Shinhan Financial (SHG)
NYSE:SHG
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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:65Neutral
Price Target:
$72.00
▲(32.13% Upside)
Action:Reiterated
Date:03/07/26
The score is primarily driven by solid but mixed financial performance—stronger revenue/profitability trends tempered by rising leverage and cash-flow volatility. Valuation is a meaningful positive (low P/E and dividend support), while technical signals are weaker in the near term due to trading below key short-term moving averages and subdued momentum.
Positive Factors
Diversified financial services franchise
Shinhan’s broad mix of retail and corporate banking, cards, insurance, securities and asset management creates multiple, complementary revenue streams. This diversification reduces reliance on any single cycle, enables cross‑sell to deepen customer share‑of‑wallet and supports more stable long‑run earnings.
Negative Factors
High and rising leverage
Rising leverage and a smaller equity cushion increase sensitivity to credit losses, funding shocks and regulatory capital requirements. For a regional banking group, elevated leverage constrains strategic flexibility, raises funding costs over time and amplifies downside during cycles or stress events.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified financial services franchise
Shinhan’s broad mix of retail and corporate banking, cards, insurance, securities and asset management creates multiple, complementary revenue streams. This diversification reduces reliance on any single cycle, enables cross‑sell to deepen customer share‑of‑wallet and supports more stable long‑run earnings.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.24B
Dividend Yield2.86%
Average Volume (3M)302.03K
Price to Earnings (P/E)6.6
Beta (1Y)0.72
Revenue Growth1.72%
EPS Growth13.27%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)9897.76
Shares Outstanding474,654,360
10 Day Avg. Volume244,854
30 Day Avg. Volume302,033
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)0.72
Price to Sales (P/S)0.96
P/FCF Ratio6.19
Enterprise Value/Market Cap6.10K
Enterprise Value/Revenue5.15
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda21.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.86
Revenue Forecast (FY)$11.18B
Shinhan Financial Group Co Business Overview & Revenue Model
Company Description
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Life Insurance, Credit, and Others. It offers retail bankin...
How the Company Makes Money
SHG makes money primarily by earning income across its regulated financial subsidiaries and consolidating those results at the holding-company level. Key revenue streams include: (1) Net interest income: earned when its banking subsidiaries collec...
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with stable capital management and positive shareholder returns. However, challenges such as declined net income, increased RWA, and concerns over credit costs and asset quality were significant. While there were some positive aspects, notably in interest income growth and asset quality management, the lowlights indicate substantial areas of concern.Positive Updates
Stable CET1 Ratio
Shinhan Financial Group maintained a stable CET1 ratio of 13.56% by the end of September 2025, despite challenges such as won depreciation and loan asset growth.
Negative Updates
Net Income Decline
Shinhan Financial Group's Q3 net income declined by 8.1% Q-o-Q, partly due to a decrease in securities-related profits reflecting market rate movements.
Read all updates
Q3-2025 Updates
Positive
Negative
Stable CET1 Ratio
Shinhan Financial Group maintained a stable CET1 ratio of 13.56% by the end of September 2025, despite challenges such as won depreciation and loan asset growth.
