Shinhan Financial Group reports record cumulative net profit of 5 trillion won

Shinhan Financial Group announced that its cumulative net profit for the first three quarters of the year exceeded 5 trillion won, marking a 12.7% increase compared to the same period last year. This growth was primarily driven by robust interest income from the banking sector and strong performance in the securities division during the first half of the year.

However, the group's performance in the third quarter alone showed a slowdown, with quarterly net profit falling 12.9% from the previous quarter to 1.58 trillion won. This decline was attributed to a significant drop in non-interest income, which fell 45.5% quarter-on-quarter due to reduced securities brokerage fees and diminished gains from marketable securities amid rising interest rates.

Key subsidiaries reported mixed results. Shinhan Bank maintained growth with cumulative net profit rising 9.8% year-on-year, supported by asset growth and net interest margin (NIM) improvements. Shinhan Card saw a 73.7% surge in third-quarter net profit, though this was heavily influenced by a one-time gain of approximately 165.6 billion won from a building sale. Conversely, Shinhan Investment & Securities and Shinhan Life saw declines in their third-quarter profits.

In response to the results, Shinhan Financial Group's board resolved to pay a quarterly cash dividend of 740 won per share and approved a 450 billion won share buyback program.