Shinhan Financial Group (NYSE: SHG) lifts 1H 2026 profit and ups buybacks
Shinhan Financial Group reported solid results for 1H 2026, with consolidated net profit of W 3,495.8 billion, including W 3,442.7 billion attributable to shareholders and earnings per share of W 7,075. Net interest income reached W 6,158.5 billion, while total assets rose to W 840.9 trillion.
Asset quality remained strong, with a consolidated NPL ratio of 0.70% and a BIS capital ratio of 15.74%. Management highlighted CET1 above 13% and a shareholder return ratio of 50.2% for 2025, supported by ongoing large share repurchases and cancellations. The new “Shinhan Value-Up +++” plan targets ROE of 10–12%, shareholder return of at least 50%, and CET1 of at least 13%, alongside continued quarterly dividends and additional buybacks.
Positive
- FY 2025 net income grew 11.7% to W 4,971.6 billion, with ROE improving by 0.7 percentage points to 9.11% and ROTCE to 10.3%, indicating stronger profitability ahead of the 10–12% ROE target in the new value-up plan.
- The Group delivered a high 50.2% shareholder return ratio in 2025, combining dividends and substantial share repurchases, and plans further returns via quarterly dividends and an additional W 700 billion buyback with cancellation of 6,698,565 shares.
Negative
- None.
Filing Explained
Shinhan retired 5,204,122 treasury shares; a 700 billion won buyback awaits execution, while a 270 billion won capital-security issue remains authorized.
As a Form 6-K, this report furnishes the company’s interim business information and records several post-period corporate actions. Shinhan Financial Group completed the retirement of 5,204,122 treasury shares on July 15, 2026, while a further 700 billion won treasury-share acquisition and planned cancellation remained to be carried out; these actions reduce the company’s treasury-share position when completed.
The completed retirement is an executed action, whereas the new acquisition is a board-approved program scheduled for July 31 through October 22, 2026, with 6,698,565 shares scheduled for cancellation. The proposed write-down contingent capital securities are also at the resolution stage: the stated issuance is 270 billion won, within a board-approved ceiling of 400 billion won, and the filing does not report issuance or proceeds.
The filing also reports a July 23 resolution for a 740-won quarterly cash dividend per share, with a July 30 record date and an expected August 28 payment date. The merger of wholly owned Shinhan Asset Trust and Shinhan REITs Management was approved by both boards on July 30, but no completion date is stated here.
Key follow-through items are completion of the July 31–October 22 buyback and cancellation program, the final amount of contingent capital securities after demand forecasting, and completion of the approved subsidiary merger.
Key Figures
Key Terms
Common Equity Tier 1 (CET1) ratio financial
Write-down Contingent Capital Securities financial
Liquidity Coverage Ratio financial
Non-Performing Loans financial
Substandard & Below Coverage Ratio financial
performance-linked stock compensation (PS) financial
FAQ
How did Shinhan Financial Group (SHG) perform financially in 1H 2026?
What capital return did Shinhan Financial Group (SHG) deliver and plan under its value-up initiatives?
What are the key financial targets in Shinhan Financial Group’s (SHG) ‘Shinhan Value-Up +++’ plan?
What is Shinhan Financial Group’s (SHG) asset quality and capital position as of June 30, 2026?
What dividends is Shinhan Financial Group (SHG) paying in 2026?
What major capital actions did Shinhan Financial Group (SHG) approve after June 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 August 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
1
INDEX
No. |
Description |
1. 2. |
Summary of 1H 2026 Business Report Exhibit 99.1 Shinhan Financial Group Review Report for the 1H 2026 (Consolidated) |
3. |
Exhibit 99.2 Shinhan Financial Group Review Report for the 1H 2026 (Separate) |
2
Summary of 1H 2026 Business Report
On August 14, 2026, Shinhan Financial Group (“SFG”) filed its 1H 2026 Business Report (the “Business Report”) with the Financial Services Commission of Korea and the Korea Exchange pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.
The financial information in this report has been prepared in accordance with Korean International Financial Reporting Standards.
Table of Contents
1. Introduction of the Group
2. Business Results
3. Other Financial Information
4. Independent Auditor
5. Corporate Governance
6. Major Shareholders and Market Price Information of our Common Shares and ADRs
7. Directors, Executive Officers and Employees
8. Related Party Transactions
9. Internal Control
10. Contingencies
11. Material Information after the reporting period
3
1. Introduction of the Group
Business Objective
Shinhan Financial Group is a financial holding company that was established in September 1, 2001, through a stock transfer from the Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd., and Shinhan BNP Paribas Asset Management Co., Ltd. The primary business objectives of the company include the control and management of financial business, as well as financial support for its subsidiaries.
On September 10, 2001, the company was listed on the Korea Stock Exchange and on September 16, 2003, the company was registered with the U.S. Securities and Exchange Commission(SEC), where its American Depositary Shares(ADSs) were listed on the New York Stock Exchange(NYSE).
Company History (from Jan. 2010 through the reporting date)
4
5
Overview of the Business Group
Principal(Direct) Subsidiaries under Korean Law (as of June 30, 2026)
Subsidiaries |
|
Ownership by SFG |
Shinhan Bank |
|
100.0% |
Shinhan Card |
|
100.0% |
Shinhan Securities |
|
100.0% |
Shinhan Life Insurance 1) |
|
100.0% |
Shinhan Capital |
|
100.0% |
Shinhan Asset Management 2) |
|
100.0% |
Jeju Bank 3) |
|
64.0% |
Shinhan Savings Bank 4) |
|
100.0% |
Shinhan Asset Trust 5) |
|
100.0% |
Shinhan DS |
|
100.0% |
Shinhan Fund Partners 6) |
|
99.8% |
Shinhan REITs Management |
|
100.0% |
Shinhan AI9) |
|
- |
Shinhan Venture Investment 7) |
|
100.0% |
Shinhan EZ General Insurance 8) |
|
91.7% |
SHC Management |
|
100.0% |
1) Shinhan Life Insurance and Orange Life Insurance merged on July 1st, 2021 and became Shinhan Life Insurance Co., Ltd 2) On January 15, 2021, SFG acquired remaining 35% interests in Shinhan BNP Paribas Asset Management and it became our wholly-owned subsidiary (changed its legal name to Shinhan Asset Management) 3) Jeju Bank is currently listed on the Korea Exchange. 4) On January 30, 2013, Yehanbyoul Savings Bank joined SFG as a direct subsidiary. On April 1, 2013, Shinhan Savings Bank merged with Yehanbyoul Savings Bank, both of which were direct subsidiaries of Shinhan Financial Group. As a result of the integration of the two savings banks, the previous Shinhan Savings Bank has been liquidated and is thus no longer a subsidiary of Shinhan Financial Group and instead, Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity constituting a member of Shinhan Financial Group. 5) The Group has acquired remaining shares of Asia Trust Co., Ltd and it became its wholly-owned subsidiary. Asia Trust Co., Ltd has changed its name to Shinhan Asset Trust Co., Ltd. 6) On November 30, 2012, Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary. Prior to November 30, 2012, Shinhan AITAS was an indirect subsidiary of SFG under Shinhan Bank, a wholly-owned bank subsidiary of SFG. On April 03, 2023, Shinhan AITAS changed its legal name to Shinhan Fund Partners. 7) On January 11, Neoplux changed its legal name to Shinhan Venture Investment. 8) On June 30, 2022, SFG acquired remaining 94.54% stake from BNP Paribas Cardiff and it became our wholly-owned subsidiary (changed its legal name to Shinhan EZ General Insurance) On November 03,2022, KT and Douzone Bizon acquired 9.9% and 5% shares of Shinhan EZ General Insurance, respectively. 9) On July 15, 2024, we announced the liquidation and dissolution of Shinhan AI. Co., Ltd. and accordingly Shinhan AI. Co., Ltd. is no longer a subsidiary of SFG. |
||
6
Indirect subsidiaries held through direct subsidiaries (as of the reporting date)
Direct Subsidiaries |
|
Indirect Subsidiaries |
|
Ownership by the Parent |
Shinhan Bank |
|
Shinhan Bank America |
|
100.0% |
|
Shinhan Bank Japan 1) |
|
100.0% |
|
|
Shinhan Bank Europe |
|
100.0% |
|
|
Shinhan Bank Cambodia |
|
97.5% |
|
|
Shinhan Bank Kazakhstan |
|
100.0% |
|
|
Shinhan Bank China Limited |
|
100.0% |
|
|
Shinhan Bank Canada |
|
100.0% |
|
|
Shinhan Bank Vietnam |
|
100.0% |
|
|
|
Banco Shinhan de Mexico |
|
99.9% |
|
|
PT Bank Shinhan Indonesia |
|
99.0% |
Shinhan Card |
|
LLP MFO Shinhan Finance |
|
70.6% |
|
PT. Shinhan Indo Finance |
|
76.3% |
|
|
Shinhan Microfinance Co., Ltd. |
|
100.0% |
|
|
Shinhan Vietnam Finance Co. Ltd. |
|
100.0% |
|
|
|
Shinhan Credit Information Co.Ltd |
|
100.0% |
Shinhan Securities |
|
Shinhan Securities Hong Kong |
|
100.0% |
|
Shinhan Securities Vietnam Co., Ltd |
|
100.0% |
|
|
PT Shinhan Sekuritas Indonesia |
|
99.0% |
|
|
|
Shinhan Praxis K-Growth Global Private Equity Fund |
|
14.2% |
|
|
Shinhan SKS Corporate Financial |
|
9.6% |
|
|
Atomos Specialty No.1 PEF |
|
10.0% |
|
|
Shinhan Sierra Mobility Shared-Growth Private Debt Fund |
|
7.0% |
Shinhan Life Insurance |
|
Shinhan Financial Plus |
|
100.0% |
|
|
Shinhan Life Care Co., Ltd. |
|
100.0% |
|
|
Shinhan Life Insurance Vietnam Limited Liability Company |
|
100.0% |
Shinhan Capital |
|
Shinhan-We Venture Debt Fund |
|
34.5% |
|
|
Shinhan SCLowy No.1 Private Credit Fund |
|
31.4% |
Shinhan Asset Management |
|
JS Shinhan Private Equity Fund |
|
0.1% |
|
|
Shinhan QED Fund I |
|
8.4% |
Shinhan DS |
|
Shinhan DS Vietnam Co. Limited |
|
100.0% |
Shinhan Venture Investment |
|
Neoplux 3rd PEF |
|
10.0% |
|
|
Shinhan Rio Green PEF |
|
0.4% |
|
|
Shinhan Helio Black PEF |
|
19.7% |
1) SBJ DNX: SBJ Bank own 90% in the aggregate.
|
||||
7
Credit Ratings Ratings (as of June 30, 2026)
Date |
Types of Issuance |
Credit Rating |
Rating Company (Rating Range) |
2026.01.23 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.02.24 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.03.03 |
Write-down Contingent Capital Securities |
AA- |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.03.12 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.04.16 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.06.22 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2026.06.24 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
8
Capital Structure
Number of Shares (as of June 30, 2026)
Types of Shares |
|
Number of Shares |
Number of shares authorized for issuance |
|
1,000,000,000 |
Number of common shares issued (1) (3) |
|
474,654,361 |
Number of preferred shares issued |
|
- |
Total outstanding shares |
|
474,654,361 |
Treasury stocks (2) |
|
5,204,123 |
Total outstanding shares |
|
469,450,238 |
Treasury stocks per total outstanding shares ratio |
|
1.10 |
1) SFG issued 8,232,906 shares of common stock in relation to a comprehensive stock exchange between SFG and Orange Life Insurance on January 28, 2020. On September 29, 2020, SFG had a paid-in capital increase and issued 39,130,000 common shares (third-party allocation). On December 30, 2020, SFG issued 72,719 shares of common stock in relation to a small-scale stock exchange between SFG and Neoplux. 2) SFG acquired treasury shares through the acquisition of 1 fractional shares as a result of a share exchange. 3) SFG canceled treasury shares of 5,035,658 on June 01, 2020, 3,665,423 on April 25, 2022, 4,149,262 on November 23, 2022, 3,676,470 on March 28,2023, 4,243,281 on June 16, 2023, 2,842,929 on August 31, 2023, 2,744,718 on December 27, 2023, 3,366,257 on March 22, 2024, 5,947,889 on November 1, 2024, 7,603,260 on April 29, 2025, 10,347,131 on June 26,2025, and 10,840,573 on February 6, 2026 after completion of share repurchase program. Capital does not change due to the cancellation of acquired stocks within the range of dividend payable income. |
||
9
Dividends
On July 26, 2024, we announced a value-up plan and set 2027 as the target year for achieving the following key targets:
According to the assessment results of the implementation of the value-up plan in 2025, we maintained a stable CET1 ratio exceeding 13%. Our ROE improved by 67 basis points year-on-year, reaching 9.11%, and our shareholder return ratio exceeded the targeted 50%, reaching 50.2%. We also reduced the number of our issued and outstanding shares by approximately 25 million by January 2026, demonstrating solid progress in implementing the plan.
We have now set new targets of the value-up plan and advanced its execution methodology, taking into account changes in the overall environment – early achievement of the original targets including the shareholder return ratio, the enactment of legislation on separate taxation of dividend income, and the trend of PBR improvement among domestic banking and financial holding companies. This new value-up plan is named as “Shinhan Value-Up +++ (Triple Plus).” Each year, we will set out our goals for the next three years based on an annual review of the appropriateness of our targets.
- New Targets: While maintaining the existing 2027 targets, we will provide updated guidance for the next three-year period annually. In addition, we will present and communicate principles for the allocation between growth and shareholder returns, as well as a formula for the shareholder return ratio.
To achieve the above goals, we will advance the execution methodology while focusing on the following strategic priorities:
With the restructuring of the value-up plan, we aim to enhance core profitability at a fast pace based on a stable CET1 ratio, while implementing more sustainable and predictable growth and shareholder return policies.
This value-up plan was adopted by resolution of the Board of Directors on April 23, 2026. We will continue to assess the progress of the implementation and communicate any updates or changes to this plan after deliberation and resolution by the Board of Directors.
For further details regarding the Company’s Corporate Value-up Plan, please refer to the voluntary disclosure titled ‘2026 Value-up Plan of Shinhan Financial Group Co., Ltd’ announced on April 23, 2026.
10
2026 Quarterly Dividend Record Dates and Expected Payment Dates
Quarter |
Dividend Record Date |
(Expected) Payment Date |
Q1 2026 |
April 30, 2026 |
May 29, 2026 |
Q2 2026 |
July 30, 2026 |
August 28, 2026 |
Q3 2026 |
November 3, 2026 |
November 27, 2026 |
Note) The dividend amount for each quarter will be determined at the Board meeting held before each respective record date. The expected payment dates may subject to change based on consultations with relevant institutions.
|
|
(KRW million) |
|
Items |
1H 2026 (Jan. 1 ~ Jun. 30) |
FY2025 (Jan. 1 ~ Dec. 31) |
FY2024 (Jan. 1 ~ Dec. 31) |
Par value per share (Won) |
5,000 |
5,000 |
5,000 |
(Consolidated) Net Income |
3,442,729 |
4,971,561 |
4,450,177 |
(Separate) Net Income |
2,343,149 |
2,385,457 |
1,619,867 |
(Consolidated) Earnings per share (Won) |
7,075 |
9,812 |
8,441 |
Total Cash dividends |
696,144 |
1,245,730 |
1,088,042 |
Total Stock dividends |
- |
- |
- |
(Consolidated) Cash dividend payout ratio (%) |
20.22 |
25.06 |
24.45 |
Cash dividend yield (%) – common shares |
1.49 |
3.01 |
4.26 |
Cash dividend yield (%) – preferred shares |
- |
- |
- |
Stock dividend yield (%) |
- |
- |
- |
Cash dividend per share (Won) – common shares |
1,480 |
2,590 |
2,160 |
Cash dividend per share (Won) – preferred shares |
- |
- |
- |
Stock dividend per share |
- |
- |
- |
11
2. Business Results
Operating Results
|
|
(KRW billion) |
|||
|
1H 2026 (Jan. 1 ~ Jun. 30) |
FY 2025 (Jan. 1 ~ Dec. 31) |
FY 2024 (Jan. 1 ~ Dec. 31) |
||
Net interest income |
6,159 |
11,695 |
11,402 |
||
Interest income |
14,354 |
27,989 |
29,209 |
||
Interest expense |
8,196 |
16,294 |
17,807 |
||
Net fees and commission income |
2,130 |
2,921 |
2,715 |
||
Fees and commission income |
3,024 |
4,564 |
4,295 |
||
Fees and commission expense |
895 |
1,643 |
1,581 |
||
Net insurance income |
-1,958 |
-136 |
884 |
||
Insurance income |
1,927 |
3,611 |
3,393 |
||
Insurance expense |
3,885 |
3,746 |
2,509 |
||
Net gain(loss) on securities and FX trading/derivatives |
3,567 |
3,134 |
2,038 |
||
Provision for credit loss and impairment loss |
-950 |
-2,012 |
-2,104 |
||
Net other operating income(expense) |
-1,101 |
-2,176 |
-2,360 |
||
General and administrative expenses |
3,216 |
6,403 |
6,116 |
||
Net operating income |
4,631 |
7,023 |
6,459 |
||
Equity method income |
51 |
221 |
-24 |
||
Other non-operating income(expense), net |
55 |
-316 |
-406 |
||
Profit before income taxes |
4,737 |
6,929 |
6,029 |
||
Income tax expense |
1,242 |
1,845 |
1,471 |
||
Consolidated net profit |
3,496 |
5,085 |
4,558 |
||
Net profit attributable to equity holders of the Group |
3,443 |
4,972 |
4,450 |
||
Net profit attributable to non-controlling interest |
53 |
113 |
108 |
||
1) Some of the totals may not sum due to rounding numbers. |
|||||
12
Source and Use of Funds
Consolidated Basis (KRW billion, %) |
1H 2026 |
FY 2025 |
FY 2024 |
||||||||||
Jan. 01 ~ Jun. 30 |
Jan. 01 ~ Dec. 31 |
Jan. 01 ~ Dec. 31 |
|||||||||||
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
||
Source |
Deposits |
463,276.0 |
56.9 |
4,702.8 |
2.1 |
430,736.9 |
56.6 |
9,202.3 |
2.1 |
403,986.6 |
55.9 |
10,220.8 |
2.5 |
Borrowings |
57,595.0 |
7.1 |
770.4 |
2.7 |
52,442.2 |
6.9 |
1,534.8 |
2.9 |
54,754.3 |
7.6 |
1,862.4 |
3.4 |
|
Debt Securities Issued |
90,751.7 |
11.1 |
1,562.5 |
3.5 |
91,752.3 |
12.1 |
3,347.4 |
3.7 |
87,474.4 |
12.1 |
3,422.0 |
3.9 |
|
Other Liabilities |
141,463.9 |
17.4 |
- |
- |
126,732.1 |
16.6 |
- |
- |
119,008.3 |
16.5 |
- |
- |
|
Total Liabilities |
753,086.6 |
92.5 |
- |
- |
701,663.5 |
92.1 |
- |
- |
665,223.6 |
92.0 |
- |
- |
|
Total Stockholder's Equity |
61,455.5 |
7.5 |
- |
- |
59,862.9 |
7.9 |
- |
- |
57,655.6 |
8.0 |
- |
- |
|
Total Liabilities & SE |
814,542.1 |
100.0 |
- |
- |
761,526.4 |
100.0 |
- |
- |
722,879.2 |
100.0 |
- |
- |
|
Use |
Cash & Due from Banks |
43,095.9 |
5.3 |
428.4 |
2.0 |
42,566.8 |
5.6 |
782.5 |
1.8 |
38,020.3 |
5.3 |
780.2 |
2.1 |
Loans |
476,228.6 |
58.5 |
10,885.6 |
4.6 |
455,659.5 |
59.8 |
21,419.3 |
4.7 |
434,102.2 |
60.1 |
22,542.6 |
5.2 |
|
Loans in KRW |
369,256.5 |
45.3 |
7,751.7 |
4.2 |
356,117.1 |
46.8 |
15,398.7 |
4.3 |
339,139.5 |
46.9 |
16,520.0 |
4.9 |
|
Loans in Foreign Currency |
56,124.9 |
6.9 |
1,322.3 |
4.8 |
49,607.3 |
6.5 |
2,461.5 |
5.0 |
44,188.9 |
6.1 |
2,402.3 |
5.4 |
|
Credit Card Accounts |
28,760.0 |
3.5 |
1,161.1 |
8.1 |
28,528.8 |
3.8 |
2,331.9 |
8.2 |
27,982.2 |
3.9 |
2,256.0 |
8.1 |
|
Others |
22,087.2 |
2.7 |
650.5 |
5.9 |
21,406.3 |
2.8 |
1,227.3 |
5.7 |
22,791.6 |
3.2 |
1,364.3 |
6.0 |
|
FVPL Financial Assets |
44,693.0 |
5.5 |
757.5 |
3.4 |
44,793.8 |
5.9 |
1,499.1 |
3.4 |
44,711.6 |
6.2 |
1,693.1 |
3.8 |
|
FVOCI Financial Assets |
102,158.9 |
12.5 |
1,589.6 |
3.1 |
95,525.5 |
12.5 |
2,888.3 |
3.0 |
88,378.8 |
12.2 |
2,744.1 |
3.1 |
|
AC Financial Assets |
32,168.8 |
4.0 |
506.8 |
3.2 |
32,462.5 |
4.3 |
1,044.1 |
3.2 |
35,015.5 |
4.8 |
1,101.7 |
3.2 |
|
Other Assets |
116,196.9 |
14.3 |
- |
- |
90,518.3 |
11.9 |
- |
- |
82,650.8 |
11.4 |
- |
- |
|
Total Assets |
814,542.1 |
100.0 |
- |
- |
761,526.4 |
100.0 |
- |
- |
722,879.2 |
100.0 |
- |
- |
|
Notes :
.
13
3. Other Financial Information
1) Capital Adequacy
Consolidated BIS Ratio (Shinhan Financial Group)
|
|
|
(KRW billion) |
|
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Aggregate Amount of Equity Capital (A) |
57,872.0 |
56,260.6 |
53,903.4 |
Risk-Weighted Assets (B) |
367,595.9 |
352,907.6 |
342,375.3 |
BIS Ratio (A/B) |
15.74% |
15.94% |
15.74% |
Note: ▪ Calculated in accordance with Basel III |
|
|
|
Capital Adequacy Ratios (Subsidiaries)
|
|
|
|
(%) |
Subsidiary |
Capital Adequacy Ratio |
Jun. 30, 2026 |
Dec. 31 2025 |
Dec. 31, 2024 |
Shinhan Bank |
BIS Capital Adequacy Ratio |
17.7 |
17.4 |
17.6 |
Shinhan Card |
Adjusted Equity Capital Ratio |
20.7 |
20.8 |
20.0 |
Shinhan Securities |
Net Capital Ratio |
2,347.5 |
1,924.7 |
1,345.0 |
Shinhan Life Insurance |
Risk Based Capital Ratio(K-ICS) |
211.6 |
206.0 |
205.7 |
Shinhan Capital |
Adjusted Equity Capital Ratio |
18.9 |
19.5 |
19.3 |
Shinhan Asset Management |
Equity Capital (KRW billion) |
284.6 |
287.6 |
316.6 |
Minimum Capital Requirement (KRW billion) |
59.9 |
54.2 |
50.1 |
|
Jeju Bank |
BIS Capital Adequacy Ratio |
14.5 |
16.2 |
17.6 |
Shinhan Savings Bank |
BIS Capital Adequacy Ratio |
17.0 |
19.9 |
20.1 |
Shinhan Asset Trust |
Net Capital Ratio |
793.1 |
443.5 |
519.1 |
Shinhan EZ Gen. Insurance |
Risk Based Capital Ratio(K-ICS) |
228.7 |
231.2 |
159.2 |
Notes : • Basel III was applied in calculating Shinhan Bank and Jeju Bank’s BIS Capital Adequacy Ratio. • Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio. • Shinhan Life and Shinhan EZ General Insurance upgraded its insurance risk measurement system in anticipation of a new regulatory solvency regime for insurance companies, the Korean-Insurance Capital Standard (the “K-ICS”). As of the date of submission of the 1H Report in 2026, the above payment capacity ratio is preliminary calculated, and the finally confirmed ratio will be amended and disclosed in Shinhan Life's 1H 2026 business report and Shinhan EZ General Insurance's 1H 2026 management disclosure. |
||||
2) Liquidity
Won Liquidity Ratio
|
|
|
(KRW billion, %) |
||||||||
Company |
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
||||||||
Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
Won Liabilities |
Won Liabilities |
Won Liquidity Ratio(%) |
|||
Shinhan Financial Group |
1,816.6 |
352.1 |
515.9 |
934.2 |
149.7 |
623.9 |
1,051.7 |
56.4 |
1865.9 |
||
Shinhan Card |
22,217.2 |
6,398.6 |
347.2 |
21,507.1 |
6,786.6 |
316.9 |
21,546.6 |
6,077.3 |
354.5 |
||
Shinhan Securities |
31,459.0 |
25,967.1 |
121.1 |
23,577.5 |
18,417.5 |
128.0 |
23,664.4 |
18,128.1 |
130.5 |
||
Shinhan Life Insurance |
3,457.3 |
1,450.2 |
238.4 |
5,034.1 |
1,371.5 |
367.0 |
5,635.7 |
1,359.9 |
414.4 |
||
Shinhan Capital |
1,896.0 |
666.1 |
284.6 |
2,218.8 |
830.6 |
267.1 |
2,529.0 |
1,084.1 |
233.3 |
||
Shinhan Savings Bank |
768.1 |
668.1 |
115.0 |
604.6 |
544.3 |
111.1 |
608.4 |
480.2 |
126.7 |
||
Shinhan Asset Trust |
183.8 |
31.6 |
582.7 |
61.7 |
15.3 |
402.8 |
186.3 |
11.0 |
1,686.2 |
||
Shinhan EZ General Insurance |
84.7 |
18.9 |
447.6 |
111.9 |
17.0 |
659.4 |
73.1 |
9.9 |
736.3 |
||
Notes: ▪ Shinhan Financial Group: Due within 1 month ▪ Shinhan Life Insurance and EZ General Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100 ▪ Shinhan Card, Shinhan Securities, Shinhan Capital, Shinhan Savings Bank and Shinhan Asset Trust : Due within 3 months ▪ Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015 to reflect the recent amendments to detailed regulations on supervision of banking business. ▪ Shinhan Life Insurance recorded a decline in its liquidity ratio following the amendment to the Insurance Business Supervision Regulations on December 31, 2024, which narrowed the scope of assets recognized as liquid - such as government bonds with maturities exceeding three months now classified as only 30% liquid. |
|||||||||||
Liquidity Coverage Ratio
|
|
|
(KRW billion, %) |
||||||
Company |
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
||||||
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%)* |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
|
Shinhan Bank |
102,891.2 |
98,077.4 |
104.9 |
99,551.4 |
95,016.8 |
104.8 |
90,658.4 |
87,753.4 |
103.3 |
Jeju Bank |
1,208.9 |
801.2 |
152.7 |
1,090.1 |
907.0 |
120.9 |
939.4 |
770.1 |
122.7 |
Notes: ▪ Liquidity Coverage Ratios are the arithmetic mean of daily LCRs. ▪ Financial Services Commission temporarily eased the regulatory minimum from 100.0% to 85.0% by end of June 2022 to 90.0% by end of September 2022, to 92.5% by end of June, 2023, to 95.0% by end of December 2023, to 97.5% by end of December 2024. From 2025 onwards, the regulatory minimum is back to 100% after normalized process.
|
|||||||||
Foreign Currency (FC) Liquidity Ratio
|
|
|
(USD millions, %) |
||||||
Company |
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
||||||
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
|
Shinhan Financial Group |
124.7 |
20.2 |
616.7 |
540.7 |
523.5 |
103.3 |
531.4 |
519.2 |
102.4 |
Shinhan Bank |
77,414.9 |
71,373.7 |
108.5 |
77,073.0 |
71,832.5 |
107.3 |
63,127.9 |
56,347.0 |
112.0 |
Shinhan Life Insurance |
3,144.4 |
233.2 |
1,348.2 |
2,707.4 |
243.6 |
1,111.7 |
2,074.0 |
163.0 |
1,272.3 |
Shinhan Securities |
10,079.5 |
9,572.3 |
105.3 |
9,534.0 |
8,026.4 |
118.8 |
11,083.7 |
9,616.5 |
115.3 |
Shinhan Capital |
32.1 |
1.6 |
1,998.5 |
54.5 |
1.7 |
3,273.5 |
79.7 |
0.6 |
13,741.7 |
Jeju Bank |
8.6 |
1.5 |
562.9 |
13.5 |
5.6 |
240.4 |
10.1 |
0.8 |
1,295.2 |
Notes : ▪ Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months. ▪ Shinhan Bank and Jeju Bank’s foreign currency liquidity ratio is based on the application of the liquidity weight. |
|||||||||
Foreign Currency (FC) Liquidity Coverage Ratio
|
|
|
(%) |
Company |
1H 2026 |
FY 2025 |
FY 2024 |
Jan. 1 ~ Jun. 30 |
Jan. 1 ~ Dec. 31 |
Jan. 1 ~ Dec. 31 |
|
Shinhan Bank |
174.1 |
185.0 |
148.8 |
Notes :
3) Asset Quality
SFG Consolidated Basis
(KRW billion) |
|||
|
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Total Loans |
496,015.4 |
478,739.9 |
452,826.9 |
Substandard & Below |
3,919.6 |
3,536.6 |
3,562.4 |
Substandard & Below Ratio |
0.79% |
0.74% |
0.79% |
Non-Performing Loans |
3,458.9 |
3,067.6 |
2,974.7 |
NPL Ratio |
0.70% |
0.64% |
0.66% |
Substandard & Below Coverage Ratio |
116.97% |
126.55% |
132.48% |
Loan Loss Allowance |
4,584.7 |
4,475.4 |
4,719.3 |
Substandard & Below Loans |
3,919.6 |
3,536.6 |
3,562.4 |
Separate Basis
(%) |
Jun. 30 2026 |
Dec. 31 2025 |
Dec. 31 2024 |
||||||
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio 1) |
|
Shinhan Financial Group |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Shinhan Bank |
0.31 |
0.30 |
153 |
0.28 |
0.25 |
173 |
0.24 |
0.18 |
202 |
Shinhan Card |
1.21 |
0.53 |
229 |
1.16 |
0.57 |
234 |
1.32 |
0.80 |
243 |
Shinhan Securities |
7.65 |
7.65 |
74 |
10.62 |
10.62 |
76 |
18.30 |
18.30 |
70 |
Shinhan Life Insurance |
0.56 |
0.39 |
291 |
0.54 |
0.38 |
235 |
0.32 |
0.32 |
393 |
Shinhan Capital |
3.14 |
2.16 |
95 |
2.30 |
2.26 |
144 |
3.98 |
2.35 |
75 |
Jeju Bank |
1.50 |
1.46 |
85 |
1.57 |
1.54 |
86 |
1.32 |
1.22 |
114 |
Shinhan Savings Bank |
5.64 |
10.61 |
95 |
6.24 |
11.98 |
91 |
7.90 |
13.16 |
72 |
Shinhan Asset Trust |
88.59 |
71.89 |
37 |
86.17 |
64.06 |
38 |
75.15 |
52.31 |
43 |
4) Debt to Equity Ratios
Shinhan Financial Group (Separate Basis)
(KRW billion) |
|||
|
Jun. 30, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Debt |
10,641.7 |
11,458.4 |
11,324.1 |
Equity |
26,346.9 |
26,335.5 |
26,348.2 |
Debt to Equity Ratio |
40.39% |
43.51% |
42.98% |
Twenty Largest Exposures by Borrower
(KRW billion) |
||||||
As of June 30, 2026 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities |
Guarantees and Acceptances |
Others |
Total Exposures |
Korea Electric Power Corporation |
0.4 |
132.2 |
3,091.6 |
90.4 |
- |
3,314.5 |
KEB Hana Bank |
1,389.6 |
- |
1,741.7 |
70.3 |
- |
3,201.6 |
LG Display |
1,209.7 |
986.7 |
10.0 |
- |
- |
2,206.3 |
Woori Bank |
994.5 |
12.6 |
1,111.3 |
- |
- |
2,118.4 |
HD Hyundai Heavy Industries Co.,Ltd |
- |
- |
0.1 |
1,844.8 |
- |
1,844.9 |
Lotte Hotel |
66.9 |
666.0 |
288.8 |
761.2 |
- |
1,782.9 |
S-Oil |
573.7 |
739.9 |
406.4 |
12.8 |
- |
1,732.8 |
KB Bank |
921.7 |
- |
771.8 |
10.2 |
- |
1,703.7 |
Nong Hyup Bank |
334.7 |
218.6 |
888.9 |
19.6 |
- |
1,461.9 |
Hyundai Rotem Company |
3.1 |
26.4 |
- |
1,328.0 |
- |
1,357.5 |
Samsung Electronics |
162.1 |
1,124.3 |
9.1 |
- |
- |
1,295.6 |
Samsung Heavy Industries Co.,Ltd |
- |
- |
9.9 |
1,256.6 |
- |
1,266.5 |
Hanwha Corporation |
800.4 |
182.0 |
218.9 |
53.4 |
- |
1,254.7 |
KT |
151.2 |
- |
976.2 |
106.7 |
- |
1,234.1 |
Mirae Asset Securities |
320.5 |
23.2 |
760.3 |
100.0 |
- |
1,204.0 |
LIG Defense&Aerospace |
14.7 |
- |
- |
1,186.6 |
- |
1,201.3 |
Songpa Biz-Cluster PFV |
1,154.4 |
- |
7.2 |
- |
- |
1,161.6 |
LS MnM |
0.2 |
853.4 |
- |
204.4 |
- |
1,058.0 |
SK Hynix |
318.2 |
- |
687.8 |
30.3 |
- |
1,036.3 |
NH Investment & Securities |
373.4 |
- |
651.0 |
- |
- |
1,024.3 |
Total |
8,789.3 |
4,965.3 |
11,630.7 |
7,075.3 |
- |
32,460.7 |
Note) Some of the totals may not sum due to rounding |
||||||
Exposure to ten Main Debtor Groups
(KRW billion) |
||||||
As of June 30, 2026 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities |
Guarantees and Acceptances |
Others |
Total Exposures |
SK |
1,688.3 |
1,107.3 |
2,754.8 |
960.6 |
- |
6,511.0 |
Lotte |
2,296.4 |
1,318.8 |
1,109.0 |
1,708.6 |
- |
6,432.8 |
Samsung |
690.0 |
2,600.4 |
721.7 |
2,192.9 |
- |
6,205.0 |
Hyundai Motor Company |
1,336.2 |
1,327.7 |
1,397.5 |
1,608.8 |
- |
5,670.4 |
Hanwha |
1,794.8 |
844.6 |
1,614.2 |
1,031.2 |
1.1 |
5,285.9 |
LS |
360.2 |
2,023.9 |
520.5 |
1,305.1 |
1.3 |
4,211.1 |
LG |
1,517.5 |
1,266.0 |
917.0 |
238.5 |
- |
3,939.0 |
HD Hyundai |
528.4 |
52.4 |
221.9 |
2,790.4 |
- |
3,592.9 |
POSCO |
811.9 |
732.0 |
265.9 |
41.4 |
- |
1,851.2 |
S-Oil |
573.8 |
739.9 |
406.4 |
12.8 |
- |
1,732.9 |
Total |
11,597.6 |
12,012.9 |
9,928.9 |
11,890.2 |
2.5 |
45,432.2 |
Note) Some of the totals may not sum due to rounding |
||||||
Top Twenty Non-Performing Loans
(KRW billion) |
||||
Borrower |
Industry |
Gross Principal Outstanding |
Substandard & Below |
Allowance for Loan Losses |
A |
Other financial service activities n.e.c. |
159.0 |
159.0 |
112.5 |
B |
Renting of non-residential buildings |
76.7 |
76.7 |
64.3 |
C |
Cable broadcasting |
64.9 |
64.9 |
64.9 |
D |
Development and subdividing of non-residential building |
49.0 |
49.0 |
38.3 |
E |
Development and subdividing of non-residential building |
49.4 |
47.4 |
19.5 |
F |
Development and subdividing of other real estate |
30.0 |
30.0 |
13.3 |
G |
Other financial service activities n.e.c. |
53.4 |
29.8 |
13.5 |
H |
Advertising agencies |
27.1 |
27.1 |
4.5 |
I |
Other financial service activities n.e.c. |
26.9 |
26.9 |
6.3 |
J |
Manufacture of other special purpose machinery |
26.0 |
26.0 |
3.8 |
K |
Manufacture of electric vehicle for passenger |
28.2 |
25.6 |
10.7 |
L |
Renting of non-residential buildings |
22.2 |
22.2 |
10.5 |
M |
Other financial service activities n.e.c. |
21.5 |
21.5 |
1.5 |
N |
Museum activities |
20.0 |
20.0 |
1.6 |
O |
Other financial service activities n.e.c. |
19.0 |
19.0 |
19.0 |
P |
Development and subdividing of non-residential building |
19.0 |
19.0 |
6.1 |
Q |
Development and subdividing of non-residential building |
15.4 |
15.4 |
4.0 |
R |
Development and subdividing of other real estate |
15.0 |
15.0 |
15.0 |
S |
Renting of non-residential buildings |
15.0 |
15.0 |
4.4 |
T |
Other financial service activities n.e.c. |
13.7 |
13.7 |
13.6 |
Total |
751.3 |
722.9 |
427.3 |
|
Notes : ▪ Consolidated basis as of Jun. 30, 2026 ▪ Some of the totals may not sum due to rounding. |
||||
4. Independent Auditor
Audit Opinion for the last 3 years
|
1H 2026 |
FY 2025 |
FY 2024 |
Independent Auditor |
PWC Samil Accounting Corp. |
KPMG Samjong Accounting Corp. |
KPMG Samjong Accounting Corp. |
Audit Opinion |
- |
Unqualified |
Unqualified |
Note) The review of the 1st half of 2026 by the external auditor did not identify any matters that would cause the interim financial statements, prepared in accordance with K-IFRS, to be considered not fairly presented in all material respects. |
|||
Compensation to the Independent Auditor for Audit and Review Services
The following is a description of the fees for audit and review services performed by our independent auditor for the last three years in connection with our financial statements preparation.
Year |
Auditor |
Payment 1) |
Details |
Working hours |
1H 2026 |
PWC Samil Accounting Corp. |
1,047 (annualized basis) |
Review/Audit of Financial Statements |
2,862 Hours |
PWC Samil Accounting Corp. |
129 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
332 Hours |
|
FY 2025 |
KPMG Samjong Accounting Corp. |
1,025 (annualized basis) |
Review/Audit of Financial Statements |
9,107 Hours |
KPMG Samjong Accounting Corp. |
135 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
1,115 Hours |
|
FY 2024 |
KPMG Samjong Accounting Corp. |
1,025 (annualized basis) |
Review/Audit of Financial Statements |
9,071 Hours |
KPMG Samjong Accounting Corp. |
135 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
1,144 Hours |
|
1) Excluding value-added taxes. |
||||
Change of External Auditor
Financial |
Changed Company |
Previous Auditor |
Changed Auditor |
Detail |
FY2026 |
Shinhan Financial Group Co., Ltd. |
KPMG Samjong Accounting Corp. |
PWC Samil Accounting Corp. |
Expiration of the audit contract term |
Note) Pursuant to the Act on External Audit of Stock Companies, etc. and its enforcement decree, the audit contract term of KPMG Samjong, designated as the external auditor for Shinhan Financial Group for the 23rd to 25th fiscal year has expired. Accordingly, the external auditor for the 26th fiscal year of Shinhan Financial Group and its subsidiaries has been changed from KPMG Samjong to PWC Samil.
5. Corporate Governance
Board of Directors and committees of the Board of Directors
Our board of directors, which currently consists of one executive director, one non-executive director and nine outside directors, has the ultimate responsibility for the management of our affairs.
• Committees of the Board of Directors
We currently have eight management committees that serve under the board:
Each committee member is appointed by the board of directors, except for members of the Audit Committee, who are elected at the general meeting of shareholders.
Committee for Recommending Candidates for CEO
The Committee for Recommending Candidates for CEO currently consists of five directors: Choi Young Gwon (Chairman), Kwak Su Keun, Kim Jo Seol, Park Jong Bok and Bae Hoon. However, for the meeting for the final selection of candidates for the CEO position, all outside directors are called to participate in the committee, and in this case, all outside directors are considered to be part of the committee. This committee is responsible for matters concerning the recommendation of candidates for the CEO position, including establishing and reviewing our management succession plan and its operation, setting and evaluating the qualifications and criteria for the CEO and CEO candidate pool and other matters necessary for improving our overall corporate governance structure. The chairman of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to the CEO selection.
Audit Committee
The Audit Committee currently consists of four outside directors: Lim Seung Yeon (Chairman), Kwak Su Keun, Bae Hoon and Choi Young Gwon. The committee oversees our financial reporting and approves the appointment of, and interaction with, our independent auditors and our internal audit-related officers. The committee also reviews our financial information, audit examinations, key financial statement issues and the administration of our financial affairs by the board of directors. The committee examines the agenda, and financial statements and other reports to be submitted by the board of directors, for each general meeting of shareholders. The committee holds regular meetings every quarter.
Committee for Recommending Candidates for Independent Directors and Members of Audit Committee
The Committee for Recommending Candidates for Independent Directors and Members of Audit Committee currently consists of four outside directors: Yang In Jip (Chairman), Kim Jo Seol, Lim Seung Yeon and Chun Myo Sang. Members of this committee will be appointed by our board of directors only to the extent necessary to recommend and nominate candidates for our outside director positions and audit committee members, and related matters. However, when the process for final recommendation of outside director and audit committee member candidates commences, all outside directors are called to participate in the committee, and in this case, all outside directors are considered to be part of the committee. The committee meetings are called by the committee’s chairman, who must be an outside director. This committee is responsible for matters relating to: (i) establishment, review and reinforcement of policies for outside director and audit committee member selection, (ii) recommendation of outside director and audit committee member candidates for approval at the general shareholders’ meeting and (iii) continual recruitment and screening of potential outside director candidates.
Risk Management Committee
The Risk Management Committee currently consists of three outside directors: Song Seong Joo (Chairman), Park Jong Bok and Yang In Jip. The committee oversees and makes determinations on all issues relating to our comprehensive risk management function. In order to ensure our stable financial condition and to maximize our profits, the committee monitors our overall risk exposure and reviews our compliance with risk policies and risk limits. In addition, the committee reviews risk and control strategies and policies, evaluates whether each risk is at an adequate level, establishes or abolishes
risk management divisions, reviews risk-based capital allocations, and reviews the plans and evaluation relating to our internal controls. The committee holds regular meetings every quarter.
Remuneration Committee
The Remuneration Committee currently consists of three outside directors: Park Jong Bok (Chairman), Lim Seung Yeon and Chun Myo Sang. This committee is responsible for reviewing and approving the management’s evaluation and compensation programs. At least one-half of the members of this committee must be outside directors, and currently all members of this committee are outside directors. The committee meetings are called by the committee’s chairman, who must be an outside director.
Environmental, Social and Governance (ESG) Strategy Committee
The ESG Strategy Committee currently consists of five directors: Song Seong Joo (Chairman), Kim Jo Seol, Chun Myo Sang, Jung Sang Hyuk and Jin Okdong. This committee is responsible for setting the corporate policy for sustainable management, corporate disclosure of sustainability reports and discussing specific business agenda in relation to socially responsible management and other matters such as corporate strategy regarding climate change.
Subsidiary’s CEO Recommendation Committee
The Subsidiary’s CEO Recommendation Committee currently consists of five directors: Jin Okdong (Chairman), Kwak Su Keun, Bae Hoon, Song Seong Joo and Yang In Jip. This committee is responsible for matters relating to the evaluation of subsidiary management leadership, establishment of subsidiary CEO qualifications, verification and recommendation of subsidiary CEO candidates and other matters deemed necessary by the committee.
Internal Control Committee
The Internal Control Committee currently consists of four directors: Choi Young Gwon (Chairman), Bae Hoon, Song Seong Joo and Yang In Jip. This committee is responsible for reviewing and approving matters concerning internal controls, including establishing our internal control policies and strategies. The committee also monitors and evaluates whether executive officers are appropriately performing their management and reporting duties regarding internal controls in accordance with the relevant regulations, and may demand necessary remedial actions in the event of any deficiencies.
6. Major Shareholder and Market Price Information of our Common Shares and ADRs
Major Shareholders of Shinhan Financial Group (as of Jun. 30, 2026)
Name |
No. of Common Shares owned2) |
Ownership%1) |
National Pension Service |
43,630,195 |
9.19% |
1) Ownership% is based on rounding numbers of third decimal place 2) The number of common shares owned and ownership is based on shareholder registry as of end of June 2026 |
||
Common Shares Traded on the Korea Exchange
|
|
|
|
|
(KRW, number of shares) |
||
|
Jan. 2026 |
Feb. 2026 |
Mar. 2026 |
Apr. 2026 |
May. 2026 |
Jun. 2026 |
|
Price per share |
High |
86,100 |
106,000 |
97,900 |
100,000 |
98,900 |
107,500 |
Low |
76,600 |
82,500 |
87,700 |
91,400 |
92,800 |
91,600 |
|
Avg. |
80,805 |
96,900 |
91,876 |
97,582 |
95,811 |
98,852 |
|
Trading Volume |
26,142,122 |
33,295,294 |
40,601,194 |
22,178,865 |
25,081,412 |
35,503,342 |
|
Highest Daily Trading Volume |
1,709,340 |
3,014,041 |
3,419,674 |
1,660,803 |
2,778,385 |
3,611,830 |
|
Lowest Daily Trading Volume |
640,114 |
1,254,944 |
1,067,616 |
558,564 |
896,531 |
1,010,303 |
|
American Depositary Receipts traded on the New York Stock Exchange
|
|
|
|
|
(USD, number of shares) |
||
|
Jan. 2026 |
Feb. 2026 |
Mar. 2026 |
Apr. 2026 |
May. 2026 |
Jun. 2026 |
|
Price per share |
High |
60.74 |
71.72 |
65.50 |
69.11 |
68.54 |
71.08 |
Low |
53.11 |
58.55 |
58.79 |
62.16 |
63.01 |
60.28 |
|
Avg. |
55.98 |
67.03 |
61.36 |
66.27 |
65.36 |
65.19 |
|
Monthly Trading Volume |
4,732,830 |
5,275,072 |
9,617,310 |
5,062,655 |
4,634,386 |
6,590,049 |
|
Highest Daily Trading Volume |
887,020 |
550,007 |
894,057 |
630,291 |
358,609 |
524,749 |
|
Lowest Daily Trading Volume |
88,319 |
153,134 |
216,974 |
133,340 |
111,652 |
142,796 |
|
Note) 1 ADR = 1 Common Shares |
|||||||
7. Directors, Executive Officers and Employees
Directors and Executive Officers
1) Executive Director
Name |
Date of Birth |
Position |
Executive Director Since |
Date Term Ends(1) |
Jin Okdong |
Feb. 21, 1961 |
Chief Executive Officer |
March 23, 2023 |
March 2029 |
Note: The date on which the term will end will be the date of the general shareholders’ meeting in the relevant year.
Jin Okdong is our Chief Executive Officer. Prior to his election, Mr. Jin served as the chief executive officer of Shinhan Bank from 2019 to 2023. Mr. Jin served as the deputy president of Shinhan Financial Group from 2017 to 2018, the deputy president of Shinhan Bank in 2017 and the chief executive officer of Shinhan Bank Japan from 2015 to 2016. Mr. Jin received a master’s degree in business administration from Chung Ang University.
