Shinhan Financial Group Co., Ltd.

A055550

KR7055550008

Banks

End-of-day quote Korea S.E. Other stock markets 06:00:00 2024-04-23 pm EDT			5-day change	1st Jan Change
43,300 ^KRW	-1.37%		+6.78%	+7.85%

Apr. 22	Asian Equities Traded in the US as American Depositary Receipts Open Week Higher	MT
Apr. 17	Morgan Stanley Adjusts Shinhan Financial Group’s Price Target to KRW54,000 From KRW56,000, Keeps at Overweight	MT

Shinhan Financial : SFG's Business Results for 2019 3Q

October 25, 2019 at 05:46 am EDT

Business Results

2019 3Q

Disclaimer Statement

The financial information contained herein has neither been reviewed nor audited by independent auditors.

Therefore, no assurance is given that the financial information contained herein is accurate or complete, and such financial information may differ from the financial information to be contained in our financial statements audited by independent auditors. The information contained herein is subject to change without further notice.

We also note the following:

Financial information has been prepared in accordance with the Korean IFRS.
The financial figures have been derived followingK-IFRS No.1109, 'Financial instruments' and K-IFRS No.1115, 'Revenue from Contracts with Customers' for years starting January 1, 2018.
(Financial information for periods prior to December 31, 2017 has not been restated.)
K-IFRS16 'Leases' replaced existing lease standards and is effective for the year beginning on January 1, 2019. (Financial information for periods prior to December 31, 2018 has not been restated.)
The net profit (loss) realized from the 59.15% interest in the newly acquired Orange Life Insurance, Ltd.
("Orange Life") has been included in our consolidated net profit (loss.) The acquisition accounting of Orange Life has been applied starting January 1, 2019 (the deemed acquisition date.)
The net profit (loss) realized from the 60% interest in the newly acquired Asia Trust Co., Ltd. ("Asia Trust")
has been included in our consolidated net profit (loss.) The acquisition accounting of Asia Trust has been applied starting April 1, 2019 (the deemed acquisition date.)
To present the financial information more effectively, the interest portion of provision for policy reserve, which was previously categorized asnon-interest expense, is now categorized as interest expense.
(Financial information for periods prior to December 31, 2018 has been restated to reflect the same.)

This presentation material is available at our website, www.shinhangroup.com.

Contents

Ⅰ . 2019 3Q Business Results Highlights

Ⅱ. Income

Ⅲ. Assets & Liabilities

Ⅳ. Asset Quality

Ⅴ. Capital Adequacy

Ⅵ. Appendix

2019 3Q Business Result Highlights 1

		Group Net Income		(KRW bil.)

	Annual NI
				3,157
		2,775	2,919	2,896
			2,643
		2,367

1,899	2,081

+9.6%

FY13

FY14

FY15

FY16

FY17

FY18

3Q18

3Q19

Plus Factors

Minus Factors

703

328

Non-

operating

income*

SG&A*

179

299

Provision

158

Non-

for

Tax

Interest

credit

Income*

losses *

Non-

2,896

controlling

2,643Interest

interest

income*

1H18

1H19

* Earnings before income tax

Positive Net Profit Momentum:

Consistent earnings growth, reflecting	982 bil.
the strength of diversified business model
(2019 3Q Net Income)
Solid Interest Income:	+6.4%
Strong quality asset growth	+5.3%
based on well-positioned loan mix

(YoY SHB cumulative interest income growth and YTD loan growth)

Robust Non-interest(19년1분기Income:中 은행 원화대출 성장률 및NIM)

Strong performance across non-bank	+37%
subsidiaries with One Shinhan efforts
(Year-over-year Group Non-Interest Income Expansion)
Disciplined Cost Control:	42.6%
Sustainable management
with operational efficiency
(2019 3Q cumulative Cost-to-Income ratio)
Proactive Risk Management:	33bp
Continuing risk management efforts
144%
with a consistent provisioning policy

(2019 3Q Group cumulative credit cost and NPL coverage ratio)

2019 3Q Business Result Highlights 2

Interest Income	(%, KRW bil.)

SHB	Others	NII Growth (YoY)
			8.5	10.3	11.0
		7.7			5.3

1.9	-2.4			7,615
		6,903

		6,360
6,050	5,906		2,029		5,928
	1,911	5,629
		1,856
1,683	1,741		1,500	1,535

			4,992	5,586
4,367	4,165	4,504		4,129	4,393
FY14	FY15	FY16 FY17	FY18	3Q18	3Q19

SHB Loan Growth	(%)
Total Loans(YTD) Corporate(YTD)	Retail(YTD)
	7.2
4.4	5.9	5.3

	5.0

6.3	6.3 5.6	6.9 7.5	5.6	5.2 5.4
			4.3
2.5

2016.12	2017.12	2018.12	2018.9	2019.9

NIM

(%)

SHB + SHC SHB

2.112.10

2.02 2.062.102.08 2.072.031.99

1.63 1.621.61 1.61 1.58 1.53

1.62

1.56

1.49

Cumulative Figs.

Quarterly Figs.

FY16 FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Stable Interest Income Stream

Balanced Loan Growth

Margin Pressure from

Unfavorable Rate Environment

SFG's interest income increased by 5.3% YoY attributed to balanced loan portfolio and active loan growth

Interest income from global hiked by 28.1% YoY, improving its contribution to the Group NII from 8.3% in 3Q18 to 10.1% in 3Q19

Steady NII improvement resulting from constant drive to focus on quality growth

Through robust and balanced loan growth, SHB's KRW loan assets as end of 3Q19 marked 221 tril. up by 5.3% YTD

Corporate loans up 5.2% YTD with more focus on high quality SOHO loans and retail loans up by 5.4% YTD driven by strong Jeonse loan demand

SHB's KRW deposits up by 6.3% YTD, reaching to 221 tril.

SHB quarterly NIM marked 1.53%, down by 5bp, mainly due to falling market interest rates and loan portfolio repricing

SHB's NIM incl. Global recorded 1.57% for 3Q, partially offsetting margin compression from domestic

Group NIM marked 1.99%, down 4bp QoQ,

margin pressure from SHB were partially offset by growth in relatively higher margin products, i.e. card loans, in SHC

2019 3Q Business Result Highlights 3

Non-Interest Income

(KRW bil.)

G&A Expenses

(%, KRW bil.)

Fees & Commission

Securities Related &

Salary & Employee Benefits

Other Expenses

F/X Trading/ Derivatives

Insurance

D & A G&A Growth (YoY)

Others1)

							6.2			6.7		2.4	9.9
	2,580	2,422	2,282	2,364		2,587		0.3	0.7
				-1.4
	427	493
2,018	355	480		990				4,811	4,742
		1,884			4,509
327	1,032	1,170	826	756	4,463	4,475
375
752		868
				646				3,148	3,009		3,630
								2,826	3,303
							2,740	2,769
1,469	1,621	1,566	1,711	1,939						2,301
1,475	1,619						2,071

-530	-428	-740	-735		-612		313	269	252	240	245	184	430
-824	-890	1,410	1,437	1,431	1,423	1,487
	1,048
							899

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19	FY14	FY15	FY16	FY17	FY18	3Q18 3Q19

Note 1) Insurance fees on deposits, contribution expenses etc

Well-diversified	Disciplined Cost Management
Non-interest Income Portfolio

Credit Cost		(%, KRW bil.)

Credit Cost Ratio		Provision for Credit Losses

		2014~2018 Average

0.43 0.43 0.47

0.39	0.34 1)		0.33
0.26	0.27

0.21

1,165

9501,037

739	747
543	568

FY14 FY15 FY16 FY17 FY18

3Q18 3Q19

Note 1) Excluding write-backs from Shinhan Card

Prudent Risk Management

Non-interest income grew by 37.3% YoY, attributed to a hike in insurance profits coming from the inclusion of Orange Life along with an increase in securities related gains

Fee income grew by 9.8% YoY, driven by robust growth in IB business, leases and sales of trust products, despite weak performances in brokerage and credit card fee income

Group recorded industry-leading cost/income ratio of 42.6%, running at a historically low level, through cost control efforts and strong earnings stream despite SG&A rise due to the newly added Orange Life and Asia Trust

SG&A costs went up by 3.2% YoY when excluding expenses from Orange Life, Asia Trust, marginal salary increases from overseas, etc

Group credit cost ratio marked 33bp in 3Q19, 6bp lower than the 5-year recurring average

SHB's credit cost ratio increased to 16bp, up by 6bp YoY, despite one-off allowances release, due to adopting preemptive and rigorous credit standards

SHC's credit cost ratio increased to 1.91%, up by 15bp, mainly due to strong asset growth in card loans, lease and installment finance

2019 3Q Business Result Highlights 4

Asset Quality					(%)	Capital Adequacy		(%)
NPL Ratio					SFG		SHB			SFG	SHB

1.15												16.0	16.5
											15.6
0.87	0.74									BIS	14.9
	0.64
1.03	0.62	0.59	0.55	0.53	0.54	0.59	0.60	14.8	14.2

