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Shinhan Financial Group Co Ltd (SHG)
NYSE:SHG
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Shinhan Financial Group Co
(NYSE:SHG)
62Neutral
Shinhan Financial Group Co (SHG) vs. S&P 500 (SPY)
Market Cap
$16.93B
Dividend Yield4.09%
Average Volume (3M)324.31K
Price to Earnings (P/E)5.1
Beta (1Y)1.00
Revenue Growth-0.66%
EPS Growth0.74%
CountryUS
Employees189
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.21
Shares Outstanding503,445,300
10 Day Avg. Volume209,571
30 Day Avg. Volume324,314
Financial Highlights & Ratios
PEG Ratio6.98
Price to Book (P/B)N/A
Price to Sales (P/S)1.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Shinhan Financial Group Co Business Overview & Revenue Model
Company DescriptionShinhan Financial Group Co (SHG) is a leading financial services provider headquartered in Seoul, South Korea. The company operates in various sectors including banking, insurance, securities, and asset management. Through its subsidiaries, Shinhan offers a diverse range of financial products and services such as retail and corporate banking, investment banking, wealth management, and credit card services. The group is committed to delivering innovative financial solutions and maintaining strong customer relationships across its extensive domestic and international network.
How the Company Makes MoneyShinhan Financial Group Co generates revenue through a diversified portfolio of financial services. Its primary revenue streams include interest income from its extensive banking operations, which encompass both retail and corporate clients, and fees and commissions from asset management and investment banking services. Additionally, the group earns from insurance premiums through its insurance arm and transaction fees from its credit card services. Key partnerships and strategic alliances with other financial institutions and technology firms also play a crucial role in enhancing Shinhan's service offerings and expanding its market reach, contributing significantly to its overall earnings.
Shinhan Financial Group Co Financial Statement Overview
Summary
Shinhan Financial Group shows stable revenue growth and profitability with strong EBIT margins. However, moderate leverage and negative cash flow growth highlight potential financial risks, necessitating improvements in cash management.Income Statement
Shinhan Financial Group demonstrated steady revenue growth with a Revenue Growth Rate of 3.03% from 2023 to 2024. The Gross Profit Margin remained consistent, as Total Revenue equaled Gross Profit. Net Profit Margin improved slightly to 3.05% in 2024. However, the EBIT margin showed minor fluctuation, maintaining a strong position at 59.74% in 2024. The absence of EBITDA data limits the depth of analysis.70
Positive
Balance Sheet
The company's Debt-to-Equity Ratio stands at 2.34 in 2024, indicating a moderate level of leverage typical for the banking industry. Return on Equity (ROE) improved to 7.94% in 2024, reflecting effective use of equity. The Equity Ratio declined slightly to 7.58%, suggesting a small increase in financial leverage, which could pose some risks if not managed carefully.65
Positive
Cash Flow
Shinhan Financial Group experienced a significant decline in Free Cash Flow, leading to a negative Free Cash Flow Growth Rate. The Operating Cash Flow to Net Income Ratio was negative in 2024, indicating challenges in converting earnings into cash. The Free Cash Flow to Net Income Ratio was also negative, suggesting cash flow difficulties which need to be addressed to improve financial stability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.61T | 14.18T | 22.61T | 21.86T | 20.64T |
| Gross Profit | ||||
| 14.61T | 14.22T | 22.61T | 21.86T | 20.64T |
| EBIT | ||||
| 8.73T | 8.48T | 13.90T | 5.49T | 4.67T |
| EBITDA | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income Common Stockholders | ||||
| 4.45T | 4.37T | 4.67T | 4.02T | 3.41T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 35.23T | 30.40T | 29.90T | 94.37T | 92.87T |
| Total Assets | ||||
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | ||||
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Net Debt | ||||
| 95.97T | 90.36T | 88.58T | 83.60T | 71.44T |
| Total Liabilities | ||||
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | ||||
| 56.05T | 53.72T | 48.44T | 47.29T | 44.07T |
| Cash Flow | Free Cash Flow | |||
| -34.51T | -186.39B | 6.65T | 10.19T | -5.05T |
| Operating Cash Flow | ||||
| -34.25T | 529.85B | 7.59T | 11.08T | -4.41T |
| Investing Cash Flow | ||||
| 148.53B | -4.27T | -11.03T | -12.03T | -3.03T |
| Financing Cash Flow | ||||
| 38.69T | 9.76T | 3.39T | 4.96T | 7.88T |
Shinhan Financial Group Co Technical Analysis
Negative
32.08
Price Trends
33.44
Negative
34.99
Negative
37.60
Negative
Market Momentum
-0.18
Negative
43.98
Neutral
29.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHG, the sentiment is Negative. The current price of 32.08 is below the 20-day moving average (MA) of 32.20, below the 50-day MA of 33.44, and below the 200-day MA of 37.60, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 29.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHG.