2) Non-Executive and Outside Directors
Non-executive directors are directors who are not our employees and do not hold executive officer positions with us. Outside directors are non-executive directors who also satisfy the independence requirements set forth under the Financial Investment Services and Capital Markets Act. Our non-executive directors and outside directors are selected based on the candidates’ expertise in diverse areas, such as law, finance, economics, management and accounting. Currently, one non-executive director and nine outside directors are in office, all of whom were nominated by our board of directors and approved at a general meeting of shareholders.
Our non-executive and outside directors are as follows:
Name |
Date of Birth |
Position |
Director Since |
Date Term Ends(1) |
Jung Sang Hyuk |
Nov. 26, 1964 |
Non-Executive Director |
March 23, 2023 |
March 2027 |
Kwak Su Keun |
Aug. 16, 1953 |
Outside Director and Chairman of the Board of Directors |
March 25, 2021 |
March 2027 |
Bae Hoon |
Mar. 30, 1953 |
Outside Director |
March 25, 2021 |
March 2027 |
Kim Jo Seol |
Dec. 5, 1957 |
Outside Director |
March 24, 2022 |
March 2027 |
Song Seongjoo |
Mar. 26, 1971 |
Outside Director |
March 26, 2024 |
March 2027 |
Choi Young-Gwon |
Jul. 16, 1964 |
Outside Director |
March 26, 2024 |
March 2027 |
Yang In Jip |
Jul. 16, 1957 |
Outside Director |
March 26, 2025 |
March 2027 |
Chun Myo Sang |
May 20, 1980 |
Outside Director |
March 26, 2025 |
March 2027 |
Park Jong Bok |
May. 29, 1955 |
Outside Director |
March 26, 2026 |
March 2028 |
Lim Seung Yeon |
Jul. 18, 1973 |
Outside Director |
March 26, 2026 |
March 2028 |
Note: The date on which each term will end will be the date of the general shareholders’ meeting in the relevant year.
Jung Sang Hyuk has been our non-executive director since March 23, 2023. Mr. Jung was the chief executive officer of Shinhan Bank and previously served as the deputy president of Shinhan Bank from 2020 to 2023. Mr. Jung received a bachelor’s degree in economics from Seoul National University.
Kwak Su Keun has been our outside director since March 25, 2021 and the chairman of our board of directors since March 26, 2026. Mr. Kwak currently serves as an honorary professor of accounting at Seoul National University, Business School and chair of Corporate Governance Advisory Board at Korea Listed Companies Association. Mr. Kwak received a doctoral degree in business administration from University of North Carolina Chapel Hill.
Bae Hoon has been our outside director since March 25, 2021. Mr. Bae is a lawyer and Certified Public Accountant in Japan and currently serves as a representative attorney at Orbis Legal Profession Corporation. Mr. Bae received a master’s degree in business administration from Kobe University.
Kim Jo Seol has been our outside director since March 24, 2022. Ms. Kim is a professor who teaches economics at Osaka University of Commerce and an economist with a high awareness of Northeast Asian economics. Ms. Kim received a doctoral degree in economics from Osaka City University.
Song Seong Joo has been as our outside director since March 26, 2024. Ms. Song has served as a professor of statistics at Korea University since 2008 and is also the Director of the Korea Risk Management Society. Ms. Song was previously an advisory professor at the Economic Statistics Division of the Bank of Korea. Ms. Song received a doctoral degree in statistics from the University of Chicago.
Choi Young Gwon has been as our outside director since March 26, 2024. Mr. Choi currently serves as the Chairman of the Korea Society of Financial Analysts and previously served as the chief executive officer of Woori Asset Management from 2019 to 2023. Mr. Choi received a doctoral degree in business administration, specializing in financial management, from Soongsil University.
Yang In Jip has been our outside director since March 26, 2025. Mr. Yang is the founder and currently serves as the chief executive officer and chairman of Onycom, Inc. Mr. Yang received a master of business administration degree from the University of Southern California.
Chun Myo Sang has been our outside director since March 26, 2025. Ms. Chun currently serves as the Head of Planning and Administration at SmartNews Inc. and is a Certified Public Accountant in Japan. Ms. Chun previously served as a manager at KPMG FAS and as a research and accounting advisor at the Development Bank of Japan. Ms. Chun received a master of business administration degree from the University of Southern California.
Park Jong Bok has been our outside director since March 26, 2026. Mr. Park previously served as the chief executive officer, the head of retail banking and the head of the retail channel business of SC Bank Korea. Mr. Park received a bachelor’s degree in economics from Kyung Hee University.
Lim Seung Yeon has been our outside director since March 26, 2026. Ms. Lim has served as a professor of business at Kookmin University since 2011, and previously served as an outside director and a member of the audit committee of Kakao Games Corp. Ms. Lim received a doctoral degree in business administration from Seoul National University.
Any director wishing to enter into a transaction with Shinhan Financial Group or any of its subsidiaries in his or her personal capacity is required to obtain the prior approval of our board of directors. The director having an interest in the transaction may not vote at the meeting of our board of directors at which the relevant transaction is subject to vote for approval.
3) Executive Officers
In addition to the executive directors who are also our executive officers, we currently have the following executive officers.
Name |
Date of Birth |
Position |
||
Koh Seogheon |
Sept. 27, 1968 |
Deputy President and Chief Strategy Officer |
||
Jang Jeong Hoon |
May 30, 1971 |
Deputy President and Chief Financial Officer |
||
Lee Een-kyoon |
Apr. 1, 1967 |
Deputy President and Chief Operation Officer |
||
Park Hyun Joo |
Apr. 22, 1965 |
Deputy President and Chief Consumer Protection Officer |
||
Choi Hyuck Jae |
Aug. 15, 1970 |
Deputy President and Chief AI Officer and Chief Digital Officer |
||
Ra Hoon |
Mar. 19, 1969 |
Executive Director and Chief Risk Officer |
||
Lee Young Ho |
Oct. 17, 1970 |
Executive Director and Chief Compliance Officer |
||
Kim Jion |
May. 12, 1968 |
Executive Director and Chief Audit Officer |
||
Kim Junhwan |
Jun. 23, 1972 |
Executive Director and Head of Digital Market Sensing Part |
||
None of the executive officers have any significant activities outside Shinhan Financial Group.
Koh Seogheon has been our deputy president and chief strategy officer since January 1, 2022. Mr. Koh previously served as the head of business management division and strategic planning team of Shinhan Financial Group. Mr. Koh received a bachelor’s degree in economics from Seoul National University.
Jang Jeong Hoon has been our deputy president and chief financial officer since January 1, 2026. Mr. Jang previously served as the deputy president of Shinhan Securities. Mr. Jang received an M.B.A. from Washington University in St. Louis.
Lee Een-kyoon has been our deputy president and chief operation officer since January 1, 2019. Mr. Lee previously served as the head of the management support team and the head of the secretary’s office of Shinhan Bank. Mr. Lee received a bachelor’s degree in English literature from Hanyang University.
Park Hyun Ju has been our deputy president and chief consumer protection officer since July 1, 2023. Ms. Park previously served as the head of Consumer Protection Division of Shinhan Bank. Ms. Park graduated from Seoul Girl’s Commercial High School.
Choi Hyuck Jae has been our deputy president and chief AI officer and chief digital officer since October 1, 2025. Mr. Choi previously served as an executive director of Shinhan Bank. Mr. Choi received a master’s degree in human resource management from Korea University.
Ra Hoon has been our executive director and chief risk officer since January 1, 2026. Mr. Ra previously served as the head of the risk management group of Shinhan Bank. Mr. Ra received a bachelor’s degree in statistics from Korea University.
Lee Youngho has been our executive director and chief compliance officer since January 1, 2025. Mr. Lee previously served as a general manager of the compliance department and the chief compliance officer of Shinhan Bank. Mr. Lee received a bachelor’s degree in law from Sogang University.
Kim Jion has been our executive director and chief audit officer since January 1, 2024. Ms. Kim previously served as the head of the PRM marketing team of Shinhan Bank. Ms. Kim received a bachelor’s degree in economics from Yonsei University.
Kim Junhwan has been our executive director and head of digital market sensing part since January 1, 2024. Mr. Kim previously served as the head of the digital innovation team of Shinhan Bank. Mr. Kim received a doctor’s degree in computer application design studies from Korea Advanced Institute of Science & Technology.
There are no family relationships among our directors and/or executive officers.
Compensation to Directors
1) Total Amount Approved at the Meeting of Shareholders
(As of Jun. 30, 2026) |
|||
|
Total number of persons |
Total amount approved at shareholders’ meeting (KRW millions) |
Notes |
Directors (Outside directors) |
11(9) |
3,000 |
No distinction is made between registered directors, outside directors, and members of the audit committee. |
Note) Represents the aggregate amount for all directors (including outside directors) excluding long-term incentives. |
|||
2) Total Amount Paid
(As of Jun. 30, 2026) |
||||
|
Total number of Persons |
Total compensation (KRW million) |
Average compensation per person (KRW million) |
Notes |
Registered Directors |
2 |
938 |
469 |
- |
Outside Directors |
5 |
219 |
44 |
- |
Audit committee members or internal auditor |
4 |
194 |
48 |
- |
Notes : Represents the total number of applicable persons as of Jun. 30, 2026. |
||||
Compensation to Non-registered directors
(As of Jun. 30, 2026) |
||||
|
Total number of persons |
Total compensation |
Average Compensation per person (KRW million) |
Notes |
Non-registered directors |
8 |
2,886 |
361 |
- |
Notes : Excluding executives holding concurrent positions whose compensation is disclosed by their original affiliated company pursuant to Article 20 of the Income Tax Act.
Top 5 Highest-Paid Individuals
1) Compensation exceeding Won 500 million- Individual basis
(KRW million)
Name |
Position |
Total Amount |
Deferred Compensation |
|
Jin Okdong |
CEO |
938 |
The performance-linked stock compensation (PS) consists of 5,739 shares, with the payment and amount to be determined later based on the company's long-term performance and stock price from 2026 to 2029. |
|
Lee Een-kyoon |
Deputy President |
841 |
The performance-linked stock compensation (PS) consists of 1,514 shares, with the payment and amount to be determined later based on the company's long-term performance and stock price from 2026 to 2029. |
|
Koh Seog-heon |
Deputy President |
674 |
The performance-linked stock compensation (PS) consists of 1,514 shares, with the payment and amount to be determined later based on the company's long-term performance and stock price from 2026 to 2029. |
|
2) Calculation criteria and method of compensation
(KRW million)
Name |
Compensation Type |
Total Compensation |
Deferred Compensation |
|
Jin Okdong |
Earned Income |
Salary |
438 |
-The salary is paid monthly by dividing the total annual base salary and job allowance, which are determined by the Board of Directors and the Compensation Committee, within the compensation limit for directors resolved at the general shareholders' meeting. This determination takes into account factors such as position, duties, and contributions.
|
|
|
Bonus |
500 |
-The bonus was paid in the first quarter of 2026, based on the criteria set by the first Compensation Committee in 2025 and reflecting the company’s annual performance evaluation results for 2025.
-The CEO’s annual performance bonus is determined by reflecting the performance evaluation grade, which is based on Group KPIs and strategic task scores, and finalized after confirming whether any deductions apply according to the company’s risk management evaluation score.
-When evaluating Group KPIs, achievement rates of quantitative indicators such as total shareholder return, group customer base, ROE, non-performing loan ratio, ROTCE, RAROC, and cost-to-income ratio are considered.
- In 2025, the evaluation reflected a 11.7% year-on-year increase in net income to KRW 4.97 trillion, as well as a 0.7 percentage-point improvement in ROE to 9.1% and ROTCE to 10.3%, together with the achievement levels of total shareholder return (TSR), Group customer base, and key asset quality, profitability, and efficiency indicators. In addition, the bonus was determined by comprehensively considering the performance of key strategic initiatives, including expanding the customer base, generating results through platforms and AI, advancing global and ESG businesses, driving HR innovation, and strengthening internal controls and consumer protection, as well as the results of the risk management evaluation. |
|
|
Stock option |
- |
Not Applicable |
|
|
Other earned Income |
- |
Employee benefits |
|
|
Retirement Income |
- |
Not Applicable |
Name |
Compensation Type |
Total Compensation |
Deferred Compensation |
|
|
|
Other Compensation (not included in total compensation) |
- |
A total of 5,739 shares were granted on January 1, 2026 and are scheduled to be paid in 2030, subject to the Company’s performance over the four-year period.* *Company performance: ROE, ROTCE, pre-disposal NPL ratio, operating net income, and stock price appreciation relative to competitors, among other factors. |
Lee Een-kyoon |
Earned Income |
Salary |
158 |
-The salary is paid monthly by dividing the total annual base salary and job allowance, which are determined by the Compensation Committee. This determination takes into account factors such as position, duties, and contributions.
|
|
|
Bonus |
226 |
-The bonus was paid in the first quarter of 2026, based on the criteria set by the first Compensation Committee in 2025 and reflecting the company’s annual performance evaluation results for 2025.
- In 2025, the evaluation reflected a 11.7% year-on-year increase in net income to KRW 4.97 trillion, as well as a 0.7 percentage-point improvement in ROE to 9.1% and ROTCE to 10.3%, together with the achievement levels of total shareholder return (TSR), Group customer base, and key asset quality, profitability, and efficiency indicators. In addition, the bonus was determined by comprehensively considering the performance of key strategic initiatives, including expanding the customer base, generating results through platforms and AI, advancing global and ESG businesses, driving HR innovation, and strengthening internal controls and consumer protection, as well as the results of the risk management evaluation.
|
|
|
Stock option |
- |
Not Applicable |
|
|
Other earned Income |
457 |
The long-term performance share (PS) granted in 2022 was determined by calculating the number of PS units based on the evaluation indicators, such as shareholder value, profitability, and soundness over the four-year period following the grant. The final amount was then adjusted based on the stock price of the company’s common stock at the beginning of 2026. |
|
|
Retirement Income |
- |
Not Applicable |
|
|
Other Compensation (not included in total compensation) |
- |
A total of 1,514 shares were granted on January 1, 2026 and are scheduled to be paid in 2030, subject to the Company’s performance over the four-year period.* *Company performance: ROE, ROTCE, pre-disposal NPL ratio, operating net income, and stock price appreciation relative to competitors, among other factors. |
Koh Seog-heon |
Earned Income |
Salary |
158 |
-The salary is paid monthly by dividing the total annual base salary and job allowance, which are determined by the Compensation Committee. This determination takes into account factors such as position, duties, and contributions.
|
|
|
Bonus |
226 |
-The bonus was paid in the first quarter of 2026, based on the criteria set by the first Compensation Committee in 2025 and reflecting the company’s annual performance evaluation results for 2025.
- In 2025, the evaluation reflected a 11.7% year-on-year increase in net income to KRW 4.97 trillion, as |
Name |
Compensation Type |
Total Compensation |
Deferred Compensation |
|
|
|
|
|
well as a 0.7 percentage-point improvement in ROE to 9.1% and ROTCE to 10.3%, together with the achievement levels of total shareholder return (TSR), Group customer base, and key asset quality, profitability, and efficiency indicators. In addition, the bonus was determined by comprehensively considering the performance of key strategic initiatives, including expanding the customer base, generating results through platforms and AI, advancing global and ESG businesses, driving HR innovation, and strengthening internal controls and consumer protection, as well as the results of the risk management evaluation. |
|
|
Stock option |
- |
Not Applicable |
|
|
Other earned Income |
290 |
The long-term performance share (PS) granted in 2022 was determined by calculating the number of PS units based on the evaluation indicators, such as shareholder value, profitability, and soundness over the four-year period following the grant. The final amount was then adjusted based on the stock price of the company’s common stock at the beginning of 2026. |
|
|
Retirement Income |
- |
Not Applicable |
|
|
Other Compensation (not included in total compensation) |
- |
A total of 1,514 shares were granted on January 1, 2026 and are scheduled to be paid in 2030, subject to the Company’s performance over the four-year period.* *Company performance: ROE, ROTCE, pre-disposal NPL ratio, operating net income, and stock price appreciation relative to competitors, among other factors. |
Stock Options
None
Stock Options
None
Stock-based compensation system
- Cash compensation linked to stock
On March 3, 2026, through a resolution of the Remuneration Compensation Committee, our company granted cash compensation linked stock (PS) equivalent to 87,826 shares of our common stock to 11 executives, and the eligibility and amount of payment will be determined in the future based on the company's long-term performance and stock price from 2026 to 2029.
Employees
Gender |
Number of Employees |
Average length of Service |
Total Salaries and wages paid in 1H2026 (KRW million) |
Average Payment per person (KRW million) |
Male |
136 |
2 yrs 9mths (15 yrs 11mth) 1) |
14,975 |
102 |
Female |
48 |
4 yrs 3mths (13 yrs 8 mths) 1) |
4,143 |
82 |
Total |
184 |
3 yrs 1 mths (15 yrs 4mth) 1) |
19,118 |
97 |
1) Average length of service including services within group subsidiaries 2) Total Salaries and wages is the amount paid from Jan.1, 2026 to Jun.30, 2026. |
||||
8. Related Party Transactions
Loans to Subsidiaries
(KRW billion) |
|||||||||
Loans to Subsidiaries |
Type |
Origination Date |
Maturity Date |
Lending Rate |
Beginning Balance (Jan. 1, 2026) |
Decrease |
Increase |
Others |
Ending Balance (Jun. 30, 2026) |
Shinhan Card |
Loan |
2019-04-18 |
2026-04-18 |
2.09% |
100 |
100 |
- |
- |
- |
Loan |
2019-10-22 |
2026-10-22 |
1.81% |
60 |
- |
- |
- |
60 |
|
Loan |
2021-02-18 |
2026-02-18 |
1.54% |
150 |
150 |
- |
- |
- |
|
Loan |
2021-02-24 |
2026-02-24 |
1.62% |
150 |
150 |
- |
- |
- |
|
Loan |
2021-11-11 |
2026-11-11 |
2.55% |
10 |
- |
- |
- |
10 |
|
Loan |
2022-07-18 |
2027-07-18 |
4.25% |
100 |
- |
- |
- |
100 |
|
Loan |
2023-04-21 |
2028-04-21 |
4.21% |
100 |
- |
- |
- |
100 |
|
Loan |
2025-03-25 |
2028-03-25 |
2.97% |
100 |
- |
- |
- |
100 |
|
Loan |
2025-03-25 |
2030-03-25 |
3.02% |
100 |
|
- |
- |
100 |
|
Loan |
2025-07-18 |
2028-07-18 |
2.73% |
100 |
- |
- |
- |
100 |
|
Loan |
2025-07-18 |
2030-07-18 |
2.92% |
70 |
- |
- |
- |
70 |
|
Loan |
2025-09-17 |
2028-09-17 |
2.76% |
100 |
- |
- |
- |
100 |
|
Loan |
2025-09-17 |
2030-09-17 |
2.90% |
50 |
- |
- |
- |
50 |
|
Loan |
2025-10-29 |
2028-10-29 |
2.87% |
80 |
- |
- |
- |
80 |
|
Loan |
2025-10-29 |
2030-10-29 |
3.02% |
70 |
- |
- |
- |
70 |
|
Loan |
2026-04-20 |
2029-04-20 |
3.86% |
- |
- |
50 |
- |
50 |
|
Loan |
2026-04-20 |
2030-04-20 |
3.89% |
- |
- |
50 |
- |
50 |
|
Loan |
2021-05-26 |
2026-05-12 |
1.53% |
43 |
43 |
- |
- |
- |
|
Financial assets at FVPL |
2022-03-17 |
2052-03-17 |
4.01% |
404 |
- |
- |
-3 |
401 |
|
Financial assets at FVPL |
2023-02-14 |
2053-02-14 |
5.28% |
310 |
- |
- |
-7 |
303 |
|
Shinhan Securities |
Loan |
2025-07-29 |
2030-07-29 |
5.13% |
703 |
- |
- |
52 |
755 |
Financial assets at FVPL |
2021-06-14 |
Perpetual Bond |
2.93% |
383 |
383 |
- |
- |
- |
|
Financial assets at FVPL |
2026-06-24 |
2056-06-24 |
4.88% |
- |
- |
200 |
- |
200 |
|
Shinhan Capital |
Loan |
2021-03-16 |
2026-03-16 |
1.83% |
150 |
150 |
- |
- |
- |
Loan |
2025-04-22 |
2028-04-22 |
2.77% |
100 |
- |
- |
- |
100 |
|
Loan |
2025-12-04 |
2028-12-04 |
3.35% |
60 |
- |
- |
- |
60 |
|
Loan |
2026-03-16 |
2029-03-16 |
3.72% |
- |
- |
150 |
- |
150 |
|
Loan |
2021-05-13 |
2026-05-12 |
1.53% |
287 |
287 |
- |
- |
- |
|
Loan |
2026-05-15 |
2028-11-14 |
4.61% |
- |
- |
75 |
2 |
77 |
|
Loan |
2026-05-15 |
2029-05-14 |
4.64% |
- |
- |
75 |
2 |
77 |
|
Financial assets at FVPL |
2021-07-28 |
2051-07-28 |
3.38% |
149 |
- |
- |
1 |
150 |
|
Financial assets at FVPL |
2025-04-22 |
2055-04-22 |
3.78% |
99 |
- |
- |
-3 |
96 |
|
Shinhan Savings Bank |
Loan |
2021-04-26 |
2026-04-26 |
1.85% |
50 |
50 |
- |
- |
- |
Loan |
2021-05-28 |
2026-05-28 |
1.99% |
50 |
50 |
- |
- |
- |
|
Shinhan DS |
Loan |
2025-01-31 |
2026-01-30 |
3.08% |
10 |
10 |
- |
- |
- |
|
Loan |
2026-01-30 |
2026-07-31 |
3.05% |
- |
- |
5 |
- |
5 |
Loan |
2026-01-30 |
2027-01-29 |
3.11% |
- |
- |
5 |
- |
5 |
|
Shinhan Venture |
Loan |
2025-02-26 |
2026-02-26 |
3.02% |
60 |
60 |
- |
- |
- |
Loan |
2026-02-26 |
2027-02-26 |
3.25% |
- |
- |
60 |
- |
60 |
|
Shinhan Asset Trust |
Loan |
2024-03-25 |
2027-03-25 |
3.76% |
100 |
- |
- |
- |
100 |
Financial assets at FVPL |
2024-05-23 |
2054-05-23 |
4.71% |
97 |
- |
- |
-1 |
96 |
|
Financial assets at FVPL |
2024-10-29 |
2054-10-29 |
4.10% |
51 |
- |
- |
- |
51 |
|
Financial assets at FVPL |
2026-01-30 |
2056-01-30 |
4.16% |
- |
- |
100 |
-1 |
99 |
|
Total |
4,446 |
1,433 |
770 |
42 |
3,825 |
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9. Internal Control
Management’s Assessment of the Effectiveness of the Internal Accounting Management System
Period |
Report Date |
Assessment |
Material Deficiencies |
Corrective Action Plans |
FY2026 |
- |
- |
- |
- |
FY2025 |
March 3, 2026 |
In terms of overall materiality, the internal accounting management system is under effective design and operation. |
- |
- |
FY2024 |
March 4, 2025 |
In terms of overall materiality, the internal accounting management system is under effective design and operation. |
- |
- |
Audit Committee’s Assessment of the Effectiveness of the Internal Accounting Management System
Period |
Report Date |
Assessment |
Material Deficiencies |
Corrective Action Plans |
FY2026 |
- |
- |
- |
- |
FY2025 |
March 3, 2026 |
In terms of overall materiality, the internal accounting management system is under effective design and operation. |
- |
- |
FY2024 |
March 4, 2025 |
In terms of overall materiality, the internal accounting management system is under effective design and operation. |
- |
- |
External Auditor’s Audit Opinion of the Effectiveness of the Internal Accounting Management System
Period |
Auditor |
Audit or Review |
Opinion Type |
Issues |
Company’s Response Actions |
FY2026 |
- |
- |
- |
- |
- |
FY2025 |
KPMG Samjong Accounting Corp. |
Audit |
Unqualified |
- |
- |
FY2024 |
KPMG Samjong Accounting Corp. |
Audit |
Unqualified |
- |
- |
10. Contingencies
Please refer to attached Exhibit 99.1 Shinhan Financial Group Review Report for the 1H 2026(Consolidated), note 29. commitments and contingencies.
11. Material Information after the reporting period
1) Cancellation of Shares
On February 5, 2026, the Board of Directors of Shinhan Financial Group resolved to acquire and cancel the treasury shares. The Company entered into a KRW 500 billion trust agreement, pursuant to which it acquired 5,204,122 shares and completed the retirement of such shares on July 15, 2026.
Please refer to Form 6-K submitted to Edgar system on July 10, 2026
2) Shinhan Financial Group resolved to pay quarterly cash dividends
On July 23, 2026, the Board of Directors of Shinhan Financial Group made a resolution to pay quarterly cash dividends.
- Dividend Amount : KRW 740 per share
- Record date : July 30, 2026
- Expected payment date : August 28, 2026
Please refer to Form 6-K submitted to Edgar system on July 23, 2026.
3) Treasury stock acquisition and cancellation
The Company made a decision on the acquisition of treasury stock amounted to KRW 700 billion at the Board of Directors on July 23, 2026.
- Estimated Amount of Shares to be Acquired : KRW 700 billion
- Scheduled Acquisition Period: July 31, 2026 – October 22, 2026
- Number of shares to be cancelled(scheduled) : 6,698,565 shares
* Pursuant to Article 341-4 of the Korean Commercial Act (effective March 6, 2026), which requires a company to cancel treasury shares held by it within one year from the date of acquisition, SFG has resolved to cancel one treasury share acquired in the previous comprehensive share exchange, together with the treasury shares(6,698,564 shares) acquired under this decision
Please refer to Form 6-K submitted to Edgar system on July 23, 2026.
4) Resolution to issue KRW-denominated Write-down Contingent Capital Securities
On July 23, 2026, the board of directors of Shinhan Financial Group made a resolution to issue KRW-denominated Write-down Contingent Capital Securities.
- Purpose of issuance : To maintain capital requirements under the Basel III
- Amount of Issuance : KRW 270 billion
- Maturity of Securities : Perpetual Securities
* Depending on the results of the demand forecast, the Total Amount of Issuance could be changed within the total limit of KRW 400 billion resolved by the board of directors.
Please refer to Form 6-K submitted to Edgar system on July 23, 2026.
5) Merger between Shinhan Asset Trust and Shinhan REITs Management
On July 30, 2026, the board of directors of each of Shinhan Asset Trust Co., Ltd. (the “Surviving Company”), a wholly-owned subsidiary of Shinhan Financial Group Co., Ltd., and Shinhan REITs Management Co., Ltd. (the “Dissolving Company”), another wholly-owned subsidiary of Shinhan Financial Group, have resolved to approve the merger between Shinhan Asset Trust and Shinhan REITs Management.
Please refer to Form 6-K submitted to Edgar system on July 30, 2026.
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.
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Shinhan Financial Group Co., Ltd. |
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(Registrant) |
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Date: August 14, 2026 |
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By: |
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/s/ JANG Jeong Hoon |
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Name: JANG Jeong Hoon |
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Title: Chief Financial Officer |
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SHINHAN FINANCIAL GROUP CO., LTD.
AND SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025
(Unaudited)
Contents
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Page |
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|
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Report on Review of Condensed Consolidated Interim Financial Statements |
|
1 |
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|
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Condensed Consolidated Interim Statements of Financial Position |
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3 |
|
|
|
Condensed Consolidated Interim Statements of Comprehensive Income |
|
4 |
|
|
|
Condensed Consolidated Interim Statements of Changes in Equity |
|
6 |
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|
|
Condensed Consolidated Interim Statements of Cash Flows |
|
8 |
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|
|
Notes to the Condensed Consolidated Interim Financial Statements |
|
10 |
Report on Review of Condensed Consolidated Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Shareholders and Board of Directors of
Shinhan Financial Group Co., Ltd.:
Reviewed Financial Statements
We have reviewed the accompanying condensed consolidated interim financial statements of Shinhan Financial Group Co., Ltd. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the condensed consolidated interim statement of financial position of the Group as at June 30, 2026, and the related condensed consolidated interim statements of comprehensive income for three-month and six-month periods ended June 30, 2026, and condensed consolidated interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2026, and material accounting policy information and other selected explanatory notes, expressed in Korean won.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.
We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
The condensed consolidated interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2025, and condensed consolidated interim statements of changes in equity and cash flows for the six-month period ended June 30, 2025, presented herein for comparative purposes, were reviewed by another auditor whose report dated August 14, 2025. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed separate interim financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
The consolidated statement of financial position as at December 31, 2025, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 3, 2026. The consolidated statement of financial position as at December 31, 2025, presented herein for comparative purposes, is consistent, in all material respects, with the above audited consolidated statement of financial position as at December 31, 2025.
Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.
2
/s/ Samil PricewaterhouseCoopers
Seoul, Korea
August 14, 2026
This report is effective as of August 14, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any. |
2
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Financial Position
As of June 30, 2026 and December 31, 2025
(Unaudited)
(In millions of won) |
|
Note |
|
June 30, 2026 (Unaudited) |
|
December 31, 2025 |
Assets |
|
|
|
|
|
|
Cash and due from banks at amortized cost |
|
4, 7 |
W |
47,235,771 |
|
39,742,605 |
Financial assets at fair value through profit or loss |
|
4, 8 |
|
86,498,307 |
|
78,053,377 |
Derivative assets |
|
4, 9 |
|
13,084,893 |
|
7,153,950 |
Securities at fair value through other comprehensive income |
|
4, 10 |
|
105,628,769 |
|
103,216,950 |
Securities at amortized cost |
|
4, 10 |
|
33,274,891 |
|
31,944,368 |
Loans at amortized cost |
|
4, 11 |
|
480,920,150 |
|
464,773,880 |
Property and equipment |
|
|
|
4,076,520 |
|
4,153,186 |
Intangible assets |
|
|
|
5,935,850 |
|
5,893,158 |
Investments in associates |
|
12 |
|
2,439,266 |
|
2,639,202 |
Current tax assets |
|
|
|
48,294 |
|
68,609 |
Deferred tax assets |
|
|
|
176,884 |
|
209,718 |
Investment property |
|
|
|
660,844 |
|
611,620 |
Net defined benefit asset |
|
16 |
|
554,053 |
|
353,097 |
Insurance contract assets |
|
18 |
|
372 |
|
760 |
Reinsurance contract assets |
|
18 |
|
358,183 |
|
603,442 |
Other assets |
|
4, 11 |
|
59,921,837 |
|
46,524,351 |
Assets held for sale |
|
|
|
79,453 |
|
71,212 |
Total assets |
|
|
W |
840,894,337 |
|
786,013,485 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits |
|
4 |
W |
475,494,126 |
|
447,648,971 |
Financial liabilities at fair value through profit or loss |
|
4, 13 |
|
2,211,812 |
|
2,312,487 |
Financial liabilities designated at fair value through profit or loss |
|
4, 14 |
|
6,949,782 |
|
6,378,064 |
Derivative liabilities |
|
4, 9 |
|
13,251,020 |
|
7,020,846 |
Borrowings |
|
4 |
|
61,297,979 |
|
55,394,834 |
Debt securities issued |
|
4, 15 |
|
90,848,181 |
|
92,991,422 |
Net defined benefit liability |
|
16 |
|
20,318 |
|
17,820 |
Provisions |
|
17 |
|
1,110,986 |
|
1,363,345 |
Current tax liabilities |
|
|
|
262,424 |
|
763,377 |
Deferred tax liabilities |
|
|
|
1,223,888 |
|
446,799 |
Insurance contract liabilities |
|
18 |
|
47,897,326 |
|
50,471,303 |
Reinsurance contract liabilities |
|
18 |
|
24,709 |
|
56,378 |
Investment contract liabilities |
|
4 |
|
1,592,464 |
|
1,536,393 |
Other liabilities |
|
4 |
|
76,189,552 |
|
59,237,657 |
Liabilities held for sale |
|
|
|
- |
|
1,465 |
Total liabilities |
|
|
|
778,374,567 |
|
725,641,161 |
|
|
|
|
|
|
|
Equity |
|
20 |
|
|
|
|
Share capital |
|
|
|
2,969,641 |
|
2,969,641 |
Hybrid bonds |
|
|
|
4,163,879 |
|
4,749,837 |
Capital surplus |
|
|
|
2,232,781 |
|
12,098,558 |
Capital adjustments |
|
|
|
(1,208,036) |
|
(1,180,080) |
Accumulated other comprehensive loss |
|
|
|
(1,505,747) |
|
(2,474,813) |
Retained earnings |
|
|
|
53,448,231 |
|
41,796,129 |
Equity attributable to shareholders of the Parent Company |
|
|
|
60,100,749 |
|
57,959,272 |
Non-controlling interests |
|
|
|
2,419,021 |
|
2,413,052 |
Total equity |
|
|
|
62,519,770 |
|
60,372,324 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
W |
840,894,337 |
|
786,013,485 |
See accompanying notes to the condensed consolidated interim financial statements.
3
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Comprehensive Income
For the three-month and six-month periods ended June 30, 2026 and 2025
|
|
|
|
June 30, 2026 (Unaudited) |
|
June 30, 2025 (Unaudited) |
||||
(In millions of won) |
|
Notes |
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Interest income |
|
|
W |
7,281,967 |
|
14,354,098 |
|
6,967,186 |
|
14,035,110 |
Interest expense |
|
|
|
(4,147,606) |
|
(8,195,594) |
|
(4,103,234) |
|
(8,316,270) |
Net interest income |
|
22 |
|
3,134,361 |
|
6,158,504 |
|
2,863,952 |
|
5,718,840 |
|
|
|
|
|
|
|
|
|
|
|
Fees and commission income |
|
|
|
1,662,527 |
|
3,024,406 |
|
1,147,111 |
|
2,200,543 |
Fees and commission expense |
|
|
|
(473,598) |
|
(894,651) |
|
(385,136) |
|
(760,422) |
Net fees and commission income |
|
23 |
|
1,188,929 |
|
2,129,755 |
|
761,975 |
|
1,440,121 |
|
|
|
|
|
|
|
|
|
|
|
Insurance income |
|
|
|
916,355 |
|
1,797,939 |
|
823,606 |
|
1,639,674 |
Reinsurance income |
|
|
|
56,281 |
|
108,475 |
|
55,865 |
|
82,366 |
Insurance service expense |
|
|
|
(775,936) |
|
(1,386,064) |
|
(556,237) |
|
(1,110,742) |
Reinsurance service expense |
|
|
|
(43,658) |
|
(90,911) |
|
(57,609) |
|
(91,367) |
Net insurance income |
|
18 |
|
153,042 |
|
429,439 |
|
265,625 |
|
519,931 |
|
|
|
|
|
|
|
|
|
|
|
Insurance finance income |
|
|
|
1,780 |
|
20,741 |
|
20,511 |
|
41,229 |
Insurance finance expense |
|
|
|
(1,965,577) |
|
(2,408,119) |
|
(383,332) |
|
(458,606) |
Net insurance finance expense |
|
19 |
|
(1,963,797) |
|
(2,387,378) |
|
(362,821) |
|
(417,377) |
|
|
|
|
|
|
|
|
|
|
|
Dividend income |
|
|
|
66,175 |
|
137,036 |
|
62,132 |
|
133,543 |
Net gain on financial instruments at fair value through profit or loss |
|
|
|
2,136,947 |
|
2,725,906 |
|
856,327 |
|
1,366,562 |
Net loss on financial instruments designated at fair value through profit or loss |
|
|
|
(134,215) |
|
(14,292) |
|
(64,131) |
|
(220,976) |
Net gain on foreign currency transaction |
|
|
|
556,020 |
|
645,039 |
|
258,837 |
|
394,175 |
Net gain (loss) on disposal of securities at fair value through other comprehensive income |
|
10 |
|
(7,323) |
|
13,743 |
|
71,463 |
|
146,006 |
Net loss on disposal of securities at amortized cost |
|
10 |
|
(5) |
|
(19) |
|
(11) |
|
(38) |
Provision for credit losses |
|
24 |
|
(456,313) |
|
(976,425) |
|
(617,853) |
|
(1,057,204) |
General and administrative expenses |
|
25 |
|
(1,670,691) |
|
(3,216,096) |
|
(1,486,100) |
|
(2,900,058) |
Other operating expenses, net |
|
|
|
(526,849) |
|
(1,014,478) |
|
(595,138) |
|
(1,165,054) |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
2,476,281 |
|
4,630,734 |
|
2,014,257 |
|
3,958,471 |
|
|
|
|
|
|
|
|
|
|
|
Equity method income |
|
12 |
|
2,344 |
|
51,183 |
|
75,231 |
|
114,678 |
Other non-operating income (expenses) |
|
|
|
37,350 |
|
55,440 |
|
(17,364) |
|
4,533 |
Profit before income tax expense |
|
|
|
2,515,975 |
|
4,737,357 |
|
2,072,124 |
|
4,077,682 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
27 |
|
669,324 |
|
1,241,558 |
|
494,890 |
|
983,402 |
Profit for the period |
|
|
W |
1,846,651 |
|
3,495,799 |
|
1,577,234 |
|
3,094,280 |
4
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Comprehensive Income (Continued)
For the three-month and six-month periods ended June 30, 2026 and 2025
|
|
|
|
June 30, 2026 (Unaudited) |
|
June 30, 2025 (Unaudited) |
||||
(In millions of won, except earnings per share data) |
|
Notes |
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of income tax |
|
20 |
|
|
|
|
|
|
|
|
Items that are or may be reclassified to profit or loss: |
|
|
|
|
|
|
|
|
|
|
Valuation gain (loss) on securities at fair value through other comprehensive income |
|
|
W |
(934,577) |
|
(2,868,542) |
|
(369,148) |
|
407,888 |
Equity in other comprehensive income (loss) of associates |
|
|
|
221 |
|
1,276 |
|
(580) |
|
(5,007) |
Foreign currency translation adjustments for foreign operations |
|
|
|
118,701 |
|
459,330 |
|
(439,564) |
|
(434,557) |
Net change in unrealized fair value of cash flow hedges |
|
|
|
(173,490) |
|
(300,620) |
|
(69,952) |
|
(22,150) |
Net finance income (expense) on insurance contract assets (liabilities) |
|
|
|
1,653,219 |
|
3,683,708 |
|
620,467 |
|
(792,837) |
Net finance expense on reinsurance contract assets (liabilities) |
|
|
|
(75,774) |
|
(154,395) |
|
(19,248) |
|
(25,622) |
|
|
|
|
588,300 |
|
820,757 |
|
(278,025) |
|
(872,285) |
Items that will not be reclassified to profit or loss: |
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liability (asset) |
|
|
|
73,708 |
|
73,296 |
|
(55,806) |
|
(55,606) |
Equity in other comprehensive income of associates |
|
|
|
5 |
|
2 |
|
- |
|
- |
Valuation gain (loss) on securities at fair value through other comprehensive income |
|
|
|
(59,477) |
|
77,805 |
|
72,459 |
|
132,874 |
Gain on disposal of securities at fair value through other comprehensive income |
|
|
|
13,615 |
|
14,298 |
|
2,607 |
|
2,140 |
Changes in own credit risk on financial liabilities designated at fair value through profit or loss |
|
|
|
(1,038) |
|
(2,698) |
|
(996) |
|
(1,543) |
|
|
|
|
26,813 |
|
162,703 |
|
18,264 |
|
77,865 |
Total other comprehensive income (loss), net of income tax |
|
|
|
615,113 |
|
983,460 |
|
(259,761) |
|
(794,420) |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
W |
2,461,764 |
|
4,479,259 |
|
1,317,473 |
|
2,299,860 |
5
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Comprehensive Income (Continued)
For the three-month and six-month periods ended June 30, 2026 and 2025
(Unaudited)
|
|
|
|
June 30, 2026 (Unaudited) |
|
June 30, 2025 (Unaudited) |
||||
(In millions of won, except earnings per share data) |
|
Notes |
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
|
|
|
|
|
|
Shareholders of the Parent Company |
|
|
W |
1,820,135 |
|
3,442,729 |
|
1,549,053 |
|
3,037,399 |
Non-controlling interests |
|
|
|
26,516 |
|
53,070 |
|
28,181 |
|
56,881 |
|
|
|
W |
1,846,651 |
|
3,495,799 |
|
1,577,234 |
|
3,094,280 |
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
Shareholders of the Parent Company |
|
|
W |
2,434,841 |
|
4,424,837 |
|
1,292,768 |
|
2,246,396 |
Non-controlling interests |
|
|
|
26,923 |
|
54,422 |
|
24,705 |
|
53,464 |
|
|
|
W |
2,461,764 |
|
4,479,259 |
|
1,317,473 |
|
2,299,860 |
Earnings per share: |
|
28 |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share in won |
|
|
W |
3,750 |
|
7,075 |
|
3,062 |
|
5,978 |
See accompanying notes to the condensed consolidated interim financial statements.
6
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity
For the six-month period ended June 30, 2025
(In millions of won) |
|
June 30, 2025 |
|||||||||||||||||
|
|
Equity attributable to shareholders of the Parent Company |
|
|
|
|
|||||||||||||
|
|
Share Capital |
|
Hybrid bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other compre-hensive income (loss) |
|
Retained earnings |
|
Sub-total |
|
Non-controlling interests |
|
Total |
|
Balance at January 1, 2025 |
W |
2,969,641 |
|
4,600,121 |
|
12,094,968 |
|
(807,114) |
|
(1,824,440) |
|
39,020,580 |
|
56,053,756 |
|
2,767,277 |
|
58,821,033 |
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
- |
|
- |
|
- |
|
3,037,399 |
|
3,037,399 |
|
56,881 |
|
3,094,280 |
|
Other comprehensive income (loss), net of income tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on valuation and disposal of securities at fair value through other comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
542,675 |
|
- |
|
542,675 |
|
227 |
|
542,902 |
|
Equity in other comprehensive loss of associates |
|
- |
|
- |
|
- |
|
- |
|
(5,007) |
|
- |
|
(5,007) |
|
- |
|
(5,007) |
|
Foreign currency translation adjustments for foreign operations |
|
- |
|
- |
|
- |
|
- |
|
(431,201) |
|
- |
|
(431,201) |
|
(3,356) |
|
(434,557) |
|
Net change in unrealized fair value of cash flow hedges |
|
- |
|
- |
|
- |
|
- |
|
(22,150) |
|
- |
|
(22,150) |
|
- |
|
(22,150) |
|
Net finance expense on insurance contract assets (liabilities) |
|
- |
|
- |
|
- |
|
- |
|
(792,837) |
|
- |
|
(792,837) |
|
- |
|
(792,837) |
|
Net finance expense on reinsurance contract assets (liabilities) |
|
- |
|
- |
|
- |
|
- |
|
(25,622) |
|
- |
|
(25,622) |
|
- |
|
(25,622) |
|
Remeasurements of net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
(55,318) |
|
- |
|
(55,318) |
|
(288) |
|
(55,606) |
|
Changes in own credit risk on financial liabilities designated at fair value through profit or loss |
|
- |
|
- |
|
- |
|
- |
|
(1,543) |
|
- |
|
(1,543) |
|
- |
|
(1,543) |
|
Total other comprehensive loss |
|
- |
|
- |
|
- |
|
- |
|
(791,003) |
|
- |
|
(791,003) |
|
(3,417) |
|
(794,420) |
|
Total comprehensive income (loss) |
|
- |
|
- |
|
- |
|
- |
|
(791,003) |
|
3,037,399 |
|
2,246,396 |
|
53,464 |
|
2,299,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(267,755) |
|
(267,755) |
|
- |
|
(267,755) |
|
Quarterly dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(278,127) |
|
(278,127) |
|
- |
|
(278,127) |
|
Dividends to hybrid bonds |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(99,134) |
|
(99,134) |
|
- |
|
(99,134) |
|
Issuance of hybrid bonds |
|
- |
|
398,835 |
|
- |
|
- |
|
- |
|
- |
|
398,835 |
|
- |
|
398,835 |
|
Redemption of hybrid bonds |
|
- |
|
(199,455) |
|
- |
|
(545) |
|
- |
|
- |
|
(200,000) |
|
- |
|
(200,000) |
|
Transfer of redemption loss on hybrid bonds to retained earnings |
|
- |
|
- |
|
- |
|
524 |
|
- |
|
(524) |
|
- |
|
- |
|
- |
|
Acquisition of treasury shares (Note 20) |
|
- |
|
- |
|
- |
|
(650,000) |
|
- |
|
- |
|
(650,000) |
|
- |
|
(650,000) |
|
Retirement of treasury shares (Note 20) |
|
- |
|
- |
|
- |
|
900,000 |
|
- |
|
(900,112) |
|
(112) |
|
- |
|
(112) |
|
7
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity
For the six-month period ended June 30, 2025
8
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity (Continued)
For the six-month period ended June 30, 2025
(In millions of won) |
|
June 30, 2025 |
||||||||||||||||
|
|
Equity attributable to shareholders of the Parent Company |
|
|
|
|
||||||||||||
|
|
Share Capital |
|
Hybrid bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other compre-hensive income (loss) |
|
Retained earnings |
|
Sub-total |
|
Non-controlling interests |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in other capital adjustments |
|
- |
|
- |
|
7,080 |
|
(20,375) |
|
- |
|
(671) |
|
(13,966) |
|
- |
|
(13,966) |
Change in other non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
185,230 |
|
185,230 |
|
|
- |
|
199,380 |
|
7,080 |
|
229,604 |
|
- |
|
(1,546,323) |
|
(1,110,259) |
|
185,230 |
|
(925,029) |
Reclassification of OCI to retained earnings |
|
- |
|
- |
|
- |
|
- |
|
(89) |
|
89 |
|
- |
|
- |
|
- |
Balance at June 30, 2025 |
W |
2,969,641 |
|
4,799,501 |
|
12,102,048 |
|
(577,510) |
|
(2,615,532) |
|
40,511,745 |
|
57,189,893 |
|
3,005,971 |
|
60,195,864 |
9
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity (Continued)
For the six-month period ended June 30, 2026
(In millions of won) |
|
June 30, 2026 |
||||||||||||||||
|
|
Equity attributable to shareholders of the Parent Company |
|
|
|
|
||||||||||||
|
|
Share Capital |
|
Hybrid bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other compre-hensive income (loss) |
|
Retained earnings |
|
Sub-total |
|
Non-controlling interests |
|
Total |
Balance at January 1, 2026 |
W |
2,969,641 |
|
4,749,837 |
|
12,098,558 |
|
(1,180,080) |
|
(2,474,813) |
|
41,796,129 |
|
57,959,272 |
|
2,413,052 |
|
60,372,324 |
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
- |
|
- |
|
- |
|
3,442,729 |
|
3,442,729 |
|
53,070 |
|
3,495,799 |
Other comprehensive income (loss), net of income tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on valuation and disposal of securities at fair value through other comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
(2,774,219) |
|
- |
|
(2,774,219) |
|
(2,220) |
|
(2,776,439) |
Equity in other comprehensive income of associates |
|
- |
|
- |
|
- |
|
- |
|
1,278 |
|
- |
|
1,278 |
|
- |
|
1,278 |
Foreign currency translation adjustments for foreign operations |
|
- |
|
- |
|
- |
|
- |
|
456,146 |
|
- |
|
456,146 |
|
3,184 |
|
459,330 |
Net change in unrealized fair value of cash flow hedges |
|
- |
|
- |
|
- |
|
- |
|
(300,620) |
|
- |
|
(300,620) |
|
- |
|
(300,620) |
Net finance income on insurance contract assets (liabilities) |
|
- |
|
- |
|
- |
|
- |
|
3,683,708 |
|
- |
|
3,683,708 |
|
- |
|
3,683,708 |
Net finance expense on reinsurance contract assets (liabilities) |
|
- |
|
- |
|
- |
|
- |
|
(154,395) |
|
- |
|
(154,395) |
|
- |
|
(154,395) |
Remeasurements of net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
72,908 |
|
- |
|
72,908 |
|
388 |
|
73,296 |
Changes in own credit risk on financial liabilities designated at fair value through profit or loss |
|
- |
|
- |
|
- |
|
- |
|
(2,698) |
|
- |
|
(2,698) |
|
- |
|
(2,698) |
Total other comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
982,108 |
|
- |
|
982,108 |
|
1,352 |
|
983,460 |
Total comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
982,108 |
|
3,442,729 |
|
4,424,837 |
|
54,422 |
|
4,479,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(417,502) |
|
(417,502) |
|
- |
|
(417,502) |
Quarterly dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(348,750) |
|
(348,750) |
|
- |
|
(348,750) |
Dividends to hybrid bonds |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(99,728) |
|
(99,728) |
|
- |
|
(99,728) |
Issuance of hybrid bonds |
|
- |
|
399,058 |
|
- |
|
- |
|
- |
|
- |
|
399,058 |
|
- |
|
399,058 |
Redemption of hybrid bonds |
|
- |
|
(985,016) |
|
- |
|
(181,484) |
|
- |
|
- |
|
(1,166,500) |
|
- |
|
(1,166,500) |
Transfer of redemption loss on hybrid bonds to retained earnings |
|
- |
|
- |
|
- |
|
3,607 |
|
- |
|
(3,607) |
|
- |
|
- |
|
- |
Acquisition of treasury shares (Note 20) |
|
- |
|
- |
|
- |
|
(700,000) |
|
- |
|
- |
|
(700,000) |
|
- |
|
(700,000) |
Retirement of treasury shares (Note 20) |
|
- |
|
- |
|
- |
|
800,000 |
|
- |
|
(800,005) |
|
(5) |
|
- |
|
(5) |
10
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity (Continued)
For the six-month period ended June 30, 2026
(In millions of won) |
|
June 30, 2026 |
||||||||||||||||
|
|
Equity attributable to shareholders of the Parent Company |
|
|
|
|
||||||||||||
|
|
Share Capital |
|
Hybrid bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other compre-hensive income (loss) |
|
Retained earnings |
|
Sub-total |
|
Non-controlling interests |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of share premium to retained earnings |
|
- |
|
- |
|
(9,865,923) |
|
- |
|
- |
|
9,865,923 |
|
- |
|
- |
|
- |
Change in other capital adjustments |
|
- |
|
- |
|
146 |
|
49,921 |
|
- |
|
- |
|
50,067 |
|
- |
|
50,067 |
Change in other non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(48,453) |
|
(48,453) |
|
|
- |
|
(585,958) |
|
(9,865,777) |
|
(27,956) |
|
- |
|
8,196,331 |
|
(2,283,360) |
|
(48,453) |
|
(2,331,813) |
Reclassification of OCI to retained earnings |
|
- |
|
- |
|
- |
|
- |
|
(13,042) |
|
13,042 |
|
- |
|
- |
|
- |
Balance at June 30, 2026 |
W |
2,969,641 |
|
4,163,879 |
|
2,232,781 |
|
(1,208,036) |
|
(1,505,747) |
|
53,448,231 |
|
60,100,749 |
|
2,419,021 |
|
62,519,770 |
See accompanying notes to the condensed consolidated interim financial statements.