ROE & ROA		(%)
ROE	ROA	10.8

9.2	9.2	9.4

	0.80	0.65	0.55	0.57	0.51	0.47	0.45	0.47	0.50	0.52	13.3	13.4		13.7
											12.6	13.2	13.3
Delinquency Ratio		SHB	Shinhan Card		Tier 1

1.89

	1.44	1.43	1.27	1.37	1.32	1.44	1.30	1.37	1.45	1.41				13.2
										12.9		12.8	12.9
0.31	0.33			0.30				0.29	0.31	0.33	12.5
0.28
0.23	0.27	0.26	0.25	CET1	11.4

7.5

0.68

8.0

0.80

0.730.72

0.71

0.69

2014 2015 2016 2017 2018.3 2018.6 2018.92018.122019.3 2019.6 2019.9
		2017	2018 2019.9(e)	2017 2018 2019.9(e)
	Note) Based on Basel 3

FY14 FY15 FY16 FY17 FY18 3Q19

Maintaining Stable Asset Quality	Capital Utilization	Sustainable ROA & ROE
for Future Growth	Improvement

Group and SHB NPL ratio both increased by 5bp YoY, marking 0.60% and 0.52% respectively

SHB's and SHC's delinquency ratios recorded solid levels of 0.33%, 1.41% respectively

Group NPL coverage ratio marked 144%, maintaining sufficient provision buffer

Based on BASEL 3, Group's Common Equity Tier1 ratio experienced a temporary setback due to concentration of compression factors, such as M&As and share buybacks

Based on BASEL 3, SHB's Common Equity Tier1 and BIS ratio are estimated at 13.2% and 16.5% respectively

Group ROE recorded 10.8%, up 1.4%p YTD, driven by successful business portfolio diversification and strong earnings growth

Group ROA improved by 0.08%p YTD, marking 0.80%, attributed to strong operating performances from both bank and non-bank subsidiaries

Project 2020 Initiatives : Year of Tangible Results

1Balanced Growth

Bank	Interest	Domestic	Organic	Analog	Entity	Business	Corporate-
Income	(Off-line)	Centric	Strategy	oriented


NI from	Interest	NI from	Group NI	Cost-to -	Customized	Mid-term	Creative
Banks	Income	Domestic	(YoY)		Income	Strategy for	Business	Culture,
(YoY)	(YoY)	(YoY)			Ratio	each of the	Strategy	"The Shinhan
+3%		+5%	+9%	+10%	42.6%	subsidiaries	2020 SMART	Leader"
		Project	"SHeros"


Non-Banks	Non-Interest	Overseas	Inorganic	Digital	One	Corporate	Community-
			Income				(On-line)	Shinhan	Culture	oriented
NI from	Non-Interest	Group NI	New		Operating	Matrix	ESG	Compassionate
Non-Banks	Income	from Global	Business	Income	Business Lines,	Recognition	Finance
(YoY)	(YoY)	Business	Lines (M&As)	through	Cross-Selling
				(YoY)	As of 3Q19	Digital		"Society of
				Platform2)	Ratio
+15%	+37%	+19%	Orange Life,	1,009 bil.	40.4%	A+Grade	Hope"
ShinhanPVFC,	REITs,	Project
Non Banks	Non-Interest	Global NI	Archipelago AM			from CGS	"ECO

Net Income				Transformation
NI Contribution	Income Proportion	Contribution
34%		30%	10%	152.4 bil.				20∙20"



2	Global	3	Digital	4	Uphold
		Expansion				Transformation	Corp. Culture
1) Financial Figures are as of September 30, 2019	2) Based on 3Q19 Operating Income from Shinhan Bank, Card, Investment Corp., Life and Orange Life

One Shinhan : Synergy Creation

Matrix Structure

Bank	Invest	Life	Credit Capital	AM &
	-ment		Card	others

GIB(Investment Banking)

(Wealth Management)

Global Business (Overseas)

GMS(Markets & Securities)

Pension

Group Real Estate Business Line

(GIB, WM, AM, Asia Trust, Alternative Investment, REITs)

Digital(CDO, Shinhan Digital Innovation Institute,

Shinhan Digital Campus, Group Bigdata Center, Future's Lab)

Distribution Channel / Customer Base

Expanding One Shinhan Value

Co-marketing,Cross-selling, Launch of One Shinhan financial products, Integrated customer DB (Shinhan Plus), Group reward programs

Note 1) Financial figures of GIB and WM are based on managerial accounting Note 2) Financial figures of GIB from 2013 to 2016 are based on CIB's IB division

•GIB(Operating Income, KRW bil.)

479.1

257.3309.0 303.0

171.8 170.3

2013 2014 2015 2016 2017 2018

•WM(Operating Income, KRW bil.)

427.3 470.2

276.6 274.3296.8 322.0

2013 2014 2015 2016 2017 2018

•Global Business(Net Income, KRW bil.)

322.8

	173.8	159.2	204.9
93.7	123.3

2013 2014 2015 2016 2017 2018

•Cross-Selling Ratio (%)

37.7 38.539.2 39.7

36.1

34.7

2013 2014 2015 2016 2017 2018

+37%

520.9

380.5

3Q18 3Q19

△2%

355.7 349.7

3Q18 3Q19

+19%

292.1

245.0

3Q18 3Q19

+0.5%p

40.4

39.9

3Q18 3Q19

Ⅱ. Income

SFG Income
SFGNon-Interest Income
SFG G&A Expenses
SFG Income by Subsidiaries
Major Subsidiaries Income

SFG Income

SFG Interest Income & NIM (Quarterly)	(%, KRW bil.)

2.05	2.07	2.06	2.06	2.10	2.11	2.10	2.08	2.07	2.03	1.99
		1,746	1,832	1,816	1,882	1,931	1,986	1,908	1,956	2,028
	1,682			529	484	521	530
1,643		488	481	503	516
470	480

474


1,170	1,212	1,267	1,344	1,335 1,379	1,415	1,457	1,424	1,472	1,498

1Q17	2Q17	3Q17	4Q17	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19

SFG NIM (Excluding Merchant Fee) SHB Others

SFG Earnings before Income Tax (KRW bil.)

				4,467		4,153
2,868	3,141	3,170	3,798	3,669	15
2,364

213	167	62	2,282	27	2,587
2,422
2,018	2,580			1,884
6,050	5,906	6,360	6,903	7,615	5,629	5,928
-4,463	-4,475	-4,509	-4,811	-4,742	-3,303	-3,630

-950	-1,037	-1,165	-543	-739	-568	-747
			-32	-33
FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
Interest	Non-Interest	Non-Operating	G&A	Provision for Credit
Income	Income		Income	Expenses	Losses

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)


Operating Income (a=b+c)	8,514.9	7,513.0	13.3	2,864.9	2,920.5	-1.9

Interest Income (b)	5,928.2	5,628.9	5.3	2,027.9	1,992.4	1.8
Non-Interest Income (c)	2,586.7	1,884.1	37.3	836.9	928.1	-9.8
G&A Expenses (d)	3,630.4	3,302.6	9.9	1,225.6	1,236.3	-0.9

Pre-Provision Oper. Income (e=a-d)	4,884.5	4,210.4	16.0	1,639.2	1,684.1	-2.7
Non-Operating Income (f)	15.4	26.6	-42.1	-1.6	4.8	n.a.

Pre-Provision Income (g=e+f)	4,899.9	4,237.0	15.6	1,637.6	1,688.9	-3.0

Provision for Credit Losses (h)	747.0	568.0	31.5	221.3	274.9	-19.5

Earnings before Income Tax (i=g-h)	4,152.9	3,669.1	13.2	1,416.3	1,414.0	0.2
Income Tax	1,068.1	994.5	7.4	367.9	343.5	7.1
Consolidated Net Income1)	2,896.0	2,643.4	9.6	981.6	996.1	-1.5

Note 1) Net Income in Controlling Interest

SFG Non-Interest Income

SFG Non-Interest Income	(KRW bil.)

	2,580	2,422	2,282	2,364		2,587

2,018	355	427	480	493	1,884	990

327	1,032	1,170	826	756	375	868
752
				646


1,469	1,621	1,566	1,711	1,939	1,475	1,619
-530	-428	-740	-735	-824	-612	-890

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
Fees &		Securities Related &	Insurance	Others
Commission	F/X Trading/ Derivatives	Related

SFG Fees & Commission	(KRW bil.)

				1,939
	1,621	1,566	1,711	416		1,619
1,469		1,475
	381		252
503	444	267
475	232	285	146
		190	217	159
	283	221	198
202	235	225
165	146
193	200	190	166	134
116	160	180
60	86	146		124
117	132		551	665		705
421	416	474	523

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19

Credit Card	Brokerage	Fund/	Trust	F/X	Others

		Bancassurance

(KRW bil.)	3Q19	3Q18	YoY% 3Q19 2Q19 QoQ%
(Acc.)	(Acc.)

