Shinhan Financial Group Co (SHG) AI Stock Analysis

• Market Cap: $24.88B
• Dividend Yield: 2.83%
• Average Volume (3M): 183.94K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.82
• Revenue Growth: -4.88%
• EPS Growth: 4.84%
• Country: US
• Employees: 189
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.00
• Shares Outstanding: 485,494,930
• 10 Day Avg. Volume: 143,112
• 30 Day Avg. Volume: 183,937
• PEG Ratio: 1.13
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 6.38
• Enterprise Value/Market Cap: 3.97
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.21
• Revenue Forecast (FY): $10.69B

• Rating: 70 Outperform
• Price Target: $58.00 ▲(6.44% Upside)

Shinhan Financial Group's stock is supported by strong technical indicators and attractive valuation metrics. However, financial performance is hindered by cash flow challenges and moderate leverage. The earnings call provided a mixed outlook with both positive shareholder returns and concerns over asset quality and income decline.

Positive Factors

Stable Capital Management

Maintaining a stable CET1 ratio indicates strong capital management, ensuring the company can withstand financial stress and regulatory requirements.

Interest Income Growth

Growth in interest income reflects effective asset growth and margin control, contributing to long-term profitability and financial stability.

Improved Asset Quality

Enhanced asset quality management reduces risk exposure, supporting sustainable financial performance and resilience against economic downturns.

Negative Factors

Cash Flow Challenges

Cash flow difficulties can hinder operational flexibility and investment capacity, posing risks to long-term financial health and growth potential.

Net Income Decline

A decline in net income indicates potential issues in maintaining profitability, which could affect future earnings and shareholder returns.

Increased RWA

Rising RWA suggests higher risk exposure, potentially impacting capital adequacy and requiring more capital to meet regulatory standards.

Shinhan Financial Group Co Business Overview & Revenue Model

Company Description

Shinhan Financial Group Co. (SHG) is a leading financial services holding company based in South Korea, established in 2001. It operates through various sectors including banking, asset management, insurance, and investment services. The group is primarily known for its flagship subsidiary, Shinhan Bank, which provides a wide range of financial products and services, including personal and corporate banking, loans, and mortgages. Additionally, SHG includes subsidiaries in securities, asset management, and life insurance, offering comprehensive financial solutions to meet the diverse needs of individuals and businesses.

How the Company Makes Money

Shinhan Financial Group generates revenue through multiple key streams. The primary source of income comes from its banking operations, particularly through interest income derived from loans and mortgages extended to personal and corporate clients. Additionally, service fees from various banking transactions and investment products contribute significantly to its revenue. The group also earns income from its asset management and insurance subsidiaries, including premiums from life and non-life insurance products, as well as management fees from investment funds. Strategic partnerships, such as those with technology firms for digital banking services, enhance customer engagement and can lead to increased transaction volumes, further boosting revenue. Overall, SHG's diversified financial services portfolio and its strong market position in South Korea play crucial roles in its earning capabilities.

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 cash flow challenges, including negative Free Cash Flow growth, indicate potential liquidity issues that need addressing.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.44T	35.38T	33.80T	24.56T	25.75T	25.72T
Gross Profit	15.97T	15.57T	14.88T	13.78T	20.84T	19.47T
EBITDA	5.67T	7.31T	7.15T	7.37T	6.49T	5.52T
Net Income	4.87T	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	0.00	10.00T>	10.00T>	10.00T>	10.00T>	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	57.87T	56.05T	53.72T	50.73T	47.97T	44.07T
Cash Flow
Free Cash Flow	-6.65T	3.85T	-186.39B	6.65T	10.19T	-5.05T
Operating Cash Flow	-6.15T	4.63T	529.85B	7.59T	11.08T	-4.41T
Investing Cash Flow	-5.83T	148.53B	-4.27T	-11.03T	-12.03T	-3.03T
Financing Cash Flow	15.45T	-182.65B	9.76T	3.39T	4.96T	7.88T

Shinhan Financial Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 above the 20-day moving average (MA) of 53.74, above the 50-day MA of 52.73, and above the 200-day MA of 44.68, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHG.