11
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Cash Flows
For the six-month periods ended June 30, 2026 and 2025
|
|
|
|
Six-month periods ended June 30 |
||
(In millions of won) |
|
Notes |
|
2026 (Unaudited) |
|
2025 (Unaudited) |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Profit for the period |
|
|
W |
3,495,799 |
|
3,094,280 |
Adjustments for: |
|
|
|
|
|
|
Interest income |
|
22 |
|
(14,354,098) |
|
(14,035,110) |
Interest expense |
|
22 |
|
8,195,594 |
|
8,316,270 |
Dividend income |
|
21 |
|
(137,036) |
|
(133,543) |
Income tax expense |
|
27 |
|
1,241,558 |
|
983,402 |
Net fees and commission expense |
|
|
|
169,600 |
|
175,188 |
Net insurance income |
|
18 |
|
(429,439) |
|
(519,931) |
Net insurance finance expense |
|
19 |
|
2,387,378 |
|
417,377 |
Net gain on financial instruments at fair value through profit or loss |
|
|
|
(2,678,274) |
|
(626,933) |
Net loss (gain) on derivatives |
|
|
|
155,797 |
|
(584,349) |
Net loss (gain) on foreign currency translation |
|
|
|
57,079 |
|
(151,726) |
Net loss (gain) on financial instruments designated at fair value through profit or loss |
|
|
|
(69,244) |
|
74,816 |
Net gain on disposal of securities at fair value through other comprehensive income |
|
10 |
|
(13,743) |
|
(146,006) |
Net loss on disposal of securities at amortized cost |
|
10 |
|
19 |
|
38 |
Provision for credit losses |
|
24 |
|
976,425 |
|
1,057,204 |
Employee benefits |
|
|
|
109,319 |
|
111,086 |
Depreciation and other amortization |
|
25 |
|
618,108 |
|
658,657 |
Other operating expense |
|
|
|
202,858 |
|
464,976 |
Equity method income, net |
|
12 |
|
(51,183) |
|
(114,678) |
Other non-operating expense |
|
|
|
7,894 |
|
21,118 |
|
|
|
|
(3,611,388) |
|
(4,032,144) |
|
|
|
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Due from banks at amortized cost |
|
|
|
226,859 |
|
81,938 |
Securities at fair value through profit or loss |
|
|
|
(4,245,224) |
|
(1,736,044) |
Due from banks at fair value through profit or loss |
|
|
|
(3,198) |
|
3,408 |
Loans at fair value through profit or loss |
|
|
|
(489,272) |
|
435,749 |
Financial instruments designated at fair value through profit or loss |
|
|
|
640,961 |
|
(929,866) |
Derivative instruments |
|
|
|
(217,566) |
|
149,133 |
Loans at amortized cost |
|
|
|
(13,806,825) |
|
(367,422) |
Insurance contract assets |
|
|
|
388 |
|
4,550 |
Reinsurance contract assets |
|
|
|
245,259 |
|
(571,306) |
Other assets |
|
|
|
(13,817,705) |
|
(15,583,358) |
Deposits |
|
|
|
24,770,960 |
|
(1,658,373) |
Net defined benefit liability |
|
|
|
(163,926) |
|
(244,542) |
Provisions |
|
|
|
(138,058) |
|
(120,705) |
Insurance contract liabilities |
|
|
|
(200,885) |
|
(259,234) |
Reinsurance contract liabilities |
|
|
|
(226,432) |
|
(22,039) |
Investment contract liabilities |
|
|
|
27,347 |
|
(359,991) |
Other liabilities |
|
|
|
16,051,691 |
|
18,372,335 |
|
|
|
|
8,654,374 |
|
(2,805,767) |
|
|
|
|
|
|
|
Income taxes paid |
|
|
|
(1,082,078) |
|
(489,113) |
Interest received |
|
|
|
13,800,286 |
|
13,668,283 |
Interest paid |
|
|
|
(6,805,314) |
|
(7,309,821) |
Dividends received |
|
|
|
132,084 |
|
131,916 |
Net cash inflow from operating activities |
|
|
W |
14,583,763 |
|
2,257,634 |
12
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Cash Flows (Continued)
For the six-month periods ended June 30, 2026 and 2025
|
|
|
|
Six-month periods ended June 30 |
||
(In millions of won) |
|
Notes |
|
2026 (Unaudited) |
|
2025 (Unaudited) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Proceeds from disposal of financial instruments at fair value through profit or loss |
|
|
W |
3,585,992 |
|
2,209,958 |
Acquisition of financial instruments at fair value through profit or loss |
|
|
|
(3,538,870) |
|
(2,452,851) |
Proceeds from disposal of securities at fair value through other comprehensive income |
|
|
|
21,067,080 |
|
26,201,238 |
Acquisition of securities at fair value through other comprehensive income |
|
|
|
(25,689,026) |
|
(29,355,911) |
Proceeds from disposal of securities at amortized cost |
|
|
|
2,581,621 |
|
4,180,528 |
Acquisition of securities at amortized cost |
|
|
|
(3,764,591) |
|
(2,997,828) |
Proceeds from disposal of property and equipment |
|
|
|
2,779 |
|
5,659 |
Acquisition of property and equipment |
|
|
|
(106,903) |
|
(96,061) |
Proceeds from disposal of intangible assets |
|
|
|
1,893 |
|
6,316 |
Acquisition of intangible assets |
|
|
|
(409,551) |
|
(235,793) |
Proceeds from disposal of investments in associates |
|
|
|
325,130 |
|
291,054 |
Acquisition of investments in associates |
|
|
|
(90,797) |
|
(162,894) |
Net cash inflow from loss of control |
|
|
|
9,156 |
|
96,331 |
Net cash outflow from acquisition of control |
|
|
|
(161,640) |
|
(57,933) |
Acquisition of investment property |
|
|
|
(1,236) |
|
(1,320) |
Proceeds from disposal of assets held for sale |
|
|
|
15,348 |
|
23,100 |
Changes in other assets |
|
|
|
4,998 |
|
(2,420) |
Changes in other liabilities |
|
|
|
- |
|
(68) |
Proceeds from settlement of hedging derivative financial instruments |
|
|
|
56,276 |
|
34,620 |
Payments of settlement of hedging derivative financial instruments |
|
|
|
(237,840) |
|
(9,236) |
Net cash outflow from investing activities |
|
|
W |
(6,350,181) |
|
(2,323,511) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Issuance of hybrid bonds |
|
|
W |
399,058 |
|
398,835 |
Redemption of hybrid bonds |
|
|
|
(1,166,500) |
|
(200,000) |
Net change in borrowings |
|
|
|
3,833,324 |
|
4,857,929 |
Proceeds from debt securities issued |
|
|
|
20,315,659 |
|
19,515,834 |
Repayments of debt securities issued |
|
|
|
(23,510,769) |
|
(23,048,289) |
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) |
Changes in other liabilities |
|
|
|
(57,002) |
|
(28,425) |
Dividends paid |
|
|
|
(865,858) |
|
(644,704) |
Proceeds from settlement of hedging derivative financial instruments |
|
|
|
2,099,351 |
|
1,322,748 |
Payments of settlement of hedging derivative financial instruments |
|
|
|
(1,889,613) |
|
(1,307,956) |
Acquisition of treasury shares |
|
|
|
(700,000) |
|
(650,000) |
Expense for retirement of treasury shares |
|
|
|
(5) |
|
(47) |
Increase (decrease) in non-controlling interests |
|
|
|
(48,791) |
|
106,504 |
Repayments of lease liabilities |
|
|
|
(162,933) |
|
(133,505) |
Net cash inflow (outflow) from financing activities |
|
|
W |
(1,754,079) |
|
238,909 |
13
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Cash Flows (Continued)
For the six-month periods ended June 30, 2026 and 2025
|
|
|
|
Six-month periods ended June 30 |
||
(In millions of won) |
|
Notes |
|
2026 (Unaudited) |
|
2025 (Unaudited) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents held |
|
|
|
101,945 |
|
(85,855) |
Increase in cash and cash equivalents |
|
|
|
6,581,448 |
|
87,177 |
Changes in cash and cash equivalents included in assets held for sale |
|
|
|
3,309 |
|
- |
Cash and cash equivalents at the beginning of the period |
|
30 |
|
35,295,123 |
|
35,247,543 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
30 |
W |
41,879,880 |
|
35,334,720 |
See accompanying notes to the condensed consolidated interim financial statements.
14
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
1. Reporting entity
Shinhan Financial Group Co., Ltd., the Parent Company, and its subsidiaries included in consolidation (collectively the “Group”) are summarized as follows:
(a) The Parent Company
Shinhan Financial Group Co., Ltd. (the “Parent Company”, “Company” and Shinhan Financial Group) was incorporated on September 1, 2001 for the main purposes of controlling, managing and funding Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd. and Shinhan Investment Trust Management Co., Ltd. by way of share transfers. The total share capital amounted to W 1,461,721 million. Also, Shinhan Financial Group’s shares have been listed on the Korea Exchange since September 10, 2001 and Shinhan Financial Group’s American Depositary Shares have been registered with the Securities and Exchange Commission (SEC) and listed on the New York Stock Exchange since September 16, 2003.
(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of June 30, 2026 and December 31, 2025 are as follows:
|
|
|
|
|
|
Date of financial information |
|
Ownership (%) |
||
Investor |
|
Investee (*1) |
|
Location |
|
|
June 30, 2026 |
|
December 31, 2025 |
|
Shinhan Financial Group Co., Ltd. |
|
Shinhan Bank |
|
Korea |
|
June 30 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Card Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Securities Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Life Insurance Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Capital Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Jeju Bank |
|
〃 |
|
〃 |
|
64.0 |
|
64.0 |
〃 |
|
Shinhan Asset Management Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
SHC Management Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan DS |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Savings Bank |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Asset Trust Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Fund Partners Co., Ltd. |
|
〃 |
|
〃 |
|
99.8 |
|
99.8 |
〃 |
|
Shinhan REITs Management Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Venture Investment Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan EZ General Insurance Co., Ltd. |
|
〃 |
|
〃 |
|
91.7 |
|
91.7 |
Shinhan Bank |
|
Shinhan Bank America |
|
USA |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank Europe GmbH |
|
Germany |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank Cambodia |
|
Cambodia |
|
〃 |
|
97.5 |
|
97.5 |
〃 |
|
Shinhan Bank Kazakhstan Limited |
|
Kazakhstan |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank Canada |
|
Canada |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank (China) Limited |
|
China |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank Japan |
|
Japan |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Bank Vietnam Limited |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Banco Shinhan de Mexico |
|
Mexico |
|
〃 |
|
99.9 |
|
99.9 |
〃 |
|
PT Bank Shinhan Indonesia |
|
Indonesia |
|
〃 |
|
99.0 |
|
99.0 |
15
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
1. Reporting entity (continued)
(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
|
|
|
|
Date of financial information |
|
Ownership (%) |
||
Investor |
|
Investee (*1) |
|
Location |
|
|
June 30, 2026 |
|
December 31, 2025 |
|
KIRAM HO CHI MINH OFFICE General Private Placement Real Estate Investment Trust (USD) |
|
HIEP HIEP THANH Investment Company Limited |
|
Vietnam |
|
June 30 |
|
100.0 |
|
100.0 |
HIEP HIEP THANH Investment Company Limited |
|
Khoi Phat Investment Company Limited |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
Shinhan Bank Japan |
|
SBJ DNX |
|
Japan |
|
〃 |
|
90.0 |
|
90.0 |
Shinhan Card Co., Ltd. |
|
Shinhan Credit Information Co., Ltd. |
|
Korea |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
LLP MFO Shinhan Finance (*2) |
|
Kazakhstan |
|
〃 |
|
70.6 |
|
72.1 |
〃 |
|
PT. Shinhan Indo Finance |
|
Indonesia |
|
〃 |
|
76.3 |
|
76.3 |
〃 |
|
Shinhan Microfinance Co., Ltd. |
|
Myanmar |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Vietnam Finance Co., Ltd. |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
Shinhan Securities Co., Ltd. |
|
Shinhan Securities America Inc. (*3) |
|
USA |
|
〃 |
|
- |
|
100.0 |
〃 |
|
Shinhan Securities Asia Ltd. |
|
Hong Kong |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Securities Vietnam Co., Ltd. |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
PT. Shinhan Sekuritas Indonesia |
|
Indonesia |
|
〃 |
|
99.0 |
|
99.0 |
Shinhan Life Insurance Co., Ltd. |
|
Shinhan Financial Plus Co., Ltd. |
|
Korea |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan LifeCare Co., Ltd. |
|
〃 |
|
〃 |
|
100.0 |
|
100.0 |
〃 |
|
Shinhan Life Insurance Vietnam Co., Ltd. |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
Shinhan DS |
|
Shinhan DS Vietnam Co., Ltd. |
|
Vietnam |
|
〃 |
|
100.0 |
|
100.0 |
(*1) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.
(*2) During the six-month period ended June 30, 2026, the Group's equity interest decreased from 72.1% to 70.6% as a result of a third-party allotment of new shares.
(*3) As of June 30, 2026, the disposal was completed and it was excluded from the scope of consolidation.
16
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
1. Reporting entity (continued)
(c) Consolidated structured entities
Consolidated structured entities are as follows:
Category |
|
Consolidated structured entities |
|
Description |
|
|
|
|
|
Trust |
|
Shinhan Bank (including development trust) and 17 others |
|
A trust is consolidated when the Group as a trustee is exposed to significant variable returns, if principal or interest amounts of the entrusted properties falls below guaranteed amount, the Group should compensate it, and the Group has the ability to affect those returns. |
Asset-Backed Securitization
|
|
Tiger Eyes 3 Co., Ltd. and 153 others |
|
An entity for asset backed securitization is consolidated when the Group has sole decision-making authority to dispose assets or change the conditions of the assets, and the Group is substantially exposed to, or has rights to significant variable returns by providing credit enhancement and purchases of subordinated securities. |
Structured Financing |
|
- |
|
An entity established for structured financing relating to real estate, shipping, or mergers and acquisitions is consolidated when, due to events such as the counterparty’s default, normal operations become no longer feasible and the Group, as the largest credit provider to the entity, has sole decision-making authority of these entities due to the entities default, and is substantially exposed to, or has rights to significant variable returns. |
Investment Fund |
|
One Shinhan Future's Fund and 199 others |
|
An investment fund is consolidated, when the Group manages or invests assets of the investment funds on behalf of other investors as a collective investor or a business executive, or has the ability to dismiss the manager of the investment funds, and is substantially exposed to, or has rights to, the significant variable returns. |
17
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
1. Reporting entity (continued)
(d) Summarized financial information of the subsidiaries
i) The summarized financial information of the Parent Company and the Group’s major consolidated subsidiaries as of June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||||||
Investees (*1), (*2) |
|
Total Assets |
|
Total Liabilities |
|
Total Equity |
|
Total Assets |
|
Total Liabilities |
|
Total Equity |
Shinhan Financial Group (separate) |
W |
36,988,546 |
|
10,641,667 |
|
26,346,879 |
|
37,793,827 |
|
11,458,367 |
|
26,335,460 |
Shinhan Bank |
|
631,347,423 |
|
592,264,366 |
|
39,083,057 |
|
596,967,318 |
|
558,513,573 |
|
38,453,745 |
Shinhan Card Co., Ltd. |
|
44,144,000 |
|
35,579,138 |
|
8,564,862 |
|
43,186,732 |
|
34,686,850 |
|
8,499,882 |
Shinhan Securities Co., Ltd. |
|
72,169,041 |
|
66,124,602 |
|
6,044,439 |
|
54,077,820 |
|
48,280,415 |
|
5,797,405 |
Shinhan Life Insurance Co., Ltd. |
|
59,389,062 |
|
52,155,716 |
|
7,233,346 |
|
59,661,505 |
|
53,455,107 |
|
6,206,398 |
Shinhan Capital Co., Ltd. |
|
12,749,565 |
|
10,399,311 |
|
2,350,254 |
|
12,482,497 |
|
10,166,788 |
|
2,315,709 |
Jeju Bank |
|
8,943,841 |
|
8,298,279 |
|
645,562 |
|
8,019,927 |
|
7,372,657 |
|
647,270 |
Shinhan Asset Management Co., Ltd. |
|
435,545 |
|
139,039 |
|
296,506 |
|
381,311 |
|
87,974 |
|
293,337 |
SHC Management Co., Ltd. |
|
10,574 |
|
- |
|
10,574 |
|
10,480 |
|
- |
|
10,480 |
Shinhan DS |
|
139,490 |
|
66,154 |
|
73,336 |
|
131,276 |
|
64,456 |
|
66,820 |
Shinhan Savings Bank |
|
3,608,991 |
|
3,231,446 |
|
377,545 |
|
2,982,788 |
|
2,603,718 |
|
379,070 |
Shinhan Asset Trust Co., Ltd. |
|
1,024,926 |
|
583,244 |
|
441,682 |
|
881,518 |
|
564,731 |
|
316,787 |
Shinhan Fund Partners Co., Ltd |
|
121,989 |
|
23,263 |
|
98,726 |
|
112,911 |
|
23,555 |
|
89,356 |
Shinhan REITs Management Co., Ltd. |
|
85,827 |
|
7,384 |
|
78,443 |
|
83,488 |
|
7,920 |
|
75,568 |
Shinhan Venture Investment Co., Ltd. |
|
189,199 |
|
96,594 |
|
92,605 |
|
192,749 |
|
103,912 |
|
88,837 |
Shinhan EZ General Insurance Co., Ltd. |
|
340,143 |
|
186,037 |
|
154,106 |
|
361,063 |
|
185,342 |
|
175,721 |
(*1) The summarized financial information of the consolidated subsidiaries are based on consolidated financial statements, if applicable.
(*2) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.
18
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
1. Reporting entity (continued)
ii) The summarized income statement information of the Parent Company and the Group’s major consolidated subsidiaries for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||||||
Investees (*1), (*2) |
|
Operating Revenue |
|
Net Income (*3) |
|
Comprehensive Income (*3) |
|
Operating Revenue |
|
Net Income (*3) |
|
Comprehensive Income (*3) |
Shinhan Financial Group (separate) |
W |
2,700,043 |
|
2,343,149 |
|
2,344,846 |
|
2,803,077 |
|
2,451,570 |
|
2,449,502 |
Shinhan Bank |
|
29,947,162 |
|
2,459,157 |
|
2,559,317 |
|
25,185,766 |
|
2,267,245 |
|
2,107,805 |
Shinhan Card Co., Ltd. |
|
3,266,439 |
|
255,770 |
|
318,412 |
|
3,221,746 |
|
249,266 |
|
205,751 |
Shinhan Securities Co., Ltd. |
|
12,327,234 |
|
577,648 |
|
623,375 |
|
5,918,334 |
|
258,873 |
|
226,277 |
Shinhan Life Insurance Co., Ltd. |
|
6,726,454 |
|
290,636 |
|
1,026,953 |
|
3,980,327 |
|
344,348 |
|
(259,461) |
Shinhan Capital Co., Ltd. |
|
691,356 |
|
94,695 |
|
95,774 |
|
606,996 |
|
63,939 |
|
56,472 |
Jeju Bank |
|
198,545 |
|
8,972 |
|
4,971 |
|
183,370 |
|
8,054 |
|
8,098 |
Shinhan Asset Management Co., Ltd. |
|
134,856 |
|
53,570 |
|
53,570 |
|
92,781 |
|
22,787 |
|
22,787 |
SHC Management Co., Ltd. |
|
- |
|
93 |
|
93 |
|
- |
|
104 |
|
104 |
Shinhan DS |
|
166,670 |
|
7,913 |
|
6,517 |
|
155,622 |
|
3,523 |
|
670 |
Shinhan Savings Bank |
|
130,652 |
|
13,429 |
|
13,480 |
|
123,323 |
|
12,223 |
|
12,099 |
Shinhan Asset Trust Co., Ltd. |
|
71,476 |
|
30,218 |
|
30,064 |
|
77,953 |
|
12,191 |
|
12,071 |
Shinhan Fund Partners Co., Ltd. |
|
53,918 |
|
17,924 |
|
17,924 |
|
34,647 |
|
7,271 |
|
7,271 |
Shinhan REITs Management Co., Ltd. |
|
9,455 |
|
2,877 |
|
2,875 |
|
11,680 |
|
4,660 |
|
4,659 |
Shinhan Venture Investment Co., Ltd. |
|
19,242 |
|
3,569 |
|
3,768 |
|
16,375 |
|
(822) |
|
(1,025) |
Shinhan EZ General Insurance Co., Ltd. |
|
84,680 |
|
(18,164) |
|
(21,615) |
|
70,592 |
|
(15,720) |
|
(15,182) |
(*1) The summarized financial information of the consolidated subsidiaries is based on consolidated financial statements, if applicable.
(*2) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.
(*3) This amount includes non-controlling interests.
19
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
2. Basis of preparation
(a) Statement of compliance
The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.
The condensed consolidated interim financial statements of the Group are prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”). These financial statements are prepared under K-IFRS No. 1034, ‘Interim Financial Reporting’ and contain less information than required in the annual consolidated financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as of and for the year ended December 31, 2025.
(b) Use of estimates and judgments
The preparation of the condensed consolidated interim financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, incomes, and expenses. If the estimates and assumptions based on management's best judgment as of the end of the interim reporting period are different from the actual environment, these estimates and actual results may be different.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Income tax expense in the interim period is measured by applying the expected annual income tax rate, i.e. the estimated average annual effective income tax rate.
In preparing the condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2025 except for the method of estimation used to determine the income tax expense for the interim period.
20
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
3. Material accounting policies
(a) The Group applies the same accounting policies as those applied in the preparation of the annual consolidated financial statements for the year ended December 31, 2025, except for the following amendments first applied from January 1, 2026, as described in Note 2(b).
i) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’
To address questions raised in practice and incorporate new requirements, Korean IFRS No. 1109 ‘Financial Instruments’ and No. 1107 ‘Financial Instruments: Disclosures’ have been amended. There is no significant impact on the consolidated financial statements from these amendments.
- Permit a financial liability to be regarded as settled (derecognized) through an electronic payment system before the settlement date, provided that specified criteria are met.
- Clarify and add further guidance for assessing whether financial assets meet the criterion of consisting solely of payments of principal and interest (SPPI).
- Require disclosure, by each class of financial instruments, of the effects of contractual terms that may change the timing or amount of contractual cash flows, as well as the extent of the entity’s exposure.
- Require additional disclosures for equity instruments designated at FVOCI.
ii) Annual Improvements to K-IFRS Volume 11
Annual Improvements to K-IFRS Volume 11 are effective for annual reporting periods beginning on or after January 1, 2026. There is no significant impact on the consolidated financial statements from these amendments.
- K-IFRS No. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – Hedge accounting by a first-time adopter
- K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ – Gain or loss on derecognition
and Guidance on implementing K-IFRS No. 1107
- K-IFRS No. 1109 ‘Financial Instruments’ – Derecognition of lease liabilities and transaction price
- K-IFRS No. 1110 ‘Consolidated Financial Statements’ – Determination of ‘de facto agent’
- K-IFRS No. 1007 ‘Statement of Cash Flows’ – Cost method
iii) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ - Contracts referencing nature-dependent electricity
Contracts referencing nature-dependent electricity were defined as contracts in which an entity is exposed to variability in the underlying volume of electricity because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). It was also clarified that contracts to purchase or sell nature-dependent electricity are subject to assessment for the own-use exemption. In addition, the hedge accounting requirements were amended to allow the variable nominal amount of forecast nature-dependent electricity transactions to be designated as a hedged item, and related disclosure requirements were added. There is no significant impact on the consolidated financial statements from these amendments.
(b) As of June 30, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows:
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’
K-IFRS No. 1118, ‘Presentation and Disclosure in Financial Statements’, replaces K-IFRS 1001, ‘Presentation of Financial Statements’. K-IFRS No. 1118 is expected to enhance comparability of financial performance among similar entities by providing information useful to users of financial statements in analyzing and comparing an entity’s performance, with a particular focus on the statement of profit or loss.
When the Group prepares its financial statements in accordance with K-IFRS No. 1118, the principal accounting policies that may result in significant differences from the current financial statements are as follows. These matters
21
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
do not include all possible differences that may arise and are subject to change based on further analysis.
3. Material accounting policies (continued)
(b) As of June 30, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’(continued)
K-IFRS No. 1118 requires all income and expenses included in the statement of profit or loss to be classified into one of five categories: operating, investing, financing, income tax, and discontinued operations. The Standard classifies all income and expenses not included in the investing, financing, income tax, or discontinued operations categories as operating, and defines operating profit or loss as a residual measure.
The Group is required to assess its main business activities in order to classify income and expenses into categories. If the Group’s main business activities include investing in a particular type of asset or providing financing to customers, certain income and expenses that would otherwise have been classified in the investing or financing categories are classified in the operating category.
Accordingly, operating profit or loss under K-IFRS No. 1118 may differ significantly from operating profit or loss as defined under K-IFRS No. 1001, which is defined as operating revenue less operating expenses. K-IFRS No. 1118 requires disclosure in the notes of operating profit or loss as determined under K-IFRS No. 1001, as well as a reconciliation of the differences between operating profit or loss under K-IFRS No. 1118 and that under K-IFRS No. 1001.
In addition, K-IFRS No. 1118 requires the presentation of the following subtotals in the statement of profit or loss: ‘operating profit or loss’, comprising all income and expenses classified in the operating category; ‘profit or loss before financing and income tax’, comprising operating profit or loss and all income and expenses classified in the investing category; and ‘profit or loss’. However, if the Group’s main business activity is to provide financing to customers, the presentation of ‘profit or loss before financing and income tax’ may not be required, depending on the accounting policy elected.
K-IFRS No. 1118 introduces disclosure requirements for management-defined performance measures (MPMs), which are used by management in public communications outside the financial statements to convey management’s view of the entity’s overall financial performance. MPMs are defined as subtotals of income and expenses that are not specified in paragraph 118 of K-IFRS No. 1118 and are not otherwise required to be presented or disclosed by the Standard.
If MPMs are used, the Group is required to disclose the reasons for using such measures, how they are calculated, a reconciliation to the most directly comparable subtotal specified by K-IFRS No. 1118, the tax effects of each reconciling item, and the effects on non-controlling interests.
As a result of the issuance of K-IFRS No. 1118, certain amendments were made to K-IFRS No. 1007, ‘Statement of Cash Flows’. Under these amendments, the starting point for determining cash flows from operating activities using the indirect method has been changed from profit for the period to operating profit or loss, and the option to classify cash flows related to interest and dividends has been removed.
K-IFRS No. 1118 is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted. Entities are required to apply the Standard retrospectively in accordance with K-IFRS No. 1008, ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the year ending December 31, 2026 will be restated in accordance with K-IFRS No. 1118. Amendments to K-IFRS No. 1007 and K-IFRS No. 1033 resulting from the issuance of K-IFRS No. 1118, as well as amendments to K-IFRS No. 1008 and K-IFRS No. 1107, become effective upon application of K-IFRS No. 1118.
The Group has not applied K-IFRS No. 1118 as its mandatory effective date has not yet been reached, and it plans to present its first interim financial statements for the period ending March 31, 2027 in accordance with K-IFRS No. 1118.
22
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
As of June 30, 2026, based on the information available and the impact analysis performed, the Group is conducting a preliminary assessment of the expected effects of applying K-IFRS No. 1118. Based on the analysis performed to date, changes in the classification of income and expenses into categories are expected to result in changes to certain
3. Material accounting policies (continued)
(b) As of June 30, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’(continued)
subtotals in the statement of profit or loss, including operating profit or loss. This reclassification of categories itself is not expected to affect profit or loss for the period.
As the Group consists of subsidiaries engaged in banking, credit card, securities, insurance and other financial businesses, the Group determines the principal business activities from the perspective of the consolidated financial statements and reviews the impact of the classification of income and expenses into categories derived from the principal business activities of each operating segment on the consolidated financial statements. In addition, the Group is analyzing the effects of the classification of the share of profit or loss of associates and joint ventures, consolidation adjustment items and foreign exchange differences on subtotals, including operating profit, presented in the consolidated statement of profit or loss.
The Group is evaluating whether any financial performance measures disclosed externally qualify as management-defined performance measures under K-IFRS No. 1118. It is also assessing the impact of the amendments to K-IFRS No. 1007 Statement of Cash Flows on the calculation of cash flows from operating activities and the classification of cash flows related to interest and dividends.
This assessment is preliminary and may change as the Group finalizes its detailed accounting policies, updates its financial reporting and closing systems, restates comparative information, and completes further analysis. The Group is currently quantifying the specific financial effects of applying this Standard.
23
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management
(a) Overview
The Shinhan Financial Group (the “Group”) manages various risks that may arise within the business sector and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled, and reported in accordance with risk management guidelines established at the Parent Company level and the subsidiary level.
i) Risk management principles
The risk management principles of the Group are as follows:
- All business activities take into account the balance of risks and profits within a predetermined risk appetite.
- The Parent Company shall present the Group Risk Management Model Standards, supervise their compliance and have responsibility and authority for group-level monitoring.
- Operate a risk-related decision-making system that enhances management's involvement.
- Organize and operate risk management organizations independent of the business sector.
- Operate a performance management system that clearly considers risks when making business decisions.
- Aim for proactive and practical risk management functions.
- Share a cautious view to prepare for possible deterioration of the situation.
ii) Risk management organization
The fundamental policies for risk management of the Group are established by the Board of Directors of the Parent Company, while the basic risk management strategies are established by the Risk Management Committee (the “Group Risk Management Committee”) within the Parent Company’s Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiary implements the risk management policies and strategies of the Group through each company's risk management committee, risk-related committee, and risk management organization, and consistently establishes and implements the detailed risk policies and strategies of the subsidiary. The risk management function of the Parent Company assists the Group's Chief Risk Officer for risk management and supervision.
The Group has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Committees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.
24
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(a) Overview (continued)
ii) Risk management organization (continued)
ii-1) Group Risk Management Committee
The Committee establishes the risk management framework for the Parent Company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group’s fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the Parent Company.
The resolution of the Committee is as follows:
The resolution of the Group Risk Management Committee is reported to the Board of Directors.
ii-2) Group Risk Management Council
In order to maintain the Group's risk management policies and strategies consistently, the Group resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group’s chief risk officer and shall consist of the chief risk officers of major subsidiaries.
iii) Group Risk Management System
iii-1) Management of the Risk Capital
Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Parent Company and its subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management and establish a risk limit management system to control risk to an appropriate level.
25
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(a) Overview (continued)
iii) Group Risk Management System (continued)
iii-2) Risk Monitoring
In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Parent Company on key issues that affect risk management at the Group level. The Parent Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.
In addition, the Parent Company operates a Risk Dashboard to monitor key risks arising from changes in the business portfolios of the Group and its subsidiaries, loss-absorbing capacity, and changes in the external market environment. Based on the results of such monitoring, the Parent Company conducts proactive risk management by identifying high-risk and vulnerable areas, analyzing the underlying causes, and establishing and implementing appropriate response measures.
iii-3) Risk Reviewing
When promoting new products and businesses or implementing major policy changes, risk factors are reviewed using a pre-defined checklist to prevent the promotion of businesses where risks are difficult to assess and to support rational decision-making. The risk management departments of subsidiaries conduct prior reviews of new products, services, and business initiatives and monitor associated risks on an ongoing basis after implementation. In cases involving multiple subsidiaries or joint initiatives, the relevant risk management departments are required to consult with the risk management function of the Parent Company prior to conducting risk reviews.
iii-4) Crisis Management
The Group maintains a group-wide crisis management system to detect the signals of potential crisis proactively and, in the event of a crisis, to respond on a timely, efficient and coordinated basis so as to overcome the crisis and ultimately maintain a sustainable organization. Each subsidiary maintains crisis planning for four levels of contingencies, namely, ‘Caution’, ‘Alert’, ‘Imminent crisis’ and ‘Crisis’, the determination of which is made based on quantitative and qualitative monitoring and impact analysis, and upon the occurrence of any such contingency, is required to respond according to a prescribed contingency plan.
The Parent Company establishes and operates a group-wide crisis identification and response framework to ensure consistent recognition of and response to crisis situations across the Group. When a Group-wide crisis response is deemed necessary, such as when two or more subsidiaries reach the ‘Caution’ level or above, the Parent Company determines appropriate crisis response measures based on the applicable crisis situation level.
26
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk
Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Group faces. The Group’s credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.
Shinhan Bank's basic policy on credit risk management is determined by the Risk Policy Committee. The Risk Policy Committee consists of the chairman of the Chief Risk Officer (CRO), Chief Credit Officer (CCO), the head of the business group, and the head of the risk management department. The Risk Policy Committee decides the credit risk management plan and the direction of the loan policy for the entire bank. Apart from the Risk Policy Committee, the Credit Review Committee is established to separate credit monitoring, such as large loans and limit approval, and is composed of the chairman, the CCO, the CRO and the head of the group in charge of the credit-related business group, the head of the credit planning department, and the senior examination team to enhance the credit quality of the loan and profitability of operation.
Shinhan Bank's credit risk management includes processes such as credit evaluation, credit monitoring and supervision, credit risk measurement of counterparties and limit management processes and credit risk measurements for portfolios. All loan customers of Shinhan Bank are evaluated and managed with credit ratings. Retail customers are evaluated by summing up customer information from Shinhan Bank's internal information and external credit information, and the corporate customers are evaluated by considering financial and non-financial items such as industrial risk, operating risk, and management risk. The evaluated credit rating is used for credit approval, limit management, pricing, credit loss provisioning, etc., and is the basis for credit risk management. The credit evaluation system is divided into an evaluation system for retail customers, a small office home office (“SOHO”) evaluation system, and an evaluation system for corporate customers. It is subdivided and refined by each model to reflect the Basel III requirements. The corporate credit decision is based on a collective decision-making system, making objective and prudent decisions. In the case of a general credit of loans, the credit is approved based on the consultation between branch RM’s (Relationship Manager) and loan officers of each business division’s headquarters. In the case of a large or important credit, the credit is approved by the review council. In particular, the Credit Review Committee, the highest decision-making body for loan approvals, reviews for important loans such as large loans. Credits for retail customers are monitored by an automated credit scoring system (CSS) based on objective statistical methods and bank credit policies. Shinhan Bank operates a regular monitoring system for the regular management of individual loans. Among corporate credit clients, companies with potential risk of default are identified through system checks, and credit officers and branch staff (RMs, etc.) are required to conduct credit monitoring on them. The Credit Review Department, which operates independently from the business groups, assesses the adequacy of these credit monitoring determinations and, when necessary, requests adjustments to the credit ratings of the relevant companies. In accordance with these procedures, corporate customers are classified either as an early warning company, an observation company, or a normal company, and then managed differently according to management guidelines for each risk classification, thereby mitigating the risk of insolvency of the loan at an early stage. The financial analysis support system affiliated with a professional credit rating agency supports credit screening and management, and the credit planning department calculates and manages industrial grades and analyzes and provides industry trends and company information. In order to control the credit risk for the credit portfolio to an appropriate level, credit VaR limits are set and managed for each business and business sector, and to prepare for the credit risk caused by biased exposure to specific sectors, the Group sets and manages exposure limits for each sector by party, industry, country, etc.
Shinhan Card Co., Ltd.’s basic policy on credit risk is determined by the Risk Management Committee. The Risk Management Committee (RMC) consists of the Chief Risk Officer (CRO) as the chairperson, along with the heads of business and supporting groups, related department heads, and the Risk Management Manager. Apart from the RMC, a credit committee in charge of monitoring corporate credits and other important credits over a certain amount, has been established to separate credit policy decisions from credit monitoring.
27
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
Shinhan Card Co., Ltd.’s credit rating system is divided into ASS (Application Scoring System) and BSS (Behavior Scoring System). Unless a customer falls under “rejection due to policy” (such circumstances include delinquency of other credit card companies) and his/her credit rating is above a certain rate, an application of ASS is approved. There is a separate screening criterion for credit card customers, who have maintained a long-term relationship with the Group and have a good credit history. In addition, the elements of credit ratings are used as the basis for setting limits when issuing cards. The BSS, which is recalculated monthly, predicts the delinquency probability of cardholders, and is utilized to monitor member and portfolio risk.
i) Techniques, assumptions, and input variables used to measure impairment
i-1) Determining significant increases in credit risk since initial recognition
At the end of each reporting period, the Group assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Group uses the change in the risk of default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make the assessment, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Group and analysis by an internal credit rating expert.
The Group assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.
Internal credit risk ratings are the main variable input to determine the duration structure for the risk of default. The Group accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Group uses information obtained from external credit rating agencies when performing these analyses. The Group applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.
.
28
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions, and input variables used to measure impairment (continued)
i-1) Determining significant increases in credit risk since initial recognition (continued)
The Group uses the indicators defined as per portfolio to determine the significant increase in credit risk and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others. The method used to determine whether credit risk of financial instruments has significantly increased after the initial recognitions is summarized as follows:
Corporate exposures |
|
Retail exposures |
|
Card exposures |
|
|
|
|
|
Significant change in credit ratings |
|
Significant change in credit ratings |
|
Significant change in credit ratings |
Continued past due more than 30 days |
|
Continued past due more than 30 days |
|
Continued past due more than 7 days (personal card) |
Loan classification of ‘precautionary’ or below |
|
Loan classification of ‘precautionary’ or below |
|
Loan classification of ‘precautionary’ or below |
Borrower with early warning signals |
|
Borrower with early warning signals |
|
Specific pool segment |
Negative net assets |
|
Specific pool segment |
|
|
Adverse audit opinion or disclaimer of opinion |
|
Collective loans for housing for which the constructors are insolvent |
|
|
Interest coverage ratio below 1 for a consecutive period of three years or negative cash flows from operating activities for a consecutive period of two years |
|
Loans with identified indicators for significant increases in other credit risk |
|
|
Loans with identified indicators for significant increases in other credit risk |
|
|
|
|
The Group assumes that the credit risk of the financial instrument has been increased significantly since initial recognition if a specific exposure is past due more than 30 days (except, for card exposures if it is past due more than 7 days). The Group counts the number of days past due from the earliest date on which the Group fails to fully receive the contractual payments from the borrower, and does not take into account any grace period granted to the borrower.
The Group regularly reviews the criteria for determining if there has been a significant increase in credit risk from the following perspective:
- A significant increase in credit risk shall be identified prior to the occurrence of default.
- The criteria established to judge the significant increase in credit risk shall have a more predictive power than the criteria for days of delinquency.
- As a result of applying the judgment criteria, management would not expect frequent movement between the 12-month expected credit loss accumulation target and the entire period expected credit loss accumulation target.
29
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions, and input variables used to measure impairment (continued)
i-2) Modified financial assets
If the contractual cash flows on a financial asset have been modified through renegotiation and the financial asset is not derecognized, the Group assesses whether there has been a significant increase in the credit risk of the financial instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.
The Group may adjust the contractual cash flows of loans to customers who are in financial difficulties in order to manage the risk of default and enhance the collectability (hereinafter referred to as ‘debt restructuring’). These adjustments generally involve extension of maturity, changes in interest payment schedule, and changes in other contractual terms.
Debt restructuring is a qualitative indicator of a significant increase in credit risk, and the Group recognizes lifetime expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes payments of contractual cash flows that are modified in accordance with the debt restructuring or if the borrower's internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the Group recognizes the 12-month expected credit losses for that exposure again.
i-3) Risk of default
The Group considers a financial asset to be in default if it meets one or more of the following conditions:
- If a borrower is overdue 90 days or more from the contractual payment date
- If the Group judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset
The Group uses the following indicators when determining whether a borrower is in default:
- Qualitative factors (e.g. breach of contractual terms),
- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Group, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Group uses the number of days past due for each financial instrument),
- Internal observation data and external data
The definition of default applied by the Group generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred, and the extent thereof may vary.
30
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions, and input variables used to measure impairment (continued)
i-4) Reflection of forward-looking information
The Group reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Group utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.
The Group reflects future macroeconomic conditions anticipated from a neutral standpoint that is free from bias in measuring expected credit losses. Expected credit losses in this respect reflect conditions that are most likely to occur and are based on the same assumptions that the Group used in its business plan and management strategy.
The Group analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation. To reflect external and internal economic uncertainties, the Group has incorporated the final forward-looking information by reviewing an additional worst-case scenario along with the three existing scenarios of upside, central and downside.
Major macroeconomic variables |
|
Correlation between credit risks |
|
|
|
GDP growth rate |
|
(-) |
Private consumption growth rate |
|
(-) |
Equipment investment growth rate |
|
(-) |
Consumer price index growth rate |
|
(+) |
Balance on current account |
|
(-) |
The predicted correlations between the macroeconomic variables and the risk of default, used by the Group, are derived based on long-term data over the past ten years.
31
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions, and input variables used to measure impairment (continued)
i-5) Measurement of expected credit losses
Key variables used in measuring expected credit losses are as follows:
- Probability of default (“PD”)
- Loss given default (“LGD”)
- Exposure at default (“EAD”)
These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Group and have been adjusted to reflect forward-looking information.
Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Group uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.
LGD refers to the expected loss in the event of a default. The Group calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.
EAD refers to the expected exposure at the time of default. The Group derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.
In measuring expected credit losses on financial assets, the Group uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.
Risk factors of PD, and those of LGD and EAD, are collectively estimated according to the following criteria:
- Type of products
- Internal credit risk rating
- Type of collateral
- Loan to value (“LTV”)
- Industry that the borrower belongs to
- Location of the borrower or collateral
- Days of delinquency
The criteria for classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Group uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the past experience.
32
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions and input variables used to measure impairment (continued)
i-6) Write-off of financial assets
The Group writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Group conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. The decision to write off follows the internal regulations of the Group and, if necessary, is carried out after obtaining approval from external institutions. Apart from write-off, the Group may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.
ii) Maximum exposure to credit risk
Exposure to credit risk is related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet items such as loan commitment. The exposures of due from banks and loans are classified into government, bank, corporation or retail based on the exposure classification criteria of Basel III credit risk weights, and the net carrying amount, excluding deductible items such as provisions, is presented as the maximum amount that can be exposed by credit risk.
Details of the maximum exposure to credit risk for financial instruments held as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Due from banks and loans at amortized cost (*1), (*3): |
|
|
|
|
Banks |
W |
15,368,388 |
|
12,658,709 |
Retail |
|
211,905,227 |
|
208,308,298 |
Government/Public sector/Central bank |
|
31,939,050 |
|
26,417,332 |
Corporations |
|
238,052,713 |
|
226,554,125 |
Card receivable |
|
28,114,457 |
|
27,695,043 |
|
|
525,379,835 |
|
501,633,507 |
|
|
|
|
|
Due from banks and loans at FVTPL (*3): |
|
|
|
|
Banks |
|
131,931 |
|
169,972 |
Corporations |
|
1,814,308 |
|
1,286,144 |
|
|
1,946,239 |
|
1,456,116 |
|
|
|
|
|
Securities at FVTPL |
|
75,319,472 |
|
71,727,860 |
Securities at FVOCI |
|
103,461,158 |
|
101,282,906 |
Securities at amortized cost (*1) |
|
33,274,891 |
|
31,944,368 |
Derivative assets |
|
13,084,893 |
|
7,153,950 |
Other financial assets (*1), (*2) |
|
56,669,239 |
|
43,323,340 |
Guarantee contracts |
|
29,338,143 |
|
26,221,968 |
Loan commitments and other credit liabilities |
|
225,961,828 |
|
220,317,053 |
|
W |
1,064,435,698 |
|
1,005,061,068 |
(*1) The maximum exposure amounts for due from banks, loans, securities at amortized cost and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.
(*2) Other financial assets mainly comprise of accounts receivable, accrued income, deposits, domestic exchange settlement debit and suspense payments.
(*3) Classified as similar credit risk group based on calculation of the BIS ratio under new Basel Capital Accord (Basel III).