Non-Interest Income	2,586.7	1,884.1	37.3	836.9	928.1	-9.8
Fees & Commission	1,619.5	1,475.3	9.8	530.3	609.3	-13.0
Securities Related &	867.7	645.6	34.4	311.0	205.8	51.1
FX Trading/Derivatives

(Gains onFVPLFinancial Instruments)	-47.2	267.0	n.a.	131.9	69.1	90.9
(Gains onDerivatives &F/X)	734.1	282.6	159.7	94.0	122.2	-23.1
Insurance Related	989.7	375.0	163.9	311.3	409.6	-24.0
Others	-890.1	-611.8	n.a.	-315.7	-296.6	n.a.
(Contribution Expenses)	-228.4	-208.3	n.a.	-77.1	-73.1	n.a.
(Insurance Fees on Deposits)	-282.8	-264.0	n.a.	-95.6	-92.0	n.a.
(KRW bil.)		3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%

	(Acc.)	(Acc.)


Fees & Commission		1,619.5	1,475.3	9.8	530.3	609.3	-13.0
Credit Card Fee Income		251.6	284.9	-11.7	74.5	90.5	-17.6
Brokerage Commissions		145.5	216.9	-32.9	45.8	50.2	-8.7
Fund/Bancassurance Fees		158.7	145.9	8.8	39.1	73.7	-47.0
Trust Fee Income		225.3	180.4	24.9	74.8	86.6	-13.6
FX Fee Income		133.8	124.3	7.6	45.1	53.0	-14.9
Electronic Transaction Fees		113.1	109.0	3.7	38.6	38.0	1.6
IB Related Fees		118.7	60.4	96.5	33.1	62.9	-47.4
Lease Financing Fees		101.1	55.5	82.1	37.9	32.8	15.6
Others		371.6	297.9	24.8	141.4	121.6	16.3

SFG G&A Expenses

		SFG G&A Expenses						(KRW bil.)

4,463	4,475	4,509		4,811	4,742

									3,148	3,009		3,303	3,630
				2,769	2,826
2,740

														2,071	2,301

	313		269		252		240	245



1,410	1,437	1,431		1,423	1,487		184	430
		1,048
			899


	FY14		FY15		FY16	FY17		FY18			3Q18	3Q19
			Salary & Employee Benefits			D & A		Other Expenses

		Cost-Income Ratio1)								(%)

SFG G&A Expenses

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)


G&A Expenses	3,630.4	3,302.6	9.9	1,225.6	1,236.3	-0.9

Salary & Employee Benefits	2,301.1	2,070.5	11.1	770.1	772.5	-0.3
(Early Retirement Program	0.6	1.3	-56.2	0.0	0.0	17.1
Expenses)

D & A	430.2	183.9	134.0	146.6	144.1	1.8
Other Expenses	899.0	1,048.2	-14.2	309.0	319.8	-3.4
(Advertising Expenses)	155.7	184.1	-15.4	63.9	55.1	15.9
(Taxes and Dues)	150.9	133.8	12.8	40.5	67.7	-40.2

SHB G&A Expenses

(KRW bil.)	3Q19	3Q18	YoY% 3Q19	2Q19 QoQ%
(Acc.)	(Acc.)

56.4

54.5 52.253.947.3

G&A Expenses	2,213.7	2,092.2	5.8	758.3	750.5	1.0

Salary & Employee Benefits	1,335.1	1,253.8	6.5	449.0	447.0	0.4
(Early Retirement Program

55.3	52.7
	51.3	52.4	47.5	44.0	43.1


					43.2	42.6

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
		SFG		SHB

Note 1) Cumulative Basis

Expenses)	0.6	0.2	149.0	0.0	0.0	17.1

D & A	298.2	122.3	143.8	102.0	97.7	4.3
Other Expenses	580.3	716.0	-19.0	207.4	205.7	0.8
(Advertising Expenses)	46.7	45.9	1.7	22.6	15.1	50.3
(Taxes and Dues)	78.1	64.2	21.7	20.2	38.5	-47.4

SFG Income by Subsidiaries 1

Net Income Contribution by Subsidiaries1)

Non-Bank	3%		Non-Bank	5%

Subsidiaries 8% 4%		8%

31%			Subsidiaries 7%
16%	Bank	34%	14%	Bank


		69%			66%
	FY18			3Q19
	Shinhan Card		Shinhan Investment Corp.
	Shinhan Life Insurance,	Shinhan Capital & Others
	Orange Life Insurance

Note 1) After reflecting ownership by SFG

Net Income Contribution by Non-Bank Subsidiaries1)(KRW bil.)

38.7%	42.0%		44.2%			33.6%
34.8%		31.4%

			31.3%

				1,051		1,009
		1,046	1,371
	1,087		881
924


		1,958	1,729	2,298	1,932	1,992
1,465	1,503


FY14	FY15	FY16	FY17	FY18	3Q18	3Q19

Bank Non-BankNI contribution (%)

Note 1) After reflecting ownership by SFG

	Net Income	Ownership	Net Income	Adjustment	Net Income
(KRW bil.)	(A x Ownership)	(Consolidated)
	[B]	[C=AⅹB]	[D]		[E=C+D]
	[A]
				-61.1
Bank (a)	1,997.2		1,991.8		1,930.7
Shinhan Bank	1,976.3	100.0%	1,976.3	-58.9		1,917.4
Jeju Bank	21.0	75.3%	15.5	-2.2		13.3

Non-Bank (b)	1,107.2		1,010.4	42.1		1,052.5
Shinhan Card	411.1	100.0%	411.1	7.2		418.3
Shinhan Investment Corp.	202.1	100.0%	202.1	-0.1		202.0
Shinhan Life Insurance	109.8	100.0%	109.8	24.8		134.6
Orange Life Insurance	211.6	59.2%	126.1	11.6		137.7
Shinhan BNPP AM	18.1	65.0%	11.8	-0.1		11.7
Shinhan Capital	99.1	100.0%	99.1	3.1		102.2
Shinhan Savings Bank	20.6	100.0%	20.6	1.3		22.0
Asia Trust	12.3	60.0%	7.4	-		7.4
Shinhan DS	2.2	100.0%	2.2	-6.5		-4.3
Shinhan AITAS	8.7	99.8%	8.7	0.6		9.3
Shinhan Credit Information	0.9	100.0%	0.9	-		0.9
Shinhan Alternative Investment	2.8	100.0%	2.8	0.2		3.0
Shinhan REITs Management	7.8	100.0%	7.8	-		7.8

SFG (c)				-87.32)		-87.3
Total (d=a+b+c)1)	3,104.4		3,002.2	-106.2		2,896.0

Note 1) Net Income in Controlling Interest

2) SFG (Separate): Brand Fee Income KRW 37.3bil.Net Interest Expense KRW -107.4bil., etc

SFG Income by Subsidiaries 2

Non-Bank Net Income	(KRW bil.)

	1,087		1,371	1,051
	1,046	125		1,009
924	77	64	121	149
100	151	212	131	881	161
90
215	126	125
81	115		251
118				129	110

			914		230	202
	695	716	519
635		396	411


FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
Shinhan	Shinhan	Shinhan		Orange Life	Others
Card	Investment Corp.	Life Insurance	Insurance

ROA						(%)
	0.69	0.73	0.71	0.72	0.80
0.68
0.60	0.49	0.64	0.55	0.67	0.68

2.79	3.32	2.94	3.63	1.88	1.83


0.51	0.82	0.44	0.77	0.86	0.83

0.39	0.43	0.58	0.42	0.43	0.45

0.90	1.11	0.80	1.10	0.97	0.88

FY14	FY15	FY16	FY17	FY18	3Q19

(Reflecting SFG Ownership,	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)
KRW bil.)
Bank (a)	1,992.1	1,932.2	3.1	698.9	670.1	4.3

Shinhan Bank	1,976.3	1,916.5	3.1	694.4	663.7	4.6
Jeju Bank	15.8	15.8	0.1	4.5	6.3	-29.4
Non-Bank (b)	1,009.4	880.6	14.6	325.5	330.8	-1.6

Shinhan Card	411.1	395.5	3.9	139.8	149.1	-6.2
Shinhan Investment Corp.	202.1	230.0	-12.1	59.3	72.0	-17.6
Shinhan Life Insurance	109.8	129.2	-15.0	31.8	24.1	31.6
Orange Life Insurance	125.1	-	n.a.	38.1	39.5	-3.6
Shinhan BNPP AM	11.8	9.7	21.2	4.3	4.0	8.4
Shinhan Capital	99.1	87.6	13.2	28.3	25.2	12.1
Shinhan Savings Bank	20.6	13.5	53.4	9.4	5.7	64.2
Asia Trust	7.4	-	n.a.	5.1	2.2	128.3
Shinhan DS	2.2	1.2	85.9	1.0	0.4	155.6
Shinhan AITAS	8.7	6.3	38.8	3.4	2.8	23.0
Shinhan Credit Information	0.9	2.0	-56.0	0.3	0.4	-25.0
Shinhan Alternative Investment	2.8	2.8	-1.1	0.8	2.7	-71.7
Shinhan REITs Management	7.8	2.8	181.1	3.8	2.7	42.7

Total (a+b)	3,001.5	2,812.9	6.7	1,024.4	1,000.9	2.4
Consolidated Net Income1)	2,896.0	2,643.4	9.6	981.6	996.1	-1.5

Note 1) Net Income in Controlling Interest

SFG	Shinhan	Shinhan	Shinhan	Shinhan	Orange Life
	Bank	Card	Investment Corp.	Life Insurance	Insurance	14

Shinhan Bank Income 1

Net Income		(KRW bil.)

