NYSE We believe finance should be Friendly, More Secure, Creative Business Results FY 2022 Shinhan Financial Group Contents I. FY22 Result Highlights II. Supplements The financial information contained herein has neither been reviewed nor audited by independent auditors. Therefore, no assurance is given that the financial information contained herein is accurate or complete, and such financial information may differ from the financial information to be contained in our financial statements audited by indepe ...

Financial Data and Key Indicators Changes - In Q3 2022, the Group's cumulative net income reached KRW 4,315.4 billion, with Q3 alone contributing KRW 1,594.6 billion, indicating solid results despite external challenges [8][9] - The cost income ratio (CIR) for Q3 was 40.1%, reflecting stable management of SG&A expenses despite increased digital-related costs [10][19] - Interest income for Q3 was KRW 2,716 billion, up 2.7% QoQ, driven by improved bank NIM [12] - The CET1 ratio remained stable at 12.7% as of the end of September [22] Business Line Data and Key Indicators Changes - The Group's non-interest income decreased by 28.8% QoQ, primarily due to declining fee income and market volatility [16] - Corporate loans grew by 2.5% QoQ, while retail loans declined by 1.3% QoQ, reflecting a shift in demand due to regulatory changes and interest rate hikes [15] - Shinhan Card's recurring net income decreased despite growth in credit purchases, attributed to rising funding costs and merchant fee cuts [23] Market Data and Key Indicators Changes - The delinquency rate for the Bank remained stable at 0.20%, while the Card business saw a slight increase to 0.86% [20] - In overseas markets, the Group's exposure to real estate is about KRW 3.5 trillion, with no visible risks currently identified [124] Company Strategy and Development Direction - The Group aims to enhance shareholder value through a gradual improvement of the shareholder return ratio, including a per-share dividend of KRW 400 [11] - A conservative provisioning policy will be maintained to address potential credit risks amid economic uncertainties [20] - The digital strategy focuses on expanding customer engagement through multiple applications, enhancing user experience and financial contributions [38][80] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing uncertainties in domestic and foreign financial markets due to tightening monetary policies and economic conditions [28] - The Group is preparing for potential asset quality deterioration due to rising interest rates and is implementing preemptive risk management measures [30][34] - Future NIM growth is anticipated despite current funding rate increases, with expectations of stabilization in Q1 2023 [76] Other Important Information - The Group's digital platform MAU surpassed 21 million, indicating strong user engagement and growth in digital services [38] - The Group is actively involved in ESG efforts, with a focus on reducing carbon emissions and integrating sustainability into its operations [56][59] Q&A Session Summary Question: Concerns about real estate PF status and future strategies - The Group's real estate PF constitutes about 2% of total loans, with a manageable NPL of KRW 20 billion, indicating effective risk management [53][54] Question: Outlook for Card business fee income and asset quality - Card fee income was softer in Q3 due to seasonal factors, but is expected to normalize in Q4, with asset quality remaining stable [64][66] Question: Impact of liquidity risk on funding costs - The Group has sufficient liquidity and is not significantly affected by market liquidity risks, although funding costs are rising [68] Question: Strategies for managing overseas real estate exposure - The Group's overseas real estate exposure is KRW 3.5 trillion, with no current visible risks, and a sophisticated monitoring system is in place [124] Question: Dividend expectations and shareholder return ratio - The Group plans to maintain a solid increase in cash dividends, supported by a high CET1 ratio and effective stress testing [99][100]

NYSE We believe finance should be Friendly, fore Secure, Creative Business Results 3Q 2022 Shinhan Financial Group Contents I. 3Q22 Result Highlights II. Supplements The financial information contained herein has neither been reviewed nor audited by independent auditors. Therefore, no assurance is given that the financial information contained herein is accurate or complete, and such financial information may differ from the financial information to be contained in our financial statements audited by indepe ...

Exhibit 99.2 Independent Auditors' Review Report (Consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2022 SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES Consolidated Interim Financial Statements June 30, 2022 and 2021 (Unaudited) Contents | | Page | | --- | --- | | Report on Review of Interim Financial Statements | 1 | | Consolidated Interim Statements of Financial Position | 3 | | Consolidated Interim Statements of Comprehensive Income | 4 | | Consolidated Interim Statements o ...

Financial Performance Highlights - Group net income reached KRW 27208 billion, an increase of 113% year-over-year[7, 8] - Interest income increased by 173% year-over-year, driven by asset growth and margin improvement[12, 14] - Non-interest income decreased by 77% year-over-year, primarily due to declines in securities and insurance-related income[12, 25] - The cost-to-income ratio improved to 390%, a decrease of 24%p year-over-year[7, 8] - Provision for credit losses increased by 676% year-over-year, with additional provisioning of KRW 2990 billion for uncertainties[12, 27] Business Segment Performance - Shinhan Bank's net income increased by 228% year-over-year to KRW 16830 billion, driven by higher interest income and cost control[37, 62] - Shinhan Card's net income increased by 124% year-over-year to KRW 4127 billion, supported by business diversification[37, 68] - Shinhan Life Insurance's net income decreased by 102% year-over-year to KRW 2775 billion, mainly due to increased guarantee reserves[37, 72] - Shinhan Investment Corp's net income decreased by 414% year-over-year to KRW 1891 billion, due to decreased brokerage fees and valuation losses[37, 76] - Overseas net income contribution increased by 443% to KRW 2832 billion[39] Capital Management and Asset Quality - The CET1 ratio is expected to be 128%[7, 8, 35] - Group assets increased by 92% year-over-year to KRW 6833 trillion[58, 81] - The group's NPL ratio decreased by 008%p year-over-year to 038%[8, 34, 58] Digital Transformation and ESG Initiatives - SFG Gross MAU increased by 481 million YoY[52] - The company aims to provide KRW 30 trillion in green financing by 2030[54]

SHE LISTED NYSE We believe finance should be Friendly, More Secure, Creative Business Results 1Q 2022 Shinhan Financial Group Contents I. 1Q22 Result Highlights II. Supplements The financial information contained herein has neither been reviewed nor audited by independent auditors. Therefore, no assurance is given that the financial information contained herein is accurate or complete, and such financial information may differ from the financial information to be contained in our financial statements audite ...