Shinhan Financial Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	73 Outperform	$22.40B	12.63	18.12%	4.93%	8.72%	27.70%
BBD	72 Outperform	$33.28B	9.37	11.78%	2.41%	5.89%	34.68%
SHG	70 Outperform	$24.88B	7.91	8.58%	2.83%	-4.88%	4.84%
KB	70 Outperform	$30.78B	7.95	9.99%	2.81%	-4.64%	24.98%
WF	70 Outperform	$13.65B	6.40	9.61%	3.82%	-2.90%	16.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BSBR	66 Neutral	$22.09B	20.85	9.34%	5.14%	1.13%	-11.93%

Shinhan Financial Group Co Corporate Events

Shinhan Financial Group’s Strategic Acquisition of Athora Stake

On December 5, 2025, Shinhan Life Insurance, a subsidiary of Shinhan Financial Group, resolved to acquire approximately a 1% equity stake in Athora Holding Ltd. The acquisition, valued at EUR 115 million, will be executed through a cash transaction and is intended for investment purposes. This strategic move is expected to strengthen Shinhan’s investment portfolio and enhance its positioning in the financial services industry.

Shinhan Financial Group Announces Issuance of Contingent Capital Securities

On December 4, 2025, Shinhan Financial Group’s board of directors decided to issue bail-in contingent capital securities to meet Basel III capital requirements. This issuance involves domestic, unregistered, unsecured, and uncollateralized hybrid securities worth KRW 270 billion, with a potential increase to KRW 400 billion based on demand. The securities are perpetual with call options available after five years. This move is aimed at bolstering the company’s capital structure and ensuring financial resilience, impacting its operational stability and positioning in the financial industry.

Shinhan Financial Group Reports Stable Q3 2025 Financial Performance

On November 14, 2025, Shinhan Financial Group filed its third-quarter 2025 Business Report, highlighting a consolidated net profit of KRW 4,547 billion, slightly down from the previous year. The report indicates a decrease in net insurance income and a lower cash dividend payout ratio compared to 2024. Despite these challenges, the group’s net operating income remained stable, reflecting its resilience in the financial market.

Shinhan Financial Group Reports Change in Largest Shareholder’s Stake

On November 12, 2025, Shinhan Financial Group Co., Ltd. announced a decrease in the number of common shares owned by its largest shareholder, Korea’s National Pension Service (NPS). The NPS’s holdings reduced from 44,311,470 shares, representing 9.13% as of September 30, 2025, to 44,159,384 shares, representing 9.10% as of November 4, 2025. This change reflects a minor adjustment in the shareholder registry, which may have implications for the company’s shareholder dynamics and market perception.

Shinhan Financial Group Reports Q3 2025 Results with Revenue Decline

On October 28, 2025, Shinhan Financial Group announced its preliminary operating results for the third quarter of 2025. The results showed a significant decline in revenue compared to the previous quarter, with a 59.03% decrease. However, the company experienced a year-over-year increase in operating income and net income, indicating some resilience in its operations. These results reflect the challenges faced by the group in maintaining revenue levels, but also highlight its ability to improve profitability metrics over the year.

Shinhan Financial Group Announces Quarterly Dividend Payment

On October 28, 2025, Shinhan Financial Group’s Board of Directors resolved to distribute quarterly cash dividends amounting to KRW 273,597,111,810, equating to KRW 570 per share. The dividend is set to be paid on November 28, 2025, with a record date of November 4, 2025. This decision underscores the company’s commitment to returning value to its shareholders, although the final dividend amount may be adjusted based on the number of treasury shares acquired by the trustee by the record date.

Shinhan Financial Reports Change in Largest Shareholder’s Stake

On October 24, 2025, Shinhan Financial Group Co., Ltd. announced a change in the shareholding of its largest shareholder, Korea’s National Pension Service (NPS). The NPS’s ownership decreased from 9.30% to 9.13% between August 1 and September 30, 2025, reflecting a reduction of 838,556 shares. This change, based on the shareholder registry as of September 30, 2025, may impact the company’s shareholder dynamics and influence its market positioning.

Shinhan Financial Group Schedules 3Q2025 Earnings Release Conference

Shinhan Financial Group announced its 3Q2025 Earnings Release Conference scheduled for October 28, 2025. The event will be live-streamed and includes a Q&A session, allowing investors to engage directly. The announcement also marks a blackout period from October 14 to October 28, 2025, during which certain trading restrictions apply.

Shinhan Financial Group Denies Lotte Insurance Acquisition Rumors

On September 12, 2025, Shinhan Financial Group clarified that media reports suggesting the company is in the process of acquiring Lotte Insurance are false. This announcement aims to dispel any misinformation and maintain transparency with stakeholders, ensuring that the company’s strategic directions and operations are accurately understood by the market.