1,940	2,279	1,976
	1,916
	1,712

1,455	1,490

FY14 FY15 FY16 FY17 FY18 3Q18 3Q19

	Interest Income/NIM(Quarterly)	(%, KRW bil.)
	1.56	1.56	1.58	1.61	1.63	1.62	1.61	1.61	1.58
1.53				1.53

			1,344		1,379	1,415	1,457	1,424	1,472	1,498
	1,212	1,267	1,335
1,170

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

NIM	Interest Income

(KRW bil.)		3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
	(Acc.)	(Acc.)


Operating Income (a=b+c)		5,132.5	4,842.8	6.0	1,755.2	1,732.9	1.3

Interest Income (b)		4,393.4	4,128.8	6.4	1,497.9	1,471.9	1.8
Non-Interest Income (c)		739.1	714.0	3.5	257.4	261.0	-1.4
G&A Expenses (d)		2,213.7	2,092.2	5.8	758.3	750.5	1.0

Pre-Provision Oper.Income (e=a-d)		2,918.8	2,750.6	6.1	996.9	982.4	1.5
Non-Operating Income (f)		-5.8	7.7	n.a.	-9.9	8.8	n.a.

Pre-Provision Income (g=e+f)		2,913.0	2,758.3	5.6	987.0	991.2	-0.4

Provision for Credit Losses (h)		306.1	176.3	73.6	68.5	150.6	-54.5

Earnings before Income Tax (i=g-h)		2,606.9	2,582.0	1.0	918.5	840.6	9.3
Income Tax		630.4	665.3	-5.2	224.0	176.8	26.7
Net Income1)		1,976.3	1,916.5	3.1	694.4	663.7	4.6
Note 1) Net Income in Controlling Interest

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

NIS (a-b) (quarterly)	1.75	1.81	1.82	1.84	1.87	1.89	1.89	1.86	1.86	1.86	1.81
Loan interest rate (a)	3.00	3.03	3.04	3.10	3.19	3.27	3.32	3.35	3.38	3.37	3.27
Deposit interest rate (b)	1.26	1.22	1.22	1.26	1.32	1.38	1.43	1.49	1.52	1.51	1.46

NIM (quarterly)	1.53	1.56	1.56	1.58	1.61	1.63	1.62	1.61	1.61	1.58	1.53
NIM (cumulative figures)	1.53	1.55	1.55	1.56	1.61	1.62	1.62	1.62	1.61	1.59	1.57

Shinhan Bank Income 2

Non-Interest Income	(KRW bil.)

	946	1,033		883
805	757	791	714	739
		525
	609	426
514	434	541

803	854	884	991	1,037	779	847

-513	-517	-608	-626	-679	-499	-649
FY14	FY15	FY16	FY17	FY18	3Q18	3Q19

Fees & Commission	Securities Related &	Others1)

	F/X Trading/ Derivatives

Note 1) Including Deposit Insurance Premium, Contribution Expenses etc.

Fees & Commission	(KRW bil.)

			991	1,037
	854	884		98		847
	108
803	91		57	779	84
111	65		149
106	61		77	43
82	146		199	109
90	133	170		42	181
115	123	99			112
72				153
50

443	467	501	503		533	394	430

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
	Fund	Bancassurance	FX	Trust	Others

(KRW bil.)	3Q19	3Q18	YoY% 3Q19 2Q19 QoQ%
(Acc.)	(Acc.)


Non-Interest Income	739.1	714.0	3.5	257.4	261.0	-1.4

Fees & Commission	847.2	778.7	8.8	272.8	323.0	-15.6
Securities Related &	541.1	434.3	24.6	197.0	163.7	20.3
FX Trading/Derivatives

(Gains onFVPLFinancial Instruments)	98.7	195.0	-49.4	9.1	8.4	8.9
(Gains onDerivatives &F/X)	342.8	207.5	65.2	131.0	129.5	1.2
Others	-649.2	-499.0	n.a.	-212.4	-225.7	n.a.
(Contribution Expenses)	-222.2	-202.4	n.a.	-75.0	-71.0	n.a.
(Insurance Fees on Deposits)	-224.2	-228.4	n.a.	-74.5	-72.4	n.a.

(KRW bil.)	3Q19	3Q18	YoY% 3Q19 2Q19 QoQ%
(Acc.)	(Acc.)

Fees & Commission	847.2	778.7	8.8	272.8	323.0	-15.6
Fund Fee Income	83.7	77.4	8.1	28.7	32.2	-11.1
Bancassurance Fee Income	43.0	42.2	1.8	14.7	14.7	0.2
FX Fee Income	109.0	111.7	-2.4	37.9	39.3	-3.6
Trust Fee Income	181.3	153.3	18.2	58.3	65.9	-11.5
Electronic Transaction Fees	112.8	108.1	4.3	38.5	37.9	1.5
IB Related Fees	91.7	48.8	87.7	18.6	56.6	-67.2
Others	225.8	237.2	-4.8	76.1	76.3	-0.3

Shinhan Card Income

Merchant Fee Income and Rates	(KRW bil.)
1.79%	1.75%
		1.50%	1.51%	1.51%	1.51%	1.42%

	2,079	2,074	2,091	2,170
1,990
				1,609	1,569

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
	Merchant Fee Rates		Merchant Fee Income

Recovery from Written-off Assets	(KRW bil.)

3.1tril.		6.3%	5.9%	5.7%	6.2%	6.6%			6.3%	7.0%



Written		219.7	201.8	191.6	190.5	202.2
-off
Assets											160.5
											147.4


2019.9				FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
				Recovery Rate			Recovery from Written-off Assets

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)


Operating Revenue (a)	2,989.4	2,813.1	6.3	1,025.4	1,001.3	2.4

Card Business	2,207.4	2,203.3	0.2	737.2	748.0	-1.4
Installment Finance	99.2	81.1	22.3	35.8	33.0	8.5
Lease	135.3	87.9	54.0	48.8	44.3	10.2
Others	547.5	440.9	24.2	203.5	176.0	15.6
(Derivatives & FX)	205.2	123.8	65.7	87.3	61.8	41.3
Interest Expense (b)	372.8	314.1	18.7	125.4	125.7	-0.2
G&A Expenses (c)	479.1	501.1	-4.4	163.7	158.7	3.1
Commissions & Other Expenses (d)	1,161.7	1,092.6	6.3	410.7	387.4	6.0
(Derivatives & FX)	179.7	97.1	85.0	78.8	51.4	53.3

Pre-Provision Income	975.8	905.3	7.8	325.6	329.5	-1.2
(e=a-b-c-d)

Provision for Credit Losses (f)	427.6	368.3	16.1	136.9	133.2	2.7
Earnings before Income Tax (g=e-f)	548.3	537.0	2.1	188.7	196.3	-3.9

Income Tax	137.1	143.2	-4.2	48.0	47.3	1.4
Net Income1)	411.1	395.5	3.9	139.8	149.1	-6.2

Note 1) Net Income in Controlling Interest	17

Shinhan Investment Corp. Income

Fees & Commission	(KRW bil.)

	Others 3%

IB 20%

				506.7			Brokerage
				Financial	Fees 43%
	450.2
	399.7	429.5	92.5	Product Fees
	38.7
	59.6		34%
	105.0	59.7	128.6	391.93Q19
304.0
	95.8	125.2		63.3		348.8
27.8				84.6
81.1					98.6
					101.3
	286.1			271.9
	224.3	219.1	219.8
186.7				151.1


FY14	FY15	FY16	FY17	FY18	3Q18		3Q19
Brokerage Fees	Financial Product Fees	IB	Others

Financial Products	(KRW tril.)

						84.3	96.7

			68.1		72.3	17.3	19.3

						2.6
	56.1				16.9	2.6
		17.2

43.1				2.9	24.1	29.6
16.1		3.1
			16.0
	3.8		16.1
18.2
12.1
2.9					40.3	45.2
		31.8		36.5
11.7	24.1

10.3
2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
Beneficiary	Trust		ELS	Others1)	Financial Product
Certificate	Account			Balance

Condensed I/S & Key Financial Indices

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)

Operating Revenue				224.2		-9.8
697.3	751.0	-7.1	248.5
Fees & Commission	348.8	392.0	-11.0	107.4	139.6	-23.1
Proprietary Trading	240.5	261.0	-7.9	86.0	66.8	28.7
Others	108.0	98.0	10.2	30.8	42.1	-26.8

Operating Expense	464.3	451.5	2.9	157.1	153.4	2.4
G&A Expenses	384.8	371.0	3.7	129.0	130.3	-1.0
Commission Expense	83.8	79.8	5.0	25.8	31.0	-16.5
ProvisionforCreditLosses	-4.2	0.7	n.a.	2.3	-7.9	n.a.

