Shinhan Financial Group Q2 2023 Earnings Report

Shinhan Financial Group EPS Results

• Actual EPS: $1.75
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Shinhan Financial Group Revenue Results

• Actual Revenue: $3.15 billion
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Shinhan Financial Group Announcement Details

• Quarter: Q2 2023
• Date: 8/14/2023
• Time: N/A
• Conference Call Date: N/A
• Conference Call Time: N/A

Shinhan Financial Group (NYSE:SHG) Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers real estate trust, investment advisory, venture business investment, life and non-life insurance, trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.

Shinhan Financial Group Q2 2023 Earnings Call Transcript

[Operator]

Good afternoon. I am Chorobak, Head of IR, extending my sincere appreciation to you for participating in the Shannan Financial Group Earnings Presentation for Q2 2023. Before moving on to today's presentation, allow me to make some announcements for housekeeping. The earnings presentation of Jinan Financial Group is taking place through the group's Dedo platform, the YouTube channel and Zoom app. The YouTube live channel is only available in Korean and Q and A is not available.

[Operator]

Therefore, if you have if you wish to have an English view or participate in the Q and A, please join through Zoom. Please refer to our website, shinangroup.com, for detailed information for access. From now on, we will start the earnings presentation of Shinhan Financial Group for Q2 2023. For today's earnings release, the group CFO, Itay

[Speaker 1]

Thank you for your opportunity and congrats on the results. I want to I have 3 questions from my end. The first question is on the OCI trajectory. So if you look on a 10 year basis from the FY 'twelve to FY 'twenty two, you can see that OCI has actually been negative for the bank over the past 10 years. So So wanted to understand the OCI trajectory which you are seeing both the and largely the losses which are coming to OCI is from the securities.

[Speaker 1]

So the duration of this book, how you are actually thinking about this component of the OCI part? That's the first question. 2nd is on your CET1 and buyback plans. So you have raised the CET1, let's say, target to 13%. So do you think this is going to affect the buyback plans you proposed?

[Speaker 1]

The third question is on the credit card delinquency falling down. So just wanted to get a better sense of how you're seeing the overall environment and how your business is operating in the current macro scenario? Thank you.

[Speaker 2]

I have 2. 1, if you could comment on your strategy of expansion outside Korea, how much capital we should expect you to allocate outside Korea over the next 3 years? That would be very helpful. And what businesses, which countries should we expect this capital allocation to go to? And the second question is more at a system level.

[Speaker 2]

We know recently there has been high household debt to GDP levels in Korea. To what level should this ratio fall for us to expect loan growth again comfortable? Thank you.

[Speaker 1]

Thank you again for the opportunity. So two questions from my end. The first one is a follow-up on the first one. So can you just tell the duration of your investment portfolio? The second question is with respect to your non banking subsidiaries.

[Speaker 1]

So, we turned around 2017, the card operation is contributing around 30% of net income, but that has fallen off a bit in the past 5 years. I wanted to understand the competitive landscape you're seeing in the Ashinkan card operating segment. And also with respect to the other non banking subsidiaries, what areas are you targeting more to make more sustainable investments? Thank you.