Shinhan Financial Group Co Risk Analysis
Shinhan Financial Group Co disclosed 46 risk factors in its most recent earnings report. Shinhan Financial Group Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shinhan Financial Group Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $203.64B | 9.26 | 13.74% | 5.24% | 6.79% | 8.57% | |
81 Outperform | $54.46B | 8.36 | 9.14% | 2.77% | 8.58% | 35.39% | |
78 Outperform | $98.32B | 11.74 | 8.86% | 2.10% | 8.69% | 50.61% | |
69 Neutral | $19.76B | 5.65 | 9.39% | 4.53% | 3.02% | -4.63% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% | |
62 Neutral | $16.93B | 5.15 | 8.57% | 4.09% | -0.66% | 0.74% |
* Financial Sector Average
Performance Comparison
SHG
Shinhan Financial Group Co
32.08
-1.27
-3.81%
BCS
Barclays
15.36
6.22
68.05%
HSBC
HSBC Holdings
57.43
21.40
59.39%
KB
Kb Financial Group
54.11
3.53
6.98%
SMFG
Sumitomo Mitsui
15.46
4.10
36.09%
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -8.81% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive signs of interest income growth, cost management, and stable asset quality, significant challenges were highlighted by large derivative trading losses and a notable decline in noninterest income. Shareholder returns and capital adequacy provided some positive counterbalance, yet the overall sentiment leans towards concern over income volatility.Highlights
Interest Income Growth
Interest income increased by 1.2% Q-o-Q, driven by growth in the bank's loan book and efficient asset-liability management.
Cost Management
SG&A expenses were well-managed, increasing only 1.2% Q-o-Q, contributing to an improvement in the group's cumulative CIR by 1.2 percentage points Y-o-Y.
Shareholder Returns
The Board approved a third-quarter dividend of KRW 540 per share and announced a share buyback and cancellation totaling KRW 400 billion.
Asset Quality
Bank delinquency rates remained stable, and card delinquency saw additional improvement due to proactive write-downs and sales of non-performing loans.
Capital Adequacy
The CET1 ratio improved by 7 basis points Q-o-Q, estimated at 13.13% as of September 2024.
Lowlights
Derivatives Trading Loss
Shinhan Securities incurred large losses of KRW 135.7 billion due to a trade in KOSPI 200 Futures, impacting the group's noninterest income.
Noninterest Income Decline
Noninterest income decreased by 25.6% Q-o-Q due to losses on securities derivative transactions and valuation impairments on overseas alternative investments.
Net Income Decrease
Net income posted KRW 1.2386 trillion, down 13.1% Q-o-Q, affected by losses in the noninterest income segment.
NIM Decline
Shinhan Bank's NIM recorded 1.56%, down 4 basis points versus the prior quarter, due to lower market rates.
Company Guidance
During Shinhan Financial Group's Q3 2024 earnings call, several key metrics were discussed, reflecting the company's financial performance and strategic actions. The company reported a net income of KRW 1.2386 trillion, representing a decrease of 13.1% quarter-on-quarter (Q-o-Q), primarily due to large losses in the noninterest income segment, particularly a KRW 135.7 billion loss from derivatives trading by Shinhan Securities. Despite this, interest income increased by 1.2% Q-o-Q, driven by a 3.5% growth in bank won loans, contributing to an annual growth rate of 10.2% in this segment. The group's CET1 ratio was noted at 13.13% at the end of September 2024. Additionally, the Board approved a third-quarter dividend of KRW 540 per share and announced a share buyback and cancellation plan totaling KRW 400 billion to enhance shareholder returns. The company's cumulative credit cost ratio improved by 4 basis points, posting 44 basis points, and the cumulative cost-to-income ratio (CIR) improved by 1.2 percentage points year-on-year to 37.9%. These metrics underscore the group's focus on maintaining financial stability while addressing challenges in its securities segment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.