Shinhan Financial (SHG)
NYSE:SHG
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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:65Neutral
Price Target:
$64.00
â–˛(17.45% Upside)
Action:ReiteratedDate: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 multi‑product group structure — banking, card, life insurance, securities and asset management — provides structural revenue diversification and cross‑sell opportunities. This reduces reliance on a single cycle, supports fee diversification, and underpins more stable earnings over a medium‑term horizon.
Negative Factors
Rising leverage and thinner equity cushion
Balance‑sheet leverage rising into 2025 and a reduced equity buffer weaken loss‑absorbing capacity and raise regulatory and market scrutiny. Over a multi‑month horizon this constrains flexibility for lending growth, large dividends or further buybacks without issuing capital or cutting other uses of funds.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified financial services franchise
Shinhan’s multi‑product group structure — banking, card, life insurance, securities and asset management — provides structural revenue diversification and cross‑sell opportunities. This reduces reliance on a single cycle, supports fee diversification, and underpins more stable earnings over a medium‑term horizon.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.71B
Dividend Yield2.86%
Average Volume (3M)359.27K
Price to Earnings (P/E)18.5
Beta (1Y)0.78
Revenue Growth-4.88%
EPS Growth4.84%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.69
Shares Outstanding474,654,360
10 Day Avg. Volume404,131
30 Day Avg. Volume359,275
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)0.72
Price to Sales (P/S)0.96
P/FCF Ratio6.19
Enterprise Value/Market Cap5.55K
Enterprise Value/Revenue5.15
Enterprise Value/Gross Profit9.13
Enterprise Value/Ebitda21.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.79
Revenue Forecast (FY)$11.06B
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
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 client...
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 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 | -32.62T | 148.53B | -4.27T | -11.03T | -12.03T |
| Financing Cash Flow | 26.24T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Negative
54.49
Price Trends
62.68
Negative
58.20
Positive
53.50
Positive
Market Momentum
-0.67
Positive
44.65
Neutral
39.59
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 54.49 is below the 20-day moving average (MA) of 61.44, below the 50-day MA of 62.68, and above the 200-day MA of 53.50, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.59 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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.64B | 11.79 | 19.28% | 4.82% | 8.72% | 27.70% | |
69 Neutral | $35.88B | 8.02 | 9.81% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $28.71B | 18.46 | 8.70% | 2.86% | -4.88% | 4.84% | |
65 Neutral | $16.25B | 6.51 | 9.31% | 3.71% | -2.90% | 16.10% | |
64 Neutral | $34.92B | 8.31 | 13.55% | 2.48% | 5.89% | 34.68% | |
57 Neutral | $20.91B | 9.97 | 11.15% | 4.98% | 1.13% | -11.93% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
60.83
28.96
90.87%
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1.35
62.86%
BSBR
Banco Santander Brasil
5.61
1.08
23.84%
BAP
Credicorp
322.43
144.15
80.85%
KB
Kb Financial Group
99.37
46.01
86.23%
WF
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65.73
32.40
97.21%
Shinhan Financial Group Co Corporate Events
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,...
Shinhan Financial Group Posts Higher 2025 Profit Despite Revenue Decline in Preliminary Results
Feb 5, 2026
On February 5, 2026, Shinhan Financial Group reported preliminary, unaudited consolidated results for fiscal 2025 under K-IFRS, showing full-year net income of KRW 5.08 trillion, up 11.6% year-on-year, despite a 12.7% drop in revenue, while fourth...
Shinhan Financial Group Sets February 20, 2026 Record Date for 2025 Cash Dividend
Feb 5, 2026
On February 5, 2026, Shinhan Financial Group Co., Ltd., the South Korean financial services holding company, announced that it has set February 20, 2026 as the record date for determining shareholders entitled to receive its annual cash dividend f...
Shinhan Financial Group Sets 2026 Quarterly Dividend Record Dates After Legal Change
Feb 5, 2026
On February 5, 2026, Shinhan Financial Group announced that, following a January 21, 2025 amendment to Korea’s Financial Investment Services and Capital Markets Act allowing boards to set profit-dividend record dates, its board has pre-deter...
Shinhan Financial Group Launches KRW 500 Billion Share Buyback for Cancellation
Feb 5, 2026
On February 5, 2026, Shinhan Financial Group’s board approved a new trust agreement to repurchase up to 5,537,098 common shares on the Korea Exchange for an estimated KRW 500 billion, based on a reference price of KRW 90,300 per share. The b...
Shinhan Financial Group Approves KRW 500 Billion Treasury Share Cancellation Plan
Feb 5, 2026
On February 5, 2026, Shinhan Financial Group’s board of directors approved the cancellation of treasury shares to be acquired under a previously announced buyback, targeting an estimated KRW 500 billion of common stock. The plan envisages pu...
Shinhan Financial Group Ends KRW 800 Billion Treasury Share Trust as Agreement Expires
Jan 30, 2026
On January 30, 2026, Shinhan Financial Group Co., Ltd. announced the termination of a trust agreement originally entered into on July 31, 2025 for the acquisition of its own shares. The agreement, concluded with NH Investment Securities and total...
Shinhan Financial Group Sets February 5, 2026 FY2025 Earnings Release and Announces Trading Blackout
Jan 21, 2026
Shinhan Financial Group Co., Ltd., a leading South Korean financial services holding company active in banking, securities, insurance and asset management, serves both retail and corporate clients in Korea and increasingly targets international in...
Shinhan Financial Group Reports Slight Stake Reduction by Largest Shareholder NPS
Jan 21, 2026
On January 21, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service (NPS), its largest shareholder, modestly reduced its stake based on the shareholder registry as of December 31, 2025. NPS’s holdings fell from...
Shinhan Financial Group Names Samil PwC as External Auditor for 2026–2028
Dec 30, 2025
On December 30, 2025, Shinhan Financial Group announced a change in its external auditor, signaling an adjustment to its financial reporting and oversight arrangements. The group will replace Samjong KPMG, which served as its external auditor for ...
Shinhan Financial Group Sets Record Date for 2025 Shareholders’ Meeting
Dec 10, 2025
Shinhan Financial Group has announced that shareholders registered as of December 31, 2025, will be eligible to exercise their voting rights at the Annual General Meeting of Shareholders for the fiscal year 2025. This announcement is significant a...
Shinhan Financial Group Updates Dividend Record Date Policy for FY2025
Dec 10, 2025
Shinhan Financial Group announced an amendment to its Articles of Incorporation, allowing the Board of Directors to set the record date for dividends, aligning with global standards. This change was approved at the Annual General Meeting on March ...
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.