[Report of Foreign Private Issuer (Form 6-K)](index=1&type=section&id=Report%20of%20Foreign%20Private%20Issuer%20%28Form%206-K%29) This report outlines the filing of Form 6-K by Shinhan Financial Group, covering its purpose and authorization [Filing Information](index=1&type=section&id=Filing%20Information) Shinhan Financial Group filed a Form 6-K report with the SEC for April 2022, noting its annual Form 20-F filings - Registrant: **Shinhan Financial Group Co., Ltd**[1](index=1&type=chunk) - Form Type: **Form 6-K, Report of Foreign Private Issuer**[1](index=1&type=chunk) - Filing Period: For the Month of **April 2022**[1](index=1&type=chunk) - The registrant files annual reports under **Form 20-F**[2](index=2&type=chunk) [Subject of Report: Acquisition of Treasury Shares](index=2&type=section&id=Subject%20of%20Report%3A%20Acquisition%20of%20Treasury%20Shares) The report primarily details the results of the company's treasury share acquisition, presented in Exhibit 99.1 - The substantive information of the report is provided in **Exhibit 99.1**[4](index=4&type=chunk) - Exhibit 99.1 is titled "**Results on acquisition of treasury shares**"[6](index=6&type=chunk) [Signatures](index=4&type=section&id=Signatures) The report was signed and authorized by Lee Taekyung, CFO of Shinhan Financial Group, on April 20, 2022 - The report was duly signed on behalf of **Shinhan Financial Group Co., Ltd**[8](index=8&type=chunk) - Signatory: **Lee Taekyung, Chief Financial Officer**[9](index=9&type=chunk) - Date of Signature: **April 20, 2022**[9](index=9&type=chunk)

PART I [ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](index=6&type=section&id=ITEM%201.%20IDENTITY%20OF%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20ADVISERS) The report indicates this section is not applicable - The report states that this item is not applicable[22](index=22&type=chunk) [ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](index=6&type=section&id=ITEM%202.%20OFFER%20STATISTICS%20AND%20EXPECTED%20TIMETABLE) The report indicates this section is not applicable - The report states that this item is not applicable[23](index=23&type=chunk) [ITEM 3. KEY INFORMATION](index=6&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines key investment risks, encompassing macroeconomic, competitive, regulatory, geopolitical, and ADS-specific factors [Risk Factors](index=6&type=section&id=ITEM%203.D.%20Risk%20Factors) The company faces diverse risks including macroeconomic volatility, intense competition, regulatory changes, geopolitical tensions, and operational challenges across its banking and credit card segments - The COVID-19 pandemic's impact on business operations and financial conditions remains highly uncertain. The company accumulated an additional **₩187.9 billion** in COVID-19-related provisions during 2021[40](index=40&type=chunk)[43](index=43&type=chunk) - Intense competition in the Korean financial industry, heightened by the entry of internet-only banks and fintech companies, may pressure net interest margins and profitability[50](index=50&type=chunk)[53](index=53&type=chunk)[61](index=61&type=chunk) - The company and its subsidiaries must maintain capital ratios above minimum levels required by Basel III regulations, and failure to do so could lead to operational suspensions[65](index=65&type=chunk)[68](index=68&type=chunk)[72](index=72&type=chunk) - The company faces potential losses and reputational damage from financial products sold by its subsidiaries, such as those related to Lime Asset Management, which have led to regulatory investigations and compensation payments[126](index=126&type=chunk)[127](index=127&type=chunk)[130](index=130&type=chunk) - Tensions with North Korea, including its nuclear program and military actions, could have a material adverse effect on the company's business, financial condition, and the price of its securities[192](index=192&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) [ITEM 4. INFORMATION ON THE COMPANY](index=51&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of Shinhan Financial Group, covering its history, strategic direction, diverse business activities, organizational structure, and properties [History and Development of the Company](index=51&type=section&id=ITEM%204.A.%20History%20and%20Development%20of%20the%20Company) Shinhan Financial Group, established in 2001, has grown through strategic acquisitions and is guided by its 'F.R.E.S.H. 2020s' mid-term strategy for sustainable growth - The Group's mid-term strategy is **'F.R.E.S.H. 2020s'**, which stands for Fundamental, Resilience, Ecosystem, Sustainability, and Human-talent[216](index=216&type=chunk) - Seven detailed strategic directions for 2022 have been established, including conversion to innovative digital platforms, pursuit of efficient growth, global expansion, sustainable performance, proactive risk management, development of a dynamic organization, and convergent human resources management[217](index=217&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) Key Acquisitions and Formations | Date of Acquisition | Entity | Principal Activities | | :--- | :--- | :--- | | August 2003 | Chohung Bank | Commercial banking | | March 2007 | LG Card | Credit card services | | February 2019 | Orange Life Insurance | Life insurance services | | September 2020 | Shinhan Venture Investment | Venture capital | [Business Overview](index=56&type=section&id=ITEM%204.B.%20Business%20Overview) The company offers comprehensive financial services across banking, credit cards, securities, and insurance, detailing its diverse product offerings, risk management framework, and extensive regulatory oversight - The Group's principal activities are divided into commercial banking, credit card services, securities brokerage, life insurance, specialized credit services, and other services like asset management and savings banking[237](index=237&type=chunk)[238](index=238&type=chunk) Corporate Loan Portfolio by Type (as of Dec 31) | Loan Type | 2019 (₩ Billion) | 2020 (₩ Billion) | 2021 (₩ Billion) | | :--- | :--- | :--- | :--- | | Small- and medium-sized enterprises | 91,162 | 108,016 | 121,961 | | Large corporate loans | 34,466 | 35,289 | 40,368 | | **Total corporate loans** | **169,130** | **190,255** | **208,468** | Retail Loan Portfolio by Type (as of Dec 31) | Loan Type | 2019 (₩ Billion) | 2020 (₩ Billion) | 2021 (₩ Billion) | | :--- | :--- | :--- | :--- | | Mortgage and home-equity loans | 68,074 | 73,188 | 79,860 | | Other retail loans | 66,350 | 73,602 | 79,146 | | **Total Retail Loans** | **134,424** | **146,790** | **159,006** | - The risk management framework is hierarchical, covering credit, market, liquidity, and operational risks, with oversight from the Group Risk Management Committee at the holding company level[572](index=572&type=chunk)[576](index=576&type=chunk) - The company and its subsidiaries are subject to extensive regulation by Korean authorities (Financial Services Commission, Financial Supervisory Service) and U.S. authorities (Federal Reserve, FDIC, NYDFS) for its U.S. operations[761](index=761&type=chunk)[925](index=925&type=chunk)[926](index=926&type=chunk) [Organizational Structure](index=197&type=section&id=ITEM%204.C.