33
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
iii) Impairment information by credit risk of financial assets
Details of impaired financial assets due to credit risk as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
Allowances |
|
Net |
|
Mitigation of credit risk due to collateral |
||||||
|
|
Grade 1 |
|
Grade 2 |
|
Grade 1 |
|
Grade 2 |
|
Impaired |
|
|
|
|
||||
Due from banks and loans at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
W |
13,033,800 |
|
2,127,887 |
|
196,982 |
|
24,171 |
|
- |
|
15,382,840 |
|
(14,452) |
|
15,368,388 |
|
279 |
Retail |
|
190,945,909 |
|
6,984,288 |
|
9,532,211 |
|
4,233,611 |
|
1,332,384 |
|
213,028,403 |
|
(1,123,176) |
|
211,905,227 |
|
164,029,255 |
Government/Public sector/Central bank |
|
29,245,913 |
|
2,258,671 |
|
447,267 |
|
246 |
|
- |
|
31,952,097 |
|
(13,047) |
|
31,939,050 |
|
2,598 |
Corporations |
|
126,855,861 |
|
58,363,465 |
|
28,354,753 |
|
24,245,634 |
|
2,591,851 |
|
240,411,564 |
|
(2,358,851) |
|
238,052,713 |
|
129,988,652 |
Card receivable |
|
20,652,538 |
|
4,737,054 |
|
1,039,844 |
|
2,083,011 |
|
554,709 |
|
29,067,156 |
|
(952,699) |
|
28,114,457 |
|
16,929 |
|
|
380,734,021 |
|
74,471,365 |
|
39,571,057 |
|
30,586,673 |
|
4,478,944 |
|
529,842,060 |
|
(4,462,225) |
|
525,379,835 |
|
294,037,713 |
Securities at FVOCI (*) |
|
92,529,983 |
|
10,901,423 |
|
- |
|
29,752 |
|
- |
|
103,461,158 |
|
- |
|
103,461,158 |
|
- |
Securities at amortized cost |
|
31,154,451 |
|
2,129,280 |
|
- |
|
- |
|
- |
|
33,283,731 |
|
(8,840) |
|
33,274,891 |
|
- |
|
W |
504,418,455 |
|
87,502,068 |
|
39,571,057 |
|
30,616,425 |
|
4,478,944 |
|
666,586,949 |
|
(4,471,065) |
|
662,115,884 |
|
294,037,713 |
34
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
iii) Impairment information by credit risk of financial assets (continued)
Details of impaired financial assets due to credit risk as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
Allowances |
|
Net |
|
Mitigation of credit risk due to collateral |
||||||
|
|
Grade 1 |
|
Grade 2 |
|
Grade 1 |
|
Grade 2 |
|
Impaired |
|
|
|
|
||||
Due from banks and loans at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
W |
11,039,981 |
|
1,445,815 |
|
183,147 |
|
121 |
|
- |
|
12,669,064 |
|
(10,355) |
|
12,658,709 |
|
171 |
Retail |
|
188,215,501 |
|
6,674,522 |
|
9,227,654 |
|
3,991,054 |
|
1,252,699 |
|
209,361,430 |
|
(1,053,132) |
|
208,308,298 |
|
162,423,106 |
Government/Public sector/Central bank |
|
23,669,547 |
|
2,468,610 |
|
290,730 |
|
11 |
|
- |
|
26,428,898 |
|
(11,566) |
|
26,417,332 |
|
2,597 |
Corporations |
|
121,819,093 |
|
56,460,975 |
|
22,692,064 |
|
25,790,138 |
|
2,091,404 |
|
228,853,674 |
|
(2,299,549) |
|
226,554,125 |
|
126,763,442 |
Card receivable |
|
20,649,246 |
|
4,449,746 |
|
1,060,430 |
|
1,976,109 |
|
481,682 |
|
28,617,213 |
|
(922,170) |
|
27,695,043 |
|
18,139 |
|
|
365,393,368 |
|
71,499,668 |
|
33,454,025 |
|
31,757,433 |
|
3,825,785 |
|
505,930,279 |
|
(4,296,772) |
|
501,633,507 |
|
289,207,455 |
Securities at FVOCI (*) |
|
90,408,440 |
|
10,847,635 |
|
- |
|
26,831 |
|
- |
|
101,282,906 |
|
- |
|
101,282,906 |
|
- |
Securities at amortized cost |
|
30,031,575 |
|
1,921,484 |
|
- |
|
- |
|
- |
|
31,953,059 |
|
(8,691) |
|
31,944,368 |
|
- |
|
W |
485,833,383 |
|
84,268,787 |
|
33,454,025 |
|
31,784,264 |
|
3,825,785 |
|
639,166,244 |
|
(4,305,463) |
|
634,860,781 |
|
289,207,455 |
(*) Provision for credit losses recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 58,812 million and W 60,301 million as of June 30, 2026 and December 31, 2025.
35
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
iv) Credit risk exposures per credit grade of off-balance sheet items
The credit risk exposure for off-balance sheet items such as guarantees, loan commitments, and other credit-related liabilities as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||
|
|
Grade 1 |
|
Grade 2 |
0.1 |
Impaired |
|
Total |
Guarantee contracts: |
|
|
|
|
|
|
|
|
12-month expected credit losses |
W |
21,251,013 |
|
5,013,042 |
|
- |
|
26,264,055 |
Lifetime expected credit losses |
|
2,962,450 |
|
99,832 |
|
- |
|
3,062,282 |
Impaired |
|
- |
|
- |
|
11,806 |
|
11,806 |
|
|
24,213,463 |
|
5,112,874 |
|
11,806 |
|
29,338,143 |
Loan commitments and other credit-related liabilities: |
|
|
|
|
|
|
|
|
12-month expected credit losses |
|
188,919,106 |
|
23,835,016 |
|
- |
|
212,754,122 |
Lifetime expected credit losses |
|
10,479,728 |
|
2,636,763 |
|
- |
|
13,116,491 |
Impaired |
|
- |
|
- |
|
91,215 |
|
91,215 |
|
|
199,398,834 |
|
26,471,779 |
|
91,215 |
|
225,961,828 |
|
W |
223,612,297 |
|
31,584,653 |
|
103,021 |
|
255,299,971 |
|
|
December 31, 2025 |
||||||
|
|
Grade 1 |
|
Grade 2 |
0.1 |
Impaired |
|
Total |
Guarantee contracts: |
|
|
|
|
|
|
|
|
12-month expected credit losses |
W |
20,555,651 |
|
4,535,466 |
|
- |
|
25,091,117 |
Lifetime expected credit losses |
|
964,695 |
|
154,378 |
|
- |
|
1,119,073 |
Impaired |
|
- |
|
- |
|
11,778 |
|
11,778 |
|
|
21,520,346 |
|
4,689,844 |
|
11,778 |
|
26,221,968 |
Loan commitments and other credit-related liabilities: |
|
|
|
|
|
|
|
|
12-month expected credit losses |
|
185,899,148 |
|
22,774,387 |
|
- |
|
208,673,535 |
Lifetime expected credit losses |
|
8,896,231 |
|
2,642,174 |
|
- |
|
11,538,405 |
Impaired |
|
- |
|
- |
|
105,113 |
|
105,113 |
|
|
194,795,379 |
|
25,416,561 |
|
105,113 |
|
220,317,053 |
|
W |
216,315,725 |
|
30,106,405 |
|
116,891 |
|
246,539,021 |
v) Credit qualities are classified based on the internal credit rating as follows:
Type of Borrower |
|
Grade 1 |
|
Grade 2 |
Individuals |
|
Probability of default below 2.25% for each pool |
|
Probability of default 2.25% or above for each pool |
Government/Public agency/Central bank |
|
OECD sovereign credit rating of 6 or above |
|
OECD sovereign credit rating of below 6 |
Banks and Corporations (Including card receivables) |
|
Internal credit rating of BBB+ or above |
|
Internal credit rating of below BBB+ |
Card receivables (Individuals)
|
|
Behavior scoring system of 7 grade or above |
|
Behavior scoring system of below 7 grade |
36
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
vi) Concentration by industry sector
An analysis of concentration by industry sector of financial instrument, net of allowance, as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||||
Classification (*) |
|
Finance and insurance |
|
Manu- facturing |
|
Retail and wholesale |
|
Real estate and business |
|
Construction service |
|
Lodging and Restaurant |
|
Other |
|
Retail customers |
|
Total |
Due from banks and loans at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
W |
15,113,332 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
255,056 |
|
- |
|
15,368,388 |
Retail |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
211,905,227 |
|
211,905,227 |
Government/Public sector/Central bank |
|
31,552,696 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
386,354 |
|
- |
|
31,939,050 |
Corporations |
|
24,627,905 |
|
66,869,273 |
|
25,079,910 |
|
49,656,605 |
|
5,078,431 |
|
6,989,748 |
|
59,750,841 |
|
- |
|
238,052,713 |
Card receivable |
|
68,048 |
|
547,807 |
|
235,679 |
|
93,157 |
|
174,193 |
|
29,340 |
|
1,325,482 |
|
25,640,751 |
|
28,114,457 |
|
|
71,361,981 |
|
67,417,080 |
|
25,315,589 |
|
49,749,762 |
|
5,252,624 |
|
7,019,088 |
|
61,717,733 |
|
237,545,978 |
|
525,379,835 |
Due from banks and loans at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
|
42,665 |
|
- |
|
- |
|
- |
|
19,843 |
|
- |
|
69,423 |
|
- |
|
131,931 |
Corporations |
|
912,011 |
|
634,661 |
|
123,583 |
|
79,739 |
|
- |
|
- |
|
64,314 |
|
- |
|
1,814,308 |
|
|
954,676 |
|
634,661 |
|
123,583 |
|
79,739 |
|
19,843 |
|
- |
|
133,737 |
|
- |
|
1,946,239 |
37
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
vi) Concentration by industry sector (continued)
An analysis of concentration by industry sector of financial instrument, net of allowance, as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||||||||
Classification (*) |
|
Finance and insurance |
|
Manu- facturing |
|
Retail and wholesale |
|
Real estate and business |
|
Construction service |
|
Lodging and Restaurant |
|
Other |
|
Retail customers |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities at FVTPL |
W |
35,140,742 |
|
4,618,075 |
|
1,839,364 |
|
2,529,550 |
|
297,964 |
|
147,054 |
|
30,746,723 |
|
- |
|
75,319,472 |
Derivative assets |
|
10,514,197 |
|
1,727,802 |
|
76,856 |
|
93,237 |
|
1,010 |
|
699 |
|
671,092 |
|
- |
|
13,084,893 |
Securities at FVOCI |
|
46,816,454 |
|
2,482,070 |
|
633,167 |
|
1,669,650 |
|
581,551 |
|
43,034 |
|
51,235,232 |
|
- |
|
103,461,158 |
Securities at amortized cost |
|
7,969,260 |
|
9,985 |
|
- |
|
911,281 |
|
310,750 |
|
- |
|
24,073,615 |
|
- |
|
33,274,891 |
|
|
172,757,310 |
|
76,889,673 |
|
27,988,559 |
|
55,033,219 |
|
6,463,742 |
|
7,209,875 |
|
168,578,132 |
|
237,545,978 |
|
752,466,488 |
Off-balance sheet items |
|
172,757,310 |
|
76,889,673 |
|
27,988,559 |
|
55,033,219 |
|
6,463,742 |
|
7,209,875 |
|
168,578,132 |
|
237,545,978 |
|
752,466,488 |
Guarantee contracts |
|
5,621,232 |
|
14,989,295 |
|
4,134,410 |
|
138,175 |
|
312,750 |
|
68,953 |
|
4,072,532 |
|
796 |
|
29,338,143 |
Loan commitments and other credit-related liabilities |
|
20,573,852 |
|
34,219,871 |
|
10,565,459 |
|
8,284,461 |
|
2,196,509 |
|
407,225 |
|
21,295,067 |
|
128,419,384 |
|
225,961,828 |
|
W |
26,195,084 |
|
49,209,166 |
|
14,699,869 |
|
8,422,636 |
|
2,509,259 |
|
476,178 |
|
25,367,599 |
|
128,420,180 |
|
255,299,971 |
38
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
vi) Concentration by industry sector (continued)
An analysis of concentration by industry sector of financial instrument, net of allowance, as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||||||
Classification (*) |
|
Finance and insurance |
|
Manu- facturing |
|
Retail and wholesale |
|
Real estate and business |
|
Construction service |
|
Lodging and Restaurant |
|
Other |
|
Retail customers |
|
Total |
Due from banks and loans at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
W |
12,359,288 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
299,421 |
|
- |
|
12,658,709 |
Retail |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
208,308,298 |
|
208,308,298 |
Government/Public sector/Central bank |
|
26,140,603 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
276,729 |
|
- |
|
26,417,332 |
Corporations |
|
22,523,203 |
|
63,353,165 |
|
23,759,226 |
|
47,411,346 |
|
5,764,311 |
|
7,205,522 |
|
56,537,352 |
|
- |
|
226,554,125 |
Card receivable |
|
78,300 |
|
330,944 |
|
274,289 |
|
75,757 |
|
48,900 |
|
28,196 |
|
1,329,882 |
|
25,528,775 |
|
27,695,043 |
|
|
61,101,394 |
|
63,684,109 |
|
24,033,515 |
|
47,487,103 |
|
5,813,211 |
|
7,233,718 |
|
58,443,384 |
|
233,837,073 |
|
501,633,507 |
Due from banks and loans at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks |
|
40,862 |
|
- |
|
- |
|
- |
|
99,327 |
|
- |
|
29,783 |
|
- |
|
169,972 |
Corporations |
|
575,478 |
|
399,668 |
|
3,004 |
|
156,286 |
|
- |
|
- |
|
151,708 |
|
- |
|
1,286,144 |
|
|
616,340 |
|
399,668 |
|
3,004 |
|
156,286 |
|
99,327 |
|
- |
|
181,491 |
|
- |
|
1,456,116 |
39
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
vi) Concentration by industry sector (continued)
An analysis of concentration by industry sector of financial instrument, net of allowance, as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||||||
Classification (*) |
|
Finance and insurance |
|
Manu- facturing |
|
Retail and wholesale |
|
Real estate and business |
|
Construction service |
|
Lodging and Restaurant |
|
Other |
|
Retail customers |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities at FVTPL |
W |
35,054,770 |
|
3,090,284 |
|
1,399,374 |
|
3,087,667 |
|
242,695 |
|
29,279 |
|
28,823,791 |
|
- |
|
71,727,860 |
Derivative assets |
|
6,068,491 |
|
829,304 |
|
13,573 |
|
19,948 |
|
2,272 |
|
329 |
|
219,516 |
|
517 |
|
7,153,950 |
Securities at FVOCI |
|
45,699,181 |
|
2,242,382 |
|
465,133 |
|
1,733,913 |
|
749,831 |
|
22,340 |
|
50,370,126 |
|
- |
|
101,282,906 |
Securities at amortized cost |
|
7,108,253 |
|
9,985 |
|
- |
|
843,938 |
|
280,851 |
|
- |
|
23,701,341 |
|
- |
|
31,944,368 |
|
|
155,648,429 |
|
70,255,732 |
|
25,914,599 |
|
53,328,855 |
|
7,188,187 |
|
7,285,666 |
|
161,739,649 |
|
233,837,590 |
|
715,198,707 |
Off-balance sheet items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantee contracts |
|
5,659,966 |
|
12,554,311 |
|
3,633,251 |
|
290,565 |
|
214,178 |
|
60,372 |
|
3,808,447 |
|
878 |
|
26,221,968 |
Loan commitments and other credit-related liabilities |
|
18,227,705 |
|
31,211,151 |
|
10,863,979 |
|
6,914,971 |
|
2,269,120 |
|
444,003 |
|
20,103,475 |
|
130,282,649 |
|
220,317,053 |
|
W |
23,887,671 |
|
43,765,462 |
|
14,497,230 |
|
7,205,536 |
|
2,483,298 |
|
504,375 |
|
23,911,922 |
|
130,283,527 |
|
246,539,021 |
(*) The amounts by industry sector are presented as the net carrying amount after deducting allowances for loan losses.
40
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(c) Market risk
i) Market risk management from trading positions
i-1) Concept of Market risk
Market risk is defined as the risk of loss of trading account position of financial institutions due to changes on market price, such as interest rates, exchange rates and stock prices, etc. and is divided into general market risks and individual risks. A general market risk refers to a loss from price variability caused by events affecting the market as a whole, such as interest rates, exchange rates and stock prices; and an individual risk refers to a loss from price variability related to individual events of securities issuer, such as bonds and stocks. A structural foreign exchange position refers to foreign currency positions arising from the capital of overseas branches and offices (including capital contributions, capital allocated to overseas branches, and retained earnings) and long-term investments in foreign equity interests, which are excluded from the calculation of regulatory capital for market risk with the approval of the Governor of the Financial Supervisory Service.
i-2) Market Risk Management Method
The basic principle of market risk management in the trading sector is to maintain the maximum possible loss due to market risk within a certain level. To this end, the Group sets and operates VaR limits, investment limits, position limits, sensitivity limits, and loss limits from the portfolio to individual desks. These limits are managed daily by the department in charge of risk management, independent from the operating department.
Trading positions refer to all transactions for holding purposes such as short-term resale, profit seeking through short-term price fluctuations, risk-free arbitrage, and risk hedging. Trading positions primarily include securities, foreign exchange positions, and derivative financial instruments. As a method of measuring market risk, VaR (Value at Risk) is typical, and it is a statistical measurement of the potential maximum loss that can occur due to changes in market conditions. The Group calculates the standardized approach market risk using the Group Market Risk Measurement System, and Shinhan Bank and Shinhan Securities Co., Ltd. calculate the standardized approach market risk using their own market risk calculation systems. The Group and Shinhan Bank exclude structural foreign exchange positions approved by the Governor of the Financial Supervisory Service from the calculation of market risk under the standardized approach.
Stress tests are conducted to supplement risk measurement by statistical methods and to manage losses that may arise from rapid changes in the economic environment.
Shinhan Bank measures the risk of trading account products by applying market risk standardized approach. The standardized approach is a risk calculation methodology proposed by the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlements (BIS).
41
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(c) Market risk (continued)
i-2) Market risk management method (continued)
In Korea, the Basel III standards for market risk have been incorporated into the Detailed Regulations on Banking Supervision since 2023, and the Group complies with these regulations. Under the Basel III
standardized approach, market risk is calculated by aggregating sensitivity risk, default risk, and residual risk. Sensitivity risk measures coverage of general interest rates, credit spreads, stocks, commodity, delta and vega of foreign exchange, and curvature. Delta refers to the change in product value due to changes in the price of the underlying asset, and vega refers to the change in product value due to changes in the volatility of the underlying asset. Curvature is defined as a loss that exceeds the delta risk in the event of an upward or downward shock to the underlying asset. Sensitivity risk is designed to measure both linear and non-linear risks of factors affecting value fluctuations regardless of the characteristics of the product. Default risk measures the discrete default risk of the underlying asset that cannot be captured in sensitivity risk. Complete offsetting between purchase and sale exposures of the same borrower is possible. Residual risk is a concept that calculates additional risk because sensitivity risk and default risk are not accurately measured when there is a special profit/loss structure or the underlying asset is special.
Trading position data is automatically interfaced into management system, and the system conducts VaR measurement and manages the limit. In addition, Shinhan Bank sets loss limit, sensitivity limit, investment limit, stress limit, etc. for Trading Department and desks, and monitors daily.
Shinhan Securities Co., Ltd. applies the standardized approach to market risk, consistent with Shinhan Bank, to measure the risk of trading account products on a daily basis and performs limit management and monitoring of its trading departments. The Group establishes and operates an integrated and consistent market risk management framework across the Group by requiring its subsidiaries, Shinhan Bank and Shinhan Securities Co., Ltd., to adopt and operate the same standards for measuring market risk.
42
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(c) Market risk (continued)
ii) Interest rate risk management from non-trading positions
ii-1) Principle
Interest rate risk refers to the possibility of a decrease in net interest income or in net asset value that occurs when interest rates fluctuate unfavorably from the Group's financial position. The Group manages changes in net interest income or net asset value that occur due to changes in interest rates by early predicting the factors of interest rate risk fluctuation related to the Group's net interest income and net asset value through the interest rate risk management.
ii-2) Managements
The Group's major financial subsidiaries manage interest rate risks independently by the risk management organization and the treasury department, and have internal regulations on interest rate risk management strategies, procedures, organization, measurement, and major assumptions.
One of the key indicators of managing interest rate risk is the Earnings at Risk (EaR) from an earning perspective and the Value at Risk (VaR) from an economic value perspective. Interest rate VaR represents the maximum anticipated loss in a net present value calculation, whereas interest rate EaR represents the maximum anticipated loss in a net interest income calculation for the immediately following one-year period, in each case, as a result of negative movements in interest rates.
Each subsidiary's interest rate risk measurement method varies depending on industry-specific regulations. However, interest rate VaR and interest rate EaR are measured using internal methodologies or IRRBB (Interest Rate Risk in the Banking Book). Interest rate risk limits are set based on interest rate VaR and monitored accordingly. In accordance with the amendments to the Detailed Enforcement Rules of the Financial Holding Companies Supervisory Regulations, the Group measures its interest rate risk using the standardized approach of IRRBB under Basel III, which measures interest rate risk more precisely than the existing BIS standard framework by segmenting interest rate maturities, reflecting customer behavior models, and diversifying interest rate shocks. The interest rate VaR scenario based IRRBB measures ① parallel up shock ② parallel down shock ③ steepener shock ④ flattener shock ⑤ short rate up shock ⑥ short rate down shock. By the parallel up shock and parallel down shock, the interest rate EaR scenario measures the scenario value with the largest loss as interest rate risk. Under the existing BIS standard framework, ± 200bp parallel shock scenario is applied to all currency. However, as the shock width is set differently by currency and period, interest rate risk is measured significantly by the IRRBB (e.g. (KRW) Parallel ± 225bp, Short Term ± 350bp, Long Term ± 225bp, (USD) Parallel ± 200bp, Short Term ± 300bp, Long Term ± 225bp). In the IRRBB method, the existing interest rate VaR and the interest rate EaR are expressed as △ EVE (Economic Value of Equity) and △ NII (Net Interest Income), respectively.
Since impacts of each subsidiary on changes of interest rates are differentiated by portfolios, the Group is preparing to respond proactively while monitoring the financial market and regulatory environment, and making efforts to hedge or reduce interest rate risk. In addition, the subsidiaries conduct the crisis analysis on changes in market interest rates and report it to management and the Group.
In particular, through its ALM (Asset and Liability Management) system, Shinhan Bank measures and manages its interest rate risk based on various analytical measures such as interest rate gap, duration gap and NPV (Net Present Value) and NII (Net Interest Income) simulations, and monitors on a monthly basis its interest rate VaR limits, interest rate EaR (Earnings at Risk) limits and interest rate gap ratio limits.
43
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(c) Market risk (continued)
iii) Foreign exchange risk
Exposure to foreign exchange risk can be defined as the difference (net position) between assets and liabilities presented in foreign currency, including derivative financial instruments linked to foreign exchange rate. Foreign exchange risk is a factor that causes market risk of the trading position and is managed by the Group under the market risk management system.
The management of Shinhan Bank’s foreign exchange position is centralized at the S&T Center. The desks and dealers of this department manage the overall position of spot foreign exchange or foreign exchange derivatives within the established market risk and foreign exchange position limits. Shinhan Bank sets a limit for net open positions by currency and the limits for currencies other than the U.S. dollars (USD), Japanese yen (JPY), Euros (EUR) and Chinese yuan (CNY) are set in order to minimize exposures from the other foreign exchange trading.
44
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Liquidity risk
Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets at abnormal prices, high interest-rate financing, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.
Each subsidiary seeks to minimize liquidity risk through early detection of risk factors related to the sourcing and managing of funding that may cause volatility in liquidity by ensuring that it maintains an appropriate level of liquidity through systematic management. At the Group level, the Group manages liquidity risk by conducting monthly stress tests that compare liquidity requirements under normal situations against those under three types of stress situations, namely, the inherent crisis, crisis in the external market and a combination of internal and external crisis. Therefore, the Group is monitoring for any anomalies in terms of liquidity in preparation for potential crisis situations during normal times.
In particular, after the bankruptcy of Silicon Valley Bank, the Group has been strengthening its capability to respond to liquidity crises by conducting crisis situation analysis applying bank run scenarios to the banks and savings bank subsidiaries. The Group has established and reviewed emergency funding plans, accordingly.
In addition, in order to pre-emptively and comprehensively manage liquidity risk, the Group measures and monitors liquidity risk management using various indices, including the ‘limit management index’, ‘early warning index’ and ‘monitoring index’.
Shinhan Bank applies the following basic principles for liquidity risk management:
- Raise funding in sufficient amounts, at the optimal time at reasonable costs;
- Maintain risk at appropriate levels and pre-emptively manage them through a prescribed risk limit system and an early warning signal detection system;
- Secure stable sources of revenue and minimize actual losses by implementing an effective asset-liability management system based on diversified sources of funding with varying maturities;
- Monitor and manage daily and intra-daily liquidity positions and risk exposures for timely payment and settlement of financial obligations due under both normal and crisis situations;
- Conduct periodic contingency analysis to prepare for any potential liquidity crisis and establish and implement emergency plans in the event of a crisis; and
- Consider liquidity-related costs, benefits and risks in determining the pricing of the Group’s products and services, employee performance evaluations and approval of launching of new products and services.
Shinhan Card Co., Ltd. has established, as a guideline, and operates a level of end-of-month liquidity sufficient to withstand a three-month credit crunch. For the real liquidity gap ratio, based on the maturity structure of assets and liabilities, the liquidity buffer ratio, and the ratio of ABS (asset-backed securities) to borrowings, which are key indicators related to liquidity risk, Shinhan Card Co., Ltd. defines threshold levels such as ‘Caution’, ‘Alert’, ‘Imminent crisis’, and ‘Crisis’ and by aggregating these, defines and manages an overall liquidity crisis level. A contingency plan has also been established to prepare for the occurrence of a crisis situation.
45
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Liquidity risk (continued)
The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
Classification (*1) |
|
1 month or less (*3) |
|
1~3 months |
|
3~6 months |
|
6 months ~ 1 year |
|
1~5 years |
|
5 years or more |
|
Total |
Non-derivative financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits (*2) |
W |
252,736,951 |
|
64,930,823 |
|
71,303,013 |
|
64,383,297 |
|
29,914,700 |
|
1,664,472 |
|
484,933,256 |
Financial liabilities at fair value through profit or loss |
|
2,211,812 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,211,812 |
Borrowings |
|
16,998,158 |
|
7,947,916 |
|
6,729,161 |
|
12,103,614 |
|
13,296,478 |
|
5,283,007 |
|
62,358,334 |
Debt securities issued |
|
5,173,771 |
|
7,401,875 |
|
11,006,398 |
|
14,124,401 |
|
56,033,072 |
|
3,277,510 |
|
97,017,027 |
Financial liabilities designated at fair value through profit or loss |
|
367,195 |
|
1,144,228 |
|
1,609,092 |
|
955,055 |
|
1,348,977 |
|
1,595,371 |
|
7,019,918 |
Investment contract liabilities |
|
42,332 |
|
1,432 |
|
144,571 |
|
90,391 |
|
1,313,738 |
|
- |
|
1,592,464 |
Other financial liabilities |
|
67,712,386 |
|
82,653 |
|
92,093 |
|
712,867 |
|
1,213,655 |
|
219,505 |
|
70,033,159 |
|
W |
345,242,605 |
|
81,508,927 |
|
90,884,328 |
|
92,369,625 |
|
103,120,620 |
|
12,039,865 |
|
725,165,970 |
Off-balance sheet items (*3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantee contracts |
W |
29,338,143 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
29,338,143 |
Loan commitments and other credit-related liabilities |
|
225,961,828 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
225,961,828 |
|
W |
255,299,971 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
255,299,971 |
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
W |
1,061,962 |
|
(17,481) |
|
(111,584) |
|
(571,105) |
|
(3,592,995) |
|
(75,186) |
|
(3,306,389) |
46
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Liquidity risk (continued)
The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
Classification (*1) |
|
1 month or less (*3) |
|
1~3 months |
|
3~6 months |
|
6 months ~ 1 year |
|
1~5 years |
|
5 years or more |
|
Total |
Non-derivative financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits (*2) |
W |
231,520,722 |
|
54,103,105 |
|
54,526,232 |
|
84,041,299 |
|
30,677,571 |
|
2,274,736 |
|
457,143,665 |
Financial liabilities at fair value through profit or loss |
|
2,212,215 |
|
- |
|
- |
|
- |
|
- |
|
100,272 |
|
2,312,487 |
Borrowings |
|
16,797,623 |
|
6,963,957 |
|
6,221,726 |
|
8,478,193 |
|
11,924,157 |
|
6,074,035 |
|
56,459,691 |
Debt securities issued |
|
6,230,564 |
|
8,486,174 |
|
9,202,855 |
|
15,052,890 |
|
56,411,740 |
|
3,889,537 |
|
99,273,760 |
Financial liabilities designated at fair value through profit or loss |
|
399,298 |
|
977,019 |
|
854,498 |
|
1,180,049 |
|
1,423,212 |
|
1,586,327 |
|
6,420,403 |
Investment contract liabilities |
|
189,704 |
|
10,554 |
|
91,041 |
|
159,182 |
|
1,085,912 |
|
- |
|
1,536,393 |
Other financial liabilities |
|
51,214,836 |
|
162,838 |
|
74,360 |
|
602,583 |
|
1,318,935 |
|
225,282 |
|
53,598,834 |
|
W |
308,564,962 |
|
70,703,647 |
|
70,970,712 |
|
109,514,196 |
|
102,841,527 |
|
14,150,189 |
|
676,745,233 |
Off-balance sheet items (*3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantee contracts |
W |
26,221,968 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
26,221,968 |
Loan commitments and other credit-related liabilities |
|
220,317,053 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
220,317,053 |
|
W |
246,539,021 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
246,539,021 |
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
W |
771,588 |
|
(810,792) |
|
(29,804) |
|
(93,500) |
|
(2,117,259) |
|
(76,279) |
|
(2,356,046) |
47
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Liquidity risk (continued)
The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of June 30, 2026 and December 31, 2025 are as follows (continued):
(*1) These amounts include cash flows of principal and interest on financial liabilities.
(*2) Demand deposits amounting to W 182,736,642 million and W 172,840,773 million as of June 30, 2026 and December 31, 2025 are included in the ‘Less than 1 month’ category, respectively.
(*3) Although the Group's guarantee contracts, loan commitments, and other credit offerings have contractual maturities, the Group is required to fulfill its obligations immediately upon a counterparty's request for payment, and therefore are classified into the earliest maturity time band.
48
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(e) Capital risk management
The Group is required, in accordance with the Financial Holding Companies Act, to maintain a total capital ratio based on consolidated risk-weighted assets of at least 8% (hereinafter referred to as the “Basel III capital ratio”). In addition, following the implementation of enhanced Basel III capital regulations from 2016, the required BIS capital ratio to be maintained in order to strengthen loss-absorbing capacity has been increased to a maximum of 14%. This requirement reflects the minimum regulatory ratio plus the additional accumulation of a capital conservation buffer (2.5%p), a domestic systemically important bank (“D-SIB”) buffer (1.0%p), and a countercyclical capital buffer (2.5%p). The countercyclical capital buffer may be imposed up to a maximum of 2.5%p during periods of excessive credit growth. In Korea, the countercyclical capital buffer requirement was increased from 0%p to 1%p effective May 1, 2024. Accordingly, as of June 30, 2026, the BIS capital ratio additionally required to enhance loss-absorbing capacity is 12.5%, which reflects the application of the capital conservation buffer (2.5%p), the D-SIB buffer (1.0%p), and the countercyclical capital buffer (1.0%p).
The Basel III capital ratio refers to an internationally harmonized standard for capital adequacy regulation established under the “International Convergence of Capital Measurement and Capital Standards” issued by the Basel Committee on Banking Supervision of the Bank for International Settlements (“BIS”). The ratio is calculated as:
(Common Equity Tier 1 capital (net of regulatory deductions) + Additional Tier 1 capital + Tier 2 capital) ÷ Risk-weighted assets
Common Equity Tier 1 capital is the first line of capital available to absorb losses of a financial holding company and ranks last in priority upon liquidation. It is not redeemable prior to liquidation and consists of share capital, capital surplus, retained earnings, and other components. Additional Tier 1 capital consists of perpetual capital instruments that meet certain regulatory requirements. Tier 2 capital consists of capital instruments that are available to absorb losses upon liquidation, subject to specific regulatory criteria. Regulatory deduction items are assets or capital items held by the Group that do not contribute to loss-absorbing capacity and, unless otherwise specified, are deducted from Common Equity Tier 1 capital.
As of June 30, 2026, the Group maintains an adequate capital ratio in accordance with the BIS capital adequacy requirements.
49
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value
The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Group are based on the trading agencies’ notifications.
If the market for a financial instrument is not active, such as OTC (Over- The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Group uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.
The fair value of financial instruments is determined by using valuation techniques; a method of using recent transactions between independent parties with reasonable judgment and willingness to trade, a method of referring to the current fair value of other financial instruments that are substantially identical, discounted cash flow model and option pricing models. For example, the fair value of an interest rate swap is calculated as the present value of the expected future cash flows, and the fair value of foreign exchange forward contract is calculated by applying the public forward exchange rate at the end of the reporting period.
The Group classifies and discloses fair value of financial instruments into the following three-level hierarchy:
50
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value
i-1) The fair value hierarchy of financial instruments presented at their fair values in the consolidated statements of financial position as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Financial assets: |
|
|
|
|
|
|
|
|
Due from banks at FVTPL |
W |
- |
|
42,665 |
|
- |
|
42,665 |
Loans at FVTPL |
|
- |
|
1,099,935 |
|
803,639 |
|
1,903,574 |
Securities at FVTPL: |
|
|
|
|
|
|
|
|
Debt securities and other securities |
|
11,394,774 |
|
45,345,201 |
|
17,774,323 |
|
74,514,298 |
Equity securities |
|
6,924,595 |
|
523,462 |
|
1,784,539 |
|
9,232,596 |
Gold/silver deposits |
|
805,174 |
|
- |
|
- |
|
805,174 |
|
|
19,124,543 |
|
45,868,663 |
|
19,558,862 |
|
84,552,068 |
Derivative assets: |
|
|
|
|
|
|
|
|
Trading |
|
79,355 |
|
11,267,713 |
|
848,952 |
|
12,196,020 |
Hedging |
|
- |
|
888,873 |
|
- |
|
888,873 |
|
|
79,355 |
|
12,156,586 |
|
848,952 |
|
13,084,893 |
Securities at FVOCI: |
|
|
|
|
|
|
|
|
Debt securities |
|
38,376,976 |
|
65,075,084 |
|
9,098 |
|
103,461,158 |
Equity securities |
|
1,014,044 |
|
- |
|
1,153,567 |
|
2,167,611 |
|
|
39,391,020 |
|
65,075,084 |
|
1,162,665 |
|
105,628,769 |
|
W |
58,594,918 |
|
124,242,933 |
|
22,374,118 |
|
205,211,969 |
Financial liabilities: |
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL: |
|
|
|
|
|
|
|
|
Securities sold |
W |
776,944 |
|
- |
|
- |
|
776,944 |
Gold/silver deposits |
|
1,434,868 |
|
- |
|
- |
|
1,434,868 |
|
|
2,211,812 |
|
- |
|
- |
|
2,211,812 |
Financial liabilities designated at FVTPL: |
|
|
|
|
|
|
|
|
Derivative-linked securities sold |
|
- |
|
205,598 |
|
6,488,733 |
|
6,694,331 |
Debt securities issued |
|
- |
|
255,451 |
|
- |
|
255,451 |
|
|
- |
|
461,049 |
|
6,488,733 |
|
6,949,782 |
Derivative liabilities: |
|
|
|
|
|
|
|
|
Trading |
|
27,932 |
|
10,721,994 |
|
633,070 |
|
11,382,996 |
Hedging |
|
- |
|
1,672,205 |
|
195,819 |
|
1,868,024 |
|
|
27,932 |
|
12,394,199 |
|
828,889 |
|
13,251,020 |
|
W |
2,239,744 |
|
12,855,248 |
|
7,317,622 |
|
22,412,614 |
51
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Financial assets: |
|
|
|
|
|
|
|
|
Due from banks at FVTPL |
W |
- |
|
40,862 |
|
- |
|
40,862 |
Loans at FVTPL |
|
- |
|
506,781 |
|
908,473 |
|
1,415,254 |
Securities at FVTPL: |
|
|
|
|
|
|
|
|
Debt securities and other securities |
|
12,198,754 |
|
41,464,110 |
|
17,441,328 |
|
71,104,192 |
Equity securities |
|
2,900,162 |
|
461,978 |
|
1,507,261 |
|
4,869,401 |
Gold/silver deposits |
|
623,668 |
|
- |
|
- |
|
623,668 |
|
|
15,722,584 |
|
41,926,088 |
|
18,948,589 |
|
76,597,261 |
Derivative assets: |
|
|
|
|
|
|
|
|
Trading |
|
63,896 |
|
5,876,734 |
|
596,229 |
|
6,536,859 |
Hedging |
|
- |
|
617,091 |
|
- |
|
617,091 |
|
|
63,896 |
|
6,493,825 |
|
596,229 |
|
7,153,950 |
Securities at FVOCI: |
|
|
|
|
|
|
|
|
Debt securities |
|
37,077,188 |
|
64,196,579 |
|
9,139 |
|
101,282,906 |
Equity securities |
|
998,372 |
|
- |
|
935,672 |
|
1,934,044 |
|
|
38,075,560 |
|
64,196,579 |
|
944,811 |
|
103,216,950 |
|
W |
53,862,040 |
|
113,164,135 |
|
21,398,102 |
|
188,424,277 |
Financial liabilities: |
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL: |
|
|
|
|
|
|
|
|
Securities sold |
W |
790,416 |
|
- |
|
- |
|
790,416 |
Gold/silver deposits |
|
1,522,071 |
|
- |
|
- |
|
1,522,071 |
|
|
2,312,487 |
|
- |
|
- |
|
2,312,487 |
Financial liabilities designated at FVTPL: |
|
|
|
|
|
|
|
|
Derivative-linked securities sold |
|
- |
|
255,532 |
|
5,834,683 |
|
6,090,215 |
Debt securities issued |
|
- |
|
287,849 |
|
- |
|
287,849 |
|
|
- |
|
543,381 |
|
5,834,683 |
|
6,378,064 |
Derivative liabilities: |
|
|
|
|
|
|
|
|
Trading |
|
38,222 |
|
5,540,526 |
|
293,655 |
|
5,872,403 |
Hedging |
|
- |
|
994,626 |
|
153,817 |
|
1,148,443 |
|
|
38,222 |
|
6,535,152 |
|
447,472 |
|
7,020,846 |
|
W |
2,350,709 |
|
7,078,533 |
|
6,282,155 |
|
15,711,397 |
52
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-2) Classification of financial instruments as fair value level 3
The Group uses the value from evaluators who are qualified, external, and independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Financial |
|
Securities |
|
Financial liabilities designated at FVTPL |
|
Held for trading |
|
Held for hedging |
||||
|
|
Derivative assets |
|
Derivative liabilities |
|
Derivative assets |
|
Derivative liabilities |
||||||
Beginning balance |
W |
19,857,062 |
|
944,811 |
|
(5,834,683) |
|
596,229 |
|
(293,655) |
|
- |
|
(153,817) |
Recognized in total comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in profit (loss) for the period (*1) |
|
390,247 |
|
- |
|
(17,016) |
|
401,144 |
|
(556,829) |
|
- |
|
(42,002) |
Recognized in other comprehensive income (loss) for the period |
|
2,480 |
|
216,512 |
|
(3,720) |
|
- |
|
- |
|
- |
|
- |
|
|
392,727 |
|
216,512 |
|
(20,736) |
|
401,144 |
|
(556,829) |
|
- |
|
(42,002) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase |
|
3,326,244 |
|
1,372 |
|
- |
|
37,116 |
|
(28,446) |
|
- |
|
- |
Issue |
|
- |
|
- |
|
(3,558,507) |
|
- |
|
- |
|
- |
|
- |
Settlement |
|
(3,182,423) |
|
(30) |
|
2,925,193 |
|
(185,537) |
|
245,860 |
|
- |
|
- |
Transfer to level3 (*2) |
|
25,594 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer out of level3 (*2) |
|
(56,703) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Ending balance |
W |
20,362,501 |
|
1,162,665 |
|
(6,488,733) |
|
848,952 |
|
(633,070) |
|
- |
|
(195,819) |
53
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-2) Classification of financial instruments as fair value level 3
The Group uses the value from evaluators who are qualified, external, and independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the six-month period ended June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
|
|
Financial |
|
Securities |
|
Financial liabilities designated at FVTPL |
|
Held for trading |
|
Held for hedging |
||||
|
|
Derivative assets |
|
Derivative liabilities |
|
Derivative assets |
|
Derivative liabilities |
||||||
Beginning balance |
W |
18,632,327 |
|
922,191 |
|
(7,139,257) |
|
719,177 |
|
(536,855) |
|
- |
|
(207,697) |
Recognized in total comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in profit (loss) for the period (*1) |
|
8,721 |
|
- |
|
(225,030) |
|
95,523 |
|
155,722 |
|
- |
|
36,007 |
Recognized in other comprehensive income (loss) for the period |
|
(531) |
|
69,448 |
|
(4,165) |
|
- |
|
- |
|
- |
|
- |
|
|
8,190 |
|
69,448 |
|
(229,195) |
|
95,523 |
|
155,722 |
|
- |
|
36,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase |
|
5,875,977 |
|
6,324 |
|
- |
|
87,869 |
|
(30,005) |
|
- |
|
(13,580) |
Issue |
|
- |
|
- |
|
(6,407,756) |
|
- |
|
- |
|
- |
|
- |
Settlement |
|
(4,667,721) |
|
(62,292) |
|
7,941,525 |
|
(306,359) |
|
117,483 |
|
- |
|
31,453 |
Transfer to level3 (*2) |
|
65,173 |
|
9,140 |
|
- |
|
23 |
|
- |
|
- |
|
- |
Transfer out of level3 (*2) |
|
(56,884) |
|
- |
|
- |
|
(4) |
|
- |
|
- |
|
- |
Ending balance |
W |
19,857,062 |
|
944,811 |
|
(5,834,683) |
|
596,229 |
|
(293,655) |
|
- |
|
(153,817) |
54
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
(*1) Recognized profit or loss of the changes in carrying amount of financial instruments classified as Level 3 for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are included in the accounts of the consolidated statements of comprehensive income, of which the amounts and the related accounts are as follows:
|
|
June 30, 2026 |
||
|
|
Amounts recognized in profit or loss |
|
Recognized profit or loss from the financial instruments held as of June 30 |
Net gain on financial assets at FVTPL |
W |
234,562 |
|
287,523 |
Net gain on financial liabilities designated at FVTPL |
|
(17,016) |
|
27,281 |
Net other operating expense |
|
(42,002) |
|
(42,002) |
|
W |
175,544 |
|
272,802 |
|
|
December 31, 2025 |
||
|
|
Amounts recognized in profit or loss |
|
Recognized profit or loss from the financial instruments held as of December 31 |
Net gain on financial assets at FVTPL |
W |
259,966 |
|
250,113 |
Net gain (loss) on financial liabilities designated at FVTPL |
|
(225,030) |
|
2,884 |
Net other operating income |
|
36,007 |
|
36,007 |
|
W |
70,943 |
|
289,004 |
(*2) Transfers between levels result from changes in the availability of observable market data for the financial instruments. The Group recognizes such transfers at the end of the reporting period in which the change occurs.
55
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets
|
|
June 30, 2026 |
||||
Type of financial instrument |
|
Valuation technique |
|
Carrying value |
|
Significant inputs |
Assets |
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
Debt securities |
|
DCF, NAV, Option model (*) |
W |
46,487,801 |
|
Discount rate, interest rate, stock price, etc. |
Equity securities |
|
NAV, Option model (*) |
|
523,462 |
|
Price of underlying assets such as stocks, bonds, etc., dividend yield |
|
|
|
|
47,011,263 |
|
|
Derivative assets |
|
|
|
|
|
|
Trading |
|
Option model (*), Implied forward interest rate, DCF |
|
11,267,713 |
|
Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
Hedging |
|
|
888,873 |
|
||
|
|
|
|
12,156,586 |
|
|
Securities at FVOCI |
|
|
|
|
|
|
Debt securities |
|
DCF, Option model (*) |
|
65,075,084 |
|
Interest rate, discount rate, etc. |
|
|
|
W |
124,242,933 |
|
|
Liabilities |
|
|
|
|
|
|
Financial liabilities designated at FVTPL |
|
|
|
|
|
|
Derivative-linked securities sold |
|
Option model (*), NAV |
W |
205,598 |
|
Underlying asset price |
Debt securities issued |
|
|
255,451 |
|
Discount rate, volatility |
|
|
|
|
|
461,049 |
|
|
Derivative liabilities |
|
|
|
|
|
|
Trading |
|
Option model (*), Implied forward interest rate, DCF |
|
10,721,994 |
|
Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc. |
Hedging |
|
|
1,672,205 |
|
||
|
|
|
|
12,394,199 |
|
|
|
|
|
W |
12,855,248 |
|
|
56
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets (continued)
|
|
December 31, 2025 |
||||
Type of financial instrument |
|
Valuation technique |
|
Carrying value |
|
Significant inputs |
Assets |
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
Debt securities |
|
DCF, NAV, Option model (*) |
W |
42,011,753 |
|
Discount rate, interest rate, stock price, etc. |
Equity securities |
|
NAV, Option model (*) |
|
461,978 |
|
Price of underlying assets such as stocks, bonds, etc., dividend yield |
|
|
|
|
42,473,731 |
|
|
Derivative assets |
|
|
|
|
|
|
Trading |
|
Option model (*), Implied forward interest rate, DCF |
|
5,876,734 |
|
Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
Hedging |
|
|
617,091 |
|
||
|
|
|
|
6,493,825 |
|
|
Securities at FVOCI |
|
|
|
|
|
|
Debt securities |
|
DCF, Option model (*) |
|
64,196,579 |
|
Interest rate, discount rate, etc. |
|
|
|
W |
113,164,135 |
|
|
Liabilities |
|
|
|
|
|
|
Financial liabilities designated at FVTPL |
|
|
|
|
|
|
Derivative-linked securities sold |
|
Option model (*), NAV |
W |
255,532 |
|
Underlying asset price |
Debt securities issued |
|
|
287,849 |
|
Discount rate, volatility |
|
|
|
|
|
543,381 |
|
|
Derivative liabilities |
|
|
|
|
|
|
Trading |
|
Option model (*), Implied forward interest rate, DCF |
|
5,540,526 |
|
Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc. |
Hedging |
|
|
994,626 |
|
||
|
|
|
|
6,535,152 |
|
|
|
|
|
W |
7,078,533 |
|
|
(*) Option models applied to measure fair value include the Black-Scholes model, Hull-White model and methods such as Monte Carlo simulation are applied to some products depending on the product type.
