Education
About Us
Working with TipRanks
Follow Us
Shinhan Financial Group Co Ltd (SHG)
NYSE:SHG
Top Page
Shinhan Financial Group Co
(NYSE:SHG)
Rating:67Neutral
Price Target:
$52.00
â–²(8.24% Upside)
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.18B
Dividend Yield2.53%
Average Volume (3M)165.96K
Price to Earnings (P/E)7.2
Beta (1Y)0.84
Revenue Growth-3.83%
EPS Growth4.06%
CountryUS
Employees189
SectorFinancial
Sector Strength73
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.19
Shares Outstanding485,494,930
10 Day Avg. Volume128,999
30 Day Avg. Volume165,961
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.72
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price Target
$52.00Price Target Upside8.24% Upside
Rating ConsensusHold
Number of Analyst Covering0
Shinhan Financial Group Co Business Overview & Revenue Model
Company DescriptionShinhan Financial Group Co., Ltd. (SHG) is a leading financial services conglomerate based in South Korea, offering a comprehensive range of services including banking, insurance, asset management, and securities. Established in 2001, the group operates through its various subsidiaries, with Shinhan Bank being the flagship entity. The company focuses on providing personal and corporate banking services, wealth management, and investment solutions, catering to both domestic and international clients.
How the Company Makes MoneyShinhan Financial Group generates revenue primarily through its banking operations, including interest income from loans and mortgages, as well as fees from various financial services. The company earns significant income from its insurance segment through premiums collected and investment income from policyholder funds. Additionally, asset management and securities services contribute to revenue through management fees and commissions. The group has established partnerships with various domestic and international entities, enhancing its service offerings and market reach. Economic factors, interest rate fluctuations, and regulatory changes also play crucial roles in influencing the company's overall earnings.
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong noninterest income growth and improved CET1 ratio, demonstrating solid financial performance. There were significant shareholder returns through dividends and share buybacks. However, the call also emphasized challenges such as increased credit costs, asset quality concerns, and weak loan growth, which are indicative of a cautious outlook. The sentiment is balanced with notable achievements countered by considerable challenges.Q2-2025 Updates
Positive Updates
Improved CET1 Ratio
As of the end of June 2025, the Group's CET1 ratio was provisionally estimated at 13.59%, an improvement of 32 bps compared to the previous quarter.
Strong Noninterest Income Growth
The Group's noninterest income grew 34.7% QoQ with improvement across all segments, particularly securities and FX derivative-related gains.
Shareholder Returns
The Board of Directors resolved to pay a cash dividend of KRW571 per share for Q2 and a share buyback amounting to KRW800 billion, with a total share buyback for 2025 expected to be approximately KRW1.250 trillion.
Net Income Growth
In Q2 2025, the Group recorded a net income of KRW1,549.1 billion, growing 4.1% QoQ despite an increase in credit cost.
ROE and ROTCE Increase
ROE and ROTCE increased by 0.7% each, recording 11.4% and 12.9% respectively.
Negative Updates
Increased Credit Cost
The credit cost ratio showed a slight increase due to delayed economic recovery, with expectations to remain in the mid- to late 40 bps range.
Challenges in Retail Lending
The Bank's NIM declined by 16 bps QoQ, and the growth in the Korean won loan book was limited.
Asset Quality Concerns
Amid the delayed economic recovery, there is an expectation of rising credit risk for corporates and challenges for vulnerable customers.
Weak Loan Growth
Asset growth slowed down, particularly in the corporate loan segment, due to a focus on profitability and a conservative approach.
Card Business Challenges
The credit card fee income was still sluggish on a YoY basis, and the delinquency roll rate peaked at 0.45% in February.
