Shinhan Financial Group Co., Ltd. Q2 FY2025 earnings call

• Capital: CET1 ratio improved 32 bps QoQ, RWA declined due to FX depreciation and portfolio adjustment. • Profit & loss: Net income up 4.1% QoQ on noninterest income growth; ROE and ROTCE rose to 11.4% and 12.9% respectively. • Net interest income: Flat QoQ, NIM declined but maintained via asset growth and LLM strategies. • Noninterest income: All segments grew, with brokerage commissions boosted by active stock trading, investment banking continuing growth, etc. • SG&A/credit costs: SG&A stable, credit cost rose due to delayed economic recovery and conservative loan book management. • Subsidiary performance: Shinhan Bank solid, Shinhan Investment Securities recovering, Shinhan Card expected to recover, overseas business solid. • Initiatives: Digital, sustainability, inclusive co-prosperity finance initiatives ongoing.

As of end-June 2025, Shinhan Financial Group's CET1 ratio was provisionally 13.59%, up 32 bps QoQ. Q2 net income was KRW1,549.1 billion, up 4.1% QoQ. Shinhan Bank had stable interest income with noninterest income up due to improved IB and marketable securities fees. Shinhan Investment Securities is recovering from last year's poor performance. Shinhan Card was sluggish but expected to recover. Overseas business performed solidly. Noninterest income grew 34.7% QoQ, driven by securities/FX derivatives, brokerage commissions, etc. Net interest income was flat QoQ despite falling rates, supported by asset growth.

• Dividend: Cash dividend of KRW571 per share for Q2, share buyback of KRW800 billion (KRW600B in H2 2025, KRW200B in Jan 2026). • Credit cost: Expected mid- to late 40 bps range for H2, above initial expectations due to delayed economic recovery. • Asset quality: Cautious peak-out in H2, but uncertainties remain due to tariff issues and tighter household loan regulations.

• Economic recovery: Delayed recovery poses rising credit risk for corporates and challenges for vulnerable customers. • Regulations: Tighter regulations on household loans create uncertainties. • Tariff issues: Tariff-related factors introduce ongoing uncertainties. • Real estate loans: Additional provisioning for real estate bank loans from nonbanking within expected and manageable range.

Q: Regarding distribution from reduced capital reserves and H2 economic outlook/credit cost A: No current plans to consider distribution from reduced capital; H2 may see peak-out of asset quality metrics, with credit cost expected in mid- to late 40 bps range Q: Separate taxation for dividend income and stablecoins A: Monitoring tax changes, no immediate plans on stablecoins; share buyback mix flexible based on PBR and ROE Q: PBR, loan growth, NIM outlook A: Flexible approach on PBR, H2 asset growth cautious considering policy environment; NIM managed via funding cost and asset growth monitoring Q: Credit costs, card segment asset quality, share buyback schedule A: Credit cost concerns due to delayed recovery, card delinquency improving; share buyback: KRW600B in H2 2025, KRW200B in Jan 2026 Q: Real estate trust provisioning A: Significant provisioning set aside, potential small additional loss depending on real estate market trends Q: Securities business focus, collaboration with Jeju Bank A: Securities business improving with IB and marketable securities fees; collaboration with Jeju Bank on track, target end-Q1 2026 for meaningful products Q: Credit cost trend, fee income outlook, Jeju Bank collaboration A: Credit cost expected to decrease in H2, fee income potential remains due to market conditions; collaboration with Jeju Bank on schedule