# SHG earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/SHG) · [Earnings tab](https://www.lopjlb.com/stock/SHG?tab=earnings) Updated: 2026-07-24T05:41:40 Quarters analyzed: 8 ## Cross-quarter narrative Across the eight earnings calls, Shinhan Financial’s capital strength has steadily improved, with CET1 rising from 13.09% in Q1 2024 to above 13.5% by 2026 and new CET1 targets consistently reaffirmed. Shareholder return initiatives have accelerated, moving from modest dividends and buybacks in 2024 to larger buyback programs, higher dividends and a 50%+ return ambition in 2026. Credit‑cost pressure has worsened, climbing to roughly 60 bps in Q2 2025 before moderating to the mid‑40 bps range, while net‑interest margin has trended lower, slipping after a flat start in 2024 and falling 16 bps in Q2 2025. Loan‑growth demand remains modest but stable, with occasional moderation noted. Real‑estate project‑finance risk has become more pronounced, prompting higher provisioning and recurring analyst concerns. Digital, ESG and sustainability initiatives, first cited in 2024, have stayed on track and expanded. Regulatory and capital‑requirement uncertainty persists, especially around easing capital rules. Macro‑economic slowdown and higher corporate credit risk emerged in 2025 and continue to shape the outlook, alongside rising SG&A cost pressure noted in 2026. ## Latest CallCard · Q1 Shinhan Financial Group posted solid Q1 2026 earnings, highlighted progress on its Value Up 3.0 Plus plan, ROE above 10%, CET1 at 13.19% and a 50%+ shareholder return target, while noting credit cost pressures and pending regulatory approvals. **Guidance:** maintained — No change to ROE 10‑12% target, CET1 13%+ goal, dividend growth >10% and 50%+ shareholder return ratio reaffirmed. **Tone:** mgmt 0.6 · Q&A pressure 0.7 · divergence 0.3 Prepared remarks emphasized achieving ROE >10%, stable CET1 and ahead‑of‑schedule shareholder return target, indicating optimism. ### Demand visibility Demand for financial services remains stable with focus on productive financing. Management highlighted government promotion of productive finance and continued credit to corporate borrowers, while noting a decline in household loans due to regulations. ### Margins / costs Cost‑income ratio stable at 36.7% and credit‑cost ratio at 46 basis points. SG&A expenses rose 10.4% YoY due to higher education tax, but cost‑efficiency initiatives kept overall cost ratio stable. ### Capital allocation Shareholder return target 50%+ with dividend growth >10% and a share‑buyback program. Dividend of KRW 741 per share declared, KRW 4.3 bn buyback scheduled for July 2026, and tax‑exempt dividend resources to be used pending AGM approval. ### Milestones - **Shinhan Value Up 3.0 Plus** [new]: New strategic plan announced to transition to a sustainable growth framework. - **ROE 10%+ target** [on_track]: ROE achieved 11.9% in Q1, within the 10‑12% target range. - **CET1 13%+ target** [on_track]: CET1 estimated at 13.19% despite uncertainties. - **Shareholder return ratio 50%+** [on_track]: Achieved 50% shareholder return target ahead of schedule. - **Share buyback July 2026** [new]: Program of KRW 700 bn with KRW 4.3 bn to be completed. - **Digital initiatives** [new]: Updates on digital initiatives disclosed on pages 16‑17. ### Fears / risks - **Macroeconomic slowdown**: High interest rates and elevated FX levels creating uncertainty for earnings. - **Credit risk**: Rising corporate credit risk and group NPL coverage at 110% due to Asset Trust exposures. - **Regulatory uncertainty**: Pending approval for easing capital requirements may affect CET1 and shareholder returns. - **Cost pressure**: SG&A expenses up 10.4% YoY due to higher education tax despite cost‑efficiency efforts. - **Market volatility**: Gains on securities declined in bond income due to sharp rise in market interest rates. - **Geopolitical risk**: Ongoing geopolitical risk cited as factor increasing credit‑cost ratio. - **Regulatory constraints on household loans**: Regulations caused decline