%20Organizational%20Structure) Shinhan Financial Group comprises 17 direct and 34 indirect subsidiaries, including wholly-owned entities like Shinhan Bank and Shinhan Card, with a significant international presence across multiple continents - The Group comprises **17 direct and 34 indirect subsidiaries**[977](index=977&type=chunk) - Key wholly-owned subsidiaries include Shinhan Bank, Shinhan Card Co., Ltd., Shinhan Investment Corp., and Shinhan Life Insurance Co., Ltd[977](index=977&type=chunk) - The Group has a significant international presence with subsidiaries in the United States, Canada, China, Japan, Germany, Vietnam, Indonesia, and Mexico, among others[981](index=981&type=chunk) [Properties](index=201&type=section&id=ITEM%204.D.%20Properties) The company's properties, primarily in Korea, had a net book value of **₩2,930 billion** as of December 31, 2021, with most branch facilities being leased rather than owned - The net book value of all properties owned by the Group was **₩2,930 billion** as of December 31, 2021[985](index=985&type=chunk) - Approximately **25%** of Shinhan Bank's 784 branches are housed in buildings owned by the Group, with the remainder being leased properties[983](index=983&type=chunk) [ITEM 4A. UNRESOLVED STAFF COMMENTS](index=202&type=section&id=ITEM%204A.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved comments from the staff of the U.S. Securities and Exchange Commission regarding its periodic reports - The company has no unresolved staff comments from the SEC[986](index=986&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=202&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, liquidity, and capital resources, discussing operating results, funding sources, and capital adequacy within the context of Korean and global economic trends [Operating Results](index=202&type=section&id=ITEM%205.A.%20Operating%20Results) In 2021, net income increased by **17.6%** to **₩4,113 billion**, driven by growth in net interest and fee income, against a backdrop of **4.0%** Korean GDP growth and proactive credit loss provisioning Operating Income Summary (2020 vs. 2021) | Component | 2020 (₩ Billion) | 2021 (₩ Billion) | % Change | | :--- | :--- | :--- | :--- | | Net interest income | 9,883 | 10,769 | 9.0% | | Net fees and commission income | 2,383 | 2,675 | 12.3% | | Net other operating income (expense) | (7,336) | (7,492) | 2.1% | | **Operating income** | **4,930** | **5,952** | **20.7%** | - Net income for 2021 increased by **17.6%** to **₩4,113 billion** from **₩3,498 billion** in 2020[1070](index=1070&type=chunk) - Provision for credit loss allowance decreased by **29.5%** to **₩975 billion** in 2021, following proactive provisioning in 2020 in response to COVID-19[1066](index=1066&type=chunk)[1068](index=1068&type=chunk) - The Korean economy grew by approximately **4.0%** in 2021, supported by robust exports and a recovery in private consumption, with moderate growth expected in 2022 despite inflation and monetary policy risks[1003](index=1003&type=chunk)[1004](index=1004&type=chunk) [Liquidity and Capital Resources](index=236&type=section&id=ITEM%205.B.%20Liquidity%20and%20Capital%20Resources) The company manages liquidity primarily through customer deposits, which constitute **72.0%** of total funding, while maintaining strong capital adequacy with a Group BIS ratio of **16.20%** and Common Equity Tier 1 ratio of **13.10%** as of year-end 2021 - The principal source of funding is customer deposits, accounting for **72.0%** of total funding as of December 31, 2021[1205](index=1205&type=chunk) Capital Adequacy Ratios (Basel III) | Ratio | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2021 | | :--- | :--- | :--- | :--- | | Group BIS ratio | 13.90% | 15.74% | 16.20% | | Tier I capital adequacy ratio | 12.34% | 14.37% | 14.94% | | Common equity capital adequacy ratio | 11.12% | 12.87% | 13.10% | - As of December 31, 2021, the company had contractual cash obligations totaling **₩496,475 billion**, primarily consisting of deposits, borrowings, and debt securities[1220](index=1220&type=chunk)[1222](index=1222&type=chunk) [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=245&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, including board composition and senior management, compensation practices, board committees, employee numbers, union memberships, and share ownership disclosures [Directors and Senior Management](index=245&type=section&id=ITEM%206.A.%20Directors%20and%20Senior%20Management) The company is led by CEO Cho Yong-byoung, with a board comprising one executive, one non-executive, and twelve outside directors, all selected for diverse professional expertise - The Chief Executive Officer is **Cho Yong-byoung**, who has held the position since March 2017[1234](index=1234&type=chunk)[1235](index=1235&type=chunk) - The board consists of one executive director, one non-executive director, and twelve outside directors, selected for their expertise in areas like law, finance, economics, and management[1238](index=1238&type=chunk)[1239](index=1239&type=chunk) [Compensation](index=250&type=section&id=ITEM%206.B.%20Compensation) Aggregate compensation for directors and executive officers in 2021 was **₩4.9 billion**, with the company utilizing a performance share plan for long-term incentives instead of stock options - Aggregate remuneration for directors and executive officers in 2021 was **₩4.9 billion**, comprising **₩4.0 billion** in salaries and **₩0.9 billion** in bonuses[1274](index=1274&type=chunk) - The company uses a performance share plan for long-term incentive compensation, which is tied to the company's business performance and share price movements over a four-year period[1278](index=1278&type=chunk)[1282](index=1282&type=chunk) - In 2021, CEO Cho Yong-byoung's compensation included **₩839 million** in salary and a grant of **30,000 performance shares**[1281](index=1281&type=chunk) [Board Practices](index=251&type=section&id=ITEM%206.C.