Shinhan Bank (NYSE: SHG) posts 2025 profit of W 3,775,822m with clean audits

Rhea-AI Filing Summary

Shinhan Financial Group filed a Form 6-K presenting audited 2025 financial statements for its wholly owned subsidiary Shinhan Bank, along with audit opinions and an internal control review. The financial statements are prepared under K-IFRS and remain subject to shareholder approval.

On a consolidated basis, Shinhan Bank reported total assets of W 596,967,318 million and total liabilities of W 558,513,573 million as of December 31, 2025, with total equity of W 38,453,745 million. Deposits were W 434,322,320 million. Profit for the year was W 3,775,822 million and basic and diluted earnings per share were W 2,325. Net interest income reached W 9,169,889 million and net fees and commission income W 1,216,505 million.

On a separate (parent-only) basis, Shinhan Bank reported total assets of W 549,431,678 million, total liabilities of W 514,882,090 million and equity of W 34,549,588 million. Separate profit for the year was W 3,184,959 million, with basic and diluted earnings per share of W 1,953 and net interest income of W 7,995,044 million. KPMG Samjong issued unmodified audit opinions on both consolidated and separate statements and reported that internal control over financial reporting was effectively designed and operating as of December 31, 2025.

Insights

Banking sector fundamental analyst

Audited 2025 results show solid profitability and clean opinions.

Shinhan Bank’s 2025 audited figures show consolidated profit of W 3,775,822 million with net interest income of W 9,169,889 million. Assets grew to W 596,967,318 million, funded largely by deposits of W 434,322,320 million, indicating a balance-sheet expansion supported by customer funding.

Equity attributable to the bank’s shareholders increased to W 38,436,474 million, while hybrid bonds declined, suggesting some shift in capital mix. Other comprehensive income turned negative in 2025, driven by foreign currency translation and fair value changes, which tempered total comprehensive income relative to profit.

KPMG Samjong issued unmodified opinions on both consolidated and separate financial statements under K-IFRS and concluded that internal control over financial reporting was effectively designed and operating as of December 31, 2025. Future filings may detail how credit loss provisions, regulatory reserves and market valuation movements evolve against this 2025 baseline.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

——————————

FORM 6-K

——————————

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of March 2026

Commission File Number: 001-31798

——————————

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

——————————

20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)

——————————

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

Submission of Audit Report (Shinhan Bank)

On March 3, 2026, Shinhan Financial Group disclosed audit reports of Shinhan Bank, its wholly-owned subsidiary, for the fiscal year 2025 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

The financial statements with external auditor's report are not yet approved by stockholder's meeting approval process, thus contents are subjected to be changed in the due course of the approval process

Please refer to Exhibit 99.1 and 99.2 for Independent Auditor’s Reports on consolidated and separate financial statements.

Exhibit 99.1 : Independent Consolidated Auditor’s Report of Shinhan Bank as of December 31, 2025

Exhibit 99.2 : Independent Separate Auditor’s Report of Shinhan Bank as of December 31, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				Shinhan Financial Group Co., Ltd.
				(Registrant)
Date: March 03, 2026				By:		/s/ JANG Jeong Hoon
				Name: JANG Jeong Hoon
				Title: Chief Financial Officer

SHINHAN BANK AND SUBSIDIARIES

Consolidated Financial Statements

December 31, 2025 and 2024

(With Independent Auditors’ Report Thereon)

Contents

		Page
Independent Auditors’ Report		1
Consolidated Statements of Financial Position		3
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Changes in Equity		6
Consolidated Statements of Cash Flows		8
Notes to the Consolidated Financial Statements		10

Independent Auditors’ Report

Based on a report originally issued in Korean

To the Board of Directors and Stockholder of

Shinhan Bank:

Opinion

We have audited the consolidated financial statements of Shinhan Bank and its subsidiaries (collectively the “Group”), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

ㆍIdentify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ㆍObtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro-priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

ㆍEvaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.

ㆍConclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

ㆍEvaluate the overall presentation, structure and content of the consolidated financial statements, including the disc-losures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

ㆍObtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2025 and 2024

(In millions of Korean won)		Notes		2025		2024
Assets
Cash and due from banks		3,6,9,40,41	W	31,549,386		32,161,687
Securities at fair value through profit or loss		3,7,41,43		30,509,676		25,950,314
Derivative assets		3,8,41,43		5,101,885		7,403,480
Loans at amortized cost		3,9,41,43		402,551,823		387,840,817
Loans at fair value through profit or loss		3,9		512,497		772,358
Securities at fair value through other comprehensive income		3,10,18,43		61,046,557		52,203,335
Securities at amortized cost		3,10,18,43		27,484,502		28,856,882
Property and equipment		5,11,12,17,18		2,596,829		2,614,780
Intangible assets		5,13		829,409		1,012,388
Investments in associates		14		631,450		619,772
Investment properties		5,15		934,399		621,261
Net defined benefit assets		24		317,438		261,805
Current tax assets		37		75,947		61,722
Deferred tax assets		37		98,037		107,612
Other assets		3,9,16,41		32,673,381		16,173,365
Non-current assets held for sale		17		54,102		29,583
Total assets			W	596,967,318		556,691,161
Liabilities
Financial liabilities designated at fair value through  profit or loss		19	W	287,849		261,299
Deposits		3,20,41		434,322,320		412,099,621
Financial liabilities at fair value through profit or loss		3,21		1,522,071		597,058
Derivative liabilities		3,8,41,43		4,848,465		7,536,786
Borrowings		3,22,40,41		29,303,727		22,719,172
Debt securities issued		3,23,40		43,117,396		46,692,753
Net defined benefit liabilities		24		8,508		8,274
Provisions		25,39,41		555,180		423,210
Current tax liabilities		37		625,998		266,634
Deferred tax liabilities		37		348,279		298,871
Other liabilities		3,12,26,41,44		43,573,780		29,022,748
Total liabilities				558,513,573		519,926,426
Equity
Capital stock		27		7,928,078		7,928,078
Hybrid bonds		27		1,949,195		2,088,595
Capital surplus		27		399,674		403,164
Capital adjustments		27,37		1,614		2,154
Accumulated other comprehensive income (loss)		27,37		(104,189)		93,197
Retained earnings		27,28		28,262,102		26,235,404
(Regulatory reserve for loan loss)				(2,790,966)		(2,348,954)
(Required provision for regulatory reserve for loan loss)				(211,014)		(442,012)
(Expected provision for regulatory reserve for loan loss)				(211,014)		(442,012)
Total equity attributable to equity holder of Shinhan Bank				38,436,474		36,750,592
Non-controlling interests		27		17,271		14,143
Total equity				38,453,745		36,764,735
Total liabilities and equity			W	596,967,318		556,691,161

See accompanying notes to the consolidated financial statements.

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		Notes		2025		2024
Interest income
Financial instruments at fair value through  profit or loss			W	668,330		697,467
Financial instruments at fair value through other comprehensive income and amortized cost				20,141,692		21,092,068
Interest expense				11,640,133		12,952,498
Net interest income		3,5,29,41,43		9,169,889		8,837,037
Fees and commission income				1,569,857		1,385,507
Fees and commission expense				353,352		362,535
Net fees and commission income		3,5,30,41,43		1,216,505		1,022,972
Dividend income		31,43		68,663		78,727
Net gain on financial instruments at fair value through profit or loss		32,41		368,782		354,535
Net foreign currencies transaction gain				558,803		339,943
Net gain (loss) on financial instruments designated at fair value through profit or loss		19		23,446		(6,466)
Net gain on disposal of securities at fair value through other comprehensive income		10		191,960		101,135
Net loss on disposal of securities at amortized cost		10		(56)		(41)
Provision for credit loss allowance		3,9,10,25,41		617,279		385,708
General and administrative expenses		33,41		4,187,688		3,913,170
Net other operating expenses		5,35,41		(1,483,331)		(1,369,718)
Operating income				5,309,694		5,059,246
Net non-operating expenses		5,36		(262,638)		(299,165)
Share of profit of associates		5,14		14,295		9,856
Profit before income taxes		5		5,061,351		4,769,937
Income tax expense		5,37		1,285,529		1,074,024
Profit for the year		5,28		3,775,822		3,695,913
(Adjusted profit after reflection of regulatory reserve for loan loss
For the year ended December 31, 2025:
3,564,808 million won
For the year ended December 31, 2024:
3,253,901 million won

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Continued)

