capital also saw a net profit of 94.7 billion won, up 48.1% year-on-year.
In contrast, Shinhan Life reported a net profit of 290.6 billion won for the first half, a 15.6% decrease from the same period last year, influenced by increased financial gains from securities evaluations.
Additionally, Shinhan Financial's board of directors approved a dividend of 740 won per share for the second quarter. The company also plans to repurchase and retire 700 billion won worth of shares by October, bringing the total share buyback and retirement for the year to 1.4 trillion won.
* This article has been translated by AI.
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