Shinhan Financial Group (055550) Q4 2025 earnings summary

Executive summary

• FY2025 net income reached 4.97 Wtn, up 11.7% year-over-year, driven by strong non-interest income and disciplined cost control.

• Board approved a cash dividend of KRW 570 plus an additional KRW 310 per share, and a share buyback of 700 Wbn through July 2026.

• Total shareholder return for 2025 is 2.5 Wtn, achieving a 50.2% return ratio and early TSR target.

Financial highlights

• Operating income before expenses rose 5.2% year-over-year to 15,438.6 Wbn.

• Interest income increased 2.6% year-over-year; non-interest income surged 14.4% year-over-year.

• Cost-to-income ratio (CIR) improved to 41.5%, and credit cost ratio (CCR) decreased to 0.45%.

• CET1 ratio at year-end was 13.33%, up 32bp year-to-date.

Outlook and guidance

• 2026 capital policy targets predictable shareholder returns, with a focus on maintaining a dividend payout ratio at or above 25%.

• RWA growth is projected at 4-5% per annum, with continued emphasis on profitability and capital efficiency.

• CIR expected to remain in the low 40% range, and CCR in the low-to-mid 40bp range.