For the years ended December 31, 2025 and 2024

(In millions of Korean won, except earnings per share data)		Notes		2025		2024
Other comprehensive income (loss) for the year,  net of income tax
Items that are or may be reclassified  subsequently to profit or loss:
Foreign currency translation differences for   foreign operations			W	(121,125)		353,868
Unrealized net change in fair value of   securities at fair value through other   comprehensive income				(201,656)		306,437
Shares in other comprehensive income of associates				(14,328)		8,235
				(337,109)		668,540
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans				(11,886)		(9,843)
Unrealized net change in fair value of   securities at fair value through other   comprehensive income				155,596		60,076
Changes in own credit risk on financial liabilities designated at fair value through profit or loss				4		(1)
				143,714		50,232
Other comprehensive income (loss) for the year, net of income tax		3,27,37		(193,395)		718,772
Total comprehensive income for the year			W	3,582,427		4,414,685
Profit attributable to:
Equity holder of Shinhan Bank			W	3,774,766		3,695,449
Non-controlling interests				1,056		464
Profit for the year		5	W	3,775,822		3,695,913
Total comprehensive income attributable to:
Equity holders of Shinhan Bank			W	3,581,867		4,412,637
Non-controlling interests				560		2,048
Total comprehensive income for the year			W	3,582,427		4,414,685
Earnings per share:
Basic and diluted earnings per share in won		38	W	2,325		2,278

See accompanying notes to the consolidated financial statements.

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the year ended December 31, 2024

			Attributable to equity holder of Shinhan Bank
(In millions of Korean won)			Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other comprehensive income (loss)		Retained earnings			Non-controlling interests			Total
Balance at January 1, 2024		W	7,928,078		1,988,535		403,164		1,946		(618,125)		23,815,520			12,095			33,531,213
Total comprehensive income (loss), net of income tax
Profit for the year			-		-		-		-		-		3,695,449			464			3,695,913
Other comprehensive income (loss) for the year
Foreign currency translation differences for foreign operations			-		-		-		-		352,277		-			1,591			353,868
Unrealized net changes in fair values of securities at fair value through other comprehensive income			-		-		-		-		360,647		5,866			-			366,513
Share of other comprehensive income of associates			-		-		-		-		8,235		-			-			8,235
Remeasurements of defined benefit plans			-		-		-		-		(9,836)		-			(7)			(9,843)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss			-		-		-		-		(1)		-			-			(1)
			-		-		-		-		711,322		3,701,315			2,048			4,414,685
Transactions with owners in their capacity as owner
Annual dividends to equity holder			-		-		-		-		-		(1,196,396)			-			(1,196,396)
Dividends to hybrid bond holders			-		-		-		-		-		(84,150)			-			(84,150)
Issuance of hybrid bonds			-		399,387		-		-		-		-			-			399,387
Redemption of hybrid bonds			-		(299,327)		-		(673)		-		-			-			(300,000)
Share-based payment transactions			-		-		-		(4)		-		-			-			(4)
Others			-		-		-		885		-		(885)			-			-
			-		100,060		-		208		-		(1,281,431)			-			(1,181,163)
Balance at December 31, 2024		W	7,928,078		2,088,595		403,164		2,154		93,197		26,235,404			14,143			36,764,735

See accompanying notes to the consolidated financial statement

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Changes in Equity (Continued)

For the year ended December 31, 2025

			Attributable to equity holder of Shinhan Bank
(In millions of Korean won)			Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other comprehensive income (loss)		Retained earnings			Non-controlling interests			Total
Balance at January 1, 2025		W	7,928,078		2,088,595		403,164		2,154		93,197		26,235,404			14,143			36,764,735
Total comprehensive income (loss), net of income tax
Profit for the year			-		-		-		-		-		3,774,766			1,056			3,775,822
Other comprehensive income (loss) for the year
Foreign currency translation differences for foreign operations			-		-		-		-		(120,613)		-			(512)			(121,125)
Unrealized net changes in fair values of securities at fair value through other comprehensive income			-		-		-		-		(50,564)		4,487			17			(46,060)
Share of other comprehensive loss of associates			-		-		-		-		(14,328)		-			-			(14,328)
Remeasurements of defined benefit plans			-		-		-		-		(11,885)		-			(1)			(11,886)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss			-		-		-		-		4		-			-			4
			-		-		-		-		(197,386)		3,779,253			560			3,582,427
Transactions with owners in their capacity as owner
Annual dividends to equity holder			-		-		-		-		-		(1,662,952)			-			(1,662,952)
Dividends to hybrid bond holders			-		-		-		-		-		(88,930)			-			(88,930)
Issuance of hybrid bonds			-		399,387		-		-		-		-			-			399,387
Redemption of hybrid bonds			-		(538,787)		-		(1,213)		-		-			-			(540,000)
Changes in ownership interests in subsidiaries			-		-		(3,490)		-		-		-			2,568			(922)
Others			-		-		-		673		-		(673)			-			-
			-		(139,400)		(3,490)		(540)		-		(1,752,555)			2,568			(1,893,417)
Balance at December 31, 2025		W	7,928,078		1,949,195		399,674		1,614		(104,189)		28,262,102			17,271			38,453,745

See accompanying notes to the consolidated financial statements.

