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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:71Outperform
Price Target:
$79.00
▲(10.50% Upside)
Action:Upgraded
Date:07/26/26
The score is driven primarily by stronger recent profitability and constructive earnings-call signals (improving ROE/ROTCE, solid capital, and sizable buybacks/dividends). Technicals are supportive with price above key moving averages and moderate momentum. Offsetting these positives are weak/negative and volatile TTM cash flow and elevated leverage, which increase sensitivity to credit/funding and macro conditions.
Positive Factors
Improved Return Metrics
Sustained improvement in ROE/ROTCE indicates better profitability and capital efficiency across the group. Higher returns reflect stronger core banking operations and subsidiary contributions, supporting reinvestment and predictable shareholder distributions while management targets a durable ROE uplift into 2027.
Negative Factors
Elevated Leverage
High balance-sheet leverage limits financial flexibility and magnifies sensitivity to funding costs or credit losses. In a downturn or unfavorable FX/RWA scenario, elevated debt-to-equity increases the chance of capital pressure and constrains capacity for organic growth or aggressive payout policies.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Return Metrics
Sustained improvement in ROE/ROTCE indicates better profitability and capital efficiency across the group. Higher returns reflect stronger core banking operations and subsidiary contributions, supporting reinvestment and predictable shareholder distributions while management targets a durable ROE uplift into 2027.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.28B
Dividend Yield2.68%
Average Volume (3M)271.51K
Price to Earnings (P/E)9.0
Beta (1Y)0.76
Revenue Growth35.45%
EPS Growth15.25%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)10307.76
Shares Outstanding469,450,230
10 Day Avg. Volume243,750
30 Day Avg. Volume271,506
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.72
Price to Sales (P/S)1.11
P/FCF Ratio6.59
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.35
Revenue Forecast (FY)$11.49B
Shinhan Financial Group Co Business Overview & Revenue Model
Company Description
Shinhan Financial Group Co., Ltd. is a prominent financial services provider that operates both within South Korea and globally. The company's diverse activities are organized into six primary divisions: Banking, Credit Card services, Securities, ...
How the Company Makes Money
SHG makes money primarily through earnings generated by its operating subsidiaries across several financial verticals:
1) Banking (typically the largest contributor)
- Net interest income: The core banking business earns interest on loans (e.g., ...
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented multiple material positives: solid and growing quarter net income (+12.2% Q-o-Q), improved ROE/ROTCE, a healthy CET1 ratio with RWA optimization, strong fee and noninterest income growth, meaningful shareholder returns (KRW 1.4 trillion buybacks by Oct and higher dividends), and broad subsidiary/outside-market strength including +13% overseas earnings. Offsetting these, there are notable challenges: a sharp one-quarter drop in insurance-related income (-44.6%), a steep decline at Shinhan Capital (-28.9% Q-o-Q), higher SG&A and a Q-o-Q rise in credit costs (+14.7%), NIM improvement that was smaller-than-expected (+1 bp Q-o-Q), and macro/FX/RWA sensitivities and earnings volatility from securities/insurance items. Overall, the positive operational and capital actions and the scale of earnings improvements outweigh the discrete and manageable headwinds, but management emphasizes cautious, conservative capital and risk management given macro uncertainties.Positive Updates
Strong Quarterly Net Income
Net income for Q2 2026 was KRW 1,820.1 billion, up 12.2% quarter-on-quarter, reflecting group-wide profitability improvements.
Negative Updates
Large Drop in Insurance-Related Income
Insurance-related income declined 44.6% Q-o-Q due to larger expected vs actual losses and the impact of changes in actuarial guidelines, weighing on noninterest income volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Net Income
Net income for Q2 2026 was KRW 1,820.1 billion, up 12.2% quarter-on-quarter, reflecting group-wide profitability improvements.