%20Board%20Practices) The 14-member Board of Directors, with 12 outside directors, oversees company affairs through seven committees, including the Audit Committee, which is entirely composed of independent outside directors - The Board of Directors consists of **14 members**: one executive director, one non-executive director, and twelve outside directors[1283](index=1283&type=chunk) - The board has seven key committees to oversee specific areas: Risk Management, Audit, Remuneration, CEO Candidate Recommendation, Independent Director Recommendation, ESG Strategy, and Subsidiary Management[1287](index=1287&type=chunk)[1293](index=1293&type=chunk) - The Audit Committee is composed entirely of four outside directors, overseeing financial reporting and the independent auditors[1290](index=1290&type=chunk) [Employees](index=253&type=section&id=ITEM%206.D.%20Employees) As of December 31, 2021, the Group employed **21,530 regular** and **1,947 non-regular employees**, with a significant portion of subsidiary employees belonging to various labor unions - As of December 31, 2021, the Group employed **21,530 regular** and **1,947 non-regular employees**[1297](index=1297&type=chunk) - Employees at major subsidiaries are members of various unions, including the Korean Financial Industry Union and the Korean Federation of Clerical and Financial Labor Union[1298](index=1298&type=chunk) [Share Ownership](index=254&type=section&id=ITEM%206.E.%20Share%20Ownership) As of April 6, 2022, directors and executive officers collectively held **0.02%** of common stock, while the employee stock ownership association held **4.93%** as of December 31, 2021 - As of April 6, 2022, directors and executive officers as a group held **127,036 common shares**, representing approximately **0.02%** of outstanding shares[1302](index=1302&type=chunk) - The employee stock ownership association held **25,464,625 common shares**, or **4.93%** of the total, as of December 31, 2021[1303](index=1303&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=255&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies major shareholders, including the National Pension Service and BlackRock, and details related party transactions, such as the strategic alliance with BNP Paribas and loans to directors [Major Shareholders](index=255&type=section&id=ITEM%207.A.%20Major%20Shareholders) As of December 31, 2021, the National Pension Service of Korea was the largest shareholder with an **8.78%** stake, followed by BlackRock Fund Advisors at **5.45%** Major Shareholders as of December 31, 2021 | Name of Shareholder | Number of Common Shares | Beneficial Ownership (%) | | :--- | :--- | :--- | | National Pension Service | 45,340,437 | 8.78% | | BlackRock Fund Advisors | 28,133,027 | 5.45% | | Shinhan Financial Group Employee Stock Ownership Association | 25,464,625 | 4.93% | | BNP Paribas SA | 18,690,310 | 3.62% | [Related Party Transactions](index=256&type=section&id=ITEM%207.B.%20Related%20Party%20Transactions) The company maintains an alliance with BNP Paribas, a **3.62%** shareholder with board nomination rights, and had **₩6.1 billion** in outstanding loans to directors and affiliates as of December 31, 2021 - The company maintains an alliance agreement with BNP Paribas, which holds **3.62%** of common stock and has the right to nominate one board member[1316](index=1316&type=chunk) - As of December 31, 2021, loans outstanding to directors, executive officers, and their affiliates totaled **₩6.1 billion**, all made in the ordinary course of business[1317](index=1317&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=256&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section references consolidated financial statements and details legal proceedings, including **₩404 billion** in aggregate claims and ongoing matters related to Lime Asset funds and the CEO's hiring practices [Consolidated Statements and Other Financial Information](index=256&type=section&id=ITEM%208.A.%20Consolidated%20Statements%20and%20Other%20Financial%20Information) As of December 31, 2021, the company faced **₩404 billion** in pending lawsuits with a **₩10 billion** provision, alongside ongoing regulatory and legal issues concerning Lime Asset funds and the CEO's hiring practices - As of December 31, 2021, the company faced pending lawsuits with an aggregate claim amount of **₩404 billion** and had recorded a provision of **₩10 billion**[1320](index=1320&type=chunk)[1321](index=1321&type=chunk) - The company is dealing with the fallout from the Lime Asset incident, including regulatory sanctions, fines, and compensation payments to affected investors[1324](index=1324&type=chunk)[1326](index=1326&type=chunk)[1327](index=1327&type=chunk) - The CEO was acquitted by the Seoul High Court on charges of illegal hiring activities, but the case is currently pending in the Supreme Court[1323](index=1323&type=chunk) [ITEM 9. THE OFFER AND LISTING](index=260&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section details the trading markets for the company's common shares on the KRX KOSPI Market and its American Depositary Shares (ADSs) on the NYSE, including historical price data and market regulations [Offer and Listing Details](index=260&type=section&id=ITEM%209.A.%20Offer%20and%20Listing%20Details) The company's common stock trades on the KRX KOSPI Market, while its ADSs are listed on the NYSE under 'SHG', with historical price and volume data provided for both securities - The company's common shares are listed on the Korea Exchange, and its ADSs are listed on the NYSE under the symbol **'SHG'**[1336](index=1336&type=chunk) 2021 Stock and ADS Price Range | Security | High Price | Low Price | | :--- | :--- | :--- | | Common Stock (KRW) | 43,000 | 30,650 | | ADS (USD) | 39.07 | 27.67 | [Markets](index=261&type=section&id=ITEM%209.C.