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(In millions of Korean won)					2025		2024
Cash flows from operating activities
Profit for the year				W	3,775,822		3,695,913
Adjustments for:
Income tax expense					1,285,529		1,074,024
Interest income					(20,810,022)		(21,789,535)
Interest expense					11,640,133		12,952,498
Dividend income					(68,663)		(78,727)
					(7,953,023)		(7,841,740)
Non-cash income and expense items:
Net gain on financial instruments at fair value through profit or loss					(199,754)		(370,581)
Net gain on non-cash foreign currencies transactions					(51,172)		(120,998)
Net loss (gain) on financial instruments designated at fair  value through profit or loss					(23,446)		6,466
Net gain on disposal of securities at fair value through other comprehensive income					(191,960)		(101,135)
Net loss on disposal of securities at amortized cost					56		41
Provision for credit loss allowance					617,279		385,708
Non-cash employee benefits					148,786		102,880
Depreciation and amortization					569,525		537,240
Net non-cash other operating expenses					276,750		200,889
Share of profit of associates					(14,295)		(9,856)
Non-operating expenses					180,498		204,130
					1,312,267		834,784
Changes in assets and liabilities:
Deposits at amortized cost					(62,763)		651,994
Securities at fair value through profit or loss					(3,689,513)		(391,326)
Derivative assets					6,035,707		2,775,565
Loans at amortized cost					(14,995,733)		(35,816,009)
Loans at fair value through profit or loss					261,036		(233,117)
Other assets					(16,376,053)		1,547,064
Deposits due to customers					21,390,137		38,845,506
Financial liabilities at fair value through profit or loss					396,742		9,418
Derivative liabilities					(5,830,726)		(2,598,931)
Defined benefit liabilities					(175,986)		(80,266)
Provisions					(41,638)		(456,726)
Other liabilities					14,951,248		(6,527,440)
					1,862,458		(2,274,268)
Income tax paid					(891,893)		(796,796)
Interest received					20,508,322		21,868,131
Interest paid					(12,023,339)		(12,414,047)
Dividends received					72,748		109,856
Net cash inflow from operating activities					6,663,362		3,181,833

SHINHAN BANK AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(In millions of Korean won)		2025		2024
Cash flows from investing activities
Net cash flow of derivative financial instruments for hedges	W	16,051		45,974
Proceeds from decrease of securities at fair value through profit or loss		1,516,419		703,254
Acquisition of securities at fair value through profit or loss		(2,118,292)		(2,262,642)
Proceeds from decrease of securities at fair value through other comprehensive income		40,187,272		37,120,488
Acquisition of securities at fair value through other comprehensive income		(48,771,078)		(36,910,800)
Proceeds from decrease of securities at amortized cost		7,014,566		7,119,902
Acquisition of securities at amortized cost		(5,405,639)		(5,004,766)
Proceeds from disposal of property and equipment		1,790		2,229
Acquisition of property and equipment		(159,986)		(132,172)
Proceeds from disposal of intangible assets		5,464		16
Acquisition of intangible assets		(260,926)		(361,266)
Proceeds from disposal of investments in associates		19,504		51,139
Acquisition of investments in associates		(38,702)		(349,121)
Acquisition of investment properties		(4,564)		(3,202)
Proceeds from disposal of non-current assets for sale		42,167		-
Decrease in other assets		351,559		539,398
Increase in other assets		(356,044)		(511,758)
Acquisition of a subsidiary		(124,004)		-
Net cash inflow (outflow) from investing activities		(8,084,443)		46,673
Cash flows from financing activities
Net cash flow of derivative financial instruments for hedges		3,026		(9,420)
Increase in financial liabilities designated at fair value through profit or loss		99,985		-
Decrease in financial liabilities designated at fair value through profit or loss		(50,000)		-
Net increase (decrease) in borrowings		6,339,179		(5,329,664)
Proceeds from issuance of debt securities		27,597,254		36,665,988
Redemption of debt securities		(31,139,271)		(29,115,542)
Dividends paid		(1,751,882)		(1,280,546)
Issuance of hybrid bonds		399,387		399,387
Redemption of hybrid bonds		(540,000)		(300,000)
Increase in other liabilities		53,168		146,039
Decrease in other liabilities		(226,190)		(316,503)
Net cash inflow from financing activities		784,656		859,739
Effect of exchange rate fluctuations on cash and cash equivalents held		(8,410)		150,386
Net increase (decrease) in cash and cash equivalents		(644,835)		4,238,631
Cash and cash equivalents at the beginning of the year (Note 40)		31,854,539		27,615,908
Cash and cash equivalents at the end of the year (Note 40)	W	31,209,704		31,854,539