Operating Income	233.0	299.5	-22.2	67.1	95.1	-29.5

Net Income	202.1	230.0	-12.1	59.3	72.0	-17.6


Net Capital Ratio(%)	1,342%	679%	663%p	1,342%	902%	440%p
ROE	7.4%	9.4%	-2.0%p	7.4%	8.3%	-0.9%p
ROA	0.8%	1.1%	-0.2%p	0.8%	0.9%	-0.1%p

Note) ROE, ROA are calculated on a cumulative basis

Note 1) Sum of Wrap, RP and Micro Debentures

Shinhan Life Insurance Income

Key Financial Indices		(KRW bil.)
		9.2%		10.4%	7.6%
			7.7%
		7.1%
	6.6%

5.8%
	150.6

		120.6	131.0	129.2
	100.2		109.8


80.7

FY14	FY15	FY16	FY17	FY18		3Q18	3Q19
			ROE		Net Income

	Operating Assets					(KRW tril.)

4.50%	4.06%	3.74%		3.44%	3.30%	3.38%	3.18%
					27.7	26.6	29.4
				25.2
		23.3		7.2	6.7	8.4
	20.5		5.9
18.0	5.1		0.1	0.1	0.1
2.8		0.1
0.1
3.0	0.1		5.6	6.1	6.0	6.2
5.4	5.4
0.1
4.9
8.6	10.5	11.3		12.3	13.6	13.4	14.1


1.5	1.8	1.5		1.2	0.7	0.4	0.6
2014.12	2015.12	2016.12	2017.12	2018.12	2018.9	2019.9
Investment	Cash &		Fixed	Loans	Equities	Others
Yield 1)	Deposits	Income

Key Financial Indices

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)


Prem. Received	3,247.4	3,465.2	-6.3	1,064.6	1,078.8	-1.3
AnnualPrem. Equivalent (APE)	292.2	330.8	-11.7	100.2	99.7	0.5
Protection APE	282.5	310.7	-9.1	98.2	96.5	1.8
Net Income	109.8	129.2	-15.0	31.8	24.1	31.6
ROE	7.6%	10.4%	-2.8%p	7.6%	8.3%	-0.8%p
ROA	0.4%	0.6%	-0.1%p	0.4%	0.5%	-0.0%p
RBC	236.0%	201.4%	34.6%p	236.0%	243.5%	-7.5%p

Note1) Excluding Retirement Pension
2) ROE, ROA are calculated on a cumulative basis.

Operating Assets

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%
Operating Assets	29,381.7	27,705.7	6.0	28,571.8	2.8
Cash & Deposits	582.6	619.7	-6.0	411.4	41.6
Fixed Income	14,120.2	13,636.9	3.5	13,652.9	3.4
Loans	6,193.8	6,136.6	0.9	6,161.2	0.5
Equities	117.2	132.0	-11.2	111.0	5.6
Others	8,368.0	7,180.5	16.5	8,235.3	1.6
Investment yield	3.18%	3.30%	-0.12%p	3.31%	-0.13%p

Note 1) Investment Yield: Total return, 12-month rolling basis, under IFRS9

Orange Life Insurance Income

Key Financial Indices		(KRW bil.)
					9.7%	9.0%
8.9%	8.6%		8.7%	8.4%

		5.7%	340.2
	304.8		311.3

223.5	240.7	265.1
211.6

FY14	FY15	FY16	FY17	FY18		3Q18	3Q19
			ROE		Net Income

	Operating Assets					(KRW tril.)

4.52%	4.09%	3.72%			3.72%	3.67%	3.65%
		3.61%
		24.0		24.6	26.3	25.8	26.3
	22.7		1.7	1.8
	0.5		0.7	1.6	0.1
	0.3		0.1	0.1	0.1	2.4
18.5	0.1
0.1	2.1		2.1	2.6	2.5
0.3	2.0
0.1
1.8
15.5	19.7	20.8		21.1	21.4	20.8	21.3

0.7	0.6	0.6		0.5	0.5	0.7	0.6
2014.12	2015.12	2016.12	2017.12	2018.12	2018.9	2019.9
Investment	Cash &		Fixed	Loans	Equities	Others
Yield 1)	Deposits	Income

Key Financial Indices

(KRW bil.)	3Q19	3Q18	YoY%	3Q19	2Q19	QoQ%
(Acc.)	(Acc.)

Prem. Received					1,053.9	-6.6
3,127.4	3,465.4	-9.8	984.8
AnnualPrem. Equivalent (APE)	474.1	538.3	-11.9	125.6	166.6	-24.6
Protection APE	274.6	246.7	11.3	81.4	91.7	-11.2
Net Income	211.6	265.1	-20.2	64.4	66.8	-3.6
ROE	9.0%	9.7%	-0.7%p	9.0%	9.4%	-0.5%p
ROA	0.9%	1.1%	-0.2%p	0.9%	0.9%	-0.0%p
RBC	437.9%	438.1%	-0.2%p	437.9%	428.0%	9.9%p

Note1) Excluding Retirement Pension
2) ROE, ROA are calculated on a cumulative basis.

Operating Assets

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%
Operating Assets	26,283.3	26,319.3	-0.1	26,078.1	0.8
Cash & Deposits	550.1	539.3	2.0	493.6	11.5
Fixed Income	21,345.7	21,401.5	-0.3	21,187.0	0.7
Loans	2,417.0	2,588.6	-6.6	2,389.9	1.1
Equities	128.6	135.1	-4.8	131.7	-2.4
Others	1,841.8	1,654.9	11.3	1,875.9	-1.8
Investment yield	3.65%	3.72%	-0.07%p	3.71%	-0.06%p

Note 1) Investment Yield: Total return, 12-month rolling basis, under IFRS9 (Pre-acquisition Orange Life figures are under IAS39)

Ⅲ. Assets & Liabilities

SFG Asset Growth
SHB Loan / Deposit Growth
Shinhan Card Asset Growth

SFG Asset Growth

Asset Contribution by Subsidiary

Asset Management 7%etc.3%

Life Insurance 9%

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%
Bank (a)	478,240.1	423,928.2	12.8	461,390.4	3.7

Shinhan Bank	472,212.2	417,947.3	13.0	455,413.4	3.7
Jeju Bank	6,027.9	5,980.9	0.8	5,977.0	0.9

Investment 9%

Credit Card 4%

Bank 67%

Non-Bank (b)	230,767.4	175,787.8	31.3	224,772.1	2.7

Shinhan Card	31,365.0	29,429.5	6.6	30,581.2	2.6
Shinhan Investment Corp.	67,238.1	55,703.6	20.7	64,822.1	3.7
Shinhan Life Insurance	33,635.1	31,823.6	5.7	32,898.3	2.2

SFG Total Assets	(KRW tril.)

					713
					21
				603	49
				66
			536	16
			46
		490	12	32	67
		41
	450	10	30	56	31
407	9	39	47	29
27
38
9	25	43	26
36	38	24
22
39	23
22
			380	424	478

		345
279	318


2014.12	2015.12	2016.12	2017.12	2018.12	2019.9

Bank		Shinhan		Shinhan Investment		Life		Shinhan BNPP	Others
	Card		Corp.		Insurance		AM

Orange Life	32,697.5	-	n.a.	32,659.3	0.1
Shinhan BNPP AM	49,371.0	46,165.7	6.9	49,116.8	0.5
Shinhan Capital	7,120.3	6,116.6	16.4	6,802.3	4.7
Shinhan Savings Bank	1,609.8	1,454.3	10.7	1,494.7	7.7
Asia Trust	163.8	-	n.a.	151.3	8.3
Shinhan DS	92.6	43.1	114.9	90.7	2.1
Shinhan AITAS	72.7	65.7	10.6	68.7	5.8
Shinhan Credit Information	24.5	24.4	0.6	23.9	2.7
Shinhan Alternative Investment	3,311.8	1,211.6	173.3	2,400.6	38.0
Shinhan REITs Management	994.4	801.3	24.1	988.0	0.6
Others	3,029.0	2,948.6	2.7	2,671.6	13.4

Total 1)	713,459.5	603,453.5	18.2	690,539.3	3.3
Consolidated Total Assets	546,004.6	459,600.5	18.8	530,148.8	3.0

Note 1) Trust A/C of Shinhan Bank, Shinhan Investment Corp. and AUM(including ordinary discretionary assets) of Shinhan BNPP AM, Shinhan Alternative Investment, Shinhan REITs are included

SHB Loan / Deposit Growth

	Loan Composition			Funding Composition

		L. Corp.				Debentures
					10.9%
Corporate	8.2%
		CD 3.4%
49.2%	Mortgage


		SOHO	25.2%	Retail		Time
		20.9%
	Registered		50.8%		Savings
	Others			Low Cost	48.4%
		7.7%
				Deposits
		Unregistered	25.5%
				37.3%
	SME	12.4%

41.0%
	KRWLoanGrowth (KRW tril.)			LowCostDeposits (KRW tril.)