%20Markets) This subsection describes the Korea Exchange (KRX), the primary market for common stock, detailing its structure, regulatory oversight, trading rules including a **30%** daily price limit, and reporting requirements for substantial shareholders - The Korea Exchange (KRX) is the principal market for the common stock and operates four market divisions: KOSPI, KOSDAQ, Futures, and KONEX[1340](index=1340&type=chunk)[1343](index=1343&type=chunk) - Share price movements on the KRX are limited to **30%** upward or downward from the previous day's closing price[1352](index=1352&type=chunk) - Under Korean law, any person whose beneficial ownership of Equity Securities reaches **5%** or more must report the holding status and purpose to the Financial Services Commission and the Korea Exchange within five business days[1366](index=1366&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=269&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides supplementary information on the company's share capital, Articles of Incorporation, exchange controls, and taxation, outlining shareholder rights, dividend policies, and tax implications for non-resident investors [Memorandum and Articles of Incorporation](index=269&type=section&id=ITEM%2010.B.%20Memorandum%20and%20Articles%20of%20Incorporation) This subsection details the company's share capital, authorized at **1 billion shares**, and outlines shareholder rights, dividend policies, preemptive rights, and procedures for general meetings as per its Articles of Incorporation - The company's authorized share capital is **1,000,000,000 shares**, with **516,599,554 common shares** issued and outstanding as of December 31, 2021[1386](index=1386&type=chunk) - Dividends are declared annually at the general shareholders' meeting and can be paid in cash or shares. The company may also pay quarterly cash dividends by a resolution of the board of directors[1390](index=1390&type=chunk)[1391](index=1391&type=chunk) - Shareholders have preemptive rights to subscribe to new shares in proportion to their existing holdings, though the board can issue new shares to third parties under specific circumstances, such as a public offering or strategic alliance[1396](index=1396&type=chunk) [Exchange Controls](index=277&type=section&id=ITEM%2010.D.%20Exchange%20Controls) Korean Foreign Exchange Transaction Laws regulate non-resident investment, requiring foreign investors to designate a foreign exchange bank, with the government reserving the right to impose temporary restrictions during emergencies - The Foreign Exchange Transaction Act of Korea regulates investment in Korean securities by non-residents[1426](index=1426&type=chunk) - Foreign investors must register with the Financial Supervisory Service and designate a foreign exchange bank to open accounts for stock investments[1428](index=1428&type=chunk) - The Korean government may temporarily suspend foreign exchange transactions or impose other restrictions in the event of a national emergency or severe economic crisis[1427](index=1427&type=chunk) [Taxation](index=278&type=section&id=ITEM%2010.E.%20Taxation) This subsection summarizes Korean and U.S. federal income tax implications for non-resident holders, detailing dividend withholding tax (**22%**), capital gains tax, foreign tax credits, and the company's PFIC status assessment - Korean withholding tax on dividends paid to non-residents is **22%** (including local surtax), which may be reduced under an applicable tax treaty[1433](index=1433&type=chunk) - Capital gains for non-residents are generally taxed at the lower of **11%** of gross proceeds or **22%** of net gain, unless an exemption applies. Transfers of ADSs outside Korea are generally exempt from this tax under the Special Tax Treatment Control Law[1434](index=1434&type=chunk)[1437](index=1437&type=chunk) - For U.S. holders, dividends are generally taxable as ordinary income. Qualified dividends may be subject to reduced tax rates. Korean withholding taxes may be eligible for a foreign tax credit, subject to limitations[1458](index=1458&type=chunk)[1459](index=1459&type=chunk)[1463](index=1463&type=chunk) - The company does not believe it was a Passive Foreign Investment Company (PFIC) for 2021 and does not expect to become one, but notes that PFIC status is an annual determination that could result in adverse U.S. tax consequences if it were to change[1469](index=1469&type=chunk) [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=287&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to Item 4.B for comprehensive quantitative and qualitative disclosures regarding market risk management - Quantitative and qualitative disclosures about market risk are provided in **'Item 4.B. Business Overview — Risk Management'**[1490](index=1490&type=chunk) [ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](index=287&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECURITIES) This section details fees and charges for American Depositary Shares (ADSs) and discloses payments received from the depositary, while other security types are noted as not applicable [American Depositary Shares](index=288&type=section&id=ITEM%2012.D.%20American%20Depositary%20Shares) This subsection outlines fees payable by ADS holders for issuance, cancellation, and annual services, and reports that the company received **US$57,122.07** from the depositary in 2021 for proxy process expenses - ADS holders may be required to pay fees to the depositary for services such as issuance (up to **US$5.00 per 100 ADSs**), cancellation (up to **US$5.00 per 100 ADSs**), and an annual depositary services fee (up to **US$2.00 per 100 ADSs**)[1494](index=1494&type=chunk) - In 2021, the company received **US$57,122.07** from the depositary, Citibank, N.A., primarily for reimbursement of proxy process expenses[1498](index=1498&type=chunk) PART II [ITEM 15. CONTROLS AND PROCEDURES](index=290&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management confirmed the effectiveness of disclosure controls and internal control over financial reporting as of December 31, 2021, with an unqualified audit opinion from Samil PricewaterhouseCoopers - Management evaluated and concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[1501](index=1501&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021, based on the COSO 2013 framework[1502](index=1502&type=chunk)[1504](index=1504&type=chunk) - The independent registered public accounting firm, Samil PricewaterhouseCoopers, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[1505](index=1505&type=chunk) [ITEM 16G. CORPORATE GOVERNANCE](index=293&type=section&id=ITEM%2016G.