Please refer to attached courtesy PDF from page 10 to 200

SHINHAN BANK

Separate Financial Statements

December 31, 2025 and 2024

(With Independent Auditors’ Report Thereon)

1

Contents

		Page
Independent Auditors’ Report		1
Separate Statements of Financial Position		3
Separate Statements of Comprehensive Income		4
Separate Statements of Changes in Equity		6
Separate Statements of Cash Flows		8
Notes to the Separate Financial Statements		10
Report on Independent Auditors’ Review of Internal Control over Financial Reporting		184
Report on the Effectiveness of the Internal Control over Financial Reporting		186

2

Independent Auditors’ Report

Based on a report originally issued in Korean

To the Board of Directors and Stockholder of

Shinhan Bank:

Opinion

We have audited the separate financial statements of Shinhan Bank (the “Bank”), which comprise the separate statements of financial position as of December 31, 2025 and 2024, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Bank as of December 31, 2025 and 2024, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bank’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

ㆍIdentify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ㆍObtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro-priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.

1

ㆍEvaluate the appropriateness of accounting policies used in the preparation of the separate financial statements and the reasonableness of accounting estimates and related disclosures made by management.

ㆍConclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

ㆍEvaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

2

SHINHAN BANK

Separate Statements of Financial Position

As of December 31, 2025 and 2024

(In millions of Korean won)		Notes		2025		2024
Assets
Cash and due from banks		3,5,8,40,41	W	24,283,077		25,173,671
Securities at fair value through profit or loss		3,6,41		31,051,245		25,892,162
Derivative assets		3,7,41		5,092,017		7,400,039
Loans at amortized cost		3,8,41		363,618,144		351,575,129
Loans at fair value through profit or loss		3,8		506,781		745,412
Securities at fair value through other comprehensive income		3,9,17		59,845,241		51,096,393
Securities at amortized cost		3,9,17		25,964,036		27,011,804
Property and equipment		10,11,16,17		2,188,781		2,366,429
Intangible assets		12		753,755		936,272
Investments in subsidiaries and associates		13		2,943,223		2,854,736
Investment properties		14		654,612		611,208
Net defined benefit assets		23		317,438		261,805
Current tax assets		37		4,892		8,542
Other assets		3,8,15,41		32,167,367		15,825,559
Non-current assets held for sale		16		41,069		-
Total assets			W	549,431,678		511,759,161
Liabilities
Financial liabilities designated at fair value through profit or loss		18	W	287,849		261,299
Deposits		3,19,41		396,097,125		375,641,186
Financial liabilities at fair value through profit or loss		3,20		1,522,071		597,058
Derivative liabilities		3,7,41		4,848,166		7,530,742
Borrowings		3,21,40,41		28,042,446		21,838,763
Debt securities issued		3,22,40		40,478,377		43,524,701
Provisions		24,39,41		605,144		447,008
Current tax liabilities		37		532,905		201,330
Deferred tax liabilities		37		331,820		303,872
Other liabilities		3,11,25,41,42		42,136,187		28,084,827
Total liabilities				514,882,090		478,430,786
Equity
Capital stock		26		7,928,078		7,928,078
Hybrid bonds		26		1,949,195		2,088,595
Capital surplus		26		398,080		398,080
Capital adjustments		26,37		5,563		6,103
Accumulated other comprehensive loss		26,37		(134,097)		(58,359)
Retained earnings		26,27		24,402,769		22,965,878
(Regulatory reserve for loan loss)				(2,629,890)		(2,233,852)
(Required provision for regulatory reserve for loan loss)				(137,663)		(396,038)
(Expected provision for regulatory reserve for loan loss)				(137,663)		(396,038)
Total equity				34,549,588		33,328,375
Total liabilities and equity			W	549,431,678		511,759,161

See accompanying notes to the separate financial statements.