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%

Loan in KRW	220,737	209,568	5.3	219,230	0.7
Retail	112,068	106,304	5.4	110,529	1.4
Mortgage	55,696	53,935	3.3	55,707	-0.0
Others1)	56,372	52,369	7.6	54,822	3.0

Corporate	108,668	103,264	5.2	108,701	-0.0
SME	90,462	84,974	6.5	89,856	0.7
SOHO	46,144	42,665	8.2	45,534	1.4
Large Corporate etc.	18,206	18,290	-0.5	18,845	-3.5
Loan in FX	10,601	7,807	35.8	9,546	13.5

10.5%

4.4%

5.9%

177 185195

7.2%

6.5%1)

19.9%

	5.3%	9.9%	9.5%	3.9%	3.6%
	221
210
				96
			89	93

		82

		74

Note 1) Including Unsecured Personal Loans, Secured Loans, Jeonse Loans etc.

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%

Total Deposits in KRW	221,376	208,349	6.3	221,795	-0.2
Low Cost Deposits	96,317	92,950	3.6	96,398	-0.1
Demand	29,899	28,455	5.1	30,246	-1.2
Savings	66,418	64,495	3.0	66,152	0.4

Time Savings	125,058	115,399	8.4	125,397	-0.3
Time Deposits	116,052	106,684	8.8	116,618	-0.5
Accumulative etc.	9,006	8,715	3.3	8,778	2.6
Certificate of Deposits	8,673	8,603	0.8	7,708	11.2


2015.12 2016.12	2017.12 2018.12	2019.9	2015.12 2016.12 2017.12 2018.12	2019.9
Growth Rate(YTD)		Total Loans	Growth Rate(YTD)		Low Cost Deposits

Debentures in KRW

28,204

23,814

18.4

27,778

1.8

Note 1) Including Loans Securitized	23

	Shinhan Card Asset Growth
Transaction Volume				(KRW tril.)	(KRW bil.)
				176.6
		168.4	169.1
						Earning Assets
							137.5
141.2	148.4	8.0	8.2	8.9		130.7	Credit Purchase


	7.2	14.9	14.2	14.6		6.6	7.3	Cash Advances
6.4	21.6	22.3	23.5
15.3		11.0
16.5	21.4					10.7	18.1	Card Loan
				17.4
20.0
							(Re-aged Loan)

	102.7	121.8	121.7	125.5		92.9	97.4	Installment Finance
96.7	(25.7)	(28.2)	(29.9)
(23.3)		(22.5)	(22.2)
(19.4)							Lease etc.
								Effective Cardholders
								(in thousands)
FY14	FY15	FY16	FY17	FY18		3Q18	3Q19	Merchants
Lump-Sum	Install.	Cash	Card	Others	Total Transaction
(in thousands)
		Purchase	Advance	Loan		Volume
Note) Figs. in parenthesis represent debit card transaction volume

Funding Composition	(KRW bil.)

	Total Funding
Others

CP 4%	Debentures
10%
ABS	ABS
16%

Debenture	CP
70%
	Others

2019.9	2018.12	YTD%	2019.6	QoQ%
			28,662	2.3
29,333	27,254	7.6
14,306	14,015	2.1	14,114	1.4
1,902	1,986	-4.3	1,901	0.0
6,945	6,276	10.7	6,805	2.1
268	239	12.0	239	12.0
3,126	2,671	17.1	3,013	3.7
3,054	2,306	32.5	2,828	8.0

12,596	12,495	0.8	12,533	0.5
2,887	2,810	2.7	2,868	0.7

2019.9	2018.12	YTD%	2019.6	QoQ%

20,782	19,033	9.2	20,108	3.4
14,455	14,112	2.4	14,321	0.9
3,247	2,556	27.0	2,586	25.6
2,180	1,665	30.9	2,200	-0.9
901	700	28.7	1,002	-10.1

Ⅳ. Asset Quality

SFG Asset Quality
SHB Asset Quality
Shinhan Card Asset Quality
Provision for Credit Losses /Write-offs

SFG Asset Quality

Precautionary & below Ratio/NPL Ratio (%)

2.14
	1.66	1.69		1.52
				1.30	1.32
1.15
0.87
	0.74		0.62		0.60
			0.53


2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
	Precautionary & below Ratio	NPL Ratio

NPL Coverage Ratio			(%)
				302
			260		265
	191	220		170
168
				144
			134
		121
	106
94

2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
(New) NPL Coverage Ratio(excluding RCL)	(Old) NPL Coverage Ratio

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%


Total Loans1)	305,648	287,918	6.2	302,193	1.1

Normal	301,599	284,181	6.1	297,960	1.2
Precautionary	2,220	2,226	-0.3	2,461	-9.8
Substandard	693	479	44.9	610	13.8
Doubtful	454	498	-9.0	450	0.9
Estimated Loss	682	535	27.5	712	-4.3

Substandard & Below	1,829	1,512	21.0	1,772	3.2
NPL Ratio	0.60%	0.53%	0.07%p	0.59%	0.01%p

Loan Loss Allowance2)	4,854	4,562	6.4	4,918	-1.3
Reserve for credit losses3)	2,214	1,987	11.4	2,182	1.5

(New) NPL Coverage Ratio4)	144%	170%	-26%p	154%	-10%p
(Old) NPL Coverage Ratio	265%	302%	-36%p	278%	-12%p

Note 1) Sum of Shinhan Bank, Jeju Bank, Shinhan Card, Shinhan Investment Corp., Shinhan Life Insurance, Orange Life, Shinhan Capital, Shinhan Savings Bank and Asia Trust.

Sum of IFRS standard LLA and reserves for credit losses
Excluding reserve for contingent acceptances & guarantees and unused credit lines

4) Excluding reserve for credit losses in accordance with the revision of relevant regulation (starting Dec. 2016) 26

	SHB Asset Quality
NPL Coverage Ratio & NPL Ratio	(%)	2019.9	2018.12	YTD%	2019.6	QoQ%
			290	(KRW bil.)

			242	247
		205	142	Total Loans	249,423	236,572	5.4	247,340	0.8
	173
154		114	112
		247,031	234,335	5.4	244,764	0.9
		97		Normal
	83
75
			Precautionary	1,095	1,167	-6.2	1,330	-17.7

1.03

0.80 0.650.55 0.450.52

2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
	(New) NPL Coverage Ratio (excluding RCL)	NPL Ratio
	(Old) NPL Coverage Ratio
Delinquency Ratio			(%)
Total Delinquency
0.31		0.33	0.28	0.23	0.25	0.26	0.33

SME(+SOHO)
0.53		0.41	0.46	0.32	0.29	0.34	0.43

SOHO			0.37
0.37		0.28		0.21	0.19	0.26
			0.18

Retail						0.25	0.25	0.29
0.23		0.19	0.19	0.22

2014.12	2015.12 2016.12 2017.12 2018.12	2018.9	2019.9
Note) 1 month overdue

Substandard	630	424	48.7	554	13.7
Doubtful	267	334	-20.1	261	2.1
Estimated Loss	400	313	28.1	431	-7.1

Substandard & Below	1,297	1,070	21.2	1,246	4.1
NPL Ratio	0.52%	0.45%	0.07%p	0.50%	0.02%p

Loan Loss Allowance1)	3,197	3,105	3.0	3,282	-2.6
Reserve for credit losses2)	1,744	1,588	9.8	1,724	1.2

(New) NPL Coverage Ratio3)	112%	142%	-30%p	125%	-13%p
(Old) NPL Coverage Ratio	247%	290%	-44%p	263%	-17%p

Note 1) Sum of IFRS standard LLA and reserves for credit losses

Excluding reserve for contingent acceptances & guarantees and unused credit lines
Excluding reserve for credit losses in accordance with the revision of relevant regulation (Dec. 2016)

Shinhan Card Asset Quality

NPL Ratio & NPL Coverage Ratio	(%)

411

359384378 349

300

1.67

1.24 1.161.04 1.081.26

2014.12 2015.12 2016.12 2017.12 2018.12 2019.9

NPL Coverage Ratio NPL Ratio

Delinquency Ratio	(%)

1.89

1.44	1.43	1.30	1.44	1.41
	1.27

2014.12 2015.12 2016.12 2017.12 2018.12

2018.9

2019.9

Note) 1 month overdue from total credit

(KRW bil.)	2019.9	2018.12	YTD%	2019.6	QoQ%


Total Loans	29,851	28,311	5.4	28,993	3.0

Normal	28,606	27,244	5.0	27,761	3.0
Precautionary	870	760	14.3	860	1.1
Substandard	-	-	-	-	-
Doubtful	143	135	5.9	144	-0.3
Estimated Loss	232	170	36.0	228	1.5

Substandard & Below	375	306	22.7	372	0.8
NPL Ratio	1.26%	1.08%	0.18%p	1.28%	-0.03%p

Loan Loss Allowance1)	1,307	1,155	13.2	1,278	2.2
Reserve for credit losses	320	293	9.0	315	1.7

NPL Coverage Ratio	349%	378%	-29%p	344%	5%p

Note 1) Sum of IFRS standard LLA and reserves for credit losses (Excluding reserve for unused credit lines)

Provision for Credit Losses / Write-Offs

Provision for Credit Losses	(KRW bil.)