%20CORPORATE%20GOVERNANCE) This section details the company's corporate governance, noting compliance with Korean practices as a foreign private issuer while meeting key NYSE standards for board independence and audit committee composition - As a foreign private issuer listed on the NYSE, the company is permitted to follow home country (Korean) corporate governance practices in lieu of certain NYSE standards[1521](index=1521&type=chunk) - The board of directors consists of a majority of independent directors (**12 out of 14**), which complies with the NYSE standard for U.S. companies[1522](index=1522&type=chunk) - The Audit Committee is composed of four outside directors, all of whom meet the independence requirements of the NYSE and Rule 10A-3 under the Exchange Act[1524](index=1524&type=chunk) - The company has adopted a code of ethics for its principal officers and a supplemental code of behavior for all employees, in compliance with the Sarbanes-Oxley Act[1532](index=1532&type=chunk) PART III [ITEM 18. FINANCIAL STATEMENTS](index=298&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section directs the reader to Item 19(a) for a comprehensive list of all financial statements included in the annual report - This item references Item 19(a) for a list of all financial statements filed with the annual report[1548](index=1548&type=chunk) [ITEM 19. EXHIBITS](index=298&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed with the annual report, including the Articles of Incorporation, CEO/CFO certifications, and a detailed index to the financial statements - A list of exhibits filed with the annual report is provided, including the Articles of Incorporation, CEO/CFO certifications, and a list of subsidiaries[1553](index=1553&type=chunk) - The financial statements filed as part of the report are listed in the Index to Financial Statements on page F-1[1549](index=1549&type=chunk)

[Independent Auditors' Report](index=5&type=section&id=Independent%20Auditors'%20Report) This report presents the independent auditors' opinion on the consolidated financial statements and highlights key audit matters and significant economic impacts [Opinion and Basis for Opinion](index=5&type=section&id=Opinion%20and%20Basis%20for%20Opinion) The auditors issued an unqualified opinion, confirming the financial statements are fairly presented in all material respects in accordance with Korean IFRS - The auditors issued an unqualified opinion, confirming the financial statements are fairly presented in accordance with Korean IFRS[7](index=7&type=chunk) - The audit was conducted following Korean Standards on Auditing, and the auditors confirmed their independence from the Group[8](index=8&type=chunk) [Emphasis of Matter and Key Audit Matters](index=5&type=section&id=Emphasis%20of%20Matter%20and%20Key%20Audit%20Matters) The report emphasizes COVID-19's economic impact and identifies key audit matters regarding expected credit losses and Level 3 OTC derivative valuation - Emphasis of Matter: The auditors highlighted the negative impact of the COVID-19 pandemic on the global economy, which could increase the Group's expected credit losses and impair assets[9](index=9&type=chunk) - Key Audit Matter 1: Expected Credit Losses on Loans. This was significant due to the high level of management judgment and complex models required by IFRS 1109, especially in using forward-looking information. As of Dec 31, 2021, loans measured at amortized cost were **W 392.3 trillion** with allowances of **W 3.17 trillion**[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - Key Audit Matter 2: Valuation of Level 3 OTC Derivatives. This was a key matter due to the complexity and judgment involved in using internally developed valuation models. These derivatives amounted to **W 8.38 trillion** as of Dec 31, 2021[20](index=20&type=chunk) [Consolidated Statements of Financial Position](index=10&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The Group's financial position shows significant growth in total assets and liabilities, primarily driven by increased loans and customer deposits Consolidated Statements of Financial Position (Amounts in KRW billions) | Account | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **648,152.185** | **605,234.104** | **+7.1%** | | Loans at amortized cost | 389,137.156 | 356,221.519 | +9.2% | | Total Securities | 114,768.399 | 105,598.735 | +8.7% | | **Total Liabilities** | **598,613.763** | **558,877.246** | **+7.1%** | | Deposits | 364,896.675 | 326,416.868 | +11.8% | | Debt securities issued | 80,149.363 | 75,134.394 | +6.7% | | **Total Equity** | **49,538.422** | **46,356.858** | **+6.9%** | - Total assets grew by 7.1% YoY to **W 648.2 trillion**, primarily driven by a 9.2% increase in Loans at amortized cost[34](index=34&type=chunk) - Total liabilities increased by 7.1% YoY to **W 598.6 trillion**, mainly due to an 11.8% rise in customer deposits[36](index=36&type=chunk) - Total equity rose by 6.9% YoY to **W 49.5 trillion**, supported by retained earnings growth, despite an increase in accumulated other comprehensive loss[36](index=36&type=chunk) [Consolidated Statements of Comprehensive Income](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Group reported strong profit growth for the year, driven by increased net interest and fee income, alongside reduced credit loss provisions Consolidated Statements of Comprehensive Income (Amounts in KRW billions) | Account | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | **10,769.325** | **9,882.700** | **+9.0%** | | Net fees and commission income | 2,674.997 | 2,382.933 | +12.3% | | **Operating Income** | **5,952.096** | **4,929.736** | **+20.7%** | | **Profit for the year** | **4,112.628** | **3,498.076** | **+17.6%** | | Profit attributable to equity holders | 4,019.254 | 3,414.595 | +17.7% | | Total comprehensive income for the year | 3,494.839 | 3,324.232 | +5.1% | | **Basic and diluted EPS (in won)** | **7,308** | **6,654** | **+9.8%** | - Profit for the year increased by 17.6% YoY to **W 4.11 trillion**, driven by a 9.0% growth in Net Interest Income and a 20.7% rise in Operating Income[39](index=39&type=chunk) - The provision for allowance for credit loss decreased to **W 974.7 billion** in 2021 from **W 1.38 trillion** in 2020, contributing to higher profitability[39](index=39&type=chunk) - Total other comprehensive income was a loss of **W 617.8 billion**, a significant increase from the loss of **W 173.8 billion** in 2020, primarily due to losses on securities at fair value through other comprehensive income[40](index=40&type=chunk) [Consolidated Statements of Changes in Equity](index=14&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased, primarily driven by annual profit and hybrid bond issuance, partially offset by dividends and other comprehensive losses Changes in Total Equity (Amounts in KRW billions) | Account | 2021 | 2020 | | :--- | :--- | :--- | | **Balance at beginning of year** | **46,356.858** | **41,930.381** | | Profit for the