3

SHINHAN BANK

Separate Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(In millions of Korean won, except earnings per share data)		Notes		2025		2024
Interest income
Financial instruments at fair value through profit or loss			W	654,146		703,730
Financial instruments at fair value through other comprehensive income and amortized cost				17,970,242		18,964,453
Interest expense				10,629,344		12,017,026
Net interest income		3,28,36,41		7,995,044		7,651,157
Fees and commission income				1,466,944		1,293,877
Fees and commission expense				295,796		293,673
Net fees and commission income		3,29,36,41		1,171,148		1,000,204
Dividend income		30,36		66,871		76,658
Net gain on financial instruments at fair value through profit or loss		6,20,31,36,41		387,717		278,110
Net foreign currencies transaction gain		36		510,396		206,356
Net gain (loss) on financial instruments designated at fair  value through profit or loss		18		23,446		(6,466)
Net gain on disposal of securities at fair value through other comprehensive income		9,36		167,483		98,164
Net loss on disposal of securities at amortized cost		9		(56)		(41)
Provision for credit loss allowance		3,8,9,24,41		593,394		308,568
General and administrative expenses		32,41		3,701,518		3,459,539
Net other operating expenses		34,36,41		(1,502,977)		(1,369,210)
Operating income				4,524,160		4,166,825
Net non-operating expense		35		(250,731)		(269,910)
Profit before income taxes				4,273,429		3,896,915
Income tax expense		37		1,088,470		864,543
Profit for the year		27		3,184,959		3,032,372
(Adjusted profit after reflection of regulatory reserve for loan loss
For the year ended December 31, 2025:
3,047,296 million won
For the year ended December 31, 2024:
2,636,334 million won)
Other comprehensive income for the year, net of income tax
Items that are or may be reclassified  subsequently to profit or loss:
Foreign currency translation differences for   foreign operations				(23,672)		64,395
Unrealized net change in fair value of securities at fair value through other comprehensive income				(188,976)		304,897

4

SHINHAN BANK

Separate Statements of Comprehensive Income (Continued)

For the years ended December 31, 2025 and 2024

(In millions of Korean won, except earnings per share data)		Notes		2025		2024
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans			W	(11,797)		(9,113)
Unrealized net change in fair value of    securities at fair value through other    comprehensive income				153,191		60,076
Changes in own credit risk on financial liabilities designated at fair value through profit or loss				3		(1)
Other comprehensive income (loss) for the year, net of income tax		3,26,37		(71,251)		420,254
Total comprehensive income for the year			W	3,113,708		3,452,626
Basic and diluted earnings per share in won		38		1,953		1,859

See accompanying notes to the separate financial statements.

5

SHINHAN BANK

Separate Statements of Changes in Equity (Continued)

For the year ended December 31, 2025

(In millions of Korean won)		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other comprehensive income (loss)		Retained earnings		Total
Balance at January 1, 2024	W	7,928,078		1,988,535		398,080		5,895		(472,747)		21,209,071		31,056,912
Total comprehensive income (loss), net of income tax
Profit for the year		-		-		-		-		-		3,032,372		3,032,372
Other comprehensive income (loss) for the year
Foreign currency translation differences for  foreign operations		-		-		-		-		64,395		-		64,395
Unrealized net changes in fair values of  securities at fair value through other  comprehensive income		-		-		-		-		359,107		5,866		364,973
Remeasurements of defined benefit plans		-		-		-		-		(9,113)		-		(9,113)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss		-		-		-		-		(1)		-		(1)
		-		-		-		-		414,388		3,038,238		3,452,626
Transactions with owners in their capacity  as owners
Annual dividends to equity holder		-		-		-		-		-		(1,196,396)		(1,196,396)
Dividends to hybrid bond holders		-		-		-		-		-		(84,150)		(84,150)
Issuance of hybrid bonds		-		399,387		-		-		-		-		399,387
Redemption of hybrid bonds		-		(299,327)		-		(673)		-		-		(300,000)
Share-based payment transactions		-		-		-		(4)		-		-		(4)
Others		-		-		-		885		-		(885)		-
		-		100,060		-		208		-		(1,281,431)		(1,181,163)
Balance at December 31, 2024	W	7,928,078		2,088,595		398,080		6,103		(58,359)		22,965,878		33,328,375

See accompanying notes to the separate financial statements.

6

SHINHAN BANK

Separate Statements of Changes in Equity (Continued)

For the year ended December 31, 2025

(In millions of Korean won)		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other comprehensive income (loss)		Retained earnings		Total
Balance at January 1, 2025	W	7,928,078		2,088,595		398,080		6,103		(58,359)		22,965,878		33,328,375
Total comprehensive income (loss), net of income tax
Profit for the year		-		-		-		-		-		3,184,959		3,184,959
Other comprehensive income (loss) for the year
Foreign currency translation differences for  foreign operations		-		-		-		-		(23,672)		-		(23,672)
Unrealized net changes in fair values of  securities at fair value through other  comprehensive income		-		-		-		-		(40,272)		4,487		(35,785)
Remeasurements of defined benefit plans		-		-		-		-		(11,797)		-		(11,797)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss		-		-		-		-		3		-		3
		-		-		-		-		(75,738)		3,189,446		3,113,708
Transactions with owners in their capacity  as owners
Annual dividends to equity holder		-		-		-		-		-		(1,662,952)		(1,662,952)
Dividends to hybrid bond holders		-		-		-		-		-		(88,930)		(88,930)
Issuance of hybrid bonds		-		399,387		-		-		-		-		399,387
Redemption of hybrid bonds		-		(538,787)		-		(1,213)		-		-		(540,000)
Others		-		-		-		673		-		(673)		-
		-		(139,400)		-		(540)		-		(1,752,555)		(1,892,495)
Balance at December 31, 2025	W	7,928,078		1,949,195		398,080		5,563		(134,097)		24,402,769		34,549,588