Read all positive updates
Company Guidance
During the 2025 third-quarter earnings call for Shinhan Financial Group, several key financial metrics were discussed. The group's Common Equity Tier 1 (CET1) ratio was preliminarily estimated at 13.56%, showing stability despite challenges like the depreciation of the won. Shinhan Financial Group announced a cash dividend of KRW 570 per share for the quarter, with an expected total shareholder return of KRW 2.35 trillion for 2025, combining cash dividends and share buybacks. The group's net income for Q3 was KRW 1.4235 trillion, with a controlled credit cost ratio of 46 basis points, which increased by 2 basis points year-on-year but improved quarter-over-quarter. The cost/income ratio remained stable, and the return on equity (ROE) and return on tangible common equity (ROTCE) rose by 0.7 percentage points year-on-year to 11.1% and 12.5%, respectively. The bank's net interest margin (NIM) rose to 1.56%, up by 1 basis point quarter-over-quarter, while group interest income increased by 2.9% quarter-over-quarter. Noninterest income decreased due to market conditions, though brokerage and investment banking fees surged. The group's SG&A expenses rose by 2.2% quarter-on-quarter, and the credit cost decreased by 30.1% quarter-on-quarter. The NPL coverage ratio saw mixed results, with the bank's ratio improving by 12.17 percentage points quarter-on-quarter.Shinhan Financial Group Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.77T | 35.38T | 33.80T | 24.56T | 25.75T |
| Gross Profit | 21.21T | 15.57T | 14.88T | 13.78T | 20.84T |
| EBITDA | 7.54T | 7.31T | 7.15T | 7.37T | 6.49T |
| Net Income | 5.04T | 4.45T | 4.37T | 4.67T | 4.02T |
Balance Sheet | |||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 27.68T | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 53.21T | 56.05T | 53.72T | 50.73T | 47.97T |
Cash Flow | |||||
| Free Cash Flow | 6.20T | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 6.46T | 4.63T | 529.85B | 7.59T | 11.08T |
| Investing Cash Flow | -10.90T | 148.53B | -4.27T | -11.03T | -12.03T |
| Financing Cash Flow | 1.25T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Positive
54.49
Price Trends
64.66
Positive
59.81
Positive
54.97
Positive
Market Momentum
1.51
Negative
66.00
Neutral
82.22
Negative
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 54.49 is below the 20-day moving average (MA) of 63.93, below the 50-day MA of 64.66, and below the 200-day MA of 54.97, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $25.16B | 11.42 | 19.28% | 4.82% | 22.61% | 34.04% | |
69 Neutral | $36.73B | 7.18 | 10.45% | 2.79% | 1.35% | 7.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $29.24B | 6.55 | 8.98% | 2.86% | 1.72% | 13.27% | |
65 Neutral | $15.14B | 10.15 | 9.37% | 3.71% | 7.90% | 8.29% | |
58 Neutral | $19.92B | 17.87 | 11.11% | 4.98% | 17.17% | -1.33% | |
54 Neutral | $34.45B | 9.83 | 13.55% | 2.48% | 27.54% | 28.12% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
64.13
26.06
68.45%
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3.47
0.83
31.39%
BSBR
Banco Santander Brasil
5.33
0.21
4.16%
BAP
Credicorp
316.31
122.81
63.47%
KB
Kb Financial Group
104.18
35.28
51.20%
WF
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63.37
24.26
62.03%
Shinhan Financial Group Co Corporate Events
Shinhan Financial Group Board Approves KRW 348.9 Billion Quarterly Cash Dividend
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group’s board approved a quarterly cash dividend, underscoring its continued commitment to shareholder returns in the Korean financial sector. The decision reflects stable capital management at one of Sou...
Shinhan Financial Group Posts Strong Profit Rebound in Preliminary 1Q 2026 Results
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group reported preliminary consolidated results for the first quarter of 2026 showing a sharp rebound in profitability. Group revenue surged 80% quarter-on-quarter and 77% year-on-year to KRW 28.5 trillion, whi...
Shinhan Financial Group Adopts ‘Value-Up +++’ Plan to Lift Returns and Strengthen Capital
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group’s board approved an upgraded medium-term capital and shareholder return framework, branded “Shinhan Value-Up +++ (Triple Plus),” building on a value-up plan first announced on July 26, 2...
Shinhan Financial Group Reports Slight Stake Reduction by National Pension Service
Apr 20, 2026
On April 20, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service, its largest shareholder, had reduced its stake in the group. NPS’s holdings fell from 43,441,749 common shares, or 9.15% as of February 20, 202...