Read all positive updates
Company Guidance
Guidance emphasized a stable capital and shareholder‑return stance: group CET1 was provisionally 13.43% at end‑Q2 (Q1 revised to 13.30% after a KRW 3.2tn RWA reduction), management range around 13–14% and steady capital growth of ~4–5% expected; RWA growth excluding FX is <2% (but a KRW 1,600 FX scenario would raise RWA ~8%). Management reiterated the Value‑up 2.0 targets (ROE target 10% by 2027; ROE management range 10–12%) while delivering strong Q2 results—net income KRW 1,820.1bn (+12.2% QoQ), group ROE 12.4% and ROTCE 13.9% (≈+1pp YoY), bank NIM ~1.61% (+1bp QoQ, +5bp YoY) with expectation of further NIM tailwinds in 2H (c. +3–4bps if rates rise); credit cost ratio 42bp (credit costs +14.7% QoQ, but -8bp YoY), non‑interest income +22.0% QoQ (custody +29.5%, WM fees +60.8%, IB fees +151.3%, securities gains +30.9%, insurance income -44.6%). Shareholder returns: Q2 cash dividend KRW ~740–741 (record date July 30), if quarterly level persists annual DPS would be KRW 2,951 (+14.3% YoY); the Board approved a KRW 700bn buyback (completed/cancelled H1) and total buyback committed to Oct is KRW 1.4tn with potential additional buybacks in Q4 (management referenced payout flexibility up to the low‑50% range, noting a theoretical maximum ~53% in their framework).Shinhan Financial Group Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.80T | 34.69T | 35.38T | 33.80T | 24.56T | 25.75T |
| Gross Profit | 16.62T | 16.45T | 15.57T | 14.88T | 13.78T | 20.84T |
| EBITDA | 8.42T | 8.22T | 7.31T | 7.15T | 7.37T | 6.49T |
| Net Income | 5.11T | 4.97T | 4.45T | 4.37T | 4.67T | 4.02T |
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> | 27.68T | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| 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 | 59.06T | 53.21T | 56.05T | 53.72T | 50.73T | 47.97T |
Cash Flow | ||||||
| Free Cash Flow | 15.89T | 5.82T | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 16.67T | 6.46T | 4.63T | 529.85B | 7.59T | 11.08T |
| Investing Cash Flow | -16.56T | -10.90T | 148.53B | -4.27T | -11.03T | -12.03T |
| Financing Cash Flow | -2.60T | 1.25T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Positive
71.49
Price Trends
68.24
Positive
66.59
Positive
61.97
Positive
Market Momentum
1.41
Negative
63.82
Neutral
85.25
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 71.49 is below the 20-day moving average (MA) of 71.50, above the 50-day MA of 68.24, and above the 200-day MA of 61.97, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 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 |
|---|---|---|---|---|---|---|---|
89 Outperform | $31.86B | 14.99 | 19.66% | 3.77% | 22.61% | 34.04% | |
71 Outperform | $32.28B | 9.03 | 9.29% | 2.62% | 35.45% | 15.25% | |
71 Outperform | $17.12B | 7.77 | 9.28% | 4.34% | 30.88% | 10.24% | |
68 Neutral | $39.79B | 9.87 | 10.83% | 2.67% | 34.27% | 11.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $21.14B | 48.51 | 11.81% | 5.10% | 20.73% | 27.11% | |
56 Neutral | $35.81B | 9.11 | 13.55% | 7.75% | 28.16% | 28.12% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
75.81
26.04
52.32%
BBD
Banco Bradesco SA
3.37
0.63
22.86%
BSBR
Banco Santander Brasil
5.81
1.13
24.09%
BAP
Credicorp
386.93
149.14
62.72%
KB
Kb Financial Group
124.01
42.97
53.02%
WF
Woori Finance Holdings Co
72.62
18.69
34.66%
Shinhan Financial Group Co Corporate Events
Shinhan Financial Clarifies Status of Potential Lotte Insurance Acquisition Review
Jul 28, 2026
On July 28, 2026, Shinhan Financial Group issued a supplemental disclosure addressing market speculation about a potential acquisition of Lotte Insurance. The group stated it is continuing to review various measures to enhance its non-bank competi...
