Shinhan Financial Group Co., Ltd. Q1 FY2026 earnings call

Introduced the new corporate value stock plan 'Shinhan Value-of-Triple-Plus'. Explained the business performance of the first quarter of 2026, including the stable Group CETON ratio, growth in interest profit, ongoing cost-saving efforts, and updates on various business segments such as Shinhan Investment, Shinhan Bank, etc.

The Group CETON ratio at the end of the first quarter of 2026 is 13.19%. The short-term net profit of the first quarter of 2026 was 1.6226 billion won, which increased by 9.0% compared to the previous year. Group ROE and ROTCE recorded 11.9% and 13.4% improvements, each 0.5% per year compared to the previous year

ROE 10% plus, aiming to manage ROE at 10% to 12% by 2028; total exchange rate 50% plus, planning to increase DPS by more than 10% every year for the next three years; CTO ratio 13%+, securing sufficient capital buffer and improving capital efficiency through measures like RWA and SLIMA

Market uncertainty affecting capital ratio and profitability, credit risk from vulnerable customers leading to potential increase in credit risk, fluctuation in NPL coverage ratio due to market and portfolio factors

Q: Impact of eased financial regulations on capital ratio?

A: Expected to increase by more than 10BP based on CT1 ratio, and there is room for improvement over 20pp related to exclusion of operating risk loss.

Q: Definition of growth rate in the formula?

A: Related to capital growth rate and RWE growth, with consideration of target ROE and share price.

Q: NPL coverage ratio?

A: Group level aimed at 110%, bank level targeted at 150% as the bottom line