Company Guidance
During the 2025 Q2 earnings call for Shinhan Financial Group, several key metrics and guidance details were discussed. The Group's Common Equity Tier 1 (CET1) ratio improved by 32 basis points (bps) to 13.59% quarter-over-quarter (QoQ), driven by solid earnings and efficient risk-weighted asset (RWA) management. A cash dividend of KRW571 per share was declared, alongside a share buyback of KRW800 billion, with KRW600 billion slated for execution in H2 2025 and KRW200 billion in January 2026. The Group's net income rose by 4.1% QoQ to KRW1,549.1 billion, although credit costs saw a slight increase due to delayed economic recovery. The cost-to-income ratio was stable at 36.6% in H1, while noninterest income surged by 34.7% QoQ, driven by gains in securities and foreign exchange derivatives. The Group's return on equity (ROE) and return on tangible common equity (ROTCE) increased by 0.7% to 11.4% and 12.9%, respectively. Despite challenges in market interest rates, net interest income remained stable, supported by asset growth and effective execution of liquidity management strategies. The Group also emphasized its strategic focus on maintaining capital stability and enhancing shareholder returns, with plans for a flexible approach to shareholder return mix based on market conditions.Shinhan Financial Group Co Financial Statement Overview
Summary
Shinhan Financial Group shows stable revenue growth and strong EBIT margins. However, the balance sheet reveals moderate leverage typical in banking, with potential financial risks. Cash flow challenges exist, with negative growth in Free Cash Flow and Operating Cash Flow ratios indicating liquidity issues.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.27T | 35.38T | 14.18T | 13.25T | 25.75T | 11.59T |
| Gross Profit | 15.89T | 15.57T | 14.22T | 13.25T | 20.84T | 11.59T |
| EBITDA | 7.77T | 7.31T | 7.15T | 7.37T | 6.49T | 0.00 |
| Net Income | 4.74T | 4.45T | 4.37T | 4.67T | 4.02T | 3.41T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 10.00T> | 10.00T> | 10.00T> | 94.21T | 94.37T | 92.87T |
| Total Debt | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 57.19T | 56.05T | 53.72T | 50.73T | 47.29T | 44.07T |
Cash Flow | ||||||
| Free Cash Flow | 4.09T | 3.85T | -186.39B | 6.65T | 10.19T | -5.05T |
| Operating Cash Flow | 4.70T | 4.63T | 1.91T | 7.59T | 11.08T | -4.41T |
| Investing Cash Flow | -3.25T | 148.53B | -4.27T | -11.03T | -12.03T | -3.03T |
| Financing Cash Flow | 3.24T | -182.65B | 8.38T | 3.39T | 4.96T | 7.88T |
Shinhan Financial Group Co Technical Analysis
Positive
48.04
Price Trends
48.17
Negative
42.89
Positive
38.79
Positive
Market Momentum
-0.16
Positive
47.22
Neutral
28.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHG, the sentiment is Positive. The current price of 48.04 is below the 20-day moving average (MA) of 48.89, below the 50-day MA of 48.17, and above the 200-day MA of 38.79, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
The implementation of IFRS 17 beginning on January 1, 2023 renders certain of our historical financial information as of December 31, 2021 and for the year ended December 31, 2021, included in this annual report, not directly comparable with our financial information as of December 31, 2022 and 2023 and for the years ended December 31, 2022 and 2023 included in this annual report. Q4, 2023
2.
Evolving regulatory framework for artificial intelligence and machine learning technology, may have an adverse impact on our business, financial condition and results of operations. Q4, 2023
3.
Our business may be materially and adversely affected by legal claims and regulatory actions against us. Q4, 2023
Shinhan Financial Group Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.22B | 11.99 | 18.54% | 5.52% | 5.16% | 27.77% | |
71 Outperform | $29.71B | 8.72 | 11.76% | 1.90% | -4.58% | 39.03% | |
70 Outperform | $19.02B | 18.66 | 9.43% | 5.83% | -3.77% | -10.59% | |
68 Neutral | $17.89B | 12.03 | 10.28% | 3.73% | 9.80% | 1.66% | |
67 Neutral | $22.18B | 7.22 | 8.58% | 2.53% | -3.83% | 4.06% | |
66 Neutral | $13.10B | 6.71 | 8.90% | 4.03% | -3.55% | 1.59% | |
62 Neutral | $28.40B | 7.35 | 10.14% | 2.21% | -3.11% | 28.74% |
* Financial Sector Average
Performance Comparison
SHG
Shinhan Financial Group Co
48.04
4.81
11.13%
BBD
Banco Bradesco SA
3.11
0.50
19.16%
BSBR
Banco Santander Brasil
5.27
-0.08
-1.50%
BAP
Credicorp
256.09
94.10
58.09%
KB
Kb Financial Group
79.31
14.05
21.53%
WF
Woori Finance Holdings Co
54.22
17.37
47.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.