Shinhan Financial Group to Cancel Up to KRW 700 Billion in Treasury Shares After Buyback
Jul 23, 2026
On July 23, 2026, Shinhan Financial Group’s board approved the cancellation of 6,698,565 treasury common shares, representing stock with a face value of KRW 5,000 per share and an estimated total cancellation amount of KRW 700 billion. The m...
Shinhan Financial Group to Issue KRW Write-Down Contingent Capital Securities for Basel III Capital
Jul 23, 2026
On July 23, 2026, Shinhan Financial Group’s board approved the issuance of KRW-denominated write-down contingent capital securities to bolster its Basel III regulatory capital. The planned Additional Tier 1 instruments, structured as perpetu...
Shinhan Financial Group Posts Double-Digit Profit Growth in 2Q 2026 Preliminary Results
Jul 23, 2026
On July 23, 2026, Shinhan Financial Group reported preliminary consolidated results for the second quarter of 2026 showing stronger profitability despite softer top-line growth. Group revenue for the quarter rose 7.9% year-on-year to KRW 25.1 tril...
Shinhan Financial Group Launches KRW 700 Billion Share Buyback for Cancellation
Jul 23, 2026
On July 23, 2026, Shinhan Financial Group’s board approved a treasury share buyback of up to 6,698,564 common shares, with an estimated value of KRW 700 billion, to be executed on the Korea Exchange between July 31 and October 22, 2026. The ...
Shinhan Financial Group Declares Quarterly Cash Dividend for Q3 2026
Jul 23, 2026
On July 23, 2026, Shinhan Financial Group’s board of directors approved a quarterly cash dividend totaling KRW 347.4 billion, equivalent to KRW 740 per share, covering 469,450,238 shares. The record date for eligible shareholders was set for...
National Pension Service Lifts Stake in Shinhan Financial Group to 9.19%
Jul 20, 2026
On July 20, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service, its largest shareholder, increased its holdings of common stock between April 30 and June 30, 2026. NPS’s stake rose from 42,575,588 shares, or ...
Shinhan Financial Group Ends ₩500 Billion Treasury Share Trust on Scheduled Expiry
Jul 10, 2026
Shinhan Financial Group announced on July 10, 2026 that it has terminated a trust agreement, originally signed on February 9, 2026, that was established for the acquisition of its own treasury shares, following the scheduled expiration of the cont...
Shinhan Financial Group Sets July 23 Webcast for 2Q 2026 Earnings, Announces Blackout Period
Jul 8, 2026
Shinhan Financial Group announced it will hold its second-quarter 2026 earnings release conference on Thursday, July 23, 2026, at 14:00 Seoul time via live internet streaming accessible on both PC and mobile. The presentation will be delivered in ...
Shinhan Financial Group Files 2025 Sustainability Report with Korea Exchange
Jun 30, 2026
Shinhan Financial Group Co., Ltd. is a leading South Korean financial services conglomerate headquartered in Seoul, offering a broad range of banking, credit, investment and insurance services. The group serves retail and corporate clients domesti...
Shinhan Financial Clarifies Status of Potential Lotte Insurance Acquisition Review
Jun 29, 2026
On June 29, 2026, Shinhan Financial Group disclosed that it is reviewing various options to enhance its non-bank competitiveness amid broader reforms in South Korea’s insurance sector. The group issued the clarification after a Korean media ...
Shinhan Financial Group Boosts Capital Return Strategy with New ‘Value-Up +++’ Plan After Strong Q1 2026
May 15, 2026
On May 15, 2026, Shinhan Financial Group reported first-quarter 2026 results and outlined updates to its capital return strategy, highlighting consolidated net income of KRW 1.62 trillion and earnings per share of KRW 3,327 for the period ended Ma...
Shinhan Financial Group Reports Slight Stake Reduction by Largest Shareholder NPS
May 15, 2026
On May 15, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service, its largest shareholder, modestly reduced its stake in the company between March 31 and April 30, 2026. NPS’s holdings fell from 42,747,919 commo...
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.