See accompanying notes to the separate financial statements.

7

(In millions of Korean won)		2025		2024
Cash flows from operating activities
Profit for the year	W	3,184,959		3,032,372
Adjustments for:
Income tax expense		1,088,470		864,543
Interest income		(18,624,388)		(19,668,183)
Interest expense		10,629,344		12,017,026
Dividend income		(66,871)		(76,658)
		(6,973,445)		(6,863,272)
Non-cash income and expense items:
Net gain on financial instruments at fair value through profit or loss		(181,314)		(313,277)
Net gain on non-cash foreign currencies transactions		(68,993)		(55,619)
Net loss (gain) on financial instruments designated at fair value through profit or loss		(23,446)		6,466
Net gain on disposal of securities at fair value through other comprehensive income		(167,483)		(98,164)
Net loss on disposal of securities at amortized cost		56		41
Provision for credit loss allowance		593,394		308,568
Non-cash employee benefits		146,596		100,853
Depreciation and amortization		492,379		464,406
Net non-cash other operating expenses		267,851		217,585
Non-operating expenses		181,642		174,960
		1,240,682		805,819
Changes in assets and liabilities:
Deposits at amortized cost		(565,489)		274,779
Securities at fair value through profit or loss		(4,333,957)		(529,783)
Derivative assets		6,058,152		2,773,352
Loans at amortized cost		(13,064,079)		(33,131,186)
Loans at fair value through profit or loss		239,374		(228,127)
Other assets		(16,287,997)		1,663,999
Deposits due to customers		20,694,269		35,434,069
Financial liabilities at fair value through profit or loss		399,278		11,954
Derivative liabilities		(5,823,190)		(2,645,069)
Defined benefit liabilities		(173,821)		(78,378)
Provisions		(36,773)		(451,073)
Other liabilities		14,699,847		(6,369,658)
		1,805,614		(3,275,121)
Income tax paid		(697,081)		(612,042)
Interest received		18,378,635		19,695,525
Interest paid		(11,096,646)		(11,563,384)
Dividends received		71,313		107,398
Net cash inflow from operating activities		5,914,031		1,327,295

8

(In millions of Korean won)		2025		2024
Cash flows from investing activities
Net cash flow of derivative financial instruments for hedges	W	16,051		45,974
Proceeds from decrease of securities at fair value through profit or loss		1,516,419		703,254
Acquisition of securities at fair value through profit or loss		(2,118,292)		(2,262,642)
Proceeds from decrease of securities at fair value through other comprehensive income		39,364,298		36,510,846
Acquisition of securities at fair value through other comprehensive income		(47,889,009)		(36,178,368)
Proceeds from decrease of securities at amortized cost		6,572,915		6,591,267
Acquisition of securities at amortized cost		(5,289,119)		(4,444,063)
Proceeds from disposal of property and equipment		84		225
Acquisition of property and equipment		(126,231)		(117,127)
Proceeds from disposal of intangible assets		5,465		16
Acquisition of intangible assets		(246,934)		(346,662)
Proceeds from disposal of investments in associates and others		20,989		51,139
Acquisition of investments in associates and others		(109,647)		(349,121)
Acquisition of investment properties		(4,564)		(2,893)
Proceeds from disposal of non-current assets for sale		23,341		-
Decrease in other assets		351,559		539,398
Increase in other assets		(356,044)		(511,758)
Net cash inflow (outflow) from investing activities		(8,268,719)		229,485
Cash flows from financing activities
Net cash flow of derivative financial instruments for hedges		3,026		(9,420)
Increase in financial liabilities designated at fair value through profit or loss		99,985		-
Decrease in financial liabilities designated at fair value through profit or loss		(50,000)		-
Net increase (decrease) in borrowings		6,207,295		(5,318,929)
Proceeds from issuance of debt securities		17,524,577		25,075,509
Redemption of debt securities		(20,775,823)		(17,207,263)
Dividends paid		(1,751,882)		(1,280,546)
Issuance of hybrid bonds		399,387		399,387
Redemption of hybrid bonds		(540,000)		(300,000)
Increase in other liabilities		53,168		146,039
Decrease in other liabilities		(186,096)		(272,041)
Net cash inflow from financing activities		983,637		1,232,736
Effect of exchange rate fluctuations on cash and cash equivalents held		15,849		145,081
Net increase (decrease) in cash and cash equivalents		(1,355,202)		2,934,597
Cash and cash equivalents at the beginning of the year (Note 40)		24,986,635		22,052,038
Cash and cash equivalents at the end of the year (Note 40)	W	23,631,433		24,986,635

