Shinhan Financial (SHG)
NYSE:SHG
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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:62Neutral
Price Target:
$75.00
▲(37.64% Upside)
Action:Reiterated
Date:05/23/26
The score is driven by strong recent profitability and an attractive valuation (low P/E with a dividend). Offsetting these positives are notably weak/volatile TTM cash flow and elevated leverage, while technicals are neutral-to-slightly bearish in the near term.
Positive Factors
Improved Profitability
A large TTM jump in revenue and materially higher net margin signal a structural improvement in core earning power. Sustained higher margins increase internal capital generation capacity and support ROE, dividends and reinvestment without relying solely on external funding.
Negative Factors
Elevated Leverage
Higher debt relative to equity constrains balance‑sheet flexibility and raises sensitivity to funding cost or credit stress. Elevated leverage limits the buffer against loan losses and can force more conservative lending or capital actions if rates or asset quality deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
A large TTM jump in revenue and materially higher net margin signal a structural improvement in core earning power. Sustained higher margins increase internal capital generation capacity and support ROE, dividends and reinvestment without relying solely on external funding.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.28B
Dividend Yield2.86%
Average Volume (3M)247.69K
Price to Earnings (P/E)10.0
Beta (1Y)0.66
Revenue Growth1.72%
EPS Growth13.27%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)10307.76
Shares Outstanding474,654,360
10 Day Avg. Volume280,317
30 Day Avg. Volume247,690
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.72
Price to Sales (P/S)1.11
P/FCF Ratio8.92K
Enterprise Value/Market Cap4.84K
Enterprise Value/Revenue4.49
Enterprise Value/Gross Profit9.39
Enterprise Value/Ebitda18.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.85
Revenue Forecast (FY)$11.15B
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: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
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 | -521.67B | 4.30B | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 194.97B | 4.48B | 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 | 13.88T | 1.25T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Positive
54.49
Price Trends
66.08
Positive
64.68
Positive
58.42
Positive
Market Momentum
0.85
Negative
64.48
Neutral
82.58
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 65.13, below the 50-day MA of 66.08, and below the 200-day MA of 58.42, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 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 | $28.82B | 13.71 | 19.66% | 4.82% | 22.61% | 34.04% | |
68 Neutral | $37.76B | 10.77 | 10.54% | 2.79% | 1.35% | 7.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $32.28B | 9.98 | 9.08% | 2.86% | 1.72% | 13.27% | |
62 Neutral | $15.64B | 8.08 | 9.33% | 3.71% | 7.90% | 8.29% | |
58 Neutral | $19.90B | 15.64 | 11.11% | 4.98% | 17.17% | -1.33% | |
53 Neutral | $34.21B | 9.11 | 13.55% | 2.48% | 28.16% | 28.12% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
71.08
28.03
65.11%
BBD
Banco Bradesco SA
3.46
0.54
18.29%
BSBR
Banco Santander Brasil
5.41
0.27
5.15%
BAP
Credicorp
364.28
156.48
75.30%
KB
Kb Financial Group
114.17
35.26
44.68%
WF
Woori Finance Holdings Co
66.00
20.64
45.50%
Shinhan Financial Group Co Corporate Events
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...
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...
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.