Shinhan Financial Group (055550) Q4 2024 earnings summary

Executive summary

• FY2024 net income rose 3.4% year-over-year to KRW 4,517.5bn, driven by higher interest income and reduced credit loss provisioning.

• Total assets reached 739.7 trillion KRW, up from 691.8 trillion KRW year-over-year.

• Group CET1 ratio remained robust at 13.03% despite increased shareholder returns and market volatility.

• Overseas business net income surged 38.1% year-over-year, with Shinhan Bank Vietnam and Japan showing strong ROE.

• Net income attributable to controlling interest for 2024 was 4,478 billion KRW, down from 5,322 billion KRW in 2023.

Financial highlights

• Interest income grew 5.4% year-over-year, supported by 7.3% growth in interest-bearing assets and 10.3% YTD KRW loan growth at Shinhan Bank.

• Non-interest income declined 5.0% year-over-year due to securities losses and lower insurance gains, despite a 2.6% rise in fee income.

• Provision for credit losses dropped 11.4% year-over-year, with group credit cost ratio improving by 10bp to 0.47%.

• Operating income before tax was 6,123.8 billion KRW, a decrease from 8,174 billion KRW in 2023.

• Year-end dividend proposed at KRW 540 per share, with total 2024 shareholder return ratio at 39.6%.

Outlook and guidance

• 2025 GDP growth expected in mid-1% range; three BOK rate cuts anticipated, with NIM contraction likely.

• Asset growth to be limited by weakened loan demand; focus on profitability and capital efficiency in RWA allocation.

• Shareholder return ratio projected at 40–44% for 2025, with quarterly and year-end dividends evenly distributed.

• Management emphasized ongoing focus on risk management and capital adequacy amid market volatility.