	1,037	1,165
950	99
113				747
74	377		739
333	543	568
419		30	13
			70		23	428
456	592	688	14	466	368
	459	242	176	306
FY14	FY15	FY16	FY17
FY18	3Q18	3Q19
	Shinhan Bank	Shinhan Card	Others

Credit Cost Ratio	(%)

2.04	1.56	1.66		1.65	1.77	1.91

0.43	0.43	0.47	0.211)	0.26	0.27	0.33


0.25	0.29	0.33	0.21	0.10	0.10	0.16
			0.05 1)

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19
		SFG	Shinhan Bank	Shinhan Card

Note 1) Normalized credit cost excluding write-backs from SHC : Group 0.34%, SHC 1.50%

Write-Offs & NPL Sales	(KRW bil.)

1,565	1,846	1,671	1,427	1,674
674
473		1,194
537	630
489	984

				420
1,029	1,173	1,199			277
937	1,044
774	707

FY14	FY15	FY16	FY17	FY18	3Q18	3Q19

Provision for Credit Losses

	(KRW bil.)		FY19	1Q19	2Q19	3Q19	FY18	1Q18	2Q18	3Q18	4Q18

Shinhan Bank1)	275	76	135	64	217	86	37	28	65
Retail	164	53	58	53	180	49	32	64	34
Corporate	111	23	77	11	37	38	5	-37	30

Shinhan Card	428	157	129	141	466	91	121	157	98
Total	703	233	264	206	683	177	158	184	163

Note 1) SHB figures are separate basis
Write-Offs & NPL Sales
	(KRW bil.)		FY19	1Q19	2Q19	3Q19	FY18	1Q18	2Q18	3Q18	4Q18


Shinhan Bank		547	198	198	152	1,097	149	361	265	322

	Write-Off		271	83	108	80	467	69	174	113	112
	Retail		137	48	59	29	200	47	64	51	38
	Corporate		134	35	48	51	267	22	109	61	74

	Sale		277	115	90	71	630	81	187	152	210
	Retail		62	22	20	20	80	13	20	21	26
	Corporate		214	93	70	51	550	68	167	132	184
Shinhan Card		436	156	124	156	577	120	145	154	158
Total		984	354	322	307	1,674	270	506	419	480

Write-Offs	NPL Sales	29

Ⅴ. Capital Adequacy & Key Financial Indices

Capital Adequacy
Key Financial Indices

Capital Adequacy

Group BIS Ratio			(%)
		15.0	14.8	14.9	14.2
	13.4
13.0		13.3	13.4
	13.2
			12.6
	11.4
11.2


		12.7	12.9	12.5	11.4
10.4	10.8


2014.12	2015.12	2016.12	2017.12	2018.12	2019.9(e)
		BIS Ratio	Tier 1	CET 1
Shinhan Bank BIS Ratio		(%)
15.4		15.7	15.6	16.0	16.5

14.8
			13.3	13.7
13.3	12.5	13.1	13.2


12.5	12.0	12.8	12.8	12.9	13.2
			2018.12	2019.9(e)
2014.12	2015.12	2016.12	2017.12
		BIS Ratio	Tier 1	CET 1

Shinhan Card Capital Adequacy Ratio (%)

29.7 28.9

26.2

24.5

21.7 20.6

2014.12 2015.12 2016.12 2017.12 2018.12 2019.9(e)

Group BIS Ratio

(KRW bil.)	2019.9(e)	2018.12	YTD%	2019.6	QoQ%
				245,505	4.2
Risk-Weighted Assets	255,890	228,678	11.9
Capital	36,213	33,993	6.5	35,001	3.5
CET 1	29,124	28,696	1.5	28,404	2.5
Tier 1	32,216	30,678	5.0	31,515	2.2

BIS Ratio	14.2%	14.9%	-0.7%p	14.3%	-0.1%p
CET 1	11.4%	12.5%	-1.2%p	11.6%	-0.2%p
Tier 1	12.6%	13.4%	-0.8%p	12.8%	-0.2%p

Note) Based on Basel3

Shinhan Bank BIS Ratio

(KRW bil.)	2019.9(e)	2018.12	YTD%	2019.6	QoQ%
Risk-Weighted Assets	180,896	171,593	5.4	177,185	2.1
Capital	29,769	27,500	8.3	29,256	1.8
CET 1	23,790	22,114	7.6	23,311	2.1
Tier 1	24,788	22,812	8.7	24,309	2.0

BIS Ratio	16.5%	16.0%	0.4%p	16.5%	-0.1%p
CET 1	13.2%	12.9%	0.3%p	13.2%	-
Tier 1	13.7%	13.3%	0.4%p	13.7%	-

Note) Based on Basel3

Key Financial Indices

Dividend						(KRW)
			21.6%	24.0%	24.8%	23.6%	23.9%

11.5%	14.3%	16.2%			3.06%		3.91%
		2.95%	2.85%

1.83%	1.80%	1.37%	2.01%				1,600

				1,450	1,450

				1,200
750			950
700	650
2011	2012	2013	2014	2015	2016	2017	2018
	Dividend Payout Ratio	Dividend Yield	Dividend per Share
ROA / ROE					(%)
9.3				9.2	9.2	9.4	10.8
7.2	7.5	8.0


0.83							0.80
	0.66	0.68	0.69	0.73	0.71	0.72

FY12	FY13	FY14	FY15	FY16	FY17	FY18	3Q19
			ROE		ROA
Note)	ROEs are based on common stocks excluding treasury shares

	SHB Loan Growth Rate			(%)
	8.8	10.5	5.9	7.2	5.3
3.7	2.0	4.4

0.8	1.0	8.3	8.9	2.5	6.3	6.9	5.2

7.0		9.4	12.1			7.5
		6.3	5.6	5.4
2.9

2012.12	2013.12	2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
		Total Loans	Corporate	Retail
BPS / EPS					(KRW)
					68,316	72,683	77,835
52,142	54,604	58,076	61,146	64,554
					7,950

			5,742	6,116	6,579


4,684	3,810	4,195	4,789

2012.12 2013.12 2014.12 2015.12 2016.12 2017.12 2018.12 2019.9

BPS EPS

Note) Based on common stocks excluding treasury shares

Ⅵ. Appendix

SHB SME Loans
SHBRetailLoans
SHB International Business

	SHB SME Loans
Loans				90.51)	(KRW tril.)	Delinquency				(%)	Collateral
SME				85.0
		78.6											Deposits etc.
						0.53						0.42
	67.3	71.8			18%		0.41	0.46	0.32	0.29	0.34		4%
		17%	Total
		17%			0.56
59.9			7%			0.37			0.44
	18%	7%	Others	0.34	0.33	0.33	0.33
18%	7%	16%				Guarantee
	16%										Unsecured
18%	7%	Accommodations	1.02								13%
8%	16%		0.36	0.44				0.09			25%
8%	16%			&Restaurants		0.08	0.10	0.07
16%		27%	27%	Wholesalers
17%			26%	&Retailers								Collateralized
	25%				0.57	0.54		0.57	0.79
	26%			2%	RealEstate	0.41	0.42	0.43	75%	Real Estate
26%	2%	2%
3%	2%	&Renting
3%				Construction									58%
31%	32%	31%	30%	2014.12	2015.12 2016.12	2017.12	2018.12	2018.9	2019.9
27%	30%	Manufacturing

2014.12	2015.12	2016.12	2017.12	2018.12	2019.9		Total	Wholesalers	Real Estate	Manufacturing		2019.9
			& Retailers	& Renting
Note 1) SOHO 51%, Registered 19%, Unregistered 30%

SOHO			42.7	46.1		0.37	0.28	0.37
	38.6			0.18		0.21	0.19	0.26		Deposits etc.
				16%
	34.2	35.5													3%
30.5		15%	15%		0.28	0.37	0.29				0.23	0.38
		15%	11%	Total	0.28		0.28
		16%	11%							Guarantee	Unsecured