year | 4,112.628 | 3,498.076 | | Other comprehensive income (loss) | (617.789) | (173.844) | | Dividends paid | (1,102.920) | (883.929) | | Issuance of hybrid bonds | 1,154.597 | 448.699 | | Other changes | (364.952) | 1,537.475 | | **Balance at end of year** | **49,538.422** | **46,356.858** | - Total equity increased from **W 46.4 trillion** to **W 49.5 trillion** in 2021. The growth was primarily driven by the profit for the year (**W 4.11 trillion**) and the issuance of hybrid bonds (**W 1.15 trillion**), partially offset by dividends paid (**W 1.1 trillion**) and other comprehensive losses[45](index=45&type=chunk) - In 2020, total equity increased from **W 41.9 trillion** to **W 46.4 trillion**, supported by profit for the year (**W 3.5 trillion**) and a paid-in capital increase of **W 1.4 trillion**[43](index=43&type=chunk) [Consolidated Statements of Cash Flows](index=16&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Group experienced a significant turnaround in operating cash flow, offset by increased investing outflows, leading to overall cash and equivalents growth Consolidated Statements of Cash Flows (Amounts in KRW billions) | Account | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash inflow (outflow) from operating activities** | **11,080.115** | **(4,409.317)** | | **Net cash outflow from investing activities** | **(12,030.510)** | **(3,025.926)** | | **Net cash inflow from financing activities** | **4,961.745** | **7,880.569** | | Effect of exchange rate changes | 109.553 | (61.518) | | **Increase in cash and cash equivalents** | **4,120.903** | **383.808** | | Cash and cash equivalents at beginning of year | 8,962.982 | 8,579.174 | | **Cash and cash equivalents at end of year** | **13,083.885** | **8,962.982** | - The Group generated a strong net cash inflow from operating activities of **W 11.1 trillion** in 2021, a significant turnaround from a **W 4.4 trillion** outflow in 2020. This was mainly due to a large increase in deposits[46](index=46&type=chunk)[48](index=48&type=chunk) - Net cash outflow from investing activities increased to **W 12.0 trillion** in 2021 from **W 3.0 trillion** in 2020, primarily due to a net increase in the acquisition of securities[48](index=48&type=chunk) - Net cash inflow from financing activities decreased to **W 5.0 trillion** in 2021 from **W 7.9 trillion** in 2020. While proceeds from debt securities issued increased, this was offset by lower net increases in borrowings compared to the prior year[50](index=50&type=chunk) [Notes to the Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the Group's reporting entity, accounting policies, financial risk management, and significant business combinations - The Group's risk management is overseen by the Group Risk Management Committee, which establishes basic policies and risk limits for the Group and its subsidiaries[269](index=269&type=chunk)[270](index=270&type=chunk) [1. Reporting entity](index=19&type=section&id=1.%20Reporting%20entity) Shinhan Financial Group, incorporated in 2001, is a financial holding company managing subsidiaries in banking, credit cards, securities, and insurance - Shinhan Financial Group Co., Ltd. is the controlling company, incorporated on September 1, 2001, to manage its financial subsidiaries[52](index=52&type=chunk) Ownership of Major Consolidated Subsidiaries (as of Dec 31, 2021) | Investee | Ownership (%) | | :--- | :--- | | Shinhan Bank | 100.0 | | Shinhan Card Co., Ltd. | 100.0 | | Shinhan Investment Corp. | 100.0 | | Shinhan Life Insurance Co., Ltd. | 100.0 | | Shinhan Capital Co., Ltd. | 100.0 | - On July 1, 2021, Shinhan Life Insurance Co., Ltd. and Orange Life Insurance Co., Ltd. merged, with the surviving entity named Shinhan Life Insurance Co., Ltd[54](index=54&type=chunk) [2. Basis of preparation](index=22&type=section&id=2.%20Basis%20of%20preparation) The consolidated financial statements adhere to Korean IFRS, requiring management estimates, with a key accounting policy change related to LIBOR reform - The financial statements are prepared in accordance with Korean IFRS on a historical cost basis, with certain exceptions like derivatives measured at fair value[59](index=59&type=chunk)[61](index=61&type=chunk)[66](index=66&type=chunk) - The Group adopted amendments related to the interest rate benchmark reform (LIBOR suspension) from January 1, 2021. The report details the carrying values and notional amounts of financial instruments still linked to LIBOR[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) - The Group applied a practical expedient for COVID-19 related rent concessions, recognizing **W 47.59 billion** in profit or loss for the year ended December 31, 2021, to reflect changes in lease payments[74](index=74&type=chunk)[75](index=75&type=chunk) [3. Significant accounting policies](index=25&type=section&id=3.%20Significant%20accounting%20policies) This section details the Group's accounting policies for operating segments, consolidation, financial instruments, ECL, leases, and insurance contracts, consistent with prior year except as noted - The Group's accounting policies are based on K-IFRS and are consistent with the prior year, except for the changes detailed in Note 2[77](index=77&type=chunk) - Financial assets are classified and measured based on the business model and contractual cash flow characteristics as either at amortized cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL)[97](index=97&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The Group uses a three-stage expected credit loss (ECL) model for impairment of financial assets, recognizing 12-month ECL for Stage 1 assets and lifetime ECL for Stage 2 (significant increase in credit risk) and Stage 3 (impaired) assets[124](index=124&type=chunk)[125](index=125&type=chunk) - The Group is preparing for the adoption of K-IFRS No. 1117 'Insurance Contracts' effective January 1, 2023, which is expected to have a significant impact on the valuation of insurance liabilities and revenue recognition[250](index=250&type=chunk)[251](index=251&type=chunk)[265](index=265&type=chunk) [4. Financial risk management](index=51&type=section&id=4.