Shinhan Financial Group Sets April 23, 2026 Date for 1Q Earnings Release and Investor Call
Apr 8, 2026
Shinhan Financial Group announced that it will hold its first-quarter 2026 earnings release conference on April 23, 2026, with the event streamed live online for both PC and mobile in Korean and English. Investors will be able to participate in a ...
Shinhan Financial Group Slightly Lifts Effective Stake in Jeju Bank as of March 31, 2026
Mar 31, 2026
On March 31, 2026, Shinhan Financial Group disclosed that its effective shareholding in regional lender Jeju Bank had risen slightly, from 24,196,024 shares, or 64.01%, to 24,207,024 shares, or 64.04%, due to the inclusion of additional related pa...
Shinhan Financial Group Confirms High-Dividend Status and Updates 2025 Value-up Plan
Mar 26, 2026
Shinhan Financial Group Co., Ltd., a major South Korean financial services holding company, reported that its financial statements and consolidated accounts for the 25th fiscal year were approved at the Annual General Meeting of Shareholders held ...
Shinhan Financial Group AGM Approves 2025 Results, Governance Changes and KRW 1.25 Trillion Dividend
Mar 26, 2026
On March 26, 2026, Shinhan Financial Group held its Annual General Meeting of Shareholders for fiscal year 2025, where all seven agenda items were approved as proposed, including FY2025 standalone and consolidated financial statements, a reduction...
Shinhan Financial Group Reports Shift in National Pension Service Ownership Stake
Mar 12, 2026
On March 12, 2026, Shinhan Financial Group disclosed a change in the shareholding of its largest shareholder, Korea’s National Pension Service, based on the shareholder registry as of February 20, 2026. NPS’s holdings in Shinhan declin...
Shinhan Financial Group Files 2025 Governance and Remuneration Report with Korea Exchange
Mar 5, 2026
On March 5, 2026, Shinhan Financial Group submitted its 2025 Annual Report on Corporate Governance Remuneration System to the Korea Exchange, fulfilling a key disclosure requirement for listed companies. The group also stated that an English vers...
Shinhan Financial Group Files 2025 Audited Results for Shinhan Bank
Mar 3, 2026
On March 3, 2026, Shinhan Financial Group disclosed the 2025 audit reports for Shinhan Bank, its wholly owned banking subsidiary, prepared under Korean International Financial Reporting Standards as adopted in Korea. The consolidated financial sta...
Shinhan Financial Group Files 2025 Audited Results for Shinhan Card
Mar 3, 2026
On March 3, 2026, Shinhan Financial Group reported that its wholly owned unit Shinhan Card had filed independent audit reports for its 2025 consolidated and separate financial statements, prepared under Korean IFRS. The statements for the year end...
Shinhan Financial Group Files 2025 Audited Results for Shinhan Life
Mar 3, 2026
Shinhan Financial Group Co., Ltd., a major South Korean financial services holding company, operates across banking, insurance, securities and asset management, with Shinhan Life serving as its wholly owned life insurance arm. The group plays a ce...
Shinhan Financial Group Files 2025 Audited Financial Statements on Form 6-K
Mar 3, 2026
On March 3, 2026, Shinhan Financial Group disclosed its independent audit reports for its 2025 consolidated and separate financial statements prepared under International Financial Reporting Standards as adopted by the Republic of Korea. The audit...
Shinhan Financial Group Sets March 26 AGM to Reshape Board and Capital Reserves
Mar 3, 2026
Shinhan Financial Group has called its 25th annual general meeting of shareholders for March 26, 2026, at Shinhan Bank’s headquarters in central Seoul. The meeting will review and approve the group’s separate and consolidated financial...
Shinhan Bank to Issue KRW 200 Billion in Basel III Tier 2 Contingent Capital
Feb 26, 2026
On February 26, 2026, Shinhan Bank’s board of directors approved the issuance of write-down contingent capital securities, classified as Basel III-compliant Tier 2 subordinated debt. The instruments have an issuance limit of KRW 200 billion,...
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.