	16%	11%		15%	Others	0.42	0.44					0.34	0.38		10%
15%	12%	16%	0.31	0.32		0.32			17%
12%	17%		Accommodations
13%
17%	17%			&Restaurants	0.36	0.23	0.31						Collateralized
					0.10		0.09
18%				Wholesalers		0.05		0.04
										83%
			44%	44%	&Retailers
	41%	41%	42%	RealEstate	0.61		0.34	0.32		0.37	0.40	0.55		Real Estate
						70%
41%				&Renting		0.25
					Construction
	1%	1%	1%	1%	1%
1%	Manufacturing	2014.12	2015.12	2016.12	2017.12	2018.12	2018.9	2019.9
13%
12%	13%	14%	14%	13%		Total	Accommodations	Wholesalers	Real Estate	Manufacturing	2019.93
2014.12	2015.12	2016.12	2017.12	2018.12	2019.9			&Restaurants	& Retailers	& Renting					34

SHB Retail Loans

Loans				(KRW tril.)
				106.3	112.1
			98.9
	88.1	93.6

78.6

	36.0	41.2	46.1	52.4	56.4

31.0

47.6	52.1	52.4	52.8	53.9	55.7

2014.12	2015.12	2016.12	2017.12	2018.12	2019.9

Retail Loans Mortgage Personal Loans

Delinquency				(%)
0.23	0.19	0.19	0.22	0.25	0.25	0.29

		0.38	0.44	0.53	0.52	0.58
0.36	0.35

0.170.11 0.09 0.11 0.11 0.120.15

2014.12	2015.12	2016.12	2017.12	2018.12		2018.9	2019.9
Retail Loans	Personal Loans	Mortgage

Retail Personal Loans		(KRW tril.)

Note 1) Including unsecured personal loans,	52.4	56.4
collective loans, home equity loans etc.

46.1	8.5	9.5

41.2 7.5

					36.0			6.9				16.1		18.1

31.0		5.8				10.5			13.0

5.9			8.1
												8.9
								9.1
			5.9										8.1
									7.0

						7.0
			6.8							16.8			17.4		18.6	20.0
					15.1

			12.4



2014.12	2015.12	2016.12	2017.12	2018.12	2019.9
			High credit				Secured		Jeonse		Others1)

			Unsecured				Loans		Loans
			Personal Loans
			LTV													(%)

52.9

52.3

51.851.8

49.9 50.0

2014.12

2015.12

2016.12

2017.12

2018.12

2019.9

Loan Composition

Others1)

Personal	Jeonse
Loans
16%
50%
Secured	Mortgage

	8%	50%
	Highcredit
	Unsecured
	18%

2019.9

Note 1) Including unsecured personal loans, collective loans, home equity loans etc.

Collateral

Unsecured
26%	Real Estate
	47%
Guarantee
26%

Collateralized

Deposits etc. 1%74%

2019.9

SHB International Business

Net Income Contribution by International Business (KRW bil.)

		13.6%	14.0%	13.9%
		11.5%	319.5	12.7%

		9.2%
8.3%	8.5%		274.8

	6.9%
	233.0		243.3

		170.9 177.6		+13%

137.8 124.0

94.1

2012	2013	2014	2015	2016	2017	2018	2018	3Q19
			NI Contribution (%)	Global Net Income
Asset Contribution by International Business		(KRW bil.)
									10.2%
								9.0%	39,717
						8.2%	8.2%	31,404
				7.2%
	6.7%	7.1%		26,432
		24,803
6.3%
	18,029	20,611

14,951	16,001

2012	2013	2014	2015	2016	2017	2018	3Q19
		Asset Contribution (%)				Global Assets

Net Income Composition

	Others
Shinhan Bank China 10%		5%
			Overseas
			Branch
Shinhan		31%

Bank Japan
20%			Shinhan
Subsidiaries
		Vietnam
69%			34%

3Q19

Asset Composition

Shinhan Bank America 5%Others
	9%Overseas
Shinhan Bank China 14%	Branch
31%
	Shinhan	Shinhan
	Vietnam
	Bank Japan
Subsidiaries	16%
	25%

69%

3Q19

Note) KRW amounts of the net income are converted based on the average FX rates of the respective periods,	36
and the assets are converted based on the FX rates at the end of the respective periods

Attachments

Original document
Permalink

Disclaimer

Shinhan Financial Group Co. Ltd. published this content on 25 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2019 09:45:04 UTC

Latest news about Shinhan Financial Group Co., Ltd.

Asian Equities Traded in the US as American Depositary Receipts Open Week Higher	Apr. 22	MT
Morgan Stanley Adjusts Shinhan Financial Group’s Price Target to KRW54,000 From KRW56,000, Keeps at Overweight	Apr. 17	MT
Shinhan Bank Raises $500 Million via Bond Sale	Apr. 10	MT
Tech, Auto Stocks Lead Asian Equities Traded in the US as American Depositary Receipts Higher in Tuesday Trading	Apr. 09	MT
Asian Equities Traded in the US as American Depositary Receipts Open Week Higher in Monday Trading	Apr. 01	MT
Asian Equities Traded in the US as American Depositary Receipts Flat in Tuesday Trading	Mar. 26	MT
Shinhan Financial Group Co., Ltd. Approves Cash Dividend for the Fiscal Year of 2023	Mar. 26	CI
Shinhan Financial Group Co., Ltd. Approves Board Elections	Mar. 26	CI
Tranche Update on Shinhan Financial Group Co., Ltd.'s Equity Buyback Plan announced on February 8, 2024.	Mar. 22	CI
Shinhan Financial Group Co., Ltd.'s Equity Buyback announced on February 8, 2024, has closed with 3,366,257 shares, representing 0.66% for KRW 150,000.06 million.	Mar. 19	CI
Asian Equities Traded in the US as American Depositary Receipts Lower in Thursday Trading	Mar. 14	MT
Asian Equities Traded in the US as American Depositary Receipts Edge Lower in Monday Trading	Feb. 26	MT
The biggest deals in credit card sector globally	Feb. 20	RE
Shinhan Financial Group's Net Income Plunges in Q4	Feb. 09	MT
Shinhan Financial Group Co., Ltd. Announces Year End Cash Dividend for Fiscal Year 2023 , Payable on April 5, 2024	Feb. 08	CI
Transcript : Shinhan Financial Group Co., Ltd., Q4 2023 Earnings Call, Feb 08, 2024	Feb. 08
Shinhan Financial Group Co., Ltd. announces an Equity Buyback for 3,500,583 shares.	Feb. 07	CI
Shinhan Financial Group Co., Ltd. authorizes a Buyback Plan.	Feb. 07	CI
Asian Equities Traded in the US as American Depositary Receipts Nudge Higher in Monday Trading	Feb. 05	MT
Asian Equities Traded in the US as American Depositary Receipts Move Lower in Friday Trading; End Week Down 1%	Feb. 02	MT
Shinhan Financial Unit Files for Singapore Listing of 500 Million Euros Bonds Due 2027	Jan. 29	MT
Shinhan Financial Group Co., Ltd. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	Jan. 14	CI
Shinhan Financial Group Co., Ltd. Reports Earnings Results for the Full Year Ended December 31, 2023	Jan. 14	CI
Tranche Update on Shinhan Financial Group Co., Ltd.'s Equity Buyback Plan announced on October 25, 2023.	Dec. 26	CI
Shinhan Financial Group Co., Ltd.'s Equity Buyback announced on October 25, 2023, has expired with 2,744,718 shares, representing 0.53% for KRW 100,000.04 million.	Dec. 21	CI

Chart Shinhan Financial Group Co., Ltd.

Duration

Period

More charts

Company Profile

Shinhan Financial Group Co Ltd is a Korea-based company principally engaged in the bank business. The Company operates its business through five segments. The Bank segment offers commercial bank services. The Credit Card segment provides credit card services. The Financial Investment segment involves in the trading and consignment trading of securities. The Life Insurance segment is engaged in the life insurance business. The Other segment is involved in the asset management, facilities rental and rental business, savings banks, financial information technology (IT) services, fund general office management, debts collection and credit investigation, private equities investment, real estate investment and operation.

Sector

Banks

Calendar

2024-04-25 - Q1 2024 Earnings Release

More about the company

Income Statement Evolution

More financial data

Ratings for Shinhan Financial Group Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

43,300 KRW

Average target price

52,756 KRW

Spread / Average Target

+21.84%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Banks

	1st Jan change	Capi.
SHINHAN FINANCIAL GROUP CO., LTD.	+7.85%	16.03B
JPMORGAN CHASE & CO.	+13.51%	555B
BANK OF AMERICA CORPORATION	+13.81%	301B
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED	+9.16%	249B
WELLS FARGO & COMPANY	+23.12%	212B
BANK OF CHINA LIMITED	+17.11%	172B
CHINA CONSTRUCTION BANK CORPORATION	+7.31%	161B
HSBC HOLDINGS PLC	+4.41%	153B
ROYAL BANK OF CANADA	-0.51%	137B
HDFC BANK LIMITED	-11.61%	138B

Other Banks

Shinhan Financial Group Co., Ltd.

Equities

A055550

KR7055550008

Banks

Shinhan Financial : SFG's Business Results for 2019 3Q

EPS Revisions