신한금융그룹 is reviewing various merger and acquisition (M&A) opportunities, including Lotte Insurance.
During a conference call following the second-quarter earnings announcement, Shinhan Financial's Chief Financial Officer (CFO) Jang Jeong-hoon stated, "We are examining not only Lotte Insurance but also various options that could benefit us. Nothing has been finalized yet."
Jang noted that M&A involves negotiations with other parties, which may include various stakeholders, and that finding a delicate compromise could take time.
He clarified that the potential acquisition would not lead to a reduction in shareholder returns, such as stock buybacks or dividends.
"We will proceed with M&A within the principles of value-up 2.0 announced in April," Jang said, adding, "We will certainly maintain a stable common equity tier 1 (CET1) capital ratio. We will only pursue M&A when we are confident that earnings per share (EPS) or return on equity (ROE) can improve within our capacity."
He urged stakeholders to remain optimistic, stating, "Please look forward to this with anticipation. If there are any developments, we will communicate with investors through immediate disclosures."
Shinhan Financial's interest in acquiring Lotte Insurance primarily stems from a desire to enhance its competitiveness in the non-banking sector. Currently, the most significant gap between KB Financial and Shinhan Financial is in the property and casualty insurance sector. KB Insurance reported a profit of 478.8 billion won in the first half of the year, while Shinhan EZ Insurance posted a net loss of 18.2 billion won.
Regarding shareholder returns, Shinhan Financial plans to adjust its approach this year due to market volatility, moving from a semi-annual to a quarterly distribution schedule.
On the same day, the company’s board approved a 700 billion won stock buyback and cancellation plan. The decision on additional stock buybacks will be made at the board meeting scheduled for October 27, where the annual performance outlook and shareholder return rate will be comprehensively considered.
Jang explained, "With increased volatility in interest rates, exchange rates, and stock prices this year, predicting profits before the half-year mark has been challenging. To manage shareholder returns more precisely, we have divided this into quarterly distributions this time."
He added, "When we can stabilize profit volatility, we may revert to a six-month distribution, but if volatility remains high, we will execute our plans in a more precise and flexible manner."
During a conference call following the second-quarter earnings announcement, Shinhan Financial's Chief Financial Officer (CFO) Jang Jeong-hoon stated, "We are examining not only Lotte Insurance but also various options that could benefit us. Nothing has been finalized yet."
Jang noted that M&A involves negotiations with other parties, which may include various stakeholders, and that finding a delicate compromise could take time.
He clarified that the potential acquisition would not lead to a reduction in shareholder returns, such as stock buybacks or dividends.
"We will proceed with M&A within the principles of value-up 2.0 announced in April," Jang said, adding, "We will certainly maintain a stable common equity tier 1 (CET1) capital ratio. We will only pursue M&A when we are confident that earnings per share (EPS) or return on equity (ROE) can improve within our capacity."
He urged stakeholders to remain optimistic, stating, "Please look forward to this with anticipation. If there are any developments, we will communicate with investors through immediate disclosures."
Shinhan Financial's interest in acquiring Lotte Insurance primarily stems from a desire to enhance its competitiveness in the non-banking sector. Currently, the most significant gap between KB Financial and Shinhan Financial is in the property and casualty insurance sector. KB Insurance reported a profit of 478.8 billion won in the first half of the year, while Shinhan EZ Insurance posted a net loss of 18.2 billion won.
Regarding shareholder returns, Shinhan Financial plans to adjust its approach this year due to market volatility, moving from a semi-annual to a quarterly distribution schedule.
On the same day, the company’s board approved a 700 billion won stock buyback and cancellation plan. The decision on additional stock buybacks will be made at the board meeting scheduled for October 27, where the annual performance outlook and shareholder return rate will be comprehensively considered.
Jang explained, "With increased volatility in interest rates, exchange rates, and stock prices this year, predicting profits before the half-year mark has been challenging. To manage shareholder returns more precisely, we have divided this into quarterly distributions this time."
He added, "When we can stabilize profit volatility, we may revert to a six-month distribution, but if volatility remains high, we will execute our plans in a more precise and flexible manner."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.