57
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets (continued)
|
|
June 30, 2026 |
||||||
Type of financial instrument |
|
Valuation technique |
|
Carrying Value (*2) |
|
Significant unobservable inputs |
|
Range |
Financial assets |
|
|
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
|
|
Debt securities |
|
DCF, NAV, Option model (*1), Income approach, Dividend discount model (DDM) |
W |
18,577,962 |
|
The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value |
|
0.65~83.78% 2.92~24.81% 0.00% 0.49~0.82% -1.00~1.00% |
Equity securities |
|
DCF, NAV, Option model (*1), Comparable company analysis, Transaction case price, Dividend discount model (DDM), Cost method |
|
1,784,539 |
|
The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value |
|
25.31~69.16% 3.83~45.36% 0.00% 0.52~0.82% 0.00% |
|
|
|
|
20,362,501 |
|
|
|
|
Derivative assets |
|
|
|
|
|
|
|
|
Equity and foreign exchange related |
|
Option model (*1) |
|
71,089 |
|
The volatility of the underlying asset, Correlations |
|
15.35~93.66% 30.33~83.69% |
Interest rate related |
|
|
292,179 |
|
The volatility of the underlying asset, Correlations |
|
0.62~1.51% -38.04~62.37% |
|
Credit and commodity related |
|
|
485,684 |
|
The volatility of the underlying asset, Correlations, Hazard Rate |
|
26.65~27.68% 99.84% 0.11~2.48% |
|
|
|
|
|
848,952 |
|
|
|
|
58
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets (continued)
|
|
June 30, 2026 |
||||||
Type of financial instrument |
|
Valuation technique |
|
Carrying Value (*2) |
|
Significant unobservable inputs |
|
Range |
Financial assets |
|
|
|
|
|
|
|
|
Securities at FVOCI |
|
|
|
|
|
|
|
|
Debt securities |
|
Option model (*1) |
W |
9,098 |
|
Discount rate, Interest rate volatility |
|
6.48% 7.97% |
Equity securities |
|
DCF, NAV, Option model (*1), Comparable company analysis, Cost method |
|
1,153,567 |
|
The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value |
|
21.62~40.47% 4.64~18.06% 0.00% 0.49~0.87% 0.00% |
|
|
|
|
1,162,665 |
|
|
|
|
|
|
|
W |
22,374,118 |
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value through profit or loss |
|
|
|
|
|
|
|
|
Equity related |
|
Option model (*1) |
W |
6,488,733 |
|
The volatility of the underlying asset, Correlations |
|
0.62~83.78% -38.04~73.24% |
Derivative liabilities |
|
|
|
|
|
|
|
|
Equity and foreign exchange related |
|
Option model (*1) |
|
65,555 |
|
The volatility of the underlying asset, Correlations |
|
15.35~89.56% 9.64~82.30% |
Interest rate related |
|
|
647,867 |
|
The volatility of the underlying asset, Regression coefficient, Correlations |
|
0.62~1.51% 0.51~1.34% -38.04~90.34% |
|
Credit and commodity related |
|
|
115,467 |
|
The volatility of the underlying asset, Correlations, Hazard Rate |
|
1.24~1.51% -6.45~62.37% 0.15~2.14% |
|
|
|
|
|
828,889 |
|
|
|
|
|
|
|
W |
7,317,622 |
|
|
|
|
59
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets (continued)
|
|
December 31, 2025 |
||||||
Type of financial instrument |
|
Valuation technique |
|
Carrying Value (*2) |
|
Significant unobservable inputs |
|
Range |
Financial assets |
|
|
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
|
|
Debt securities |
|
DCF, NAV, Option model (*1), Income approach |
W |
18,349,801 |
|
The volatility of the underlying asset, Discount rate, Correlations Growth rate, Interest rate volatility, Liquidation Value |
|
0.50~67.94% 4.04~17.95% 31.11~69.16% 0.00% 0.46~0.70% 0.00% |
Equity securities |
|
DCF, NAV, Option model (*1), Comparable company analysis, Transaction case price, Dividend discount model (DDM), Cost method |
|
1,507,261 |
|
The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value |
|
0.00~68.67% 3.14~45.20% 0.00% 0.46~0.70% 0.00% |
|
|
|
|
19,857,062 |
|
|
|
|
Derivative assets |
|
|
|
|
|
|
|
|
Equity and foreign exchange related |
|
Option model (*1) |
|
25,130 |
|
The volatility of the underlying asset, Correlations |
|
10.63~61.54% 30.33~82.07% |
Interest rate related |
|
|
71,254 |
|
The volatility of the underlying asset, Correlations |
|
0.48~1.51% -70.00~61.85% |
|
Credit and commodity related |
|
|
499,845 |
|
The volatility of the underlying asset, Correlations, Hazard Rate |
|
30.76~31.08% 99.63% 0.08~9.29% |
|
|
|
|
|
596,229 |
|
|
|
|
60
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and significant inputs not observable in markets (continued)
|
|
December 31, 2025 |
||||||
Type of financial instrument |
|
Valuation technique |
|
Carrying Value (*2) |
|
Significant unobservable inputs |
|
Range |
Financial assets |
|
|
|
|
|
|
|
|
Securities at FVOCI |
|
|
|
|
|
|
|
|
Debt securities |
|
Option model (*1) |
W |
9,139 |
|
Discount rate, Interest rate volatility |
|
6.23% 7.92% |
Equity securities |
|
DCF, NAV, Option model (*1), Comparable company analysis, Cost method |
|
935,672 |
|
The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value |
|
23.87% 4.23~16.33% 0.00% 0.46~0.70% 0.00% |
|
|
|
|
944,811 |
|
|
|
|
|
|
|
W |
21,398,102 |
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value through profit or loss |
|
|
|
|
|
|
|
|
Equity related |
|
Option model (*1) |
W |
5,834,683 |
|
The volatility of the underlying asset, Correlations |
|
0.48~61.54% -70.00~82.07% |
Derivative liabilities |
|
|
|
|
|
|
|
|
Equity and foreign exchange related |
|
Option model (*1) |
|
21,150 |
|
The volatility of the underlying asset, Correlations |
|
8.20~61.54% 0.23~82.07% |
Interest rate related |
|
|
335,811 |
|
The volatility of the underlying asset, Regression coefficient, Correlations |
|
0.48~1.51% 0.01~0.98% -70.00~90.34% |
|
Credit and commodity related |
|
|
90,511 |
|
The volatility of the underlying asset, Correlations, Hazard Rate |
|
0.65~1.51% -70.00~61.85% 0.21~9.22% |
|
|
|
|
|
447,472 |
|
|
|
|
|
|
|
W |
6,282,155 |
|
|
|
|
(*1) Option models applied to measure fair value include the Black-Scholes model, Hull-White model and methods such as Monte Carlo simulation are applied to some products depending on the product type.
(*2) Valuation techniques and input variables are not disclosed for items whose carrying amounts are considered to approximate fair value.
61
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
i) Financial instruments measured at fair value (continued)
i-4) Sensitivity for changing in unobservable inputs
For level 3 fair value measurement, changing one or more of the unobservable inputs used to reasonably possible alternative assumptions would have the following effects on profit or loss, or other comprehensive income as of June 31, 2026 and December 31, 2025.
|
|
June 30, 2026 |
||
|
|
Favorable changes |
|
Unfavorable changes |
Financial assets: |
|
|
|
|
Effects on profit or loss for the period (*1), (*2): |
|
|
|
|
Financial assets at FVTPL |
W |
37,248 |
|
(35,625) |
Derivative assets |
|
33,455 |
|
(33,957) |
Securities at FVOCI (*2) |
|
71,293 |
|
(47,303) |
|
W |
141,996 |
|
(116,885) |
Financial liabilities: |
|
|
|
|
Effects on profit or loss for the period (*1): |
|
|
|
|
Financial liabilities designated at FVTPL |
W |
30,695 |
|
(30,618) |
Derivative liabilities |
|
19,244 |
|
(19,598) |
|
W |
49,939 |
|
(50,216) |
|
|
December 31, 2025 |
||
|
|
Favorable changes |
|
Unfavorable changes |
Financial assets: |
|
|
|
|
Effects on profit or loss for the period (*1), (*2): |
|
|
|
|
Financial assets at FVTPL |
W |
35,062 |
|
(34,827) |
Derivative assets |
|
15,446 |
|
(14,723) |
Securities at FVOCI (*2) |
|
60,531 |
|
(42,863) |
|
W |
111,039 |
|
(92,413) |
Financial liabilities: |
|
|
|
|
Effects on profit or loss for the period (*1): |
|
|
|
|
Financial liabilities designated at FVTPL |
W |
14,685 |
|
(14,764) |
Derivative liabilities |
|
6,889 |
|
(7,538) |
|
W |
21,574 |
|
(22,302) |
(*1) Fair value changes are calculated by increasing or decreasing the volatility of the underlying asset (-10~10%p) or correlations (-10~10%p), a significant unobservable input.
(*2) Fair value changes are calculated by increasing or decreasing the growth rate and discount rate, which are significant unobservable inputs, from -1%p to 1%p.
62
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
ii) Financial instruments measured at amortized cost
ii-1) The method of calculating the fair value of financial instruments measured at amortized cost is as follows:
Type |
|
Measurement methods of fair value |
|
|
|
Cash and due from banks |
|
The carrying amount and the fair value for cash are identical and most amounts due from banks are floating interest rate deposits or overnight deposits of short-term instruments. For this reason, the book value is used as a proxy for fair value. |
Loans |
|
The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower. |
Securities |
|
An external professional evaluation agency is used to calculate the valuation amount using the market information. The agency calculates the fair value based on active market prices, and DCF model is used to calculate the fair value if there is no quoted price. |
Deposits and borrowings |
|
The carrying amount and the fair value for demand deposits, cash management account deposits, call money as short-term instrument are identical. The remaining liabilities and borrowings were calculated as fair value by discounting contractual cash flows at the market interest rate that reflects the residual risk. |
Debt securities issued |
|
Where available, the fair value of deposits and borrowings is based on the published price quotations in an active market. In case there is no data for an active market price, it is measured by discounting the contractual cash flow at the market interest rate that reflects the residual risk. |
Investment contract liabilities |
|
The carrying amount of accumulated pension benefits of retirement pension contract holders, as defined under the Insurance Business Act and the Regulations on Supervision of Insurance Business, is used as a proxy for fair value as reliable estimates of expected future cash flows are not available. |
Other financial assets and other financial liabilities |
|
The carrying amount is measured at fair value for short-term and suspense accounts, such as spot exchange, inter-bank fund transfer, and domestic exchange of payments, and for the remaining financial instruments, the present value is calculated by discounting the contractual cash flows at the market interest rate that reflects the residual risk. |
63
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
ii) Financial instruments measured at amortized cost (continued)
ii-2) The carrying amount and the fair value of financial instruments measured at amortized cost as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
|
Carrying amount |
|
Fair value |
|
Carrying amount |
|
Fair value |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from banks at amortized cost (*) |
W |
44,459,685 |
|
44,357,932 |
|
36,859,627 |
|
36,793,298 |
|
|
|
|
|
|
|
|
|
Loans at amortized cost |
|
480,920,150 |
|
481,236,674 |
|
464,773,880 |
|
466,291,620 |
|
|
|
|
|
|
|
|
|
Securities at amortized cost: |
|
|
|
|
|
|
|
|
Government bonds |
|
22,781,510 |
|
21,802,430 |
|
22,779,176 |
|
22,300,505 |
Financial institution bonds |
|
2,461,669 |
|
2,462,751 |
|
1,837,790 |
|
1,851,292 |
Corporation bonds |
|
8,031,712 |
|
7,788,282 |
|
7,327,402 |
|
7,239,123 |
|
|
33,274,891 |
|
32,053,463 |
|
31,944,368 |
|
31,390,920 |
Other financial assets |
|
56,669,239 |
|
56,996,767 |
|
43,323,340 |
|
43,674,984 |
|
W |
615,323,965 |
|
614,644,836 |
|
576,901,215 |
|
578,150,822 |
Liabilities: |
|
|
|
|
|
|
|
|
Deposit liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
W |
182,736,642 |
|
182,736,642 |
|
172,840,773 |
|
172,840,773 |
Time deposits |
|
249,009,280 |
|
248,486,389 |
|
238,328,250 |
|
238,238,605 |
Certificate of deposit |
|
20,205,699 |
|
20,211,896 |
|
17,001,339 |
|
16,970,158 |
Issued bill deposit |
|
8,807,107 |
|
8,806,507 |
|
8,921,064 |
|
8,920,096 |
CMA deposits |
|
5,739,806 |
|
5,739,806 |
|
4,889,093 |
|
4,889,093 |
Others |
|
8,995,592 |
|
8,995,503 |
|
5,668,452 |
|
5,668,466 |
|
|
475,494,126 |
|
474,976,743 |
|
447,648,971 |
|
447,527,191 |
Borrowing debts: |
|
|
|
|
|
|
|
|
Call-money |
|
1,329,085 |
|
1,329,085 |
|
1,437,100 |
|
1,437,100 |
Bills sold |
|
7,653 |
|
7,623 |
|
11,887 |
|
11,846 |
Bonds sold under repurchase agreements |
|
15,385,274 |
|
15,385,274 |
|
14,988,698 |
|
14,988,698 |
Notes issued |
|
289,947 |
|
289,947 |
|
- |
|
- |
Borrowings |
|
44,286,020 |
|
44,159,662 |
|
38,957,149 |
|
38,924,550 |
|
|
61,297,979 |
|
61,171,591 |
|
55,394,834 |
|
55,362,194 |
Debt securities issued: |
|
|
|
|
|
|
|
|
Borrowings in Korean won |
|
71,887,345 |
|
71,237,842 |
|
74,937,216 |
|
74,697,509 |
Borrowings in foreign currency |
|
18,960,836 |
|
19,144,177 |
|
18,054,206 |
|
18,273,309 |
|
|
90,848,181 |
|
90,382,019 |
|
92,991,422 |
|
92,970,818 |
|
|
|
|
|
|
|
|
|
Investment contract liabilities |
|
1,592,464 |
|
1,592,464 |
|
1,536,393 |
|
1,536,393 |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
74,732,660 |
|
74,636,406 |
|
57,890,911 |
|
57,832,606 |
|
W |
703,965,410 |
|
702,759,223 |
|
655,462,531 |
|
655,229,202 |
(*) Cash is not included.
64
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
ii) Financial instruments measured at amortized cost (continued)
ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Due from banks at amortized cost (*) |
W |
333,755 |
|
44,024,177 |
|
- |
|
44,357,932 |
|
|
|
|
|
|
|
|
|
Loans at amortized cost |
|
- |
|
754,708 |
|
480,481,966 |
|
481,236,674 |
|
|
|
|
|
|
|
|
|
Securities at amortized cost: |
|
|
|
|
|
|
|
|
Government bonds |
|
9,950,551 |
|
11,851,879 |
|
- |
|
21,802,430 |
Financial institution bonds |
|
49,859 |
|
2,412,892 |
|
- |
|
2,462,751 |
Corporation bonds |
|
- |
|
7,788,282 |
|
- |
|
7,788,282 |
|
|
10,000,410 |
|
22,053,053 |
|
- |
|
32,053,463 |
|
|
|
|
|
|
|
|
|
Other financial assets |
|
- |
|
33,524,929 |
|
23,471,838 |
|
56,996,767 |
|
W |
10,334,165 |
|
100,356,867 |
|
503,953,804 |
|
614,644,836 |
Liabilities: |
|
|
|
|
|
|
|
|
Deposit liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
W |
- |
|
182,736,642 |
|
- |
|
182,736,642 |
Time deposits |
|
- |
|
- |
|
248,486,389 |
|
248,486,389 |
Certificate of deposit |
|
- |
|
- |
|
20,211,896 |
|
20,211,896 |
Issued bill deposit |
|
- |
|
- |
|
8,806,507 |
|
8,806,507 |
CMA deposits |
|
- |
|
5,739,806 |
|
- |
|
5,739,806 |
Other |
|
- |
|
8,953,654 |
|
41,849 |
|
8,995,503 |
|
|
- |
|
197,430,102 |
|
277,546,641 |
|
474,976,743 |
Borrowing debts: |
|
|
|
|
|
|
|
|
Call-money |
|
- |
|
1,329,085 |
|
- |
|
1,329,085 |
Bills sold |
|
- |
|
- |
|
7,623 |
|
7,623 |
Bonds sold under repurchase agreements |
|
- |
|
- |
|
15,385,274 |
|
15,385,274 |
Notes issued |
|
- |
|
- |
|
289,947 |
|
289,947 |
Borrowings |
|
- |
|
9,885 |
|
44,149,777 |
|
44,159,662 |
|
|
- |
|
1,338,970 |
|
59,832,621 |
|
61,171,591 |
Debt securities issued: |
|
|
|
|
|
|
|
|
Borrowings in won |
|
- |
|
37,628,463 |
|
33,609,379 |
|
71,237,842 |
Borrowings in foreign currency |
|
- |
|
12,911,557 |
|
6,232,620 |
|
19,144,177 |
|
|
- |
|
50,540,020 |
|
39,841,999 |
|
90,382,019 |
|
|
|
|
|
|
|
|
|
Investment contract liabilities |
|
- |
|
- |
|
1,592,464 |
|
1,592,464 |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
- |
|
29,354,549 |
|
45,281,857 |
|
74,636,406 |
|
W |
- |
|
278,663,641 |
|
424,095,582 |
|
702,759,223 |
65
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(f) Measurement of fair value (continued)
ii) Financial instruments measured at amortized cost (continued)
ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Due from banks at amortized cost (*) |
W |
269,329 |
|
36,523,969 |
|
- |
|
36,793,298 |
|
|
|
|
|
|
|
|
|
Loans at amortized cost |
|
- |
|
700,039 |
|
465,591,581 |
|
466,291,620 |
|
|
|
|
|
|
|
|
|
Securities at amortized cost: |
|
|
|
|
|
|
|
|
Government bonds |
|
10,815,330 |
|
11,485,175 |
|
- |
|
22,300,505 |
Financial institution bonds |
|
80,367 |
|
1,770,925 |
|
- |
|
1,851,292 |
Corporation bonds |
|
- |
|
7,239,123 |
|
- |
|
7,239,123 |
|
|
10,895,697 |
|
20,495,223 |
|
- |
|
31,390,920 |
|
|
|
|
|
|
|
|
|
Other financial assets |
|
- |
|
29,465,771 |
|
14,209,213 |
|
43,674,984 |
|
W |
11,165,026 |
|
87,185,002 |
|
479,800,794 |
|
578,150,822 |
Liabilities: |
|
|
|
|
|
|
|
|
Deposit liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
W |
- |
|
172,840,773 |
|
- |
|
172,840,773 |
Time deposits |
|
- |
|
- |
|
238,238,605 |
|
238,238,605 |
Certificate of deposit |
|
- |
|
- |
|
16,970,158 |
|
16,970,158 |
Issued bill deposit |
|
- |
|
- |
|
8,920,096 |
|
8,920,096 |
CMA deposits |
|
- |
|
4,889,093 |
|
- |
|
4,889,093 |
Other |
|
- |
|
5,625,593 |
|
42,873 |
|
5,668,466 |
|
|
- |
|
183,355,459 |
|
264,171,732 |
|
447,527,191 |
Borrowing debts: |
|
|
|
|
|
|
|
|
Call-money |
|
- |
|
1,437,100 |
|
- |
|
1,437,100 |
Bills sold |
|
- |
|
- |
|
11,846 |
|
11,846 |
Bonds sold under repurchase agreements |
|
- |
|
- |
|
14,988,698 |
|
14,988,698 |
Borrowings |
|
- |
|
108,795 |
|
38,815,755 |
|
38,924,550 |
|
|
- |
|
1,545,895 |
|
53,816,299 |
|
55,362,194 |
Debt securities issued: |
|
|
|
|
|
|
|
|
Borrowings in won |
|
- |
|
40,127,224 |
|
34,570,285 |
|
74,697,509 |
Borrowings in foreign currency |
|
- |
|
12,618,554 |
|
5,654,755 |
|
18,273,309 |
|
|
- |
|
52,745,778 |
|
40,225,040 |
|
92,970,818 |
|
|
|
|
|
|
|
|
|
Investment contract liabilities |
|
- |
|
- |
|
1,536,393 |
|
1,536,393 |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
- |
|
22,535,595 |
|
35,297,011 |
|
57,832,606 |
|
W |
- |
|
260,182,727 |
|
395,046,475 |
|
655,229,202 |
(*) Cash is not included.
66
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(g) Classification by categories of financial instruments
Financial assets and liabilities are measured at fair value or amortized cost. The financial instruments measured at fair value or amortized costs are measured in accordance with the Group’s valuation methodologies, which are described in Note 4. (f) Measurement of fair value.
The carrying amounts of each category of financial assets and financial liabilities as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||
|
|
Financial assets at FVTPL |
|
Financial assets at FVOCI |
|
Financial assets at amortized cost |
|
Derivatives held for hedging |
|
Total |
Assets: |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
- |
|
- |
|
47,235,771 |
|
- |
|
47,235,771 |
Due from banks at FVTPL |
|
42,665 |
|
- |
|
- |
|
- |
|
42,665 |
Securities at FVTPL |
|
84,552,068 |
|
- |
|
- |
|
- |
|
84,552,068 |
Derivatives assets |
|
12,196,020 |
|
- |
|
- |
|
888,873 |
|
13,084,893 |
Loans at FVTPL |
|
1,903,574 |
|
- |
|
- |
|
- |
|
1,903,574 |
Loans at amortized cost (*) |
|
- |
|
- |
|
480,920,150 |
|
- |
|
480,920,150 |
Securities at FVOCI |
|
- |
|
105,628,769 |
|
- |
|
- |
|
105,628,769 |
Securities at amortized cost |
|
- |
|
- |
|
33,274,891 |
|
- |
|
33,274,891 |
Other financial assets |
|
- |
|
- |
|
56,669,239 |
|
- |
|
56,669,239 |
|
W |
98,694,327 |
|
105,628,769 |
|
618,100,051 |
|
888,873 |
|
823,312,020 |
|
|
June 30, 2026 |
||||||||
|
|
Financial liabilities at FVTPL |
|
Financial liabilities designated at FVTPL |
|
Financial liabilities at amortized cost |
|
Derivatives held for hedging |
|
Total |
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits |
W |
- |
|
- |
|
475,494,126 |
|
- |
|
475,494,126 |
Financial liabilities at FVTPL |
|
2,211,812 |
|
- |
|
- |
|
- |
|
2,211,812 |
Financial liabilities designated at FVTPL |
|
- |
|
6,949,782 |
|
- |
|
- |
|
6,949,782 |
Derivatives liabilities |
|
11,382,996 |
|
- |
|
- |
|
1,868,024 |
|
13,251,020 |
Borrowings |
|
- |
|
- |
|
61,297,979 |
|
- |
|
61,297,979 |
Debt securities issued |
|
- |
|
- |
|
90,848,181 |
|
- |
|
90,848,181 |
Investment contract liabilities |
|
- |
|
- |
|
1,592,464 |
|
- |
|
1,592,464 |
Other financial liabilities (*) |
|
- |
|
- |
|
74,732,660 |
|
- |
|
74,732,660 |
|
W |
13,594,808 |
|
6,949,782 |
|
703,965,410 |
|
1,868,024 |
|
726,378,024 |
67
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(g) Classification by categories of financial instruments (continued)
The carrying amounts of each category of financial assets and financial liabilities as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||
|
|
Financial assets at FVTPL |
|
Financial assets at FVOCI |
|
Financial assets at amortized cost |
|
Derivatives held for hedging |
|
Total |
Assets: |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
- |
|
- |
|
39,742,605 |
|
- |
|
39,742,605 |
Due from banks at FVTPL |
|
40,862 |
|
- |
|
- |
|
- |
|
40,862 |
Securities at FVTPL |
|
76,597,261 |
|
- |
|
- |
|
- |
|
76,597,261 |
Derivatives assets |
|
6,536,859 |
|
- |
|
- |
|
617,091 |
|
7,153,950 |
Loans at FVTPL |
|
1,415,254 |
|
- |
|
- |
|
- |
|
1,415,254 |
Loans at amortized cost (*) |
|
- |
|
- |
|
464,773,880 |
|
- |
|
464,773,880 |
Securities at FVOCI |
|
- |
|
103,216,950 |
|
- |
|
- |
|
103,216,950 |
Securities at amortized cost |
|
- |
|
- |
|
31,944,368 |
|
- |
|
31,944,368 |
Other financial assets |
|
- |
|
- |
|
43,323,340 |
|
- |
|
43,323,340 |
|
W |
84,590,236 |
|
103,216,950 |
|
579,784,193 |
|
617,091 |
|
768,208,470 |
|
|
December 31, 2025 |
||||||||
|
|
Financial liabilities at FVTPL |
|
Financial liabilities designated at FVTPL |
|
Financial liabilities at amortized cost |
|
Derivatives held for hedging |
|
Total |
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits |
W |
- |
|
- |
|
447,648,971 |
|
- |
|
447,648,971 |
Financial liabilities at FVTPL |
|
2,312,487 |
|
- |
|
- |
|
- |
|
2,312,487 |
Financial liabilities designated at FVTPL |
|
- |
|
6,378,064 |
|
- |
|
- |
|
6,378,064 |
Derivatives liabilities |
|
5,872,403 |
|
- |
|
- |
|
1,148,443 |
|
7,020,846 |
Borrowings |
|
- |
|
- |
|
55,394,834 |
|
- |
|
55,394,834 |
Debt securities issued |
|
- |
|
- |
|
92,991,422 |
|
- |
|
92,991,422 |
Investment contract liabilities |
|
- |
|
- |
|
1,536,393 |
|
- |
|
1,536,393 |
Other financial liabilities (*) |
|
- |
|
- |
|
57,890,911 |
|
- |
|
57,890,911 |
|
W |
8,184,890 |
|
6,378,064 |
|
655,462,531 |
|
1,148,443 |
|
671,173,928 |
(*) Includes lease liabilities under K-IFRS No. 1116.
68
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
5. Changes in subsidiaries
(a) The major consolidated subsidiaries excluded from the consolidated financial statements during the six-month period ended June 30, 2026 are as follows:
Category |
|
Subsidiary |
|
Reason |
Excluded |
|
Shinhan Securities America Inc. |
|
Disposal |
(b) There are no major consolidated subsidiaries included in or excluded from the consolidated financial statements during the year ended December 31, 2025.
6. Operating segments
(a) Segment information
General descriptions of operating segments as of June 30, 2026 are as follows:
Segment |
|
Description |
|
|
|
Banking
|
|
Credit to customers, lending to and receiving deposits from customers, and its accompanying work |
Credit card |
|
Sales of credit cards, short-term and long-term card loan services, installment financing, lease and its accompanying work |
Securities |
|
Securities trading, consignment trading, underwriting and its accompanying work |
Insurance |
|
Life insurance business, non-life insurance business and its accompanying work |
Credit |
|
Facility rental, new technology business financing, others and its accompanying work |
Others |
|
Business segments that do not belong to the above segments, such as real estate trust, investment advisory services, venture business investment and other remaining business |
69
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
6. Operating segments (continued)
(b) The operating income (expense) and net income by operating segment for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment |
|
Total |
Net interest income (expense) |
W |
4,977,515 |
|
975,692 |
|
303,314 |
|
(116,431) |
|
53,496 |
|
27,534 |
|
(62,616) |
|
6,158,504 |
Net fees and commission income (expense) |
|
668,974 |
|
428,087 |
|
755,335 |
|
(4,174) |
|
14,089 |
|
251,231 |
|
16,213 |
|
2,129,755 |
Provision for credit losses |
|
(364,761) |
|
(472,080) |
|
(11,308) |
|
(11,876) |
|
(55,719) |
|
(60,229) |
|
(452) |
|
(976,425) |
General and administrative expenses |
|
(1,999,562) |
|
(447,660) |
|
(534,334) |
|
(90,075) |
|
(32,633) |
|
(222,855) |
|
111,023 |
|
(3,216,096) |
Other income (expense), net |
|
(188,359) |
|
(89,442) |
|
235,365 |
|
614,865 |
|
113,257 |
|
241,853 |
|
(392,543) |
|
534,996 |
Operating income (expense) |
|
3,093,807 |
|
394,597 |
|
748,372 |
|
392,309 |
|
92,490 |
|
237,534 |
|
(328,375) |
|
4,630,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method income (loss) |
|
10,269 |
|
3,107 |
|
5,653 |
|
(964) |
|
25,086 |
|
14,394 |
|
(6,362) |
|
51,183 |
Income tax expense |
|
749,884 |
|
98,644 |
|
213,747 |
|
106,761 |
|
21,296 |
|
(3,350) |
|
54,576 |
|
1,241,558 |
Profit for the period |
W |
2,416,876 |
|
307,023 |
|
577,648 |
|
272,472 |
|
94,695 |
|
246,626 |
|
(419,541) |
|
3,495,799 |
Shareholders of the Parent Company |
W |
2,416,233 |
|
304,675 |
|
577,653 |
|
272,472 |
|
94,695 |
|
246,626 |
|
(469,625) |
|
3,442,729 |
Non-controlling interests |
|
643 |
|
2,348 |
|
(5) |
|
- |
|
- |
|
- |
|
50,084 |
|
53,070 |
70
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
6. Operating segments (continued)
(b) The operating income (expense) and net income by operating segment for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
|
|
June 30, 2025 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment |
|
Total |
Net interest income (expense) |
W |
4,543,662 |
|
973,054 |
|
293,367 |
|
(85,399) |
|
49,457 |
|
41,230 |
|
(96,531) |
|
5,718,840 |
Net fees and commission income (expense) |
|
514,661 |
|
424,411 |
|
298,883 |
|
(2,989) |
|
10,802 |
|
178,535 |
|
15,818 |
|
1,440,121 |
Provision for credit losses |
|
(374,005) |
|
(509,579) |
|
(46,399) |
|
(5,573) |
|
(86,848) |
|
(33,760) |
|
(1,040) |
|
(1,057,204) |
General and administrative expenses |
|
(1,895,743) |
|
(412,084) |
|
(377,942) |
|
(92,064) |
|
(31,535) |
|
(206,955) |
|
116,265 |
|
(2,900,058) |
Other income (expense), net |
|
74,911 |
|
(91,970) |
|
150,597 |
|
637,375 |
|
102,480 |
|
73,639 |
|
(190,260) |
|
756,772 |
Operating income (expense) |
|
2,863,486 |
|
383,832 |
|
318,506 |
|
451,350 |
|
44,356 |
|
52,689 |
|
(155,748) |
|
3,958,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method income (loss) |
|
(965) |
|
(3,120) |
|
39,407 |
|
(830) |
|
36,952 |
|
621 |
|
42,613 |
|
114,678 |
Income tax expense |
|
673,210 |
|
90,077 |
|
87,658 |
|
111,010 |
|
16,202 |
|
14,178 |
|
(8,933) |
|
983,402 |
Profit for the period |
W |
2,222,724 |
|
301,840 |
|
258,873 |
|
328,628 |
|
63,939 |
|
41,837 |
|
(123,561) |
|
3,094,280 |
Shareholders of the Parent Company |
W |
2,222,294 |
|
299,215 |
|
258,880 |
|
328,628 |
|
63,939 |
|
41,837 |
|
(177,394) |
|
3,037,399 |
Non-controlling interests |
|
430 |
|
2,625 |
|
(7) |
|
- |
|
- |
|
- |
|
53,833 |
|
56,881 |
71
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
6. Operating segments (continued)
(c) Net interest income from external customers by segment and inter-segment net interest income for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment (*) |
|
Total |
Net interest income from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers (*) |
W |
4,972,971 |
|
1,005,152 |
|
320,738 |
|
(112,433) |
|
57,477 |
|
(17,067) |
|
(68,334) |
|
6,158,504 |
Inter-segment transactions |
|
4,544 |
|
(29,460) |
|
(17,424) |
|
(3,998) |
|
(3,981) |
|
44,601 |
|
5,718 |
|
- |
|
W |
4,977,515 |
|
975,692 |
|
303,314 |
|
(116,431) |
|
53,496 |
|
27,534 |
|
(62,616) |
|
6,158,504 |
|
|
June 30, 2025 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment (*) |
|
Total |
Net interest income from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers (*) |
W |
4,543,060 |
|
999,084 |
|
299,679 |
|
(82,917) |
|
58,311 |
|
5,995 |
|
(104,372) |
|
5,718,840 |
Inter-segment transactions |
|
602 |
|
(26,030) |
|
(6,312) |
|
(2,482) |
|
(8,854) |
|
35,235 |
|
7,841 |
|
- |
|
W |
4,543,662 |
|
973,054 |
|
293,367 |
|
(85,399) |
|
49,457 |
|
41,230 |
|
(96,531) |
|
5,718,840 |
(*) Consolidated adjustments to net interest income from external customers relate to the fair value measurement of securities and other assets arising from business combination accounting.
72
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
6. Operating segments (continued)
(d) Net fee and commission income from external customers by segment and inter-segment net fees and commission income for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment |
|
Total |
Net fee and commission income from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
W |
690,953 |
|
455,902 |
|
760,352 |
|
2,200 |
|
13,658 |
|
206,690 |
|
- |
|
2,129,755 |
Inter-segment transactions |
|
(21,979) |
|
(27,815) |
|
(5,017) |
|
(6,374) |
|
431 |
|
44,541 |
|
16,213 |
|
- |
|
W |
668,974 |
|
428,087 |
|
755,335 |
|
(4,174) |
|
14,089 |
|
251,231 |
|
16,213 |
|
2,129,755 |
|
|
June 30, 2025 |
||||||||||||||
|
|
Banking |
|
Credit card |
|
Securities |
|
Insurance |
|
Credit |
|
Others |
|
Consolidation adjustment |
|
Total |
Net fee and commission income from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
W |
536,419 |
|
451,525 |
|
301,957 |
|
1,762 |
|
10,272 |
|
138,186 |
|
- |
|
1,440,121 |
Inter-segment transactions |
|
(21,758) |
|
(27,114) |
|
(3,074) |
|
(4,751) |
|
530 |
|
40,349 |
|
15,818 |
|
- |
|
W |
514,661 |
|
424,411 |
|
298,883 |
|
(2,989) |
|
10,802 |
|
178,535 |
|
15,818 |
|
1,440,121 |
73
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
7. Cash and due from banks at amortized cost
Restricted due from banks in accordance with Related Regulations or Acts as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
|
Related regulations or acts |
Deposits denominated in Korean won: |
|
|
|
|
|
|
Reserve deposits |
W |
13,532,111 |
|
8,164,072 |
|
Article 55 of the Bank of Korea Act |
Other |
|
1,640,340 |
|
1,727,588 |
|
Article 74 of the Capital Markets and Financial Investment Business Act, etc. |
|
|
15,172,451 |
|
9,891,660 |
|
|
|
|
|
|
|
|
|
Deposits denominated in foreign currency |
|
7,782,830 |
|
8,367,341 |
|
Articles of the Bank of Korea Act, New York State Banking Act, derivatives related, etc. |
|
W |
22,955,281 |
|
18,259,001 |
|
|
74
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
8. Financial assets at fair value through profit or loss
(a) Financial assets at fair value through profit or loss as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Securities: |
|
|
|
|
Debt instruments |
|
|
|
|
Governments |
W |
8,434,792 |
|
8,933,644 |
Financial institutions |
|
5,347,044 |
|
8,572,717 |
Corporations |
|
17,903,992 |
|
15,340,624 |
Stocks with put option |
|
630,609 |
|
620,258 |
Equity investment with put option |
|
5,813,702 |
|
5,737,916 |
Beneficiary certificates |
|
18,131,678 |
|
16,068,876 |
Commercial papers |
|
8,831,935 |
|
8,605,755 |
CMA |
|
3,932,060 |
|
3,694,196 |
Others (*) |
|
5,488,486 |
|
3,530,206 |
|
|
74,514,298 |
|
71,104,192 |
Equity instruments |
|
|
|
|
Stocks |
|
8,665,976 |
|
4,370,515 |
Equity investment |
|
3,198 |
|
5,981 |
Others |
|
563,422 |
|
492,905 |
|
|
9,232,596 |
|
4,869,401 |
Gold/silver deposits |
|
805,174 |
|
623,668 |
|
W |
84,552,068 |
|
76,597,261 |
|
|
|
|
|
Loans |
|
1,903,574 |
|
1,415,254 |
Due from banks |
|
42,665 |
|
40,862 |
|
W |
86,498,307 |
|
78,053,377 |
(*) As of June 30, 2026 and December 31, 2025, restricted deposits for investor deposits (trusts) amounted to W 5,002,789 million and W 2,965,469 million, respectively.
75
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
9. Derivatives
(a) The notional amounts of derivatives outstanding as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Foreign currency related: |
|
|
|
|
Over the counter: |
|
|
|
|
Currency forwards |
W |
205,064,984 |
|
186,552,883 |
Currency swaps |
|
81,204,429 |
|
68,522,136 |
Currency options |
|
5,748,061 |
|
3,410,253 |
|
|
292,017,474 |
|
258,485,272 |
Exchange traded: |
|
|
|
|
Currency futures |
|
2,150,929 |
|
1,982,556 |
|
|
294,168,403 |
|
260,467,828 |
Interest rate related: |
|
|
|
|
Over the counter: |
|
|
|
|
Interest rate forwards and swaps |
|
71,153,122 |
|
65,847,009 |
Interest rate options |
|
3,329,000 |
|
926,000 |
|
|
74,482,122 |
|
66,773,009 |
Exchange traded: |
|
|
|
|
Interest rate futures |
|
3,106,910 |
|
3,962,031 |
Interest rate swaps (*) |
|
220,641,565 |
|
175,593,544 |
|
|
223,748,475 |
|
179,555,575 |
|
|
298,230,597 |
|
246,328,584 |
Credit related: |
|
|
|
|
Over the counter: |
|
|
|
|
Credit swaps |
|
5,996,191 |
|
5,079,897 |
Total return swaps |
|
871,023 |
|
841,964 |
|
|
6,867,214 |
|
5,921,861 |
Equity related: |
|
|
|
|
Over the counter: |
|
|
|
|
Equity swaps and forwards |
|
5,868,384 |
|
2,811,480 |
Equity options |
|
2,171,084 |
|
2,283,749 |
|
|
8,039,468 |
|
5,095,229 |
Exchange traded: |
|
|
|
|
Equity futures |
|
3,034,525 |
|
1,357,692 |
Equity options |
|
106,657 |
|
492,549 |
|
|
3,141,182 |
|
1,850,241 |
|
|
11,180,650 |
|
6,945,470 |
Commodity related: |
|
|
|
|
Over the counter: |
|
|
|
|
Commodity swaps and forwards |
|
3,018,455 |
|
1,698,190 |
|
|
|
|
|
Exchange traded: |
|
|
|
|
Commodity futures and options |
|
428,445 |
|
249,235 |
|
|
3,446,900 |
|
1,947,425 |
Hedge: |
|
|
|
|
Currency forwards |
|
3,490,248 |
|
3,713,759 |
Currency swaps |
|
10,684,779 |
|
9,059,479 |
Interest rate forwards and swaps |
|
16,010,389 |
|
13,612,757 |
|
|
30,185,416 |
|
26,385,995 |
|
W |
644,079,180 |
|
547,997,163 |
(*) The notional amounts of derivatives outstanding that are to be settled in the ‘Central Counter Party (CCP)’system.
76
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
9. Derivatives (continued)
(b) Fair values of derivatives as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
Foreign currency related: |
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
Currency forwards |
W |
6,162,886 |
|
3,689,563 |
|
3,384,263 |
|
2,215,089 |
Currency swaps |
|
2,716,606 |
|
5,253,029 |
|
1,703,067 |
|
2,625,865 |
Currency options |
|
44,793 |
|
44,389 |
|
9,043 |
|
18,497 |
|
|
8,924,285 |
|
8,986,981 |
|
5,096,373 |
|
4,859,451 |
Exchange traded: |
|
|
|
|
|
|
|
|
Currency futures |
|
645 |
|
5,405 |
|
107 |
|
3,365 |
|
|
8,924,930 |
|
8,992,386 |
|
5,096,480 |
|
4,862,816 |
Interest rate related: |
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
Interest rate forwards and swaps |
|
2,080,231 |
|
1,191,349 |
|
817,433 |
|
754,732 |
Interest rate options |
|
34,697 |
|
92,345 |
|
- |
|
29,468 |
|
|
2,114,928 |
|
1,283,694 |
|
817,433 |
|
784,200 |
Exchange traded: |
|
|
|
|
|
|
|
|
Interest rate futures |
|
1,051 |
|
909 |
|
1,605 |
|
808 |
|
|
2,115,979 |
|
1,284,603 |
|
819,038 |
|
785,008 |
Credit related: |
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
Credit swaps |
|
40,763 |
|
7,207 |
|
40,643 |
|
7,187 |
Total return swaps |
|
443,384 |
|
19,181 |
|
458,469 |
|
6,510 |
|
|
484,147 |
|
26,388 |
|
499,112 |
|
13,697 |
Equity related: |
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
Equity swap and forwards |
|
472,457 |
|
848,754 |
|
43,121 |
|
48,500 |
Equity options |
|
7,457 |
|
15,432 |
|
5,880 |
|
17,480 |
|
|
479,914 |
|
864,186 |
|
49,001 |
|
65,980 |
Exchange traded: |
|
|
|
|
|
|
|
|
Equity futures |
|
4,051 |
|
1,897 |
|
10,401 |
|
663 |
Equity options |
|
19,070 |
|
14,807 |
|
43,595 |
|
24,835 |
|
|
23,121 |
|
16,704 |
|
53,996 |
|
25,498 |
|
|
503,035 |
|
880,890 |
|
102,997 |
|
91,478 |
Commodity related: |
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
Commodity swaps and forwards |
|
113,390 |
|
193,815 |
|
11,044 |
|
110,854 |
Exchange traded: |
|
|
|
|
|
|
|
|
Commodity futures and options |
|
54,539 |
|
4,914 |
|
8,188 |
|
8,550 |
|
|
167,929 |
|
198,729 |
|
19,232 |
|
119,404 |
Hedge: |
|
|
|
|
|
|
|
|
Currency forwards |
|
1,813 |
|
311,006 |
|
18,997 |
|
176,304 |
Currency swaps |
|
835,718 |
|
518,894 |
|
521,120 |
|
344,888 |
Interest rate forwards and swaps |
|
51,342 |
|
1,038,124 |
|
76,974 |
|
627,251 |
|
|
888,873 |
|
1,868,024 |
|
617,091 |
|
1,148,443 |
|
W |
13,084,893 |
|
13,251,020 |
|
7,153,950 |
|
7,020,846 |
77
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
9. Derivatives (continued)
(c) Gain or loss on valuation of derivatives for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
|||||
|
|
Three- month |
|
Six- month |
|
Three- month |
|
Six- month |
|
Foreign currency related: |
|
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
|
Currency forwards |
W |
31,182 |
|
1,251,645 |
|
(1,237,866) |
|
(1,040,992) |
|
Currency swaps |
|
(436,213) |
|
(1,799,252) |
|
1,340,705 |
|
1,345,858 |
|
Currency options |
|
8,483 |
|
19,370 |
|
(2,577) |
|
(1,703) |
|
|
|
(396,548) |
|
(528,237) |
|
100,262 |
|
303,163 |
|
Exchange traded: |
|
|
|
|
|
|
|
|
|
Currency futures |
|
2,030 |
|
(1,461) |
|
6,868 |
|
4,468 |
|
|
|
(394,518) |
|
(529,698) |
|
107,130 |
|
307,631 |
|
Interest rates related: |
|
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
|
Interest rate forwards and swaps |
|
459,574 |
|
768,675 |
|
163,953 |
|
53,811 |
|
Interest rate options |
|
(9,899) |
|
(17,989) |
|
(2,152) |
|
(2,848) |
|
|
|
449,675 |
|
750,686 |
|
161,801 |
|
50,963 |
|
Exchange traded: |
|
|
|
|
|
|
|
|
|
Interest rate futures and others |
|
(2,161) |
|
159 |
|
3,325 |
|
(246) |
|
|
|
447,514 |
|
750,845 |
|
165,126 |
|
50,717 |
|
Credit related: |
|
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
|
Credit swaps |
|
2,088 |
|
(6,563) |
|
(7,216) |
|
8,555 |
|
Total return swaps |
|
(889) |
|
(26,178) |
|
- |
|
- |
|
|
|
1,199 |
|
(32,741) |
|
(7,216) |
|
8,555 |
|
|
|
|
|
|
|
|
|
|
|
Equity related: |
|
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
|
Equity swap and forwards |
|
(400,141) |
|
(391,640) |
|
97,304 |
|
181,870 |
|
Equity options |
|
168 |
|
1,012 |
|
860 |
|
470 |
|
|
|
(399,973) |
|
(390,628) |
|
98,164 |
|
182,340 |
|
Exchange traded: |
|
|
|
|
|
|
|
|
|
Equity futures |
|
16,313 |
|
1,293 |
|
11,912 |
|
3,048 |
|
Equity options |
|
(22,088) |
|
(72) |
|
1,058 |
|
2,526 |
|
|
|
(5,775) |
|
1,221 |
|
12,970 |
|
5,574 |
|
|
|
(405,748) |
|
(389,407) |
|
111,134 |
|
187,914 |
|
Commodity related: |
|
|
|
|
|
|
|
|
|
Over the counter: |
|
|
|
|
|
|
|
|
|
Commodity swaps and forwards |
|
(143,963) |
|
(5,406) |
|
(12,620) |
|
34,126 |
|
|
|
|
|
|
|
|
|
|
|
Exchange traded: |
|
|
|
|
|
|
|
|
|
Commodity futures and options |
|
95,965 |
|
50,610 |
|
1,648 |
|
(4,594) |
|
|
|
(47,998) |
|
45,204 |
|
(10,972) |
|
29,532 |
|
Hedge: |
|
(264,549) |
|
(540,079) |
|
(106,510) |
|
1,302 |
|
|
W |
(664,100) |
|
(695,876) |
|
258,692 |
|
585,651 |
|
78
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
9. Derivatives (continued)
(d) The notional amounts and the average hedge ratios for hedging instruments as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
1 year or less |
|
1~2 years |
|
2~3 years |
|
3~4 years |
|
4~5 years |
|
5 years or more |
|
Total |
Interest rate risk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional values: |
W |
2,445,149 |
|
3,923,652 |
|
2,547,760 |
|
2,070,392 |
|
1,650,027 |
|
3,373,409 |
|
16,010,389 |
Average price condition (*1) |
|
3.51% |
|
4.22% |
|
4.29% |
|
3.76% |
|
3.51% |
|
4.15% |
|
3.98% |
Average hedge ratio: |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange risk: (*2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional values: |
W |
5,255,264 |
|
1,992,793 |
|
4,471,450 |
|
1,997,933 |
|
1,204,273 |
|
1,461,985 |
|
16,383,698 |
Average hedge ratio: |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
(*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.
(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,358.15, JPY/KRW 9.47, EUR/KRW 1,532.73, GBP/KRW 1,693.52, AUD/KRW 909.08, CAD/KRW 1,057.94, SEK/KRW 133.55.
79
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
9. Derivatives (continued)
(d) The notional amounts and the average hedge ratios for hedging instruments as of June 30, 2026 and December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
|
|
1 year or less |
|
1~2 years |
|
2~3 years |
|
3~4 years |
|
4~5 years |
|
5 years or more |
|
Total |
Interest rate risk: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional values: |
W |
2,485,060 |
|
2,219,475 |
|
2,553,701 |
|
2,008,399 |
|
450,481 |
|
3,895,641 |
|
13,612,757 |
Average price condition (*1) |
|
1.86% |
|
1.60% |
|
1.75% |
|
1.73% |
|
1.14% |
|
0.42% |
|
1.34% |
Average hedge ratio: |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange risk: (*2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional values: |
W |
4,344,598 |
|
3,288,511 |
|
3,353,841 |
|
1,941,689 |
|
992,587 |
|
747,109 |
|
14,668,335 |
Average hedge ratio: |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
100% |
(*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.
