SEOUL, South Korea, April 23, 2025 /PRNewswire/ -- Shinhan Financial Group (NYSE: SHG) (KRX: 055550) filed its Annual Report on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (SEC) on April 23, 2025. The report is available at Shinhan Financial Group's Homepage, https://www.shinhangroup.com/en/ir/disclosure/overseas, as well as the U.S. Securities and Exchange Commission website, www.sec.gov. A hard copy of the annual report will be provided to shareholders u ...

Exhibit 99.1 : Independent Consolidated Auditor's Report of Shinhan Financial Group SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (With Independent Auditor's Report Thereon) Based on a report originally issued in Korean The Board of Directors and Stockholders Shinhan Financial Group Co., Ltd. Opinion We have audited the consolidated financial statements of Shinhan Financial Group Co., Ltd. and its subsidiaries ("the Group"), which comprise the consolidated statements o ...

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Shinhan Financial (SHG) and Bank of Nova Scotia (BNS) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnin ...

Investors interested in stocks from the Banks - Foreign sector have probably already heard of Shinhan Financial (SHG) and Banco Itau (ITUB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlig ...

Financial Performance - Total assets increased to W 727,679,883 million as of June 30, 2024, up from W 691,795,333 million at December 31, 2023, representing a growth of approximately 5.2%[11] - Loans at amortized cost rose to W 434,524,032 million, an increase of 5.5% from W 411,739,562 million at the end of 2023[11] - Deposits grew to W 402,755,997 million, reflecting an increase of 5.5% compared to W 381,512,664 million at December 31, 2023[11] - Total liabilities increased to W 670,077,603 million, compared to W 635,473,468 million at the end of 2023, marking a rise of approximately 5.4%[11] - Total equity attributable to equity holders of Shinhan Financial Group Co., Ltd. was W 54,837,263 million, up from W 53,720,537 million, reflecting an increase of 2.1%[11] - Profit for the period for the six months ended June 30, 2024, was W 2,798,815 million, compared to W 2,683,123 million in 2023, indicating an increase of 4.3%[12] - Total comprehensive income for the six-month period was W 1,900,968 million, down from W 3,402,364 million in the same period of 2023, a decrease of 44.1%[13] - Basic and diluted earnings per share for the six-month period were W 5,219, compared to W 4,847 in 2023, representing an increase of 7.7%[13] Income and Expenses - Total interest income for the six-month period ended June 30, 2024, was W 14,435,457 million, an increase from W 13,307,663 million in the same period of 2023, representing a growth of 8.5%[12] - Net interest income for the six-month period increased to W 5,637,713 million, up from W 5,268,025 million in 2023, reflecting a growth of 7%[12] - Net insurance income for the six-month period was W 560,715 million, an increase from W 497,576 million in 2023, reflecting a growth of 12.7%[12] - Fees and commission income for the six-month period rose to W 2,186,078 million, up from W 1,995,691 million in 2023, a growth of 9.5%[12] - Operating income for the six-month period was W 3,920,779 million, compared to W 3,492,233 million in 2023, reflecting an increase of 12.3%[12] Assets and Liabilities - The company reported a significant increase in derivative assets, which rose to W 6,317,567 million from W 4,711,421 million, marking a growth of 34%[11] - Financial assets at fair value through profit or loss reached W 74,487,460 million, up from W 71,216,564 million, indicating a growth of 3.2%[11] - The total capital stock of Shinhan Financial Group is W 1,461,721 million, with shares listed on the Korea Exchange since September 10, 2001[20] - The total financial liabilities amount to W 593,482,380 million, with the largest component being deposits at W 391,266,817 million[114] - The total amount of borrowings is W 60,320,524 million, with W 19,310,777 million due in less than 1 month[114] Credit Risk Management - The Group manages various financial risks including credit risk, market risk, interest rate risk, and liquidity risk, with a focus on maintaining appropriate risk levels[37] - The Group's credit risk management encompasses all areas of credit, including on-balance-sheet and off-balance-sheet transactions, with a significant emphasis on potential economic loss[48] - Credit risk evaluation includes a comprehensive assessment of both retail and corporate customers, utilizing internal and external data to inform credit ratings[50] - The total allowance for credit losses as of June 30, 2024, is W 4,454,693 million, reflecting the Group's proactive risk management strategy[79] - The Group recognizes lifetime expected credit losses for exposures subject to debt restructuring, indicating a significant increase in credit risk[63] Market Risk Management - The market risk management framework includes setting VaR limits and daily monitoring by the risk management department, independent of the operating department[89] - The Group adheres to Basel 3 standards for market risk management, reflecting regulatory requirements in its risk calculation methods[92] - Shinhan Financial Group manages market risk through a daily Value at Risk (VaR) measurement with a 99.9% confidence level, ensuring consistent risk management across the group[94] - Stress tests are conducted to manage potential losses from rapid economic changes, supplementing statistical risk measurement methods[91] Liquidity Management - The Group's liquidity risk management includes monitoring indices such as the 'limit management index' and 'early warning index' to preemptively address potential liquidity issues[108] - Following the bankruptcy of Silicon Valley Bank, the Group has strengthened its liquidity crisis response capabilities by analyzing bank run scenarios[107] - Shinhan Card maintains a liquidity level that can withstand a 3-month credit crunch, demonstrating proactive liquidity risk management[109] Derivative Instruments - The total notional amounts of outstanding derivatives reached W 427,561,808 million, an increase from W 367,022,470 million as of December 31, 2023, representing a growth of approximately 16.5%[183] - The total gain or loss on valuation of derivatives for the six-month period ended June 30, 2024, was a net loss of W 90,915 million, contrasting with a net gain of W 66,441 million in the same period of 2023[185] - The total fair value of commodity related derivatives as of June 30, 2024, was W 179,986 million in liabilities, down from W 549,683 million on December 31, 2023[184] Investment and Securities - The total amount of securities at fair value through profit or loss is W 73,001,216 million as of June 30, 2024[162] - The total value of securities at fair value through other comprehensive income (FVOCI) as of June 30, 2024, is 88,821,773 million won, a decrease from 90,311,979 million won as of December 31, 2023[189] - The ending balance of debt securities at FVOCI is 87,074,207 million won, reflecting a decrease of 1,562,793 million won during the six-month period ended June 30, 2024[191]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of ...