Please refer to attached courtesy PDF from page 10 to 183.

9

Independent Auditors’ Review Report on Internal Control over Financial Reporting

Based on a report originally issued in Korean

To the shareholders and board of directors of

Shinhan Bank:

We have reviewed the accompanying Report on the Operational Status of Internal Control over Financial Reporting (the “ICFR Report”) of Shinhan Bank (the “Bank”) as of December 31, 2025. The Bank’s management is responsible for designing and maintaining effective ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review management's assessment and issue a report based on our review. In the accompanying report of management’s assessment of ICFR, it is stated that: “Based on the assessment of the operational status of the ICFR by Bank’s Chief Executive Officer and Internal Accounting Manager, the Bank’s ICFR has been effectively designed and is operating as of December 31, 2025, in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting (the “Conceptual Framework”) issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the “ICFR Committee”).”

We conducted our review in accordance with ICFR Review Standards issued by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether the Bank’s ICFR Report is free of material misstatement. Our review consists principally of obtaining an understanding of the Bank’s ICFR, inquiries of company personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances.

A company’s ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A company's ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of management and directors of the Bank; and (3) regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Bank’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements in the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review of the Bank’s ICFR Report, nothing has come to our attention that causes us to believe that the ICFR Report as of December 31, 2025 is not prepared in all material respects, in accordance with the Standards for Evaluation and Reporting of Internal Control over Financial Reporting issued by the ICFR Committee.

This report applies to the Bank’s ICFR in existence as of December 31, 2025. We did not review the Bank’s ICFR subsequent to December 31, 2025. This report has been prepared for Korean regulatory purposes, pursuant to the Act on External Audit of Stock Companies, Etc. and may not be appropriate for other purposes or for other users.

10

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

Notice to Readers

This report is annexed in relation to the audit of the separate financial statements as of and for the year ended December 31, 2025.

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FAQ

How did Shinhan Bank (SHG) perform financially in 2025 on a consolidated basis?

Shinhan Bank generated consolidated profit of W 3,775,822 million in 2025 with basic and diluted EPS of W 2,325. Net interest income was W 9,169,889 million, and net fees and commission income reached W 1,216,505 million, reflecting a profitable core banking franchise.

What were Shinhan Bank’s consolidated assets, liabilities and equity at year-end 2025?

At December 31, 2025, Shinhan Bank’s consolidated assets totaled W 596,967,318 million, liabilities were W 558,513,573 million, and total equity was W 38,453,745 million. Deposits stood at W 434,322,320 million, highlighting the importance of customer deposits in the bank’s funding structure.

What are the key 2025 separate (parent-only) results for Shinhan Bank (SHG)?

On a separate basis, Shinhan Bank reported 2025 profit of W 3,184,959 million and basic and diluted EPS of W 1,953. Net interest income was W 7,995,044 million, with total assets of W 549,431,678 million and equity of W 34,549,588 million at year-end.

Did Shinhan Bank’s 2025 financial statements receive a clean audit opinion?

Yes. KPMG Samjong Accounting Corp. stated the 2025 consolidated and separate financial statements present fairly, in all material respects, under K-IFRS. Audits were conducted under Korean Standards on Auditing, providing reasonable assurance that the statements are free from material misstatement.

What did auditors conclude about Shinhan Bank’s internal control over financial reporting in 2025?

Auditors reviewed management’s report on internal control and noted management concluded ICFR was effectively designed and operating as of December 31, 2025. Based on their review, auditors found no indications that the ICFR report was materially misstated under Korean ICFR evaluation standards.

How did Shinhan Bank’s comprehensive income compare with profit in 2025?

Consolidated profit for 2025 was W 3,775,822 million, while total comprehensive income was lower at W 3,582,427 million. The gap mainly reflects negative other comprehensive income from foreign currency translation and fair value changes in securities, which reduced overall comprehensive performance.

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