(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,307.41, JPY/KRW 9.43, EUR/KRW 1,487.33, GBP/KRW 1,568.02, AUD/KRW 896.37, CAD/KRW 999.37 and SEK/KRW 131.64.
80
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
10. Securities at fair value through other comprehensive income and securities at amortized cost
(a) Details of securities at FVOCI and securities at amortized cost as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Securities at FVOCI: |
|
|
|
|
Debt securities: |
|
|
|
|
Government bonds |
W |
44,370,486 |
|
44,038,340 |
Financial institutions bonds |
|
37,119,852 |
|
35,435,282 |
Corporate bonds and others |
|
21,970,820 |
|
21,809,284 |
|
|
103,461,158 |
|
101,282,906 |
Equity securities (*): |
|
|
|
|
Stocks |
|
1,966,439 |
|
1,830,922 |
Equity investments |
|
694 |
|
594 |
Others |
|
200,478 |
|
102,528 |
|
|
2,167,611 |
|
1,934,044 |
|
|
105,628,769 |
|
103,216,950 |
Securities at amortized cost: |
|
|
|
|
Debt securities: |
|
|
|
|
Government bonds |
|
22,781,510 |
|
22,779,176 |
Financial institutions bonds |
|
2,461,669 |
|
1,837,790 |
Corporate bonds and others |
|
8,031,712 |
|
7,327,402 |
|
|
33,274,891 |
|
31,944,368 |
|
W |
138,903,660 |
|
135,161,318 |
(*) The equity securities are designated as FVOCI, as the Group has exercised the FVOCI option for reasons including policy-driven holding requirements.
81
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)
(b) Changes in carrying amount of debt securities at fair value through other comprehensive income and securities at amortized cost for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||
|
|
Debt securities at FVOCI |
|
Debt securities at amortized cost |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
101,256,075 |
|
26,831 |
|
101,282,906 |
|
31,953,059 |
|
- |
|
31,953,059 |
Transfer (from) to 12-month expected credit losses |
|
9,944 |
|
(9,944) |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(9,989) |
|
9,989 |
|
- |
|
- |
|
- |
|
- |
Net change (*) |
|
2,175,376 |
|
2,876 |
|
2,178,252 |
|
1,330,672 |
|
- |
|
1,330,672 |
Ending balance |
W |
103,431,406 |
|
29,752 |
|
103,461,158 |
|
33,283,731 |
|
- |
|
33,283,731 |
|
|
December 31, 2025 |
||||||||||
|
|
Debt securities at FVOCI |
|
Debt securities at amortized cost |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
91,955,452 |
|
60,758 |
|
92,016,210 |
|
33,322,543 |
|
3,644 |
|
33,326,187 |
Transfer (from) to 12-month expected credit losses |
|
5,276 |
|
(5,276) |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(2,939) |
|
2,939 |
|
- |
|
- |
|
- |
|
- |
Net change (*) |
|
9,298,286 |
|
(31,590) |
|
9,266,696 |
|
(1,369,484) |
|
(3,644) |
|
(1,373,128) |
Ending balance |
W |
101,256,075 |
|
26,831 |
|
101,282,906 |
|
31,953,059 |
|
- |
|
31,953,059 |
(*) Includes the effects of purchases, disposals, redemptions, valuations, changes in foreign exchange rates, and the amortization of fair value adjustments recognized through business combination accounting, among others.
.
82
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)
(c) Changes in allowance for credit losses of debt securities at fair value through other comprehensive income and securities at amortized cost for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||
|
|
Debt securities at FVOCI |
|
Debt securities at amortized cost |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
57,762 |
|
2,539 |
|
60,301 |
|
8,691 |
|
- |
|
8,691 |
Transfer (from) to 12-month expected credit losses |
|
132 |
|
(132) |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(70) |
|
70 |
|
- |
|
- |
|
- |
|
- |
Provision (reversal) |
|
2,572 |
|
(2,437) |
|
135 |
|
214 |
|
- |
|
214 |
Disposal and others (*) |
|
(1,671) |
|
47 |
|
(1,624) |
|
(65) |
|
- |
|
(65) |
Ending balance |
W |
58,725 |
|
87 |
|
58,812 |
|
8,840 |
|
- |
|
8,840 |
|
|
December 31, 2025 |
||||||||||
|
|
Debt securities at FVOCI |
|
Debt securities at amortized cost |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
38,250 |
|
96 |
|
38,346 |
|
10,137 |
|
51 |
|
10,188 |
Transfer (from) to 12-month expected credit losses |
|
17 |
|
(17) |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(3) |
|
3 |
|
- |
|
- |
|
- |
|
- |
Provision (reversal) |
|
23,479 |
|
2,437 |
|
25,916 |
|
(1,196) |
|
(47) |
|
(1,243) |
Disposal and others (*) |
|
(3,981) |
|
20 |
|
(3,961) |
|
(250) |
|
(4) |
|
(254) |
Ending balance |
W |
57,762 |
|
2,539 |
|
60,301 |
|
8,691 |
|
- |
|
8,691 |
(*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.
83
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)
(d) Gains and losses on disposal of securities at fair value through other comprehensive income and securities at amortized cost for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six- month |
|
Three-month |
|
Six- month |
Gain on disposal of securities at FVOCI |
W |
22,558 |
|
62,449 |
|
85,537 |
|
187,294 |
Loss on disposal of securities at FVOCI |
|
(29,881) |
|
(48,706) |
|
(14,074) |
|
(41,288) |
Gain on disposal of securities at amortized cost (*) |
|
- |
|
5 |
|
- |
|
1 |
Loss on disposal of securities at amortized cost (*) |
|
(5) |
|
(24) |
|
(11) |
|
(39) |
|
W |
(7,328) |
|
13,724 |
|
71,452 |
|
145,968 |
(*) The reason for the disposal of securities measured at amortized cost includes partial repayment of the bonds, among others.
(e) Income or loss on equity securities at fair value through other comprehensive income
i) Dividend income recognized relating to equity instruments designated as financial assets at fair value through other comprehensive income during the six-month periods ended June 30, 2026 and 2025, are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
|
|
|
|
|
Dividend income recognized on equity instruments derecognized during the reporting period |
W |
5,189 |
|
1,465 |
Dividend income recognized on equity instruments held at the end of the reporting period |
|
46,812 |
|
42,208 |
|
W |
52,001 |
|
43,673 |
ii) The details of disposal of equity securities designated at fair value through other comprehensive income for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
Fair value at the date of disposal |
|
Cumulative net gain (loss) at the time of disposal |
||||
|
|
June 30, 2026 |
|
June 30, 2025 |
|
June 30, 2026 |
|
June 30, 2025 |
Stocks |
W |
305,961 |
|
63,911 |
|
19,464 |
|
2,811 |
Contingent convertible bonds |
|
- |
|
1,687 |
|
- |
|
11 |
|
W |
305,961 |
|
65,598 |
|
19,464 |
|
2,822 |
(*) The reason for the disposal of stocks at fair value through other comprehensive income includes the disposal of stocks acquired through debt-to-equity swaps, and the cumulative valuation gains and losses were reclassified to retained earnings.
84
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
11. Loans at amortized cost, etc.
(a) The composition of loans at amortized cost by customer as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Retail loans |
W |
177,035,976 |
|
173,568,321 |
Corporate loans (*) |
|
272,230,370 |
|
259,593,754 |
Public and other loans |
|
4,605,492 |
|
4,845,465 |
Loans between banks |
|
1,654,302 |
|
1,691,536 |
Credit card receivables |
|
29,103,525 |
|
28,653,978 |
|
|
484,629,665 |
|
468,353,054 |
Discount |
|
(24,897) |
|
(26,251) |
Deferred loan origination costs |
|
756,536 |
|
727,749 |
|
|
485,361,304 |
|
469,054,552 |
Less: Allowance for credit losses |
|
(4,441,154) |
|
(4,280,672) |
|
W |
480,920,150 |
|
464,773,880 |
(*) Includes SOHO loans, among others.
85
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
11. Loans at amortized cost, etc. (continued)
(b) Changes in carrying amounts of loans at amortized cost, etc. for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
Total |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
400,019,377 |
|
65,209,460 |
|
3,825,715 |
|
80,303,547 |
|
219,944 |
|
181,787 |
|
549,759,830 |
Transfer (from) to 12 months expected credit losses |
|
13,025,696 |
|
(12,999,769) |
|
(25,927) |
|
27,741 |
|
(26,275) |
|
(1,466) |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(16,961,648) |
|
17,107,360 |
|
(145,712) |
|
(48,054) |
|
48,633 |
|
(579) |
|
- |
Transfer (from) to credit- impaired financial assets |
|
(741,898) |
|
(1,288,171) |
|
2,030,069 |
|
(7,878) |
|
(21,767) |
|
29,645 |
|
- |
Net change (*1) |
|
15,505,727 |
|
2,031,353 |
|
168,383 |
|
20,827,155 |
|
137,655 |
|
57,689 |
|
38,727,962 |
Charge off (*2) |
|
- |
|
- |
|
(827,277) |
|
- |
|
- |
|
(31,608) |
|
(858,885) |
Disposal |
|
- |
|
(25,133) |
|
(546,301) |
|
- |
|
(23) |
|
(2,820) |
|
(574,277) |
Ending balance |
W |
410,847,254 |
|
70,035,100 |
|
4,478,950 |
|
101,102,511 |
|
358,167 |
|
232,648 |
|
587,054,630 |
(*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.
(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,654,254 million, which is written off as of June 30, 2026.
86
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
11. Loans at amortized cost, etc. (continued)
(b) Changes in carrying amounts of loans at amortized cost, etc. for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
Total |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
384,078,752 |
|
66,060,111 |
|
3,722,306 |
|
61,488,945 |
|
235,252 |
|
217,158 |
|
515,802,524 |
Transfer (from) to 12 months expected credit losses |
|
17,609,453 |
|
(17,573,814) |
|
(35,639) |
|
33,235 |
|
(33,122) |
|
(113) |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(21,713,358) |
|
22,047,397 |
|
(334,039) |
|
(50,051) |
|
50,130 |
|
(79) |
|
- |
Transfer (from) to credit- impaired financial assets |
|
(1,674,648) |
|
(1,325,647) |
|
3,000,295 |
|
(6,288) |
|
(16,627) |
|
22,915 |
|
- |
Net change (*1) |
|
21,729,176 |
|
(3,938,393) |
|
1,122,288 |
|
18,837,706 |
|
(14,525) |
|
41,033 |
|
37,777,285 |
Charge off (*2) |
|
- |
|
- |
|
(2,027,917) |
|
- |
|
- |
|
(92,749) |
|
(2,120,666) |
Disposal |
|
(9,998) |
|
(60,194) |
|
(1,621,579) |
|
- |
|
(1,164) |
|
(6,378) |
|
(1,699,313) |
Ending balance |
W |
400,019,377 |
|
65,209,460 |
|
3,825,715 |
|
80,303,547 |
|
219,944 |
|
181,787 |
|
549,759,830 |
(*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.
(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,682,802 million, which is written off as of December 31, 2025.
87
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
11. Loans at amortized cost, etc. (continued)
(c) Changes in allowances for credit losses of loans at amortized cost, etc. for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
Total |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning allowance |
W |
1,197,354 |
|
1,423,810 |
|
1,659,508 |
|
398,799 |
|
10,410 |
|
148,207 |
|
4,838,088 |
Transfer (from) to 12-months expected credit losses |
|
217,863 |
|
(212,751) |
|
(5,112) |
|
534 |
|
(487) |
|
(47) |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(101,906) |
|
131,931 |
|
(30,025) |
|
(410) |
|
445 |
|
(35) |
|
- |
Transfer (from) to credit- impaired financial assets |
|
(26,115) |
|
(191,839) |
|
217,954 |
|
(94) |
|
(9,432) |
|
9,526 |
|
- |
Provision (reversal) |
|
(103,312) |
|
211,839 |
|
835,060 |
|
(2,492) |
|
10,292 |
|
42,827 |
|
994,214 |
Charge off |
|
- |
|
- |
|
(827,277) |
|
- |
|
- |
|
(31,608) |
|
(858,885) |
Amortization of discount |
|
- |
|
- |
|
(20,933) |
|
- |
|
- |
|
- |
|
(20,933) |
Disposal |
|
- |
|
(14,889) |
|
(164,069) |
|
- |
|
(1) |
|
(1,886) |
|
(180,845) |
Collection |
|
- |
|
- |
|
197,915 |
|
- |
|
- |
|
1,289 |
|
199,204 |
Others (*) |
|
15,772 |
|
8,633 |
|
21,743 |
|
(10,755) |
|
35 |
|
(716) |
|
34,712 |
Ending allowance |
W |
1,199,656 |
|
1,356,734 |
|
1,884,764 |
|
385,582 |
|
11,262 |
|
167,557 |
|
5,005,555 |
88
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
11. Loans at amortized cost, etc. (continued)
(c) Changes in allowances for credit losses of loans at amortized cost, etc. for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
Total |
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning allowance |
W |
1,270,300 |
|
1,531,751 |
|
1,763,880 |
|
394,484 |
|
14,752 |
|
186,410 |
|
5,161,577 |
Transfer (from) to 12-months expected credit losses |
|
280,731 |
|
(277,432) |
|
(3,299) |
|
654 |
|
(613) |
|
(41) |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(117,140) |
|
161,670 |
|
(44,530) |
|
(869) |
|
891 |
|
(22) |
|
- |
Transfer (from) to credit- impaired financial assets |
|
(35,152) |
|
(215,919) |
|
251,071 |
|
(1,957) |
|
(5,084) |
|
7,041 |
|
- |
Provision (reversal) |
|
(191,921) |
|
235,264 |
|
1,970,794 |
|
4,759 |
|
507 |
|
64,769 |
|
2,084,172 |
Charge off |
|
- |
|
- |
|
(2,027,917) |
|
- |
|
- |
|
(92,749) |
|
(2,120,666) |
Amortization of discount |
|
- |
|
- |
|
(39,119) |
|
|
|
|
|
|
|
(39,119) |
Disposal |
|
- |
|
(3,758) |
|
(545,618) |
|
- |
|
(37) |
|
(5,663) |
|
(555,076) |
Collection |
|
- |
|
- |
|
343,795 |
|
- |
|
- |
|
2,688 |
|
346,483 |
Others (*) |
|
(9,464) |
|
(7,766) |
|
(9,549) |
|
1,728 |
|
(6) |
|
(14,226) |
|
(39,283) |
Ending allowance |
W |
1,197,354 |
|
1,423,810 |
|
1,659,508 |
|
398,799 |
|
10,410 |
|
148,207 |
|
4,838,088 |
(*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.
89
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows:
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
BNP Paribas Cardif Life Insurance (*1), (*7) |
|
Korea |
|
March 31, 2026 |
|
14.99 |
|
14.99 |
Shinhan-Neoplux Energy Newbiz Fund |
|
Korea |
|
June 30, 2026 |
|
31.66 |
|
31.66 |
Shinhan-Albatross Technology Investment Fund (*1) |
|
Korea |
|
May 31, 2026 |
|
50.00 |
|
50.00 |
Shinhan Praxis K-Growth Global Private Equity Fund (*7) |
|
Korea |
|
June 30, 2026 |
|
14.15 |
|
14.15 |
Kiwoom Milestone Professional Private Real Estate Trust 19 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Shinhan Global Healthcare Fund 1 (*7) |
|
Korea |
|
June 30, 2026 |
|
4.41 |
|
4.41 |
Koramco Europe Core Private Placement Real Estate Fund No.2-2 |
|
Korea |
|
June 30, 2026 |
|
44.02 |
|
44.02 |
Shinhan-Nvestor Liquidity Solution Fund |
|
Korea |
|
June 30, 2026 |
|
24.92 |
|
24.92 |
Nomura-Rifa Private Real Estate Investment Trust 19 |
|
Korea |
|
June 30, 2026 |
|
31.20 |
|
31.20 |
Genesis North America Power Company No.1 PEF |
|
Korea |
|
June 30, 2026 |
|
39.91 |
|
43.84 |
Korea Finance Security Co., Ltd. (*1), (*7) |
|
Korea |
|
March 31, 2026 |
|
14.91 |
|
14.91 |
MIEL CO., LTD. (*1), (*2) |
|
Korea |
|
December 31, 2025 |
|
28.77 |
|
28.77 |
AIP Transportation Specialized Privately Placed Fund Trust #1 |
|
Korea |
|
June 30, 2026 |
|
35.73 |
|
35.73 |
Kiwoom-Shinhan Innovation Fund I |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Samchully Midstream Private Placement Special Asset Fund 5-4 |
|
Korea |
|
June 30, 2026 |
|
41.67 |
|
41.67 |
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*5) |
|
Korea |
|
- |
|
- |
|
26.67 |
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 (*4) |
|
Korea |
|
June 30, 2026 |
|
60.00 |
|
60.00 |
Milestone Private Real Estate Fund 3 |
|
Korea |
|
June 30, 2026 |
|
32.06 |
|
32.06 |
Nomura-Rifa Private Real Estate Investment Trust 31 |
|
Korea |
|
June 30, 2026 |
|
31.31 |
|
31.31 |
FuturePlay-Shinhan TechInnovation Fund 1 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Vogo Realty Partners Private Real Estate Fund V |
|
Korea |
|
June 30, 2026 |
|
21.64 |
|
21.64 |
Korea Credit Bureau (*1), (*7) |
|
Korea |
|
March 31, 2026 |
|
9.00 |
|
9.00 |
Goduck Gangil1 PFV Co., Ltd. (*1), (*7) |
|
Korea |
|
March 31, 2026 |
|
1.04 |
|
1.04 |
SBC PFV Co., Ltd. (*1), (*7), (*8) |
|
Korea |
|
March 31, 2026 |
|
25.00 |
|
25.00 |
NH-amundi global infra private fund 16 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
SH BNCT Professional Investment Type Private Special Asset Investment Trust (*9) |
|
Korea |
|
June 30, 2026 |
|
72.50 |
|
72.50 |
IGIS Real-estate Private Investment Trust No.33 |
|
Korea |
|
June 30, 2026 |
|
24.18 |
|
24.18 |
Fidelis Global Private Real Estate Trust No.2 (*6) |
|
Korea |
|
June 30, 2026 |
|
79.63 |
|
79.63 |
90
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |
|
Korea |
|
June 30, 2026 |
|
28.70 |
|
28.70 |
Shinhan Global Healthcare Fund 2 (*7) |
|
Korea |
|
June 30, 2026 |
|
13.68 |
|
13.68 |
Shinhan AIM Real Estate Fund No.1 |
|
Korea |
|
June 30, 2026 |
|
21.01 |
|
21.01 |
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust |
|
Korea |
|
June 30, 2026 |
|
22.02 |
|
22.02 |
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |
|
Korea |
|
June 30, 2026 |
|
29.19 |
|
29.19 |
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 (*6) |
|
Korea |
|
June 30, 2026 |
|
71.43 |
|
71.43 |
Korea Omega-Shinhan Project Fund I |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Samsung SRA Real Estate Professional Private 45 |
|
Korea |
|
June 30, 2026 |
|
25.00 |
|
25.00 |
IBK Global New Renewable Energy Special Asset Professional Private2 |
|
Korea |
|
June 30, 2026 |
|
28.98 |
|
28.98 |
Kakao-Shinhan 1st TNYT Fund |
|
Korea |
|
June 30, 2026 |
|
48.62 |
|
48.62 |
Pacific Private Placement Real Estate Fund No.40 |
|
Korea |
|
June 30, 2026 |
|
24.73 |
|
24.73 |
LB Scotland Amazon Fulfillment Center Fund 29 (*4) |
|
Korea |
|
June 30, 2026 |
|
65.00 |
|
65.00 |
JR AMC Hungary Budapest Office Fund 16 |
|
Korea |
|
June 30, 2026 |
|
34.87 |
|
34.87 |
Gyeonggi-Neoplux Superman Fund |
|
Korea |
|
June 30, 2026 |
|
21.76 |
|
21.76 |
NewWave 6th Fund |
|
Korea |
|
June 30, 2026 |
|
30.00 |
|
30.00 |
Neoplux No.3 Private Equity Fund (*3) |
|
Korea |
|
June 30, 2026 |
|
10.00 |
|
10.00 |
PCC Amberstone Private Equity Fund I |
|
Korea |
|
June 30, 2026 |
|
21.67 |
|
21.67 |
KIAMCO POWERLOAN TRUST 4TH |
|
Korea |
|
June 30, 2026 |
|
47.37 |
|
47.37 |
Neoplux Market-Frontier Secondary Fund (*3) |
|
Korea |
|
June 30, 2026 |
|
19.74 |
|
19.74 |
KIAMCO Vietnam Solar Special Asset Private Investment Trust |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
SHINHAN-NEO Core Industrial Technology Fund |
|
Korea |
|
June 30, 2026 |
|
49.75 |
|
49.75 |
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|
Korea |
|
June 30, 2026 |
|
30.00 |
|
30.00 |
Eum Private Equity Fund No.7 |
|
Korea |
|
June 30, 2026 |
|
21.00 |
|
21.00 |
AJ-KOSNET Semicon One Venture Fund |
|
Korea |
|
June 30, 2026 |
|
22.22 |
|
22.22 |
Genesis Eco No.1 PEF |
|
Korea |
|
June 30, 2026 |
|
29.00 |
|
29.00 |
SHINHAN-NEO Market-Frontier 2nd Fund |
|
Korea |
|
June 30, 2026 |
|
42.70 |
|
42.70 |
Ulmus SHC innovation investment fund (*5) |
|
Korea |
|
- |
|
- |
|
24.04 |
91
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
T Core Industrial Technology 1st Venture PEF |
|
Korea |
|
June 30, 2026 |
|
31.47 |
|
31.47 |
Kiwoom-Shinhan Innovation Fund 2 |
|
Korea |
|
June 30, 2026 |
|
42.86 |
|
42.86 |
ETRI Holdings-Shinhan 1st Unicorn Fund |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
AVES 1st Corporate Recovery Private Equity Fund (*4) |
|
Korea |
|
June 30, 2026 |
|
76.19 |
|
76.19 |
Reverent-Shinhan Vista Fund (*3) |
|
Korea |
|
June 30, 2026 |
|
13.41 |
|
13.41 |
JS Shinhan Private Equity Fund (*3) |
|
Korea |
|
June 30, 2026 |
|
3.85 |
|
3.85 |
META TB ESG Private Equity Fund I |
|
Korea |
|
June 30, 2026 |
|
27.40 |
|
27.40 |
Shinhan VC tomorrow venture fund 1 |
|
Korea |
|
June 30, 2026 |
|
39.62 |
|
39.62 |
Stonebridge-Shinhan Unicorn Secondary Fund |
|
Korea |
|
June 30, 2026 |
|
26.01 |
|
26.01 |
Tres-Yujin Trust |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Capstone REITs No.26 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
JB Incheon-Bucheon REITS No.54 |
|
Korea |
|
June 30, 2026 |
|
39.31 |
|
39.31 |
KB Oaktree Trust No.3 |
|
Korea |
|
June 30, 2026 |
|
33.33 |
|
33.33 |
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |
|
Korea |
|
June 30, 2026 |
|
29.73 |
|
29.73 |
Shinhan JigaeNamsan Road Private Special Asset Investment Trust |
|
Korea |
|
June 30, 2026 |
|
24.85 |
|
24.85 |
KB Distribution Private Real Estate 3-1 |
|
Korea |
|
June 30, 2026 |
|
37.50 |
|
37.50 |
Pacific Private Investment Trust No.49-1 (*5) |
|
Korea |
|
- |
|
- |
|
79.28 |
KIWOOM Real estate private placement fund for normal investors No. 31 (*6) |
|
Korea |
|
June 30, 2026 |
|
60.00 |
|
60.00 |
RIFA Real estate private placement fund for normal investors No. 51 |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
Shinhan-Kunicorn first Fund |
|
Korea |
|
June 30, 2026 |
|
38.31 |
|
38.31 |
Shinhan-Quantum Startup Fund |
|
Korea |
|
June 30, 2026 |
|
49.18 |
|
49.18 |
Korea Investment develop seed Trust No.1 |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
STIC ALT Global II Private Equity Fund |
|
Korea |
|
June 30, 2026 |
|
21.74 |
|
21.74 |
DDI LVC Master Real Estate Investment Trust Co., Ltd. (*1), (*7) |
|
Korea |
|
March 31, 2026 |
|
15.00 |
|
15.00 |
Find-Green New Deal 2nd Equity Fund |
|
Korea |
|
June 30, 2026 |
|
22.57 |
|
22.57 |
ShinhanFitrin 1st Technology Business Investment Association (*3) |
|
Korea |
|
June 30, 2026 |
|
16.17 |
|
16.17 |
Koramco Private Real Estate Fund 143 |
|
Korea |
|
June 30, 2026 |
|
30.30 |
|
30.30 |
Korea Investment Top Mezzanine Private Real Estate Trust No.1 |
|
Korea |
|
June 30, 2026 |
|
22.22 |
|
22.22 |
LB YoungNam Logistics Private Trust No.40 |
|
Korea |
|
June 30, 2026 |
|
25.00 |
|
25.00 |
Shinhan-Cognitive Start-up Fund L.P. |
|
Korea |
|
June 30, 2026 |
|
32.79 |
|
32.77 |
Logisvalley Shinhan REIT Co., Ltd. (*1) |
|
Korea |
|
March 31, 2026 |
|
20.27 |
|
20.27 |
92
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
Shinhan-G.N.Tech Smart Innovation Fund |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Korea Investment Green Newdeal Infra Trust No.1 |
|
Korea |
|
June 30, 2026 |
|
27.97 |
|
27.97 |
BTS 2nd Private Equity Fund (*1) |
|
Korea |
|
May 31, 2026 |
|
26.00 |
|
26.00 |
NH-J&-IBKC Label Technology Fund |
|
Korea |
|
June 30, 2026 |
|
27.81 |
|
27.81 |
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Shinhan-iSquare Venture PEF 1st |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
Nextrade Co., Ltd. (*7) |
|
Korea |
|
June 30, 2026 |
|
8.00 |
|
8.00 |
IBKC-Behigh Fund 1st |
|
Korea |
|
June 30, 2026 |
|
29.73 |
|
29.73 |
Aurum-Korea Global Bio Healthcare New Tech Fund No.2 |
|
Korea |
|
June 30, 2026 |
|
20.12 |
|
20.12 |
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 (*5) |
|
Korea |
|
- |
|
- |
|
20.83 |
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |
|
Korea |
|
June 30, 2026 |
|
28.57 |
|
28.57 |
KORAMCO REITS Mezzanine Trust No.38 (*5) |
|
Korea |
|
- |
|
- |
|
75.00 |
TogetherKorea Private Investment Trust No. 6 (*6) |
|
Korea |
|
June 30, 2026 |
|
99.98 |
|
99.98 |
TogetherKorea Private Investment Trust No. 7 (*6) |
|
Korea |
|
June 30, 2026 |
|
99.98 |
|
99.98 |
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund |
|
Korea |
|
June 30, 2026 |
|
34.75 |
|
34.75 |
Penture K-Content Investment Fund (*7) |
|
Korea |
|
June 30, 2026 |
|
19.78 |
|
19.78 |
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund |
|
Korea |
|
June 30, 2026 |
|
30.00 |
|
30.00 |
Hana Alternative Investment Kosmes PCBO General PEF No. 1 |
|
Korea |
|
June 30, 2026 |
|
37.04 |
|
37.04 |
Shinhan-Timefolio Bio Accelerator Fund |
|
Korea |
|
June 30, 2026 |
|
48.39 |
|
48.39 |
Shinhan M&A-ESG Fund |
|
Korea |
|
June 30, 2026 |
|
23.33 |
|
23.33 |
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. |
|
Korea |
|
June 30, 2026 |
|
28.43 |
|
28.43 |
Shinhan Time Secondary Blind Fund |
|
Korea |
|
June 30, 2026 |
|
47.50 |
|
47.50 |
Shinhan DS Secondary Investment Fund |
|
Korea |
|
June 30, 2026 |
|
49.83 |
|
49.83 |
Shinhan-OpenWater Pre-IPO Fund-1 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Shinhan-CJ TechInnovation Fund 1st |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
Shinhan-Eco Venture Fund 2nd |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
Heungkuk-Shinhan The First Visionary Fund No.1 |
|
Korea |
|
June 30, 2026 |
|
40.00 |
|
40.00 |
Koreainvestment-Shinhan-LEP K beauty |
|
Korea |
|
June 30, 2026 |
|
22.96 |
|
22.96 |
Shinhan HB Wellness 1st Fund |
|
Korea |
|
June 30, 2026 |
|
48.54 |
|
48.54 |
93
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
Korea real Asset Fund No.3 |
|
Korea |
|
June 30, 2026 |
|
28.57 |
|
28.57 |
Timefolio Tech Fund I |
|
Korea |
|
June 30, 2026 |
|
21.18 |
|
21.18 |
PineStreet Global Corporate FoF XIII-2 (*6) |
|
Korea |
|
June 30, 2026 |
|
100.00 |
|
100.00 |
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
Korea |
|
June 30, 2026 |
|
26.22 |
|
26.22 |
SH K-REITs Infra Real Estate Investment Trust (FoFs) |
|
Korea |
|
June 30, 2026 |
|
23.30 |
|
23.30 |
Samsung-Dunamu Innovation IT Fund No.1 |
|
Korea |
|
June 30, 2026 |
|
22.99 |
|
22.99 |
Time Robotics fund |
|
Korea |
|
June 30, 2026 |
|
29.86 |
|
29.86 |
Ascent-Welcome Fund2 |
|
Korea |
|
June 30, 2026 |
|
27.65 |
|
27.65 |
Igis General PE Real Estate Investment Trust 517-1 (*6) |
|
Korea |
|
June 30, 2026 |
|
96.77 |
|
96.71 |
Consus Osansegyo No.2 |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Shinhan AIM Private Fund of Fund 9-B |
|
Korea |
|
June 30, 2026 |
|
25.00 |
|
25.00 |
Shinhan General Private Real Estate Investment Trust No.3 |
|
Korea |
|
June 30, 2026 |
|
20.75 |
|
20.75 |
Paros Kosdaq Venture General Private Investment Trust No. 5 |
|
Korea |
|
June 30, 2026 |
|
29.45 |
|
29.45 |
Shinhan-soo secondary Fund (*6) |
|
Korea |
|
June 30, 2026 |
|
77.61 |
|
77.61 |
TECHFIN RATINGS Co., Ltd. (*1) |
|
Korea |
|
March 31, 2026 |
|
45.00 |
|
45.00 |
Songpa biz cluster PFV Co., Ltd. (*1), (*7), (*10) |
|
Korea |
|
March 31, 2026 |
|
27.40 |
|
27.40 |
Planeta PTE LTD |
|
Singapore |
|
June 30, 2026 |
|
33.33 |
|
33.33 |
The E&Shinhan New Growth Up Fund |
|
Korea |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
HHR Special Situation Real Estate Private Investment Trust No. 13 |
|
Korea |
|
June 30, 2026 |
|
20.00 |
|
20.00 |
Shinhan-GB FutureFlow Fund L.P. |
|
Japan |
|
June 30, 2026 |
|
50.00 |
|
50.00 |
Credila Financial Services (*1), (*7) |
|
India |
|
March 31, 2026 |
|
10.06 |
|
10.06 |
Shinhan-DS Mezzanine Fund 1 (*7) |
|
Korea |
|
June 30, 2026 |
|
15.09 |
|
15.09 |
Shinhan Time BM sobujang Fund |
|
Korea |
|
June 30, 2026 |
|
29.41 |
|
29.41 |
Tigris Fund No. 58 |
|
Korea |
|
June 30, 2026 |
|
20.83 |
|
20.83 |
Shinhan Market-Frontier Fund Ⅲ |
|
Korea |
|
June 30, 2026 |
|
44.02 |
|
44.02 |
Fine North America Credit Private Mixed Asset Investment Trust 22 (*6) |
|
Korea |
|
June 30, 2026 |
|
58.82 |
|
58.82 |
IGIS Private Real Estate Investment No.454 |
|
Korea |
|
June 30, 2026 |
|
24.04 |
|
24.04 |
IGIS Private Real Estate Investment No.462 (*6) |
|
Korea |
|
June 30, 2026 |
|
69.20 |
|
69.20 |
XSKONA Battery Alliance Fund |
|
Korea |
|
June 30, 2026 |
|
27.00 |
|
27.00 |
BNW Recharge Private Equity Fund |
|
Korea |
|
June 30, 2026 |
|
21.13 |
|
21.13 |
United Partners Realasset Fund No.14 |
|
Korea |
|
June 30, 2026 |
|
33.33 |
|
33.33 |
94
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
Investees |
|
Country |
|
Reporting date |
|
Ownership (%) |
||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 (*5) |
|
Korea |
|
- |
|
- |
|
7.67 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 (*5) |
|
Korea |
|
- |
|
- |
|
7.79 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 (*5) |
|
Korea |
|
- |
|
- |
|
7.67 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 (*7) |
|
Korea |
|
June 30, 2026 |
|
7.40 |
|
7.40 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 (*7) |
|
Korea |
|
June 30, 2026 |
|
6.39 |
|
6.39 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 (*7) |
|
Korea |
|
June 30, 2026 |
|
6.55 |
|
6.55 |
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] (*7) |
|
Korea |
|
June 30, 2026 |
|
19.91 |
|
19.91 |
SH Prestige High Dividend Security Feeder No.1[Equity] |
|
Korea |
|
June 30, 2026 |
|
23.92 |
|
23.92 |
IGIS Real Estate General Private Feeder Investment Company No.562 (*6) |
|
Korea |
|
June 30, 2026 |
|
88.46 |
|
88.46 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 (*7) |
|
Korea |
|
June 30, 2026 |
|
4.80 |
|
4.97 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 (*7) |
|
Korea |
|
June 30, 2026 |
|
4.80 |
|
4.97 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 (*7) |
|
Korea |
|
June 30, 2026 |
|
4.80 |
|
4.97 |
Startup Korea Vision 2024 Fund |
|
Korea |
|
June 30, 2026 |
|
24.16 |
|
27.91 |
Finflow (*7) |
|
Korea |
|
June 30, 2026 |
|
15.00 |
|
15.00 |
Fireant Media and Digital Service Joint Stock Company (*7) |
|
Korea |
|
June 30, 2026 |
|
17.66 |
|
17.66 |
PharosBH Fund |
|
Korea |
|
June 30, 2026 |
|
23.08 |
|
23.08 |
ST EIP Holdings Inc. |
|
USA |
|
June 30, 2026 |
|
49.00 |
|
49.00 |
AMP Capital Global Infrastructure Fund II B L (*5) |
|
Luxembourg |
|
- |
|
- |
|
1.50 |
Post CR REITS No.1 (*6) |
|
Korea |
|
June 30, 2026 |
|
70.00 |
|
70.00 |
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |
|
Korea |
|
June 30, 2026 |
|
23.30 |
|
23.30 |
Atomos Specialty No.1 Private Equity Fund (*7) |
|
Korea |
|
June 30, 2026 |
|
10.00 |
|
- |
ShinhanHelio Black Private Equity Eund (*3) |
|
Korea |
|
June 30, 2026 |
|
19.67 |
|
- |
SNM Technology Innovation Fund (*3) |
|
Korea |
|
June 30, 2026 |
|
17.56 |
|
- |
CSQUAED Venture Fund 20th |
|
Korea |
|
June 30, 2026 |
|
46.67 |
|
- |
ShinhanInvestmentHIFIBondSafeR2YPrivate24(2) (*7) |
|
Korea |
|
June 30, 2026 |
|
4.97 |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private 25(2) (*7) |
|
Korea |
|
June 30, 2026 |
|
4.97 |
|
- |
Shinhan-DS Productive Finance Mezzanine Fund 1 (*7) |
|
Korea |
|
June 30, 2026 |
|
12.38 |
|
- |
95
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(a) Investments in associates as of June 30, 2026 and December 31, 2025 are as follows (continued):
(*1) As the financial statements as of June 30, 2026 were not available, the most recent financial statements available after the reporting date were used in applying the equity method. Significant transactions and events that occurred during the period have been appropriately reflected.
(*2) Shares were acquired through a debt-to-equity swap during the rehabilitation process. Although voting rights could not be exercised during the rehabilitation process, normal voting rights became exercisable as the rehabilitation process ended before June 30, 2026. Therefore, it has been reclassified from financial assets measured at fair value through profit or loss (FVTPL) to investments in associates.
(*3) As a managing partner, the Group has a significant influence over the investees.
(*4) As a limited partner, the Group does not have an ability to participate in policy-making processes to obtain economic benefit from the investees that would allow the Group to control the entity.
(*5) Excluded from the investments in associates due to full or partial disposal of shares, or loss of significant influence during the current period.
(*6) Although the Group has a significant influence with ownership percentage more than 50%, the Group classifies these investments as investments in associates, as it lacks the practical ability to direct the financial and operating policy-making processes, thereby not having de facto control.
(*7) Although the ownership percentages are less than 20%, the Group applies the equity method accounting since it participates in policy-making processes and therefore can exercise significant influence on investees.
(*8) The rate of Group’s voting rights is 4.65%.
(*9) Although the Group has a significant influence with ownership percentage more than 50%, the contribution was classified as investments in associates as the Group is not exposed to variable returns due to the payment guarantee for the entire investment amount.
(*10) The rate of Group’s voting rights is 19.86%.