Shinhan Financial (SHG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The power of a cha ...

Core Insights - The article compares Shinhan Financial (SHG) and Erste Group Bank AG (EBKDY) to determine which stock offers better value for investors [1] Valuation Metrics - SHG has a forward P/E ratio of 6.40, while EBKDY has a forward P/E of 6.49 [5] - SHG's PEG ratio is 0.70, indicating a better expected earnings growth rate compared to EBKDY's PEG ratio of 0.99 [5] - SHG's P/B ratio is 0.51, compared to EBKDY's P/B of 0.72, suggesting SHG is undervalued relative to its book value [6] Earnings Outlook - SHG is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - The Zacks Rank for SHG is 2 (Buy), while EBKDY is rated 4 (Sell), indicating a more favorable earnings estimate revision trend for SHG [3]

Financial Data and Key Metrics Changes - In Q3 2024, the company reported a net income of KRW1 trillion and 238.6 billion, a decrease of 10.1% quarter-on-quarter (QoQ) [5] - Interest income increased by 1.2% QoQ, driven by growth in the bank's loan book [5] - Non-interest income decreased by 25.6% QoQ due to significant losses in securities derivative transactions and conservative valuation impairments in overseas alternative investments [5][10] - The CET1 ratio at the end of September 2024 is estimated at 13.13%, a decrease of 6 basis points due to operational risk RWA impacts [3][12] Business Line Data and Key Metrics Changes - Bank won loans increased by 3.5% during the quarter, with household loans rising by 6.3% QoQ driven by real estate purchasing demand [8] - Corporate loans increased by 1.4% in Q3, focusing on Blue Chip corporate borrowers [8] - Non-interest income from securities and derivatives fell by 47.1% QoQ, primarily due to a KRW135.7 billion loss in derivative trading [10] Market Data and Key Metrics Changes - The cumulative credit cost ratio for Q3 decreased by 4 basis points compared to the first half of the year, posting 44 basis points [6][11] - The Group's CIR improved by 1.2 percentage points year-on-year to 37.9%, driven by higher operating profit before expenses [5][11] Company Strategy and Development Direction - The company is committed to enhancing shareholder returns through a share buyback and cancellation program totaling KRW400 billion, including KRW250 billion in Q4 2024 [6][7] - The focus is shifting towards qualitative growth and capital efficiency, with a target ROC of about 13% [21][22] - The company plans to minimize loan growth in Q4 relative to its RWA budget, emphasizing profitability and asset soundness [8][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by recent losses in derivatives trading and emphasized the importance of strengthening internal controls [3][4] - The outlook for NIM is expected to decline due to anticipated cuts in benchmark interest rates, with a proactive approach to managing funding rates [18] - The company expects gradual improvement in asset quality and provisioning, with no large-scale provisioning anticipated for the remainder of the year [32] Other Important Information - The company is actively cooperating with regulators regarding the investigation into the derivative trading losses and is reviewing its internal control systems [4] - The Group's total PF loan exposure is KRW9.4 trillion, representing about 2.2% of the total loan book, with significant provisioning already set aside [30][31] Q&A Session Summary Question: Shareholder return rate and triggers for increasing TSR - Management confirmed a commitment to gradually increase the TSR rate and emphasized the importance of CET1 growth and earnings growth as triggers for this increase [16][17] Question: NIM outlook - Management indicated that NIM is expected to decline further due to market conditions and interest rate cuts, with ongoing management of funding rates to mitigate impacts [18] Question: Loan growth targets for next year - The company targets a loan growth of about 5% for next year, focusing on qualitative growth and capital efficiency [21][22] Question: Continuation of share buyback program - Management expressed a commitment to maintaining the share buyback program, prioritizing share cancellation to achieve the targeted reduction by 2027 [25] Question: Provisioning outlook - The company anticipates a credit cost ratio of around 45 basis points by year-end, with no large-scale provisioning expected [26] Question: PF exposure and provisioning - Management provided insights into the current status of PF exposure, indicating a cautious approach to provisioning and restructuring plans [30][31] Question: RWA data disclosure - Management acknowledged the need for more segmented data on RWA and committed to enhancing RWA management going forward [34][36]