Shinhan Financial Group(US:SHG)2024-10-25 07:42Financial Performance (3Q24) - Net income decreased by 13.1% QoQ to KRW 1,239 billion due to non-interest losses[7, 8] - Interest income increased by 1.2% QoQ driven by loan growth, accumulating to KRW 3.99 trillion, a 4.4% YoY increase[7, 8] - Non-interest income decreased by 25.6% QoQ due to derivative trading losses, accumulating to KRW 2.94 trillion, a 0.1% YoY decrease[7, 8] - G&A expenses increased by 1.2% QoQ, accumulating to KRW 4.33 trillion, a 0.9% YoY increase, with a cumulative CIR of 37.9%[7, 8] - Credit costs remained stable, with a group accumulated CCR of 44bp, a 4bp decrease compared to 1H24[7, 8] Capital Management and Shareholder Returns - The CET1 ratio is 13.13%[8] - A KRW 540 DPS was delivered in 3Q24[8] - Share buybacks and cancellations of KRW 400 billion are planned, with KRW 250 billion in 4Q24 and an additional KRW 150 billion in early 2025[8] Digitalization - AI service MAU reached 5.19 million users[20] - B2B financial solutions reached KRW 243.1 billion in accumulated BaaS utilization[20] - Digital operating profit before expenses increased by 15% YoY to KRW 432 billion[20] ESG Initiatives - The company is implementing initiatives to reduce emissions and achieve net-zero emissions by 2050[21] - Green finance initiatives totaled KRW 4.1 trillion in 3Q24[21] - Inclusive/Co-Prosperity finance initiatives totaled KRW 3.6 trillion in 3Q24[21] Asset Quality - Group NPL ratio was 0.71%[35] - SHB's delinquency rate remained stable after a 5bp decrease in 2Q[18] - SHC's delinquency rate improved from 2Q, but the 2M delinquency migration rate rose by 1bp[18]