96
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
BNP Paribas Cardif Life Insurance |
W |
36,477 |
|
- |
|
(2,995) |
|
(543) |
|
- |
|
32,939 |
Shinhan-Neoplux Energy Newbiz Fund |
|
13,022 |
|
- |
|
(40) |
|
- |
|
- |
|
12,982 |
Shinhan-Albatross Technology Investment Fund |
|
5,666 |
|
- |
|
(2,080) |
|
- |
|
- |
|
3,586 |
Shinhan Praxis K-Growth Global Private Equity Fund |
|
3,690 |
|
(5,836) |
|
2,233 |
|
- |
|
- |
|
87 |
Kiwoom Milestone Professional Private Real Estate Trust 19 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Shinhan Global Healthcare Fund 1 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Koramco Europe Core Private Placement Real Estate Fund No.2-2 (*) |
|
5,426 |
|
- |
|
(352) |
|
- |
|
(431) |
|
4,643 |
Shinhan-Nvestor Liquidity Solution Fund |
|
3,729 |
|
- |
|
(153) |
|
- |
|
- |
|
3,576 |
Nomura-Rifa Private Real Estate Investment Trust 19 (*) |
|
- |
|
(94) |
|
47 |
|
- |
|
2,010 |
|
1,963 |
Genesis North America Power Company No.1 PEF |
|
6,071 |
|
(6,586) |
|
1,079 |
|
- |
|
- |
|
564 |
Korea Finance Security Co., Ltd. |
|
3,849 |
|
- |
|
(75) |
|
- |
|
- |
|
3,774 |
MIEL CO., LTD. (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
AIP Transportation Specialized Privately Placed Fund Trust #1 |
|
62,771 |
|
- |
|
17,359 |
|
- |
|
- |
|
80,130 |
Kiwoom-Shinhan Innovation Fund I |
|
7,754 |
|
(825) |
|
1,843 |
|
- |
|
- |
|
8,772 |
Samchully Midstream Private Placement Special Asset Fund 5-4 |
|
34,947 |
|
- |
|
893 |
|
- |
|
- |
|
35,840 |
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*) |
|
2 |
|
(1) |
|
(1) |
|
- |
|
- |
|
- |
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |
|
32,087 |
|
(1,617) |
|
(580) |
|
- |
|
- |
|
29,890 |
Milestone Private Real Estate Fund 3 |
|
21,276 |
|
- |
|
(899) |
|
- |
|
- |
|
20,377 |
Nomura-Rifa Private Real Estate Investment Trust 31 (*) |
|
6,086 |
|
- |
|
- |
|
- |
|
(6,086) |
|
- |
FuturePlay-Shinhan TechInnovation Fund 1 |
|
6,302 |
|
(3,781) |
|
2,480 |
|
- |
|
- |
|
5,001 |
Vogo Realty Partners Private Real Estate Fund V |
|
10,271 |
|
542 |
|
(542) |
|
- |
|
- |
|
10,271 |
Korea Credit Bureau |
|
10,138 |
|
(450) |
|
1,068 |
|
- |
|
- |
|
10,756 |
Goduck Gangil1 PFV Co., Ltd. (*) |
|
63 |
|
- |
|
(2) |
|
- |
|
- |
|
61 |
SBC PFV Co., Ltd. |
|
34,954 |
|
- |
|
(9,586) |
|
- |
|
- |
|
25,368 |
NH-amundi global infra private fund 16 (*) |
|
27,800 |
|
- |
|
- |
|
- |
|
- |
|
27,800 |
97
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
SH BNCT Professional Investment Type Private Special Asset Investment Trust |
W |
206,003 |
|
(13,974) |
|
4,511 |
|
- |
|
- |
|
196,540 |
IGIS Real-estate Private Investment Trust No.33 |
|
6,764 |
|
(233) |
|
229 |
|
- |
|
- |
|
6,760 |
Fidelis Global Private Real Estate Trust No.2 (*) |
|
551 |
|
- |
|
- |
|
- |
|
- |
|
551 |
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 (*) |
|
16,852 |
|
- |
|
- |
|
- |
|
- |
|
16,852 |
Shinhan Global Healthcare Fund 2 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Shinhan AIM Real Estate Fund No.1 |
|
6,504 |
|
(6,476) |
|
(3) |
|
- |
|
- |
|
25 |
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust |
|
39,273 |
|
(512) |
|
(129) |
|
- |
|
- |
|
38,632 |
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |
|
19,782 |
|
- |
|
(1,417) |
|
- |
|
- |
|
18,365 |
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 |
|
15,672 |
|
(92) |
|
1,057 |
|
- |
|
- |
|
16,637 |
Korea Omega-Shinhan Project Fund I |
|
5,363 |
|
- |
|
(67) |
|
- |
|
- |
|
5,296 |
Samsung SRA Real Estate Professional Private 45 |
|
29,031 |
|
(3,188) |
|
1,033 |
|
- |
|
- |
|
26,876 |
IBK Global New Renewable Energy Special Asset Professional Private2 |
|
28,048 |
|
(4,443) |
|
185 |
|
- |
|
- |
|
23,790 |
Kakao-Shinhan 1st TNYT Fund |
|
23,806 |
|
- |
|
(1,106) |
|
- |
|
- |
|
22,700 |
Pacific Private Placement Real Estate Fund No.40 |
|
19,052 |
|
(371) |
|
369 |
|
- |
|
- |
|
19,050 |
LB Scotland Amazon Fulfillment Center Fund 29 |
|
22,937 |
|
- |
|
823 |
|
- |
|
- |
|
23,760 |
JR AMC Hungary Budapest Office Fund 16 |
|
14,357 |
|
783 |
|
1,364 |
|
- |
|
- |
|
16,504 |
Gyeonggi-Neoplux Superman Fund |
|
4,208 |
|
- |
|
(676) |
|
- |
|
- |
|
3,532 |
NewWave 6th Fund |
|
9,836 |
|
(4,740) |
|
3,728 |
|
- |
|
- |
|
8,824 |
Neoplux No.3 Private Equity Fund |
|
10,209 |
|
(1,512) |
|
509 |
|
- |
|
- |
|
9,206 |
PCC Amberstone Private Equity Fund I |
|
8,017 |
|
(2,029) |
|
(562) |
|
- |
|
- |
|
5,426 |
KIAMCO POWERLOAN TRUST 4TH |
|
46,800 |
|
(2,238) |
|
(911) |
|
- |
|
- |
|
43,651 |
98
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Neoplux Market-Frontier Secondary Fund |
W |
5,562 |
|
- |
|
(277) |
|
- |
|
- |
|
5,285 |
KIAMCO Vietnam Solar Special Asset Private Investment Trust |
|
6,902 |
|
- |
|
501 |
|
- |
|
- |
|
7,403 |
SHINHAN-NEO Core Industrial Technology Fund |
|
7,100 |
|
- |
|
(103) |
|
- |
|
- |
|
6,997 |
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|
20,158 |
|
(1,305) |
|
409 |
|
- |
|
- |
|
19,262 |
Eum Private Equity Fund No.7 |
|
9,534 |
|
- |
|
716 |
|
- |
|
- |
|
10,250 |
AJ-KOSNET Semicon One Venture Fund |
|
3,161 |
|
- |
|
1,153 |
|
- |
|
- |
|
4,314 |
Genesis Eco No.1 PEF |
|
8,772 |
|
- |
|
365 |
|
- |
|
- |
|
9,137 |
SHINHAN-NEO Market-Frontier 2nd Fund |
|
24,618 |
|
- |
|
(2,679) |
|
- |
|
- |
|
21,939 |
Ulmus SHC innovation investment fund |
|
5,607 |
|
(11,440) |
|
5,833 |
|
- |
|
- |
|
- |
T Core Industrial Technology 1st Venture PEF |
|
3,056 |
|
- |
|
(203) |
|
- |
|
- |
|
2,853 |
Kiwoom-Shinhan Innovation Fund 2 |
|
12,679 |
|
(7,065) |
|
2,008 |
|
- |
|
- |
|
7,622 |
ETRI Holdings-Shinhan 1st Unicorn Fund |
|
4,124 |
|
- |
|
(31) |
|
- |
|
- |
|
4,093 |
AVES 1st Corporate Recovery Private Equity Fund |
|
4,498 |
|
- |
|
1,286 |
|
- |
|
- |
|
5,784 |
Reverent-Shinhan Vista Fund |
|
3,763 |
|
27 |
|
200 |
|
- |
|
- |
|
3,990 |
JS Shinhan Private Equity Fund |
|
6,262 |
|
(2,970) |
|
(434) |
|
- |
|
- |
|
2,858 |
Meta TB ESG Private Equity Fund I |
|
5,592 |
|
- |
|
(47) |
|
- |
|
- |
|
5,545 |
Shinhan VC tomorrow venture fund 1 |
|
102,540 |
|
(26,724) |
|
9,012 |
|
- |
|
- |
|
84,828 |
Stonebridge-Shinhan Unicorn Secondary Fund |
|
13,082 |
|
- |
|
(3,212) |
|
- |
|
- |
|
9,870 |
Tres-Yujin Trust |
|
13,146 |
|
- |
|
48 |
|
- |
|
- |
|
13,194 |
Capstone REITs No.26 |
|
5,069 |
|
- |
|
453 |
|
- |
|
- |
|
5,522 |
JB Incheon-Bucheon REITS No.54 |
|
5,785 |
|
- |
|
233 |
|
- |
|
- |
|
6,018 |
99
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
KB Oaktree Trust No.3 |
W |
9,314 |
|
(1,710) |
|
225 |
|
- |
|
- |
|
7,829 |
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |
|
31,548 |
|
(14,854) |
|
1,640 |
|
- |
|
- |
|
18,334 |
Shinhan JigaeNamsan Road Private Special Asset Investment Trust |
|
40,296 |
|
(448) |
|
765 |
|
- |
|
- |
|
40,613 |
KB Distribution Private Real Estate 3-1 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Pacific Private Investment Trust No.49-1 |
|
36,678 |
|
(36,678) |
|
- |
|
- |
|
- |
|
- |
KIWOOM Real estate private placement fund for normal investors No. 31 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
RIFA Real estate private placement fund for normal investors No. 51 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Shinhan-Kunicorn first Fund |
|
7,701 |
|
- |
|
(105) |
|
- |
|
- |
|
7,596 |
Shinhan-Quantum Startup Fund |
|
5,548 |
|
(300) |
|
(1,763) |
|
- |
|
- |
|
3,485 |
Korea Investment develop seed Trust No.1 |
|
10,730 |
|
(7,194) |
|
3,075 |
|
- |
|
- |
|
6,611 |
STIC ALT Global II Private Equity Fund |
|
9,793 |
|
- |
|
104 |
|
- |
|
- |
|
9,897 |
DDI LVC Master Real Estate Investment Trust Co., Ltd. |
|
4,659 |
|
9,000 |
|
(109) |
|
- |
|
- |
|
13,550 |
Find-Green New Deal 2nd Equity Fund |
|
4,726 |
|
(80) |
|
129 |
|
- |
|
- |
|
4,775 |
ShinhanFitrin 1st Technology Business Investment Association |
|
3,934 |
|
- |
|
21 |
|
- |
|
- |
|
3,955 |
Koramco Private Real Estate Fund 143 |
|
8,092 |
|
(1,413) |
|
(5) |
|
- |
|
- |
|
6,674 |
Korea Investment Top Mezzanine Private Real Estate Trust No.1 |
|
3,040 |
|
(193) |
|
401 |
|
- |
|
- |
|
3,248 |
LB YoungNam Logistics Private Trust No.40 |
|
9,712 |
|
(299) |
|
272 |
|
- |
|
- |
|
9,685 |
Shinhan-Cognitive Start-up Fund L.P. |
|
4,147 |
|
(720) |
|
(193) |
|
- |
|
- |
|
3,234 |
Logisvalley Shinhan REIT Co., Ltd. |
|
3,245 |
|
- |
|
(43) |
|
- |
|
- |
|
3,202 |
Shinhan-G.N.Tech Smart Innovation Fund |
|
10,974 |
|
(4,290) |
|
1,607 |
|
- |
|
- |
|
8,291 |
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |
|
8,192 |
|
(900) |
|
(70) |
|
- |
|
- |
|
7,222 |
Korea Investment Green Newdeal Infra Trust No.1 |
|
17,439 |
|
- |
|
318 |
|
- |
|
- |
|
17,757 |
BTS 2nd Private Equity Fund |
|
10,938 |
|
1,375 |
|
551 |
|
- |
|
- |
|
12,864 |
100
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
NH-J&-IBKC Label Technology Fund |
W |
8,281 |
|
- |
|
(740) |
|
- |
|
- |
|
7,541 |
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |
|
3,953 |
|
- |
|
(390) |
|
- |
|
- |
|
3,563 |
Shinhan-iSquare Venture PEF 1st |
|
3,301 |
|
50 |
|
(97) |
|
- |
|
- |
|
3,254 |
Nextrade Co., Ltd. |
|
9,700 |
|
- |
|
- |
|
- |
|
- |
|
9,700 |
IBKC-Behigh Fund 1st |
|
3,096 |
|
- |
|
(35) |
|
- |
|
- |
|
3,061 |
Aurum-Korea Global Bio Healthcare New Tech Fund No.2 |
|
1,028 |
|
- |
|
6,826 |
|
- |
|
- |
|
7,854 |
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |
|
7,160 |
|
(7,552) |
|
392 |
|
- |
|
- |
|
- |
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |
|
10,153 |
|
(844) |
|
466 |
|
- |
|
- |
|
9,775 |
KORAMCO REITS Mezzanine Trust No.38 |
|
3,533 |
|
(3,460) |
|
(73) |
|
- |
|
- |
|
- |
TogetherKorea Private Investment Trust No. 6 |
|
5,540 |
|
- |
|
56 |
|
- |
|
- |
|
5,596 |
TogetherKorea Private Investment Trust No. 7 |
|
5,540 |
|
- |
|
56 |
|
- |
|
- |
|
5,596 |
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund |
|
4,175 |
|
(3,301) |
|
817 |
|
- |
|
- |
|
1,691 |
Penture K-Content Investment Fund |
|
16,080 |
|
- |
|
(86) |
|
- |
|
- |
|
15,994 |
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund |
|
10,733 |
|
(4,200) |
|
199 |
|
- |
|
- |
|
6,732 |
Hana Alternative Investment Kosmes PCBO General PEF No. 1 |
|
5,283 |
|
(264) |
|
49 |
|
- |
|
- |
|
5,068 |
Shinhan-Timefolio Bio Accelerator Fund |
|
17,112 |
|
(5,700) |
|
1,876 |
|
- |
|
- |
|
13,288 |
Shinhan M&A-ESG Fund |
|
9,053 |
|
- |
|
(383) |
|
- |
|
- |
|
8,670 |
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |
|
19,548 |
|
(272) |
|
1,286 |
|
- |
|
- |
|
20,562 |
Shinhan Time Secondary Blind Fund |
|
11,138 |
|
(1,805) |
|
(2,532) |
|
- |
|
- |
|
6,801 |
Shinhan DS Secondary Investment Fund |
|
31,178 |
|
1,240 |
|
(12,955) |
|
- |
|
- |
|
19,463 |
Shinhan-OpenWater Pre-IPO Fund-1 |
|
6,566 |
|
- |
|
(103) |
|
- |
|
- |
|
6,463 |
101
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
102
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Shinhan-CJ TechInnovation Fund 1st |
W |
4,421 |
|
1,600 |
|
(487) |
|
- |
|
- |
|
5,534 |
Shinhan-Eco Venture Fund 2nd |
|
3,584 |
|
(35) |
|
(53) |
|
- |
|
- |
|
3,496 |
Heungkuk-Shinhan The First Visionary Fund No.1 |
|
7,055 |
|
- |
|
(84) |
|
- |
|
- |
|
6,971 |
Koreainvestment-Shinhan-LEP K beauty |
|
7,074 |
|
(1,923) |
|
173 |
|
- |
|
- |
|
5,324 |
Shinhan HB Wellness 1st Fund |
|
5,690 |
|
- |
|
254 |
|
- |
|
- |
|
5,944 |
Korea real Asset Fund No.3 |
|
18,680 |
|
- |
|
879 |
|
- |
|
- |
|
19,559 |
Timefolio Tech Fund I |
|
3,039 |
|
- |
|
16 |
|
- |
|
- |
|
3,055 |
PineStreet Global Corporate FoF XIII-2 |
|
8,142 |
|
683 |
|
764 |
|
- |
|
- |
|
9,589 |
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
14,006 |
|
- |
|
(1,214) |
|
- |
|
- |
|
12,792 |
SH K-REITs Infra Real Estate Investment Trust (FoFs) |
|
3,182 |
|
(262) |
|
(163) |
|
- |
|
- |
|
2,757 |
Samsung-Dunamu Innovation IT Fund No.1 |
|
4,005 |
|
- |
|
96 |
|
- |
|
- |
|
4,101 |
Time Robotics fund |
|
3,630 |
|
(72) |
|
108 |
|
- |
|
- |
|
3,666 |
Ascent-Welcome Fund2 |
|
7,103 |
|
- |
|
(11) |
|
- |
|
- |
|
7,092 |
Igis General PE Real Estate Investment Trust 517-1 |
|
54,975 |
|
- |
|
(1,250) |
|
- |
|
- |
|
53,725 |
Consus Osansegyo No.2 |
|
8,009 |
|
- |
|
- |
|
- |
|
- |
|
8,009 |
Shinhan AIM Private Fund of Fund 9-B |
|
43,596 |
|
(861) |
|
1,471 |
|
- |
|
- |
|
44,206 |
Shinhan General Private Real Estate Investment Trust No.3 |
|
29,389 |
|
(12,819) |
|
1,327 |
|
- |
|
- |
|
17,897 |
Paros Kosdaq Venture General Private Investment Trust No. 5 |
|
3,638 |
|
(1,362) |
|
(236) |
|
- |
|
- |
|
2,040 |
Shinhan-soo secondary Fund |
|
17,442 |
|
- |
|
1,075 |
|
- |
|
- |
|
18,517 |
TECHFIN RATINGS Co., Ltd. |
|
23,040 |
|
- |
|
(2,093) |
|
- |
|
- |
|
20,947 |
Songpa biz cluster PFV Co., Ltd. |
|
12,927 |
|
- |
|
(285) |
|
- |
|
- |
|
12,642 |
Planeta PTE LTD |
|
12,239 |
|
- |
|
909 |
|
- |
|
- |
|
13,148 |
The E&Shinhan New Growth Up Fund |
|
7,496 |
|
(1,500) |
|
(304) |
|
- |
|
- |
|
5,692 |
HHR Special Situation Real Estate Private Investment Trust No. 13 |
|
3,216 |
|
(111) |
|
31 |
|
- |
|
- |
|
3,136 |
Shinhan-GB FutureFlow Fund L.P. |
|
8,082 |
|
95 |
|
(244) |
|
301 |
|
- |
|
8,234 |
103
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Credila Financial Services |
W |
265,814 |
|
- |
|
11,160 |
|
2,049 |
|
- |
|
279,023 |
Shinhan-DS Mezzanine Fund 1 |
|
3,643 |
|
- |
|
(23) |
|
- |
|
- |
|
3,620 |
Shinhan Time BM sobujang Fund |
|
3,371 |
|
- |
|
(103) |
|
- |
|
- |
|
3,268 |
Tigris Fund No. 58 |
|
3,809 |
|
(2,315) |
|
(544) |
|
- |
|
- |
|
950 |
Shinhan Market-Frontier Fund Ⅲ |
|
22,476 |
|
4,402 |
|
148 |
|
- |
|
- |
|
27,026 |
Fine North America Credit Private Mixed Asset Investment Trust 22 |
|
5,883 |
|
(122) |
|
(36) |
|
- |
|
- |
|
5,725 |
IGIS Private Real Estate Investment No.454 |
|
3,362 |
|
- |
|
(3) |
|
- |
|
- |
|
3,359 |
IGIS Private Real Estate Investment No.462 |
|
4,377 |
|
- |
|
(29) |
|
- |
|
- |
|
4,348 |
XSKONA Battery Alliance Fund |
|
2,913 |
|
- |
|
1,337 |
|
- |
|
- |
|
4,250 |
BNW Recharge Private Equity Fund |
|
4,482 |
|
- |
|
(248) |
|
- |
|
- |
|
4,234 |
United Partners Realasset Fund No.14 |
|
10,068 |
|
(120) |
|
44 |
|
- |
|
- |
|
9,992 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |
|
16,396 |
|
(16,823) |
|
427 |
|
- |
|
- |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |
|
15,854 |
|
(16,004) |
|
150 |
|
- |
|
- |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |
|
15,977 |
|
(16,228) |
|
251 |
|
- |
|
- |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |
|
7,225 |
|
- |
|
(280) |
|
- |
|
- |
|
6,945 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |
|
14,873 |
|
- |
|
(1,117) |
|
- |
|
- |
|
13,756 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |
|
7,567 |
|
- |
|
(478) |
|
- |
|
- |
|
7,089 |
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |
|
4,388 |
|
(2,194) |
|
238 |
|
- |
|
- |
|
2,432 |
SH Prestige High Dividend Security Feeder No.1[Equity] |
|
6,770 |
|
(546) |
|
7,271 |
|
- |
|
- |
|
13,495 |
IGIS Real Estate General Private Feeder Investment Company No.562 |
|
21,218 |
|
- |
|
(674) |
|
- |
|
- |
|
20,544 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 |
|
14,689 |
|
- |
|
(6,032) |
|
- |
|
- |
|
8,657 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 |
|
15,439 |
|
- |
|
(4,402) |
|
- |
|
- |
|
11,037 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 |
|
14,554 |
|
- |
|
(6,423) |
|
- |
|
- |
|
8,131 |
104
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehe-nsive income |
|
Impairment loss |
|
Ending balance |
Startup Korea Vision 2024 Fund |
W |
2,692 |
|
3,060 |
|
(100) |
|
- |
|
- |
|
5,652 |
Finflow |
|
7,038 |
|
- |
|
(193) |
|
(44) |
|
- |
|
6,801 |
Fireant Media and Digital Service Joint Stock Company |
|
4,721 |
|
- |
|
489 |
|
- |
|
- |
|
5,210 |
PharosBH Fund |
|
2,925 |
|
- |
|
1,421 |
|
- |
|
- |
|
4,346 |
ST EIP Holdings Inc. |
|
53,138 |
|
(1,304) |
|
3,892 |
|
- |
|
- |
|
55,726 |
AMP Capital Global Infrastructure Fund II B L |
|
23,072 |
|
(23,072) |
|
- |
|
- |
|
- |
|
- |
Post CR REITS No.1 |
|
3,500 |
|
- |
|
22 |
|
- |
|
- |
|
3,522 |
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |
|
4,733 |
|
(2,272) |
|
24 |
|
- |
|
- |
|
2,485 |
Atomos Specialty No.1 Private Equity Fund |
|
- |
|
4,900 |
|
129 |
|
- |
|
- |
|
5,029 |
ShinhanHelio Black Private Equity Eund |
|
- |
|
6,000 |
|
(49) |
|
- |
|
- |
|
5,951 |
SNM Technology Innovation Fund |
|
- |
|
3,864 |
|
(49) |
|
- |
|
- |
|
3,815 |
CSQUAED Venture Fund 20th |
|
- |
|
7,000 |
|
(88) |
|
- |
|
- |
|
6,912 |
ShinhanInvestmentHIFIBondSafeR2YPrivate24(2) |
|
- |
|
15,700 |
|
(3,514) |
|
- |
|
- |
|
12,186 |
Shinhan Securities HIFI Bond SafeR 2Y Private 25(2) |
|
- |
|
15,700 |
|
(1,727) |
|
- |
|
- |
|
13,973 |
Shinhan-DS Productive Finance Mezzanine Fund 1 |
|
- |
|
11,200 |
|
- |
|
- |
|
- |
|
11,200 |
Others |
|
169,262 |
|
(29,625) |
|
14,299 |
|
- |
|
(1,047) |
|
152,889 |
|
W |
2,639,202 |
|
(247,328) |
|
51,183 |
|
1,763 |
|
(5,554) |
|
2,439,266 |
(*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.
105
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
BNP Paribas Cardif Life Insurance |
W |
36,436 |
|
- |
|
(2,105) |
|
2,146 |
|
- |
|
36,477 |
Shinhan-Neoplux Energy Newbiz Fund |
|
14,612 |
|
- |
|
(1,590) |
|
- |
|
- |
|
13,022 |
Shinhan-Albatross Technology Investment Fund |
|
8,672 |
|
(2,017) |
|
(989) |
|
- |
|
- |
|
5,666 |
VOGO Debt Strategy Qualified IV Private |
|
3,713 |
|
(1,863) |
|
(12) |
|
- |
|
- |
|
1,838 |
Shinhan-Midas Donga Secondary Fund |
|
3,152 |
|
(915) |
|
(528) |
|
- |
|
- |
|
1,709 |
ShinHan – Soo Young Entrepreneur Investment Fund |
|
3,381 |
|
(1,340) |
|
(297) |
|
- |
|
- |
|
1,744 |
Shinhan Praxis K-Growth Global Private Equity Fund |
|
3,690 |
|
- |
|
- |
|
- |
|
- |
|
3,690 |
Kiwoom Milestone Professional Private Real Estate Trust 19 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Shinhan Global Healthcare Fund 1 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
KB NA Hickory Private Special Asset Fund |
|
17,493 |
|
(17,628) |
|
135 |
|
- |
|
- |
|
- |
Koramco Europe Core Private Placement Real Estate Fund No.2-2 (*) |
|
6,815 |
|
- |
|
(618) |
|
- |
|
(771) |
|
5,426 |
Shinhan-Nvestor Liquidity Solution Fund |
|
5,126 |
|
(1,250) |
|
(147) |
|
- |
|
- |
|
3,729 |
Shinhan AIM FoF Fund 1-A |
|
9,804 |
|
(9,813) |
|
10 |
|
- |
|
- |
|
1 |
IGIS Global Credit Fund 150-1 |
|
4,989 |
|
(2,979) |
|
(1,017) |
|
- |
|
- |
|
993 |
Nomura-Rifa Private Real Estate Investment Trust 19 (*) |
|
1,939 |
|
(13) |
|
80 |
|
- |
|
(2,006) |
|
- |
Genesis North America Power Company No.1 PEF |
|
6,802 |
|
(1,254) |
|
523 |
|
- |
|
- |
|
6,071 |
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 |
|
9,402 |
|
(11,201) |
|
1,799 |
|
- |
|
- |
|
- |
Korea Finance Security Co., Ltd. |
|
3,542 |
|
- |
|
307 |
|
- |
|
- |
|
3,849 |
MIEL CO., LTD. (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
AIP Transportation Specialized Privately Placed Fund Trust #1 |
|
58,807 |
|
1,505 |
|
2,459 |
|
- |
|
- |
|
62,771 |
Kiwoom-Shinhan Innovation Fund I |
|
7,979 |
|
- |
|
(225) |
|
- |
|
- |
|
7,754 |
Samchully Midstream Private Placement Special Asset Fund 5-4 |
|
39,484 |
|
(1,871) |
|
(2,666) |
|
- |
|
- |
|
34,947 |
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*) |
|
3 |
|
- |
|
(1) |
|
- |
|
- |
|
2 |
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |
|
35,413 |
|
(1,678) |
|
(1,648) |
|
- |
|
- |
|
32,087 |
Milestone Private Real Estate Fund 3 |
|
19,120 |
|
1,789 |
|
367 |
|
- |
|
- |
|
21,276 |
106
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Nomura-Rifa Private Real Estate Investment Trust 31 |
W |
6,343 |
|
(98) |
|
(159) |
|
- |
|
- |
|
6,086 |
FuturePlay-Shinhan TechInnovation Fund 1 |
|
5,785 |
|
- |
|
517 |
|
- |
|
- |
|
6,302 |
Stonebridge Corporate 1st Fund |
|
3,977 |
|
(3,367) |
|
(610) |
|
- |
|
- |
|
- |
Vogo Realty Partners Private Real Estate Fund V |
|
10,662 |
|
(225) |
|
(166) |
|
- |
|
- |
|
10,271 |
Korea Credit Bureau |
|
7,574 |
|
(90) |
|
2,654 |
|
- |
|
- |
|
10,138 |
Goduck Gangil1 PFV Co., Ltd. (*) |
|
96 |
|
(25) |
|
(8) |
|
- |
|
- |
|
63 |
SBC PFV Co., Ltd. |
|
37,616 |
|
- |
|
(2,662) |
|
- |
|
- |
|
34,954 |
NH-amundi global infra private fund 16 (*) |
|
32,968 |
|
6,422 |
|
(9,385) |
|
- |
|
(2,205) |
|
27,800 |
SH BNCT Professional Investment Type Private Special Asset Investment Trust |
|
225,708 |
|
(29,542) |
|
9,837 |
|
- |
|
- |
|
206,003 |
IGIS Real-estate Private Investment Trust No.33 |
|
15,632 |
|
(9,746) |
|
878 |
|
- |
|
- |
|
6,764 |
Goduck Gangil10 PFV Co., Ltd. |
|
6,165 |
|
(1,030) |
|
(379) |
|
(4,756) |
|
- |
|
- |
Fidelis Global Private Real Estate Trust No.2 (*) |
|
551 |
|
- |
|
- |
|
- |
|
- |
|
551 |
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 (*) |
|
24,644 |
|
- |
|
- |
|
- |
|
(7,792) |
|
16,852 |
Shinhan Global Healthcare Fund 2 (*) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Shinhan AIM Real Estate Fund No.1 |
|
2,884 |
|
- |
|
3,620 |
|
- |
|
- |
|
6,504 |
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust |
|
39,491 |
|
(858) |
|
640 |
|
- |
|
- |
|
39,273 |
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |
|
21,947 |
|
11 |
|
(2,176) |
|
- |
|
- |
|
19,782 |
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 |
|
15,770 |
|
(521) |
|
423 |
|
- |
|
- |
|
15,672 |
Korea Omega-Shinhan Project Fund I |
|
19,473 |
|
(31,903) |
|
17,793 |
|
- |
|
- |
|
5,363 |
Samsung SRA Real Estate Professional Private 45 |
|
30,276 |
|
(2,887) |
|
1,642 |
|
- |
|
- |
|
29,031 |
IBK Global New Renewable Energy Special Asset Professional Private2 |
|
33,098 |
|
(5,805) |
|
755 |
|
- |
|
- |
|
28,048 |
VS Cornerstone Fund |
|
3,225 |
|
(3,618) |
|
393 |
|
- |
|
- |
|
- |
Kakao-Shinhan 1st TNYT Fund |
|
23,678 |
|
- |
|
128 |
|
- |
|
- |
|
23,806 |
107
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Pacific Private Placement Real Estate Fund No.40 |
|
11,623 |
|
(747) |
|
8,176 |
|
- |
|
- |
|
19,052 |
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
LB Scotland Amazon Fulfillment Center Fund 29 |
W |
18,848 |
|
6,351 |
|
(2,262) |
|
- |
|
- |
|
22,937 |
JR AMC Hungary Budapest Office Fund 16 |
|
13,187 |
|
1,127 |
|
43 |
|
- |
|
- |
|
14,357 |
Gyeonggi-Neoplux Superman Fund |
|
4,138 |
|
- |
|
70 |
|
- |
|
- |
|
4,208 |
NewWave 6th Fund |
|
10,708 |
|
- |
|
(872) |
|
- |
|
- |
|
9,836 |
Neoplux No.3 Private Equity Fund |
|
12,152 |
|
(20) |
|
(1,923) |
|
- |
|
- |
|
10,209 |
PCC Amberstone Private Equity Fund I |
|
14,540 |
|
(6,457) |
|
(66) |
|
- |
|
- |
|
8,017 |
KIAMCO POWERLOAN TRUST 4TH |
|
48,703 |
|
(2,796) |
|
893 |
|
- |
|
- |
|
46,800 |
Mastern Opportunity Seeking Real Estate Fund II |
|
5,272 |
|
(4,873) |
|
749 |
|
- |
|
- |
|
1,148 |
Neoplux Market-Frontier Secondary Fund |
|
8,175 |
|
- |
|
(2,613) |
|
- |
|
- |
|
5,562 |
Synergy Green New Deal 1st New Technology Business Investment Fund |
|
10,857 |
|
(10,841) |
|
(16) |
|
- |
|
- |
|
- |
KIAMCO Vietnam Solar Special Asset Private Investment Trust |
|
7,103 |
|
- |
|
(201) |
|
- |
|
- |
|
6,902 |
SHINHAN-NEO Core Industrial Technology Fund |
|
8,111 |
|
- |
|
(1,011) |
|
- |
|
- |
|
7,100 |
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |
|
21,710 |
|
(2,514) |
|
962 |
|
- |
|
- |
|
20,158 |
Eum Private Equity Fund No.7 |
|
9,156 |
|
(405) |
|
783 |
|
- |
|
- |
|
9,534 |
Kiwoom Hero No.4 Private Equity Fund |
|
4,197 |
|
(9,523) |
|
5,326 |
|
- |
|
- |
|
- |
AJ-KOSNET Semicon One Venture Fund |
|
3,212 |
|
- |
|
(51) |
|
- |
|
- |
|
3,161 |
Shinhan Smilegate Global PEF I |
|
3,882 |
|
(3,882) |
|
- |
|
- |
|
- |
|
- |
Genesis Eco No.1 PEF |
|
11,077 |
|
- |
|
(2,305) |
|
- |
|
- |
|
8,772 |
SHINHAN-NEO Market-Frontier 2nd Fund |
|
27,499 |
|
(4,014) |
|
1,133 |
|
- |
|
- |
|
24,618 |
J& Moorim Jade Investment Fund |
|
5,353 |
|
(7,579) |
|
2,226 |
|
- |
|
- |
|
- |
Ulmus SHC innovation investment fund |
|
4,305 |
|
- |
|
1,302 |
|
- |
|
- |
|
5,607 |
T Core Industrial Technology 1st Venture PEF |
|
2,995 |
|
- |
|
61 |
|
- |
|
- |
|
3,056 |
108
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
TI First Property Private Investment Trust 1 |
|
3,102 |
|
(4,248) |
|
2,046 |
|
- |
|
- |
|
900 |
Kiwoom-Shinhan Innovation Fund 2 |
|
10,227 |
|
(3,771) |
|
6,223 |
|
- |
|
- |
|
12,679 |
109
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
ETRI Holdings-Shinhan 1st Unicorn Fund |
W |
4,696 |
|
(500) |
|
(72) |
|
- |
|
- |
|
4,124 |
SJ ESG Innovative Growth Fund |
|
3,115 |
|
(2,458) |
|
(657) |
|
- |
|
- |
|
- |
AVES 1st Corporate Recovery Private Equity Fund |
|
4,523 |
|
- |
|
(25) |
|
- |
|
- |
|
4,498 |
Reverent-Shinhan Vista Fund |
|
3,409 |
|
54 |
|
300 |
|
- |
|
- |
|
3,763 |
JS Shinhan Private Equity Fund |
|
6,381 |
|
- |
|
(119) |
|
- |
|
- |
|
6,262 |
Meta TB ESG Private Equity Fund I |
|
5,683 |
|
- |
|
(91) |
|
- |
|
- |
|
5,592 |
Shinhan VC tomorrow venture fund 1 |
|
70,633 |
|
2,214 |
|
29,693 |
|
- |
|
- |
|
102,540 |
H-IOTA Fund |
|
9,377 |
|
(9,615) |
|
238 |
|
- |
|
- |
|
- |
Stonebridge-Shinhan Unicorn Secondary Fund |
|
13,587 |
|
(2,002) |
|
1,497 |
|
- |
|
- |
|
13,082 |
Tres-Yujin Trust |
|
13,031 |
|
- |
|
115 |
|
- |
|
- |
|
13,146 |
Shinhan-Time mezzanine blind Fund |
|
16,426 |
|
(16,504) |
|
78 |
|
- |
|
- |
|
- |
Capstone REITs No.26 |
|
5,369 |
|
- |
|
(300) |
|
- |
|
- |
|
5,069 |
JB Incheon-Bucheon REITS No.54 |
|
4,967 |
|
- |
|
818 |
|
- |
|
- |
|
5,785 |
Hankook Smart Real Asset Investment Trust No.3 |
|
6,006 |
|
(1,515) |
|
(2,408) |
|
- |
|
- |
|
2,083 |
JB Hwaseong-Hadong REITs No.53 |
|
4,974 |
|
(5,195) |
|
1,014 |
|
- |
|
- |
|
793 |
KB Oaktree Trust No.3 |
|
9,888 |
|
(1,118) |
|
544 |
|
- |
|
- |
|
9,314 |
KAI-The Square Fund 1 (*) |
|
125 |
|
- |
|
30 |
|
- |
|
(144) |
|
11 |
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |
|
52,797 |
|
(24,390) |
|
3,141 |
|
- |
|
- |
|
31,548 |
Shinhan JigaeNamsan Road Private Special Asset Investment Trust |
|
39,645 |
|
(901) |
|
1,552 |
|
- |
|
- |
|
40,296 |
KB Distribution Private Real Estate 3-1 (*) |
|
24,079 |
|
- |
|
(939) |
|
- |
|
(23,140) |
|
- |
Pacific Private Investment Trust No.49-1 |
|
28,000 |
|
- |
|
8,678 |
|
- |
|
- |
|
36,678 |
KIWOOM Real estate private placement fund for normal investors No. 31 (*) |
|
8,032 |
|
- |
|
14 |
|
- |
|
(8,046) |
|
- |
RIFA Real estate private placement fund for normal investors No. 51 (*) |
|
5,371 |
|
- |
|
9 |
|
- |
|
(5,380) |
|
- |
Shinhan-Kunicorn first Fund |
|
9,424 |
|
- |
|
(1,723) |
|
- |
|
- |
|
7,701 |
Shinhan-Quantum Startup Fund |
|
5,665 |
|
- |
|
(117) |
|
- |
|
- |
|
5,548 |
Shinhan Simone Fund Ⅰ |
|
3,422 |
|
(1,962) |
|
36 |
|
- |
|
- |
|
1,496 |
Korea Investment develop seed Trust No.1 |
|
10,145 |
|
(527) |
|
1,112 |
|
- |
|
- |
|
10,730 |
110
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
Tiger Green alpha Trust No.29 |
W |
29,992 |
|
(31,100) |
|
1,108 |
|
- |
|
- |
|
- |
STIC ALT Global II Private Equity Fund |
|
9,841 |
|
(217) |
|
169 |
|
- |
|
- |
|
9,793 |
DDI LVC Master Real Estate Investment Trust Co., Ltd. |
|
5,800 |
|
- |
|
(1,141) |
|
- |
|
- |
|
4,659 |
Find-Green New Deal 2nd Equity Fund |
|
4,324 |
|
- |
|
402 |
|
- |
|
- |
|
4,726 |
ShinhanFitrin 1st Technology Business Investment Association |
|
4,232 |
|
- |
|
(298) |
|
- |
|
- |
|
3,934 |
Koramco Private Real Estate Fund 143 |
|
6,669 |
|
- |
|
1,423 |
|
- |
|
- |
|
8,092 |
Korea Investment Top Mezzanine Private Real Estate Trust No.1 |
|
9,876 |
|
(5,701) |
|
(1,135) |
|
- |
|
- |
|
3,040 |
LB YoungNam Logistics Private Trust No.40 |
|
9,625 |
|
(600) |
|
687 |
|
- |
|
- |
|
9,712 |
Shinhan-Cognitive Start-up Fund L.P. |
|
4,209 |
|
- |
|
(62) |
|
- |
|
- |
|
4,147 |
Cornerstone J&M Fund I |
|
3,414 |
|
(4,109) |
|
695 |
|
- |
|
- |
|
- |
Logisvalley Shinhan REIT Co., Ltd. |
|
3,389 |
|
- |
|
(144) |
|
- |
|
- |
|
3,245 |
Shinhan-G.N.Tech Smart Innovation Fund |
|
13,004 |
|
(4,160) |
|
2,130 |
|
- |
|
- |
|
10,974 |
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |
|
6,758 |
|
1,800 |
|
(366) |
|
- |
|
- |
|
8,192 |
Korea Investment Green Newdeal Infra Trust No.1 |
|
16,096 |
|
1,418 |
|
(75) |
|
- |
|
- |
|
17,439 |
BTS 2nd Private Equity Fund |
|
10,159 |
|
806 |
|
(27) |
|
- |
|
- |
|
10,938 |
NH-J&-IBKC Label Technology Fund |
|
9,646 |
|
(5,396) |
|
4,031 |
|
- |
|
- |
|
8,281 |
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |
|
3,916 |
|
(1,150) |
|
1,187 |
|
- |
|
- |
|
3,953 |
Shinhan-iSquare Venture PEF 1st |
|
4,237 |
|
(874) |
|
(62) |
|
- |
|
- |
|
3,301 |
Aurum Goldrush ESG Private Fund No. 1 |
|
3,007 |
|
- |
|
(438) |
|
- |
|
- |
|
2,569 |
Capstone Develop Frontier Trust |
|
8,049 |
|
(7,607) |
|
(442) |
|
- |
|
- |
|
- |
Nextrade Co., Ltd. |
|
9,700 |
|
- |
|
- |
|
- |
|
- |
|
9,700 |
IBKC-Behigh Fund 1st |
|
3,160 |
|
- |
|
(64) |
|
- |
|
- |
|
3,096 |
ON No.1 Private Equity Fund |
|
5,712 |
|
(6,020) |
|
308 |
|
- |
|
- |
|
- |
Digital New Deal Kappa Private Equity Fund |
|
4,747 |
|
(5,534) |
|
787 |
|
- |
|
- |
|
- |
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |
|
9,646 |
|
(4,304) |
|
1,818 |
|
- |
|
- |
|
7,160 |
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |
|
11,324 |
|
(1,916) |
|
745 |
|
- |
|
- |
|
10,153 |
111
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
112
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
KORAMCO REITS Mezzanine Trust No.38 |
W |
3,278 |
|
(87) |
|
342 |
|
- |
|
- |
|
3,533 |
TogetherKorea Private Investment Trust No. 6 |
|
5,423 |
|
- |
|
117 |
|
- |
|
- |
|
5,540 |
TogetherKorea Private Investment Trust No. 7 |
|
5,423 |
|
- |
|
117 |
|
- |
|
- |
|
5,540 |
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund |
|
4,219 |
|
- |
|
(44) |
|
- |
|
- |
|
4,175 |
Penture K-Content Investment Fund |
|
11,319 |
|
8,000 |
|
(3,239) |
|
- |
|
- |
|
16,080 |
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund |
|
13,468 |
|
(5,790) |
|
3,055 |
|
- |
|
- |
|
10,733 |
Hana Alternative Investment Kosmes PCBO General PEF No. 1 |
|
5,125 |
|
(528) |
|
686 |
|
- |
|
- |
|
5,283 |
Shinhan-Timefolio Bio Accelerator Fund |
|
11,707 |
|
(6,060) |
|
11,465 |
|
- |
|
- |
|
17,112 |
Shinhan M&A-ESG Fund |
|
6,454 |
|
1,946 |
|
653 |
|
- |
|
- |
|
9,053 |
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |
|
18,804 |
|
(472) |
|
1,216 |
|
- |
|
- |
|
19,548 |
KDBC meta-enter New Technology investment fund |
|
6,797 |
|
(7,000) |
|
203 |
|
- |
|
- |
|
- |
Shinhan Time Secondary Blind Fund |
|
4,637 |
|
2,375 |
|
4,126 |
|
- |
|
- |
|
11,138 |
Shinhan DS Secondary Investment Fund |
|
2,439 |
|
7,087 |
|
21,652 |
|
- |
|
- |
|
31,178 |
Shinhan-OpenWater Pre-IPO Fund-1 |
|
5,666 |
|
(2,450) |
|
3,350 |
|
- |
|
- |
|
6,566 |
Shinhan-CJ TechInnovation Fund 1st |
|
4,595 |
|
- |
|
(174) |
|
- |
|
- |
|
4,421 |
Shinhan-Eco Venture Fund 2nd |
|
3,957 |
|
(330) |
|
(43) |
|
- |
|
- |
|
3,584 |
Heungkuk-Shinhan The First Visionary Fund No.1 |
|
6,497 |
|
505 |
|
53 |
|
- |
|
- |
|
7,055 |
Koreainvestment-Shinhan-LEP K beauty |
|
10,264 |
|
(2,938) |
|
(252) |
|
- |
|
- |
|
7,074 |
Shinhan HB Wellness 1st Fund |
|
5,326 |
|
- |
|
364 |
|
- |
|
- |
|
5,690 |
Korea real Asset Fund No.3 |
|
16,552 |
|
1,046 |
|
1,082 |
|
- |
|
- |
|
18,680 |
Timefolio Tech Fund I |
|
2,990 |
|
- |
|
49 |
|
- |
|
- |
|
3,039 |
PineStreet Global Corporate FoF XIII-2 |
|
3,743 |
|
3,273 |
|
1,126 |
|
- |
|
- |
|
8,142 |
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
17,144 |
|
(726) |
|
(2,412) |
|
- |
|
- |
|
14,006 |
113
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
SH K-REITs Infra Real Estate Investment Trust (FoFs) |
W |
2,813 |
|
(176) |
|
545 |
|
- |
|
- |
|
3,182 |
Samsung-Dunamu Innovation IT Fund No.1 |
|
3,750 |
|
- |
|
255 |
|
- |
|
- |
|
4,005 |
Time Robotics fund |
|
3,778 |
|
(72) |
|
(76) |
|
- |
|
- |
|
3,630 |
Ascent-Welcome Fund2 |
|
8,460 |
|
(1,659) |
|
302 |
|
- |
|
- |
|
7,103 |
Newmain I funds |
|
9,364 |
|
(9,254) |
|
(110) |
|
- |
|
- |
|
- |
Igis General PE Real Estate Investment Trust 517-1 |
|
54,902 |
|
3,000 |
|
(2,927) |
|
- |
|
- |
|
54,975 |
SH Ulmus M.P.E. Innovative Venture Fund 7 |
|
3,032 |
|
- |
|
(99) |
|
- |
|
- |
|
2,933 |
Consus Osansegyo No.2 |
|
8,009 |
|
- |
|
- |
|
- |
|
- |
|
8,009 |
Shinhan AIM Private Fund of Fund 9-B |
|
36,741 |
|
5,053 |
|
1,802 |
|
- |
|
- |
|
43,596 |
Shinhan General Private Real Estate Investment Trust No.3 |
|
26,706 |
|
660 |
|
2,023 |
|
- |
|
- |
|
29,389 |
Paros Kosdaq Venture General Private Investment Trust No. 5 |
|
6,590 |
|
(3,062) |
|
110 |
|
- |
|
- |
|
3,638 |
Shinhan-soo secondary Fund |
|
16,737 |
|
- |
|
705 |
|
- |
|
- |
|
17,442 |
TECHFIN RATINGS Co., Ltd. |
|
25,610 |
|
- |
|
(2,570) |
|
- |
|
- |
|
23,040 |
Songpa biz cluster PFV Co., Ltd. |
|
13,364 |
|
- |
|
(437) |
|
- |
|
- |
|
12,927 |
Planeta PTE LTD |
|
11,341 |
|
- |
|
898 |
|
- |
|
- |
|
12,239 |
The E&Shinhan New Growth Up Fund |
|
3,518 |
|
2,580 |
|
1,398 |
|
- |
|
- |
|
7,496 |
HHR Special Situation Real Estate Private Investment Trust No. 13 |
|
2,749 |
|
(224) |
|
691 |
|
- |
|
- |
|
3,216 |
Shinhan-GB FutureFlow Fund L.P. |
|
5,150 |
|
2,996 |
|
(313) |
|
249 |
|
- |
|
8,082 |
Credila Financial Services |
|
263,116 |
|
3,240 |
|
20,059 |
|
(20,601) |
|
- |
|
265,814 |
Shinhan-DS Mezzanine Fund 1 |
|
2,869 |
|
- |
|
774 |
|
- |
|
- |
|
3,643 |
Shinhan Time BM sobujang Fund |
|
1,405 |
|
1,750 |
|
216 |
|
- |
|
- |
|
3,371 |
Tigris Fund No. 58 |
|
1,977 |
|
(1,420) |
|
3,252 |
|
- |
|
- |
|
3,809 |
Shinhan Market-Frontier Fund Ⅲ |
|
12,791 |
|
8,804 |
|
881 |
|
- |
|
- |
|
22,476 |
DB IPO HighYield Fund 1 |
|
4,278 |
|
(4,342) |
|
64 |
|
- |
|
- |
|
- |
Exponential SQUARE Private Investment Trust No.1 |
|
5,208 |
|
(5,668) |
|
460 |
|
- |
|
- |
|
- |
Fine North America Credit Private Mixed Asset Investment Trust 22 |
|
4,613 |
|
807 |
|
463 |
|
- |
|
- |
|
5,883 |
IGIS Private Real Estate Investment No.454 |
|
3,368 |
|
- |
|
(6) |
|
- |
|
- |
|
3,362 |
IGIS Private Real Estate Investment No.462 |
|
4,433 |
|
- |
|
(56) |
|
- |
|
- |
|
4,377 |
114
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
12. Investments in associates (continued)
(b) Changes in investments in associates for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||
Investees |
|
Beginning balance |
|
Investment And dividend |
|
Equity method Income (loss) |
|
Change in other comprehensive income |
|
Impairment loss |
|
Ending balance |
BNW Recharge Private Equity Fund |
W |
7,138 |
|
- |
|
(2,656) |
|
- |
|
- |
|
4,482 |
United Partners Realasset Fund No.14 |
|
9,998 |
|
(65) |
|
135 |
|
- |
|
- |
|
10,068 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 |
|
17,977 |
|
(17,977) |
|
- |
|
- |
|
- |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 |
|
12,035 |
|
(12,035) |
|
- |
|
- |
|
- |
|
- |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |
|
13,711 |
|
- |
|
2,685 |
|
- |
|
- |
|
16,396 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |
|
13,738 |
|
- |
|
2,116 |
|
- |
|
- |
|
15,854 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |
|
13,290 |
|
- |
|
2,687 |
|
- |
|
- |
|
15,977 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |
|
5,378 |
|
- |
|
1,847 |
|
- |
|
- |
|
7,225 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |
|
10,925 |
|
- |
|
3,948 |
|
- |
|
- |
|
14,873 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |
|
5,052 |
|
- |
|
2,515 |
|
- |
|
- |
|
7,567 |
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |
|
4,197 |
|
(326) |
|
517 |
|
- |
|
- |
|
4,388 |
SH Prestige High Dividend Security Feeder No.1[Equity] |
|
2,579 |
|
1,962 |
|
2,229 |
|
- |
|
- |
|
6,770 |
IGIS Real Estate General Private Feeder Investment Company No.562 |
|
- |
|
23,000 |
|
(1,782) |
|
- |
|
- |
|
21,218 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 |
|
- |
|
15,700 |
|
(1,011) |
|
- |
|
- |
|
14,689 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 |
|
- |
|
15,700 |
|
(261) |
|
- |
|
- |
|
15,439 |
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 |
|
- |
|
15,700 |
|
(1,146) |
|
- |
|
- |
|
14,554 |
Finflow |
|
- |
|
7,058 |
|
(20) |
|
- |
|
- |
|
7,038 |
Fireant Media and Digital Service Joint Stock Company |
|
- |
|
4,925 |
|
(204) |
|
- |
|
- |
|
4,721 |
ST EIP Holdings Inc. |
|
- |
|
51,873 |
|
1,265 |
|
- |
|
- |
|
53,138 |
AMP Capital Global Infrastructure Fund II B L |
|
- |
|
24,243 |
|
(1,171) |
|
- |
|
- |
|
23,072 |
Post CR REITS No.1 |
|
- |
|
3,500 |
|
- |
|
- |
|
- |
|
3,500 |
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |
|
- |
|
4,781 |
|
(48) |
|
- |
|
- |
|
4,733 |
Others |
|
187,092 |
|
(74,374) |
|
47,885 |
|
- |
|
(1) |
|
160,602 |
|
W |
2,752,980 |
|
(262,556) |
|
221,225 |
|
(22,962) |
|
(49,485) |
|
2,639,202 |
(*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.
115
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
13. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Securities sold: |
|
|
|
|
Stocks |
W |
16,677 |
|
11,360 |
Bonds |
|
760,267 |
|
779,056 |
|
|
776,944 |
|
790,416 |
Gold/silver deposits |
|
1,434,868 |
|
1,522,071 |
|
W |
2,211,812 |
|
2,312,487 |
14. Financial liabilities designated at fair value through profit or loss
(a) Financial liabilities designated at fair value through profit or loss as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
|
Reason for designation |
Derivative-linked securities sold |
W |
6,694,331 |
|
6,090,215 |
|
Compound financial instrument |
Debt securities issued |
|
255,451 |
|
287,849 |
|
Fair value measurement and management |
|
W |
6,949,782 |
|
6,378,064 |
|
|
(*) The Group designated the financial liabilities at the initial recognition (or subsequently) in accordance with paragraph 6.7.1 of K-IFRS No. 1109 as financial liabilities at fair value through profit or loss.
Maximum credit risk exposure of the financial liabilities designated at fair value through profit or loss amounts to W 6,949,782 million as of June 30, 2026. Decrease in values of the liability due to credit risk changes is W 3,722 million for the six-month period ended June 30, 2026 and the accumulated changes in values are W (-) 8,153 million as of June 30, 2026.
(b) The difference between the carrying value of financial liabilities designated at fair value through profit or loss and the amount required to be paid at contractual maturity as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Expiration payment |
W |
6,744,898 |
|
6,140,775 |
Carrying amount |
|
6,949,782 |
|
6,378,064 |
Difference from carrying amount |
W |
(204,884) |
|
(237,289) |
116
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
15. Debt securities issued
Debt securities issued as of June 30, 2026 and December 31, 2025 are as follows:
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
Interest |
|
Amount |
|
Interest |
|
Amount |
Debt securities issued in Korean won: |
|
|
|
|
|
|
|
Debt securities issued |
0.24~7.00 |
W |
69,335,015 |
|
0.00~9.50 |
W |
72,212,922 |
Subordinated debt securities issued |
2.20~5.20 |
|
2,900,073 |
|
2.20~5.20 |
|
3,014,773 |
Gain on fair value hedges |
- |
|
(281,219) |
|
- |
|
(195,980) |
Discount on debt securities issued |
- |
|
(66,524) |
|
- |
|
(94,499) |
|
|
|
71,887,345 |
|
|
|
74,937,216 |
Debt securities issued in foreign currencies: |
|
|
|
|
|
|
|
Debt securities issued |
1.32~5.40 |
|
15,414,843 |
|
0.98~5.40 |
|
14,012,181 |
Subordinated debt securities issued |
3.75~5.75 |
|
3,738,941 |
|
3.75~5.75 |
|
4,186,893 |
Gain on fair value hedges |
- |
|
(134,562) |
|
- |
|
(87,714) |
Discount on debt securities issued |
- |
|
(58,386) |
|
- |
|
(57,154) |
|
|
|
18,960,836 |
|
|
|
18,054,206 |
|
|
W |
90,848,181 |
|
|
W |
92,991,422 |
117
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
16. Defined benefit plans
The Group has operated a defined benefit plan and calculates defined benefit obligations based on the employee’s pension compensation benefits and service period.
(a) Defined benefit obligations and plan assets as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Present value of defined benefit obligations |
W |
2,007,881 |
|
2,313,168 |
Fair value of plan assets |
|
(2,541,616) |
|
(2,648,445) |
Recognized liability (asset) for defined benefit obligations (*) |
W |
(533,735) |
|
(335,277) |
(*) The asset for defined benefit obligation of W 533,735 million as of June 30, 2026 is the net defined benefit asset of W 554,053 million less the net defined liability of W 20,318 million. In addition, the asset for defined benefit obligation of W 335,277 million as of December 31, 2025 is the net defined benefit asset of W 353,097 million less the net defined liability of W 17,820 million.
(b) Net income relating to defined benefit liability for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Current service cost |
W |
38,978 |
|
78,342 |
|
41,311 |
|
82,831 |
Net interest income |
|
(7,388) |
|
(13,174) |
|
(4,403) |
|
(8,936) |
Past service cost |
|
- |
|
- |
|
8,624 |
|
8,624 |
Settlement |
|
413 |
|
219 |
|
(55) |
|
4 |
|
W |
32,003 |
|
65,387 |
|
45,477 |
|
82,523 |
118
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
17. Provisions
(a) Provisions as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Asset retirement obligations |
W |
108,004 |
|
106,125 |
Expected loss related to litigation |
|
57,641 |
|
144,173 |
Unused lines of credit |
|
290,005 |
|
305,955 |
Guarantee contracts issued |
|
138,016 |
|
111,307 |
Financial guarantee contracts issued |
|
120,320 |
|
93,693 |
Non-financial guarantee contracts issued |
|
17,696 |
|
17,614 |
Others (*1), (*2) |
|
517,320 |
|
695,785 |
|
W |
1,110,986 |
|
1,363,345 |
(*1) As of June 30, 2026 and December 31, 2025, the Group recognizes a provision of W 253,157 million and W 305,237 million, respectively, an estimated amount which is highly probable to be paid for customer losses expected due to delays in redemption of Lime CI funds, etc.
(*2) As of June 30, 2026 and December 31, 2025, the Group recognizes a provision of W 6,034 million and W 8,643 million for the estimated customer compensation amount related to equity-linked products based on the Hong Kong H-Index (Hang Seng China Enterprises Index).