%20Financial%20risk%20management) The Group manages credit, market, interest rate, and liquidity risks through a structured framework, including limits, monitoring, and stress testing, while maintaining Basel III capital adequacy [Credit Risk](index=54&type=section&id=4.b%20Credit%20risk) Credit risk, the Group's largest risk, is managed through comprehensive evaluation, monitoring, and limit systems, using a three-stage ECL model with forward-looking scenarios - Credit risk is managed via credit evaluation systems (e.g., ASS, BSS for cards), credit monitoring, and a limit management system to control portfolio risk[283](index=283&type=chunk)[284](index=284&type=chunk)[288](index=288&type=chunk) - To measure ECL, the Group uses forward-looking information based on three macroeconomic scenarios (Upside, Central, Downside) reflecting the impact of COVID-19[303](index=303&type=chunk)[305](index=305&type=chunk)[317](index=317&type=chunk) Maximum Exposure to Credit Risk (Amounts in KRW billions) | Category | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Due from banks and loans | 415,086.775 | 389,906.694 | | Securities | 171,847.833 | 159,967.087 | | Derivative assets | 3,799.189 | 5,633.915 | | Guarantees & Loan commitments | 199,253.152 | 191,549.327 | | **Total** | **813,425.881** | **767,398.214** | [Market Risk](index=73&type=section&id=4.c%20Market%20risk) Market risk from trading positions is managed using VaR, investment limits, and stress tests, with interest rate risk assessed via EaR and EVE under Basel III Group's Market Risk Capital Requirement (Standard Method, Amounts in KRW billions) | Risk Type | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Interest rate risk | 576.515 | 592.668 | | Stock price risk | 219.900 | 222.544 | | Foreign exchange risk | 299.909 | 113.497 | | **Total** | **1,123.399** | **941.482** | - Interest rate risk for non-trading positions is measured using the Basel III IRRBB method, assessing changes in Economic Value of Equity (△EVE) and Net Interest Income (△NII)[370](index=370&type=chunk)[374](index=374&type=chunk) - The Group's net foreign currency exposure was **W 7.37 trillion** as of Dec 31, 2021, up from **W 4.32 trillion** in 2020[379](index=379&type=chunk)[382](index=382&type=chunk) [Liquidity Risk](index=82&type=section&id=4.d%20Liquidity%20risk) Liquidity risk is managed by maintaining adequate liquidity through systematic monitoring, early detection, and stress testing, with short-term liabilities being a key focus - The Group manages liquidity risk by comparing liquidity requirements under normal and stress situations (internal, external, and combined crises) and monitoring various liquidity indices[383](index=383&type=chunk)[384](index=384&type=chunk)[385](index=385&type=chunk) Maturity of Non-Derivative Financial Liabilities (Dec 31, 2021, Amounts in KRW billions) | Maturity | Amount | | :--- | :--- | | Less than 1 month | 258,829.710 | | 1~3 months | 47,580.176 | | 3~6 months | 52,503.110 | | 6 months ~ 1 year | 83,879.492 | | 1~5 years | 77,760.091 | | More than 5 years | 13,079.460 | | **Total** | **533,632.039** | [Fair Value Measurement](index=85&type=section&id=4.e%20Measurement%20of%20fair%20value) Fair value measurements are categorized into a three-level hierarchy based on input observability, with a significant portion of financial instruments measured at Level 3 - Fair value is determined using a three-level hierarchy: Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[394](index=394&type=chunk) Fair Value Hierarchy of Financial Instruments (Dec 31, 2021, Amounts in KRW billions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Financial Assets at Fair Value** | 33,497.763 | 83,457.029 | 14,086.479 | 131,041.271 | | **Financial Liabilities at Fair Value** | 1,560.286 | 3,460.166 | 7,959.207 | 12,979.659 | [Capital Risk Management](index=112&type=section&id=4.i%20Capital%20risk%20management) The Group manages capital to comply with Basel III requirements, maintaining capital ratios well above regulatory minimums as of December 31, 2021 - The Group is required to maintain minimum capital ratios under Basel III: Total Capital Ratio (**8.0%**), Tier I (**6.0%**), and Common Equity Tier I (**4.5%**), plus additional buffers[453](index=453&type=chunk) Capital Adequacy Ratios (Basel III) | Ratio | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total capital ratio | 16.20% | 15.74% | | Tier I capital ratio | 14.94% | 14.37% | | Common stock ratio (CET1) | 13.10% | 12.87% | [47. Business combination](index=271&type=section&id=47.%20Business%20combination) The Group completed several business combinations in 2020 and 2021, including the acquisition of Neoplux and Leaders Financial Sales departments, and the merger of Shinhan Life and Orange Life - The Group acquired Neoplux Co., Ltd. (now Shinhan Venture Investment) in 2020, recognizing **W 14.0 billion** in goodwill[855](index=855&type=chunk)[859](index=859&type=chunk) - On July 1, 2021, Shinhan Life Insurance Co., Ltd. and Orange Life Insurance Co., Ltd. completed their merger[861](index=861&type=chunk) - The Group acquired business departments from Leaders Financial Sales Co., Ltd. in 2021, recognizing **W 13.9 billion** in goodwill[860](index=860&type=chunk) [49. Uncertainty due to changes in domestic and global economic conditions](index=274&type=section&id=49.%20Uncertainty%20due%20to%20changes%20in%20domestic%20and%20global%20economic%20conditions) The report addresses ongoing economic uncertainty from the COVID-19 pandemic, detailing its impact on expected credit losses and the Group's exposure to affected industries and moratorium loans - The rapid spread of COVID-19 continues to create economic uncertainty, which may increase expected credit losses and negatively impact the Group's ability to generate revenue[865](index=865&type=chunk) Shinhan Bank Exposure to COVID-19 Affected Industries (Dec 31, 2021, Amounts in KRW billions) | Industry | Total Exposure | | :--- | :--- | | Lodging | 3,656.464 | | Oil/petroleum refinery | 3,881.950 | | Clothing manufacturing | 3,075.249 | | Airlift passenger | 643.413 | | Travel | 132.830 | Loans under Moratorium (Dec 31, 2021, Amounts in KRW billions) | Bank | Moratorium of interest payments | Moratorium of repayment in installments | Total | | :--- | :--- | :--- | :--- | | Shinhan Bank | 224.449 | 1,342.366 | 1,632.588 | | Jeju Bank | 0.348 | 276.193 | 276.541 |

Shinhan Financial Group Co., Ltd. (NYSE:SHG) Q4 2021 Earnings Conference Call February 9, 2022 1:00 AM ET Company Participants Heo Young-Taeg - Group CMO Bang Dong-Kwon - Group CRO Kim Myoung-hee - Group CDO Conference Call Participants Kim Jin-Sang - Hyundai Automobile Securities Lee Byung Gun - DB Securities Josie Hung - JPMorgan Yafei Tian - Citi Securities Mike Makdad - Morningstar Sin-Young Park - Goldman Sachs Unidentified Company Representative [Foreign Language] Recording in progress Group CSSO; Cor ...