in household loan volumes. - **Liquidity of Asset Trust**: Large provisions for Shinhan Asset Trust affect NPL coverage and could impact earnings. ### Key quotes > “We achieved our 50% shareholder return target ahead of schedule, while also delivering meaningful improvement in PBR” > “We are targeting an ROE that exceeds our cost of equity with a focus on delivering faster improvement.” > “The group CET1 ratio remains stable. We estimate at 13.19%, despite many uncertainties surrounding us.” > “maybe we can see about 20 basis points or more in upside in our CET1.” — Na Hoon ## Quarter one-liners - **2026 Q1:** Shinhan Financial Group posted solid Q1 2026 earnings, highlighted progress on its Value Up 3.0 Plus plan, ROE above 10%, CET1 at 13.19% and a 50%+ shareholder return target, while noting credit cost pressures and pending regulatory approvals. - **2025 Q3:** SHG Q3 net income KRW 1.42T, CET1 13.56%, dividend KRW 570/share, shareholder return KRW 2.35T planned; credit costs controlled at 46bp, NIM 1.56%, loan growth moderating, resource allocation shifting to capital markets.','tone': {'mgmt': 0.2, 'mgmt_rationale': 'Management highlighted stable CET1 ra - **2025 Q2:** Shinhan Financial posted 4.1% QoQ net income growth, raised CET1 to 13.59%, announced KRW571 dividend and KRW800bn buyback, but flagged higher credit costs and economic headwinds for H2. - **2025 Q1:** SHG Q1 net income +12.6% YoY to KRW 1.49tn; CET1 13.27% (+21bp YTD); Value-up plan targets ROE +50bp, CET1 ≥13.1%, shareholder return ≥42%; NIM up 5bp QoQ but expected to decline through 2025; credit costs rising, NPL coverage at low but targeted to recover to 200% by year-end; Jeju Bank ERP banking - **2024 Q4:** SHG 2024 net income up 3.4% to KRW 4.5T; 2025 guidance targets CET1 13%+, credit cost mid-30bps, shareholder returns KRW 1.75T amid mid-1% GDP outlook and three rate cuts.','tone': {'mgmt': 0.2, 'mgmt_rationale': 'Management highlights record net income, strong capital, and proactive shareholder ret - **2024 Q3:** SHG Q3 net income fell 10% QoQ to KRW1.24tn due to KRW135.7bn derivatives loss at Shinhan Securities; CET1 13.13%, dividend KRW541, buyback KRW400bn; NIM declining, loan growth moderating, Value Up plan on track.','tone': {'mgmt': -0.2, 'mgmt_rationale': 'Management acknowledges derivative loss inci - **2024 Q2:** Shinhan Financial posted modest top‑line growth, maintained CET1 above 13% and reaffirmed a 2027 target of 50% shareholder return, while analysts probed real‑estate PF exposure and the feasibility of high payouts. - **2024 Q1:** SHG Q1 2024 net income KRW1.32tn; interest income +9.4% YoY; CET1 13.09%; Q1 dividend KRW540/share + KRW300bn buyback; loan growth H1 customer acquisition, H2 profitability focus; NIM flat H1 then slight decline; credit cost target ~45bp; preemptive provisioning for real estate.','tone':{'mgmt':0.2, ## Theme arcs - **CET1 capital ratio** (improving): CET1 rose from 13.09% to 13.59% and targets above 13% are reaffirmed - **Shareholder return program** (improving): Dividends and buybacks grew, with a 50%+ return target set for 2026 - **Credit cost pressure** (deteriorating): Credit cost rose to ~60bps in Q2 2025 before moderating to mid‑40bps - **Net interest margin** (deteriorating): NIM flat in early 2024 then fell 16bps in Q2 2025 and is expected to decline - **Loan‑growth demand** (stable): Demand remains modest but steady, with occasional moderation - **Real‑estate PF risk** (deteriorating): Provisioning risk and credit exposure heightened across calls - **Digital & ESG initiatives** (new): Launched in 2024 and consistently on‑track - **Regulatory & capital‑requirement uncertainty** (stable): Ongoing concerns about CET1 rules and capital‑requirement easing - **Macro‑economic slowdown** (new): First highlighted in 2025 Q2 and persists into 2026 ## Guidance path 2024 Q1:vague → 2024 Q2:maintained → 2024 Q3:vague → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:maintained → 2025 Q3:vague → 2026 Q1:maintained --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/SHG`