119
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
17. Provisions (continued)
(b) Changes in provision for unused lines of credit and financial guarantee contracts issued for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Unused lines of credit |
|
Financial guarantee contracts issued |
|
Total |
||||||||
|
|
12-month expected |
|
Lifetime expected |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
209,890 |
|
92,942 |
|
3,123 |
|
82,138 |
|
11,554 |
|
1 |
|
399,648 |
Transfer (from) to 12-month expected credit losses |
|
42,939 |
|
(42,811) |
|
(128) |
|
1,867 |
|
(1,867) |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(14,742) |
|
14,790 |
|
(48) |
|
(7,376) |
|
7,376 |
|
- |
|
- |
Transfer (from) to impaired financial asset |
|
(747) |
|
(1,643) |
|
2,390 |
|
- |
|
- |
|
- |
|
- |
Provided (reversed) |
|
(39,296) |
|
24,324 |
|
(2,534) |
|
(895) |
|
263 |
|
- |
|
(18,138) |
Change in foreign exchange rate |
|
1,086 |
|
470 |
|
- |
|
1,840 |
|
118 |
|
- |
|
3,514 |
Other (*) |
|
- |
|
- |
|
- |
|
(538) |
|
25,840 |
|
(1) |
|
25,301 |
Ending balance |
W |
199,130 |
|
88,072 |
|
2,803 |
|
77,036 |
|
43,284 |
|
- |
|
410,325 |
120
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
17. Provisions (continued)
(b) Changes in provision for unused lines of credit and financial guarantee contracts issued for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||
|
|
Unused lines of credit |
|
Financial guarantee contracts issued |
|
Total |
||||||||
|
|
12-month expected |
|
Lifetime expected |
|
Impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected |
|
Impaired financial asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
W |
229,415 |
|
88,843 |
|
93,017 |
|
80,780 |
|
6,296 |
|
12 |
|
498,363 |
Transfer (from) to 12-month expected credit losses |
|
48,121 |
|
(47,999) |
|
(122) |
|
1,420 |
|
(1,420) |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
(13,183) |
|
13,237 |
|
(54) |
|
(3,336) |
|
3,336 |
|
- |
|
- |
Transfer (from) to impaired financial asset |
|
(767) |
|
(972) |
|
1,739 |
|
- |
|
- |
|
- |
|
- |
Provided (reversed) |
|
(50,312) |
|
40,278 |
|
(91,457) |
|
(3,308) |
|
(1,077) |
|
(3) |
|
(105,879) |
Change in foreign exchange rate |
|
(3,089) |
|
(445) |
|
- |
|
(333) |
|
(154) |
|
1 |
|
(4,020) |
Other (*) |
|
(295) |
|
- |
|
- |
|
6,915 |
|
4,573 |
|
(9) |
|
11,184 |
Ending balance |
W |
209,890 |
|
92,942 |
|
3,123 |
|
82,138 |
|
11,554 |
|
1 |
|
399,648 |
(*) Includes the effects of new financial guarantee contracts initially measured at fair value, expirations of such contracts, and changes in discount rates, among others..
121
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others
(a) Insurance contract liabilities as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Insurance contract assets |
W |
(372) |
|
(760) |
Insurance contract liabilities |
|
47,897,326 |
|
50,471,303 |
Net insurance contract liabilities |
W |
47,896,954 |
|
50,470,543 |
Reinsurance contract assets |
W |
358,183 |
|
603,442 |
Reinsurance contract liabilities |
|
(24,709) |
|
(56,378) |
Net reinsurance contract assets |
W |
333,474 |
|
547,064 |
122
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
|
|
June 30, 2026 |
||||||
|
|
|
|
Six-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Expected insurance premiums and other expected insurance service expenses |
W |
373,644 |
|
325,843 |
|
247,788 |
|
947,275 |
|
|
Change in risk adjustment |
|
21,577 |
|
17,780 |
|
37,698 |
|
77,055 |
|
|
Amortization of contractual service margin |
|
181,117 |
|
129,288 |
|
162,601 |
|
473,006 |
|
|
Recoveries of insurance acquisition cash flows |
|
44,960 |
|
117 |
|
208,167 |
|
253,244 |
|
|
Other (*) |
|
(5,397) |
|
1,358 |
|
(6,216) |
|
(10,255) |
|
|
|
|
615,901 |
|
474,386 |
|
650,038 |
|
1,740,325 |
Premium allocation approach |
|
13,317 |
|
- |
|
44,297 |
|
57,614 |
||
Insurance income subtotal |
|
629,218 |
|
474,386 |
|
694,335 |
|
1,797,939 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Incurred claims and other incurred insurance service expenses |
|
373,158 |
|
252,352 |
|
264,068 |
|
889,578 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
3,331 |
|
56,246 |
|
34,505 |
|
94,082 |
|
|
Losses on onerous contracts |
|
16,671 |
|
923 |
|
51,356 |
|
68,950 |
|
|
Amortization of insurance acquisition cash flows |
|
44,960 |
|
116 |
|
208,167 |
|
253,243 |
|
|
Other (*) |
|
(4,712) |
|
2,229 |
|
16,830 |
|
14,347 |
|
|
|
|
433,408 |
|
311,866 |
|
574,926 |
|
1,320,200 |
Premium allocation approach |
|
16,104 |
|
- |
|
49,760 |
|
65,864 |
||
Insurance service expense subtotal |
W |
449,512 |
|
311,866 |
|
624,686 |
|
1,386,064 |
||
123
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2026 |
||||||
|
|
|
|
Six-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Incurred reinsurance claims |
W |
- |
|
35,550 |
|
62,209 |
|
97,759 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
- |
|
(15,662) |
|
(5,919) |
|
(21,581) |
|
|
Other (*) |
|
- |
|
(1,418) |
|
14,434 |
|
13,016 |
|
|
|
|
- |
|
18,470 |
|
70,724 |
|
89,194 |
Premium allocation approach |
|
7,438 |
|
- |
|
11,843 |
|
19,281 |
||
Reinsurance income subtotal |
|
7,438 |
|
18,470 |
|
82,567 |
|
108,475 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Expected reinsurance claims |
|
- |
|
17,945 |
|
33,841 |
|
51,786 |
|
|
Change in risk adjustment |
|
- |
|
1,231 |
|
2,479 |
|
3,710 |
|
|
Amortization of contractual service margin |
|
- |
|
2,018 |
|
12,959 |
|
14,977 |
|
|
Other (*) |
|
- |
|
(124) |
|
(1,200) |
|
(1,324) |
|
|
|
|
- |
|
21,070 |
|
48,079 |
|
69,149 |
Premium allocation approach |
|
5,369 |
|
- |
|
16,393 |
|
21,762 |
||
Reinsurance service expense subtotal |
|
5,369 |
|
21,070 |
|
64,472 |
|
90,911 |
||
|
|
|
W |
181,775 |
|
159,920 |
|
87,744 |
|
429,439 |
124
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2026 |
||||||
|
|
|
|
Three-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Expected insurance premiums and other expected insurance service expenses |
W |
186,892 |
|
162,549 |
|
128,545 |
|
477,986 |
|
|
Change in risk adjustment |
|
10,643 |
|
8,661 |
|
19,100 |
|
38,404 |
|
|
Amortization of contractual service margin |
|
97,878 |
|
65,759 |
|
79,473 |
|
243,110 |
|
|
Recoveries of insurance acquisition cash flows |
|
23,329 |
|
54 |
|
107,927 |
|
131,310 |
|
|
Other (*) |
|
(2,869) |
|
858 |
|
(2,348) |
|
(4,359) |
|
|
|
|
315,873 |
|
237,881 |
|
332,697 |
|
886,451 |
Premium allocation approach |
|
6,663 |
|
- |
|
23,241 |
|
29,904 |
||
Insurance income subtotal |
|
322,536 |
|
237,881 |
|
355,938 |
|
916,355 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Incurred claims and other incurred insurance service expenses |
|
190,491 |
|
164,974 |
|
151,451 |
|
506,916 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
(2,743) |
|
237 |
|
(95) |
|
(2,601) |
|
|
Losses on onerous contracts |
|
17,046 |
|
43,292 |
|
38,795 |
|
99,133 |
|
|
Amortization of insurance acquisition cash flows |
|
23,329 |
|
53 |
|
107,927 |
|
131,309 |
|
|
Other (*) |
|
(2,194) |
|
1,282 |
|
8,976 |
|
8,064 |
|
|
|
|
225,929 |
|
209,838 |
|
307,054 |
|
742,821 |
Premium allocation approach |
|
8,001 |
|
- |
|
25,114 |
|
33,115 |
||
Insurance service expense subtotal |
W |
233,930 |
|
209,838 |
|
332,168 |
|
775,936 |
||
125
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2026 |
||||||
|
|
|
|
Three-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Incurred reinsurance claims |
W |
- |
|
16,039 |
|
31,162 |
|
47,201 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
- |
|
(8,547) |
|
(3,983) |
|
(12,530) |
|
|
Other (*) |
|
- |
|
(1,731) |
|
14,128 |
|
12,397 |
|
|
|
|
- |
|
5,761 |
|
41,307 |
|
47,068 |
Premium allocation approach |
|
3,951 |
|
- |
|
5,262 |
|
9,213 |
||
Reinsurance income subtotal |
|
3,951 |
|
5,761 |
|
46,569 |
|
56,281 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Expected reinsurance claims |
|
- |
|
8,908 |
|
16,999 |
|
25,907 |
|
|
Change in risk adjustment |
|
- |
|
678 |
|
1,289 |
|
1,967 |
|
|
Amortization of contractual service margin |
|
- |
|
255 |
|
4,593 |
|
4,848 |
|
|
Other (*) |
|
- |
|
79 |
|
(154) |
|
(75) |
|
|
|
|
- |
|
9,920 |
|
22,727 |
|
32,647 |
Premium allocation approach |
|
2,688 |
|
- |
|
8,323 |
|
11,011 |
||
Reinsurance service expense subtotal |
|
2,688 |
|
9,920 |
|
31,050 |
|
43,658 |
||
|
|
|
W |
89,869 |
|
23,884 |
|
39,289 |
|
153,042 |
126
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2025 |
||||||
|
|
|
|
Six-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Expected insurance premiums and other expected insurance service expenses |
W |
378,455 |
|
329,101 |
|
148,964 |
|
856,520 |
|
|
Change in risk adjustment |
|
29,907 |
|
21,533 |
|
37,056 |
|
88,496 |
|
|
Amortization of contractual service margin |
|
182,447 |
|
127,846 |
|
143,854 |
|
454,147 |
|
|
Recoveries of insurance acquisition cash flows |
|
47,685 |
|
170 |
|
152,106 |
|
199,961 |
|
|
Other (*) |
|
(5,823) |
|
30 |
|
(3,649) |
|
(9,442) |
|
|
|
|
632,671 |
|
478,680 |
|
478,331 |
|
1,589,682 |
Premium allocation approach |
|
49,685 |
|
- |
|
307 |
|
49,992 |
||
Insurance income subtotal |
|
682,356 |
|
478,680 |
|
478,638 |
|
1,639,674 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Incurred claims and other incurred insurance service expenses |
|
373,066 |
|
249,598 |
|
157,549 |
|
780,213 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
6,156 |
|
52,821 |
|
23,065 |
|
82,042 |
|
|
Losses on onerous contracts |
|
(4,826) |
|
(24,060) |
|
31,656 |
|
2,770 |
|
|
Amortization of insurance acquisition cash flows |
|
47,836 |
|
170 |
|
151,955 |
|
199,961 |
|
|
Other (*) |
|
(5,191) |
|
645 |
|
(5,649) |
|
(10,195) |
|
|
|
|
417,041 |
|
279,174 |
|
358,576 |
|
1,054,791 |
Premium allocation approach |
|
54,969 |
|
- |
|
982 |
|
55,951 |
||
Insurance service expense subtotal |
W |
472,010 |
|
279,174 |
|
359,558 |
|
1,110,742 |
||
127
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2025 |
||||||
|
|
|
|
Six-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Incurred reinsurance claims |
W |
76 |
|
65,089 |
|
14,968 |
|
80,133 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
49 |
|
(13,839) |
|
937 |
|
(12,853) |
|
|
Other (*) |
|
(6) |
|
48 |
|
(234) |
|
(192) |
|
|
|
|
119 |
|
51,298 |
|
15,671 |
|
67,088 |
Premium allocation approach |
|
15,278 |
|
- |
|
- |
|
15,278 |
||
Reinsurance income subtotal |
|
15,397 |
|
51,298 |
|
15,671 |
|
82,366 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Expected reinsurance claims |
|
- |
|
18,646 |
|
17,376 |
|
36,022 |
|
|
Change in risk adjustment |
|
- |
|
1,851 |
|
1,338 |
|
3,189 |
|
|
Amortization of contractual service margin |
|
- |
|
5,641 |
|
8,430 |
|
14,071 |
|
|
Other (*) |
|
- |
|
14,856 |
|
5,460 |
|
20,316 |
|
|
|
|
- |
|
40,994 |
|
32,604 |
|
73,598 |
Premium allocation approach |
|
17,769 |
|
- |
|
- |
|
17,769 |
||
Reinsurance service expense subtotal |
|
17,769 |
|
40,994 |
|
32,604 |
|
91,367 |
||
|
|
|
W |
207,974 |
|
209,810 |
|
102,147 |
|
519,931 |
128
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2025 |
||||||
|
|
|
|
Three-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Expected insurance premiums and other expected insurance service expenses |
W |
188,630 |
|
163,316 |
|
79,472 |
|
431,418 |
|
|
Change in risk adjustment |
|
14,713 |
|
10,610 |
|
19,174 |
|
44,497 |
|
|
Amortization of contractual service margin |
|
89,307 |
|
62,601 |
|
73,382 |
|
225,290 |
|
|
Recoveries of insurance acquisition cash flows |
|
23,230 |
|
85 |
|
77,617 |
|
100,932 |
|
|
Other (*) |
|
(2,850) |
|
1 |
|
(1,555) |
|
(4,404) |
|
|
|
|
313,030 |
|
236,613 |
|
248,090 |
|
797,733 |
Premium allocation approach |
|
25,624 |
|
- |
|
249 |
|
25,873 |
||
Insurance income subtotal |
|
338,654 |
|
236,613 |
|
248,339 |
|
823,606 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Incurred claims and other incurred insurance service expenses |
|
188,803 |
|
162,505 |
|
93,054 |
|
444,362 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
(3,750) |
|
(15,392) |
|
1,881 |
|
(17,261) |
|
|
Losses on onerous contracts |
|
(8,809) |
|
(16,246) |
|
20,472 |
|
(4,583) |
|
|
Amortization of insurance acquisition cash flows |
|
23,310 |
|
85 |
|
77,537 |
|
100,932 |
|
|
Other (*) |
|
(2,439) |
|
391 |
|
1,496 |
|
(552) |
|
|
|
|
197,115 |
|
131,343 |
|
194,440 |
|
522,898 |
Premium allocation approach |
|
31,470 |
|
- |
|
1,869 |
|
33,339 |
||
Insurance service expense subtotal |
W |
228,585 |
|
131,343 |
|
196,309 |
|
556,237 |
||
129
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
18. Insurance contracts liabilities and others (continued)
(b) Details of insurance profits and losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:(continued):
|
|
|
|
June 30, 2025 |
||||||
|
|
|
|
Three-month |
||||||
|
|
|
|
Retroactive modification method |
|
Fair value method |
|
Other |
|
Total |
Unapplied premium allocation approach |
|
Incurred reinsurance claims |
W |
42 |
|
50,416 |
|
3,998 |
|
54,456 |
|
|
Changes in fulfilment cash flows for incurred claims |
|
28 |
|
(8,046) |
|
33 |
|
(7,985) |
|
|
Other (*) |
|
4 |
|
(57) |
|
(62) |
|
(115) |
|
|
|
|
74 |
|
42,313 |
|
3,969 |
|
46,356 |
Premium allocation approach |
|
9,509 |
|
- |
|
- |
|
9,509 |
||
Reinsurance income subtotal |
|
9,583 |
|
42,313 |
|
3,969 |
|
55,865 |
||
|
|
|
|
|
|
|
|
|
|
|
Unapplied premium allocation approach |
|
Expected reinsurance claims |
|
- |
|
9,379 |
|
8,871 |
|
18,250 |
|
|
Change in risk adjustment |
|
- |
|
903 |
|
686 |
|
1,589 |
|
|
Amortization of contractual service margin |
|
- |
|
2,946 |
|
4,621 |
|
7,567 |
|
|
Other (*) |
|
- |
|
14,801 |
|
5,645 |
|
20,446 |
|
|
|
|
- |
|
28,029 |
|
19,823 |
|
47,852 |
Premium allocation approach |
|
9,757 |
|
- |
|
- |
|
9,757 |
||
Reinsurance service expense subtotal |
|
9,757 |
|
28,029 |
|
19,823 |
|
57,609 |
||
|
|
|
W |
109,895 |
|
119,554 |
|
36,176 |
|
265,625 |
(*) Other includes allocations of loss components, among others.
130
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
19. Insurance finance income and expense
Insurance finance income or expense for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six- month |
|
Three-month |
|
Six- month |
Insurance finance income |
|
|
|
|
|
|
|
|
Insurance contract |
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes |
W |
52 |
|
118 |
|
19,337 |
|
20,013 |
Other |
|
1,723 |
|
20,534 |
|
1,085 |
|
20,995 |
|
|
1,775 |
|
20,652 |
|
20,422 |
|
41,008 |
Reinsurance contract |
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes |
|
5 |
|
5 |
|
- |
|
- |
The change in non-performance risk by reinsurer |
|
- |
|
84 |
|
- |
|
(7) |
Other |
|
- |
|
- |
|
89 |
|
228 |
|
|
5 |
|
89 |
|
89 |
|
221 |
|
|
1,780 |
|
20,741 |
|
20,511 |
|
41,229 |
Insurance finance expense |
|
|
|
|
|
|
|
|
Insurance contract |
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes |
|
9,191 |
|
33,848 |
|
(341) |
|
(304) |
Other |
|
1,956,386 |
|
2,374,271 |
|
383,673 |
|
458,910 |
|
|
1,965,577 |
|
2,408,119 |
|
383,332 |
|
458,606 |
Insurance finance income (expense) |
W |
(1,963,797) |
|
(2,387,378) |
|
(362,821) |
|
(417,377) |
131
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity
(a) Equity as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Share Capital: |
|
|
|
|
Ordinary shares (*1) |
W |
2,695,586 |
|
2,695,586 |
Preferred shares (*1), (*2) |
|
274,055 |
|
274,055 |
|
|
2,969,641 |
|
2,969,641 |
|
|
|
|
|
Hybrid bond |
|
4,163,879 |
|
4,749,837 |
|
|
|
|
|
Capital surplus: |
|
|
|
|
Share premium |
|
1,486,821 |
|
11,352,744 |
Others |
|
745,960 |
|
745,814 |
|
|
2,232,781 |
|
12,098,558 |
|
|
|
|
|
Capital adjustments |
|
(1,208,036) |
|
(1,180,080) |
|
|
|
|
|
Accumulated other comprehensive income, net of tax: |
|
|
|
|
Loss on financial assets at FVOCI |
|
(6,541,504) |
|
(3,752,987) |
Equity in other comprehensive loss of associates |
|
(9,757) |
|
(11,035) |
Foreign currency translation adjustments for foreign operations |
|
608,685 |
|
152,539 |
Net loss from cash flow hedges |
|
(470,317) |
|
(169,697) |
Remeasurement of net defined benefit liability (asset) |
|
(275,598) |
|
(348,506) |
Changes in own credit risk on financial liabilities designated under fair value option |
|
(5,910) |
|
(4,468) |
Net finance income on insurance contract assets (liabilities) |
|
5,484,982 |
|
1,801,274 |
Net finance income on reinsurance contract assets (liabilities) |
|
(296,328) |
|
(141,933) |
|
|
(1,505,747) |
|
(2,474,813) |
|
|
|
|
|
Retained earnings |
|
53,448,231 |
|
41,796,129 |
|
|
|
|
|
Non-controlling interest |
|
2,419,021 |
|
2,413,052 |
|
W |
62,519,770 |
|
60,372,324 |
(*1) Due to the retirement of shares using retained earnings, etc., the Group’s share capital differs from the aggregate par value of its issued shares.
(*2) All redeemable convertible preferred shares previously issued by the Group have been redeemed from earnings, and therefore, although preferred share capital exists, no preferred shares are outstanding.
132
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(b) Hybrid bonds
Hybrid bonds classified as other equity instruments of June 30, 2026 and December 31, 2025 are as follows:
|
Issue date |
|
Maturity date |
|
Interest rate (%) |
|
June 30, 2026 |
|
December 31, 2025 |
Hybrid bonds in KRW |
September 15, 2017 |
|
Perpetual bond |
|
4.25 |
W |
89,783 |
|
89,783 |
April 13, 2018 |
|
Perpetual bond |
|
4.56 |
|
14,955 |
|
14,955 |
|
March 16, 2021 |
|
Perpetual bond |
|
2.94 |
|
- |
|
429,009 |
|
March 16, 2021 |
|
Perpetual bond |
|
3.30 |
|
169,581 |
|
169,581 |
|
January 25, 2022 |
|
Perpetual bond |
|
3.90 |
|
560,438 |
|
560,438 |
|
January 25, 2022 |
|
Perpetual bond |
|
4.00 |
|
37,853 |
|
37,853 |
|
August 26, 2022 |
|
Perpetual bond |
|
4.93 |
|
343,026 |
|
343,026 |
|
August 26, 2022 |
|
Perpetual bond |
|
5.15 |
|
55,803 |
|
55,803 |
|
January 30, 2023 |
|
Perpetual bond |
|
5.14 |
|
398,831 |
|
398,831 |
|
July 13, 2023 |
|
Perpetual bond |
|
5.40 |
|
498,815 |
|
498,815 |
|
January 31, 2024 |
|
Perpetual bond |
|
4.49 |
|
398,833 |
|
398,833 |
|
September 12, 2024 |
|
Perpetual bond |
|
4.00 |
|
399,033 |
|
399,033 |
|
February 13, 2025 |
|
Perpetual bond |
|
3.90 |
|
398,835 |
|
398,835 |
|
September 9, 2025 |
|
Perpetual bond |
|
3.26 |
|
399,035 |
|
399,035 |
|
March 16, 2026 |
|
Perpetual bond |
|
4.20 |
|
399,058 |
|
- |
|
Hybrid bonds in USD |
May 12, 2021 |
|
Perpetual bond |
|
2.88 |
|
- |
|
556,007 |
|
|
|
|
|
|
W |
4,163,879 |
|
4,749,837 |
(*) For the six-month period ended June 30, 2026, the deduction for capital related to hybrid bonds issued is W 942 million.
The hybrid bonds above can be repaid early after 5 or 10 years from the date of issuance, and the Group has an unconditional right to extend the maturity under the same condition or change them to perpetual bonds.
133
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(c) Treasury shares
Changes in treasury shares for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
|
The number of shares |
|
Carrying amount |
|
The number of shares |
|
Carrying amount |
Beginning balance |
|
8,337,535 |
W |
600,001 |
|
4,585,561 |
W |
250,000 |
Acquisition |
|
7,707,161 |
|
700,000 |
|
21,702,365 |
|
1,250,001 |
Retirement (*) |
|
(10,840,573) |
|
(800,000) |
|
(17,950,391) |
|
(900,000) |
Ending balance |
|
5,204,123 |
W |
500,001 |
|
8,337,535 |
W |
600,001 |
(*) For the six-month period ended June 30, 2026, the Group acquired treasury shares for retirement and completed the retirement of 10,840,573 shares on February 6, 2026. For the year ended December 31, 2025, the Group acquired treasury shares for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively.
134
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(d) Accumulated other comprehensive income
Changes in accumulated other comprehensive income for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||||||||||
|
|
Items that are or may be reclassified to profit or loss |
|
Items that will not be reclassified to profit or loss |
|
Total |
||||||||||||||||
|
|
Valuation gains (losses) on financial instruments at FVOCI |
|
Equity in other comprehensive income (expense) of associates |
|
Foreign currency translation adjustments for foreign operations |
|
Net gain (loss) from cash flow hedges |
|
Net finance income (expense) on insurance contract assets (liabilities) |
|
Net finance Income (expense) on reinsurance contract assets (liabilities) |
|
Remeasurements of the defined benefit liability (asset) |
|
Equity in other comprehensive income (expense) of associates |
|
Valuation gains (losses) on financial instruments at FVOCI (*) |
|
Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |
|
|
Beginning balance |
W |
(4,081,244) |
|
(11,044) |
|
152,539 |
|
(169,697) |
|
1,801,274 |
|
(141,933) |
|
(348,506) |
|
9 |
|
328,257 |
|
(4,468) |
|
(2,474,813) |
Change due to fair value |
|
(3,888,289) |
|
(320) |
|
- |
|
- |
|
5,093,377 |
|
(212,953) |
|
- |
|
3 |
|
123,997 |
|
(3,722) |
|
1,112,093 |
Reclassification: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change due to impairment or disposal |
|
(73,507) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(73,507) |
Effect of hedge accounting |
|
- |
|
- |
|
- |
|
(410,354) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(410,354) |
Hedging |
|
- |
|
- |
|
(149,303) |
|
(2,899) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(152,202) |
Effects from changes in |
|
- |
|
2,080 |
|
599,863 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
8,028 |
|
- |
|
609,971 |
135
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
foreign exchange rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(d) Accumulated other comprehensive income (continued)
Changes in accumulated other comprehensive income for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows (continued):
|
|
June 30, 2026 |
||||||||||||||||||||
|
|
Items that are or may be reclassified to profit or loss |
|
Items that will not be reclassified to profit or loss |
|
Total |
||||||||||||||||
|
|
Valuation gains (losses) on financial instruments at FVOCI |
|
Equity in other comprehensive income (expense) of associates |
|
Foreign currency translation adjustments for foreign operations |
|
Net gain (loss) from cash flow hedges |
|
Net finance income (expense) on insurance contract assets (liabilities) |
|
Net finance Income (expense) on reinsurance contract assets (liabilities) |
|
Remeasurements of the defined benefit liability (asset) |
|
Equity in other comprehensive income (expense) of associates |
|
Valuation gains (losses) on financial instruments at FVOCI (*) |
|
Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |
|
|
Remeasurements of the net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
101,521 |
|
- |
|
- |
|
- |
|
101,521 |
Deferred income taxes |
|
1,093,254 |
|
(484) |
|
8,770 |
|
112,633 |
|
(1,409,669) |
|
58,558 |
|
(28,225) |
|
(1) |
|
(39,922) |
|
1,024 |
|
(204,062) |
Amount transferred to retained earnings due to disposal |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(14,298) |
|
1,256 |
|
(13,042) |
Non-controlling interests |
|
2,220 |
|
- |
|
(3,184) |
|
- |
|
- |
|
- |
|
(388) |
|
- |
|
- |
|
- |
|
(1,352) |
Ending balance |
W |
(6,947,566) |
|
(9,768) |
|
608,685 |
|
(470,317) |
|
5,484,982 |
|
(296,328) |
|
(275,598) |
|
11 |
|
406,062 |
|
(5,910) |
|
(1,505,747) |
(*) Change due to fair value includes an increase of W 33,055 million recognized for equity instruments derecognized during the six-month period ended June 30, 2026.
137
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(d) Accumulated other comprehensive income (continued)
Changes in accumulated other comprehensive income for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||||||||||
|
|
Items that are or may be reclassified to profit or loss |
|
Items that will not be reclassified to profit or loss |
|
Total |
||||||||||||||||
|
|
Valuation gains (losses) on financial instruments at FVOCI |
|
Equity in other comprehensive income (expense) of associates |
|
Foreign currency translation adjustments for foreign operations |
|
Net gain (loss) from cash flow hedges |
|
Net finance income (expense) on insurance contract assets (liabilities) |
|
Net finance Income (expense) on reinsurance contract assets (liabilities) |
|
Remeasurements of the net defined benefit liability (asset) |
|
Equity in other comprehensive income (expense) of associates |
|
Valuation gains (losses) on financial instruments at FVOCI (*) |
|
Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |
|
|
Beginning balance |
W |
(2,482,668) |
|
5,692 |
|
296,489 |
|
3,406 |
|
532,388 |
|
11,750 |
|
(354,087) |
|
9 |
|
168,150 |
|
(5,569) |
|
(1,824,440) |
Change due to fair value |
|
(2,181,955) |
|
(24,731) |
|
- |
|
- |
|
1,748,614 |
|
(211,730) |
|
- |
|
- |
|
225,514 |
|
(4,163) |
|
(448,451) |
Reclassification: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change due to impairment or disposal |
|
(47,293) |
|
662 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(46,631) |
Effect of hedge accounting |
|
- |
|
- |
|
- |
|
(27,149) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(27,149) |
Hedging |
|
(19,262) |
|
- |
|
59,096 |
|
(216,152) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(176,318) |
Effects from changes in |
|
- |
|
1,107 |
|
(199,597) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(696) |
|
- |
|
(199,186) |
138
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
foreign exchange rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20. Equity (continued)
(d) Accumulated other comprehensive income (continued)
Changes in accumulated other comprehensive income for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows (continued):
|
|
December 31, 2025 |
||||||||||||||||||||
|
|
Items that are or may be reclassified to profit or loss |
|
Items that will not be reclassified to profit or loss |
|
Total |
||||||||||||||||
|
|
Valuation gains (losses) on financial instruments at FVOCI |
|
Equity in other comprehensive income (expense) of associates |
|
Foreign currency translation adjustments for foreign operations |
|
Net gain (loss) from cash flow hedges |
|
Net finance income (expense) on insurance contract assets (liabilities) |
|
Net finance Income (expense) on reinsurance contract assets (liabilities) |
|
Remeasurements of the defined benefit liability (asset) |
|
Equity in other comprehensive income (expense) of associates |
|
Valuation gains (losses) on financial instruments at FVOCI (*) |
|
Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |
|
|
Remeasurements of the net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(181) |
|
- |
|
- |
|
- |
|
(181) |
Deferred income taxes |
|
648,218 |
|
6,226 |
|
(3,787) |
|
70,198 |
|
(479,728) |
|
58,047 |
|
5,505 |
|
- |
|
(61,788) |
|
1,511 |
|
244,402 |
Amount transferred to retained earnings due to disposal |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(2,923) |
|
3,753 |
|
830 |
139
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
Non-controlling interests |
|
1,716 |
|
- |
|
338 |
|
- |
|
- |
|
- |
|
257 |
|
- |
|
- |
|
- |
|
2,311 |
Ending balance |
W |
(4,081,244) |
|
(11,044) |
|
152,539 |
|
(169,697) |
|
1,801,274 |
|
(141,933) |
|
(348,506) |
|
9 |
|
328,257 |
|
(4,468) |
|
(2,474,813) |
(*) Change due to fair value includes a decrease of W 650 million recognized for equity instruments derecognized during the year ended December 31, 2025.
140
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(e) Regulatory reserve for loan losses
In accordance with Regulations for the Supervision of Financial Institutions, the Group reserves the difference between allowance for credit losses by K-IFRS and that as required by the Regulations at the account of regulatory reserve for loan losses in retained earnings.
i) Changes in regulatory reserve for loan losses including non-controlling interests as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Beginning balance |
W |
4,243,565 |
|
3,969,339 |
Expected regulatory reserve for loan losses |
|
281,042 |
|
274,226 |
Ending balance |
W |
4,524,607 |
|
4,243,565 |
ii) Profit attributable to equity holders of Shinhan Financial Group and earnings per share after factoring in regulatory reserve for loan losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three- month |
|
Six- month |
|
Three-month |
|
Six- month |
Profit for the period |
W |
1,820,135 |
|
3,442,729 |
|
1,549,053 |
|
3,037,399 |
Provision for regulatory reserve for loan losses |
|
(114,223) |
|
(279,291) |
|
14,156 |
|
(50,677) |
Profit adjusted for regulatory reserve |
W |
1,705,912 |
|
3,163,438 |
|
1,563,209 |
|
2,986,722 |
Basic and diluted earnings per share adjusted for regulatory reserve (*) |
W |
3,505 |
|
6,484 |
|
3,205 |
|
6,077 |
(*) Dividends for hybrid bonds are deducted.
141
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
20. Equity (continued)
(f) Dividends
i) Quarterly dividends paid by the Parent Company for the six-month period ended June 30, 2026 are as follows:
Record date |
|
Category |
|
Total dividends |
April 30, 2026 (1st Quarter) |
|
Ordinary shares (W 740 per share) |
W |
348,750 |
ii) By resolutions of the 25th general meeting of stockholders, the annual dividends declared to be paid by the Parent Company to the shareholders of the Company in respect of the year ended December 31, 2025 are as follows:
Category |
|
Total dividends |
Ordinary shares (W 880 per share) |
W |
417,502 |
21. Operating income
Operating income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
||
Interest income |
W |
7,281,967 |
|
14,354,098 |
|
6,967,186 |
|
14,035,110 |
||
Fees and commission income |
|
1,662,527 |
|
3,024,406 |
|
1,147,111 |
|
2,200,543 |
||
Insurance income |
|
916,355 |
|
1,797,939 |
|
823,606 |
|
1,639,674 |
||
Reinsurance income |
|
56,281 |
|
108,475 |
|
55,865 |
|
82,366 |
||
Insurance finance income |
|
1,780 |
|
20,741 |
|
20,511 |
|
41,229 |
||
Dividend income |
|
66,175 |
|
137,036 |
|
62,132 |
|
133,543 |
||
Net gain on financial instruments measured at fair value through profit or loss |
|
5,422,493 |
|
7,535,497 |
|
1,125,667 |
|
2,203,266 |
||
Gain on trading derivatives measured at fair value through profit or loss |
|
6,529,562 |
|
18,045,621 |
|
7,942,407 |
|
12,419,311 |
||
Net gain on financial instruments designated at fair value through profit or loss |
|
29,457 |
|
252,377 |
|
122,844 |
|
185,555 |
||
Net gain on foreign currency transaction |
|
2,568,912 |
|
6,912,781 |
|
4,227,986 |
|
5,092,454 |
||
Net gain on disposal of securities at fair value through other comprehensive income |
|
22,558 |
|
62,449 |
|
85,537 |
|
187,294 |
||
Net gain on disposal of securities at amortized cost |
|
- |
|
5 |
|
- |
|
1 |
||
Reversal of credit losses |
|
17,134 |
|
18,138 |
|
21,967 |
|
33,402 |
||
Gain related to hedging derivates |
|
189,923 |
|
724,713 |
|
416,355 |
|
611,599 |
||
Other operating income |
|
298,032 |
|
561,312 |
|
204,843 |
|
474,709 |
||
|
W |
25,063,156 |
|
53,555,588 |
|
23,224,017 |
|
39,340,056 |
||
142
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
22. Net interest income
Net interest income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Interest income: |
|
|
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
219,967 |
|
427,580 |
|
191,070 |
|
380,130 |
Deposit at FVTPL |
|
409 |
|
800 |
|
383 |
|
518 |
Securities at FVTPL |
|
339,266 |
|
757,450 |
|
372,630 |
|
764,035 |
Securities at FVOCI |
|
815,161 |
|
1,589,632 |
|
708,600 |
|
1,409,833 |
Securities at amortized cost |
|
256,592 |
|
506,839 |
|
267,173 |
|
531,586 |
Loans at amortized cost |
|
5,527,282 |
|
10,828,346 |
|
5,303,613 |
|
10,712,858 |
Loans at FVTPL |
|
17,972 |
|
40,797 |
|
31,791 |
|
59,397 |
Insurance finance interest income |
|
63,440 |
|
125,097 |
|
55,722 |
|
105,064 |
Others |
|
41,878 |
|
77,557 |
|
36,204 |
|
71,689 |
|
|
7,281,967 |
|
14,354,098 |
|
6,967,186 |
|
14,035,110 |
Interest expense: |
|
|
|
|
|
|
|
|
Deposits |
|
2,443,926 |
|
4,702,817 |
|
2,322,709 |
|
4,731,389 |
Interests on financial liabilities designated at FVTPL |
|
3,960 |
|
7,876 |
|
3,506 |
|
6,834 |
Borrowings |
|
375,980 |
|
772,944 |
|
391,112 |
|
790,233 |
Debt securities issued |
|
735,889 |
|
1,554,659 |
|
822,108 |
|
1,672,538 |
Insurance finance interest expenses |
|
486,783 |
|
963,964 |
|
481,597 |
|
946,277 |
Others |
|
101,068 |
|
193,334 |
|
82,202 |
|
168,999 |
|
|
4,147,606 |
|
8,195,594 |
|
4,103,234 |
|
8,316,270 |
|
|
|
|
|
|
|
|
|
Net interest income |
W |
3,134,361 |
|
6,158,504 |
|
2,863,952 |
|
5,718,840 |
143
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
23. Net fees and commission income
Net fees and commission income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Fees and commission income: |
|
|
|
|
|
|
|
|
Credit placement fees |
W |
12,670 |
|
27,232 |
|
17,228 |
|
32,669 |
Commission received as electronic charge receipt |
|
38,829 |
|
76,003 |
|
36,906 |
|
74,257 |
Brokerage fees |
|
396,092 |
|
708,346 |
|
114,253 |
|
205,771 |
Commission received as agency |
|
53,076 |
|
103,397 |
|
46,175 |
|
90,464 |
Investment banking fees |
|
73,765 |
|
103,122 |
|
82,065 |
|
145,398 |
Commission received in foreign exchange activities |
|
146,798 |
|
263,259 |
|
107,023 |
|
201,575 |
Trust management fees |
|
111,695 |
|
187,466 |
|
62,396 |
|
120,998 |
Credit card fees |
|
350,279 |
|
675,090 |
|
325,422 |
|
602,481 |
Operating lease fees |
|
146,717 |
|
301,841 |
|
162,652 |
|
332,894 |
Others |
|
332,606 |
|
578,650 |
|
192,991 |
|
394,036 |
|
|
1,662,527 |
|
3,024,406 |
|
1,147,111 |
|
2,200,543 |
Fees and commission expense: |
|
|
|
|
|
|
|
|
Credit-related fee |
|
8,460 |
|
19,783 |
|
11,082 |
|
21,914 |
Credit card fees |
|
270,193 |
|
524,280 |
|
245,847 |
|
486,813 |
Others |
|
194,945 |
|
350,588 |
|
128,207 |
|
251,695 |
|
|
473,598 |
|
894,651 |
|
385,136 |
|
760,422 |
|
|
|
|
|
|
|
|
|
Net fees and commission income |
W |
1,188,929 |
|
2,129,755 |
|
761,975 |
|
1,440,121 |
144
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
24. Reversal of (provision for) credit losses
Reversal of (provision for) credit losses on financial assets for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Allowance provided: |
|
|
|
|
|
|
|
|
Loans at amortized cost |
W |
(449,865) |
|
(943,587) |
|
(629,280) |
|
(1,047,818) |
Other financial assets at amortized cost |
|
(25,297) |
|
(50,627) |
|
(7,462) |
|
(38,819) |
Securities at fair value through other comprehensive income |
|
(134) |
|
(134) |
|
(3,078) |
|
(3,969) |
Unused lines of credit and financial guarantee |
|
1,907 |
|
- |
|
- |
|
- |
Securities at amortized cost |
|
(58) |
|
(215) |
|
- |
|
- |
|
|
(473,447) |
|
(994,563) |
|
(639,820) |
|
(1,090,606) |
Allowance reversed: |
|
|
|
|
|
|
|
|
Securities at fair value through other comprehensive income |
|
(1,004) |
|
- |
|
- |
|
- |
Securities at amortized cost |
|
- |
|
- |
|
(13) |
|
59 |
Unused lines of credit and financial guarantee |
|
18,138 |
|
18,138 |
|
21,980 |
|
33,343 |
|
|
17,134 |
|
18,138 |
|
21,967 |
|
33,402 |
|
W |
(456,313) |
|
(976,425) |
|
(617,853) |
|
(1,057,204) |
25. General and administrative expenses
General and administrative expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Employee benefits: |
|
|
|
|
|
|
|
|
Salaries |
W |
937,967 |
|
1,820,311 |
|
832,939 |
|
1,654,271 |
Severance benefits: |
|
|
|
|
|
|
|
|
Defined contribution |
|
10,827 |
|
25,290 |
|
8,885 |
|
20,454 |
Defined benefit |
|
28,450 |
|
58,201 |
|
41,753 |
|
74,107 |
|
|
39,277 |
|
83,491 |
|
50,638 |
|
94,561 |
Termination benefits |
|
1,399 |
|
31,863 |
|
2,238 |
|
4,182 |
|
|
978,643 |
|
1,935,665 |
|
885,815 |
|
1,753,014 |
|
|
|
|
|
|
|
|
|
Entertainment |
|
10,310 |
|
20,140 |
|
9,772 |
|
19,589 |
Depreciation |
|
130,143 |
|
267,185 |
|
137,375 |
|
274,272 |
Amortization |
|
80,115 |
|
158,059 |
|
76,822 |
|
152,784 |
Taxes and utility bills |
|
163,775 |
|
273,565 |
|
81,504 |
|
137,916 |
Advertising |
|
79,997 |
|
128,616 |
|
66,088 |
|
116,945 |
Research |
|
7,192 |
|
14,010 |
|
7,013 |
|
13,776 |
Others |
|
220,516 |
|
418,856 |
|
221,711 |
|
431,762 |
|
W |
1,670,691 |
|
3,216,096 |
|
1,486,100 |
|
2,900,058 |
145
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
26. Share-based payments
(a) Performance shares granted as of June 30, 2026 are as follows:
|
|
Expired |
|
Not expired |
Type |
|
Cash-settled share-based payment |
||
|
|
|
||
Performance conditions |
|
Relative stock price linked (20.0%), management index (80.0%) |
||
|
|
|
||
Exercising period |
|
4 years from the commencement date of the year to which the grant date belongs |
||
|
|
|
|
|
Estimated number of shares vested at June 30, 2026 |
|
178,692 shares |
|
2,236,914 shares |
|
|
|
|
|
Fair value per share in Korean won (*) |
|
W 37,387, W 37,081, W 38,156, W 50,444 and W 77,757 for the expiration of exercising period from 2021 to 2025 |
|
W 95,800 |
(*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two months, the past one month, and the past one week from the day before the base date) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock price to be paid in the future is assessed as the closing price of the settlement.
146
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
26. Share-based payments (continued)
(b) Share-based compensation costs for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||
|
|
Employees of |
|
|
||
|
|
Parent Company |
|
Subsidiaries |
|
Total |
Performance share |
W |
5,991 |
|
49,140 |
|
55,131 |
|
|
June 30, 2025 |
||||
|
|
Employees of |
|
|
||
|
|
Parent Company |
|
Subsidiaries |
|
Total |
Performance share |
W |
4,475 |
|
36,262 |
|
40,737 |
(c) Accrued expenses recognized related to share-based payment transactions as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||
|
|
Parent Company |
|
Subsidiaries |
|
Total |
Performance share |
W |
21,804 |
|
200,005 |
|
221,809 |
|
|
December 31, 2025 |
||||
|
|
Parent Company |
|
Subsidiaries |
|
Total |
Performance share |
W |
22,537 |
|
197,518 |
|
220,055 |
147
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
27. Income taxes
Income tax expense for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six- month |
|
Three-month |
|
Six- month |
Current income tax expense (*) |
W |
429,863 |
|
635,568 |
|
336,565 |
|
634,575 |
Deferred income tax expense arising from the origination and reversal of temporary differences (*) |
|
441,996 |
|
813,775 |
|
240,592 |
|
224,488 |
Income tax expense (benefit) related to items recognized outside profit or loss |
|
(202,535) |
|
(207,785) |
|
(82,267) |
|
124,339 |
Income tax expense |
W |
669,324 |
|
1,241,558 |
|
494,890 |
|
983,402 |
|
|
|
|
|
|
|
|
|
Effective tax rate |
% |
26.60 |
|
26.21 |
|
23.88 |
|
24.12 |
(*) Due to the implementation of the global minimum tax law, the current income tax expense as of June 30, 2026, and December 31, 2025, is W 1,177 million and W 936 million, respectively. The Group does not recognize deferred tax assets and liabilities related to global minimum tax laws by applying the temporary exception provision for deferred tax in K-IFRS No. 1012.
148
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
28. Earnings per share
Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three- month |
|
Six- month |
|
Three-month |
|
Six- month |
Profit attributable to equity holders of Shinhan Financial Group |
W |
1,820,135 |
|
3,442,729 |
|
1,549,053 |
|
3,037,399 |
Less: |
|
|
|
|
|
|
|
|
Dividends to hybrid bonds |
|
(55,677) |
|
(99,728) |
|
(56,543) |
|
(99,133) |
Profit attributable to ordinary shareholders |
W |
1,764,458 |
|
3,343,001 |
|
1,492,510 |
|
2,938,266 |
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding (*) |
|
470,565,045 |
|
472,501,826 |
|
487,414,572 |
|
491,479,027 |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share in Korean won |
W |
3,750 |
|
7,075 |
|
3,062 |
|
5,978 |
(*) As of June 30, 2026, the number of ordinary shares issued by the Group is 474,654,361 shares, and the weighted average number of outstanding shares reflects changes such as the acquisition and retirement of treasury shares for the six-month periods ended June 30, 2026 and 2025.
149
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
29. Commitments and contingencies
(a) Guarantees, acceptances and lines of credit as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Guarantees and purchase agreements: |
|
|
|
|
Outstanding guarantees |
W |
19,676,744 |
|
18,642,539 |
Contingent guarantees |
|
5,823,286 |
|
4,917,473 |
ABS and ABCP purchase agreements |
|
3,819,281 |
|
2,649,382 |
|
|
29,319,311 |
|
26,209,394 |
Commitments to extend credit: |
|
|
|
|
Loan commitments in won |
|
98,369,597 |
|
95,042,772 |
Loan commitments in foreign currency |
|
28,509,084 |
|
25,559,545 |
Unused lines of credit |
|
92,329,939 |
|
93,230,869 |
Other agreements |
|
6,753,208 |
|
6,483,867 |
|
|
225,961,828 |
|
220,317,053 |
Endorsed bills: |
|
|
|
|
Secured endorsed bills |
|
18,832 |
|
12,574 |
Unsecured endorsed bills |
|
13,225,930 |
|
10,560,935 |
|
|
13,244,762 |
|
10,573,509 |
|
W |
268,525,901 |
|
257,099,956 |
(b) Legal contingencies
As of June 30, 2026, the Group is involved with 1,335 pending lawsuits as a defendant with total litigation fee of W 1,282,693 million.
As of June 30, 2026, the Group has recorded W 57,641 million and W 4,642 million, respectively, as other provisions and insurance contract liabilities for litigations, etc., which have been decided to lose at the first trial. The outcome of the remaining litigations other than those accounted for provisions, etc. are not expected to have a material impact on the consolidated financial statements, but additional losses may result from future litigation.
Although not included in the above litigation, RIA R Squared, Inc. ("Ria"), a U.S.-based asset management company, filed a civil lawsuit against Shinhan Securities Co., Ltd. with the Supreme Court of the State of New York, County of New York in connection with a securities lending transaction agreement entered into with Shinhan Securities. In July 2026, while pre-trial discovery was ongoing, Ria filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code with a court in Miami, and the related bankruptcy proceedings are expected to continue. As of June 30, 2026, the Group is unable to reliably estimate the impact of this matter on its consolidated financial statements or the amount of any ultimate loss, if any.
In addition, in connection with the suspension of redemptions of the KS Asia Absolute Return Fund (the "Gen2 Fund") in 2020, arbitration initiated by the Gen2 fund against Shinhan Securities Co., Ltd. in April 2022 was conducted at the Hong Kong International Arbitration Centre (HKIAC). On April 13, 2026, an arbitral award was rendered, ruling that the suspension of redemptions for the Gen2 Fund was unlawful and that grounds existed for the liquidation of the fund. Based on this arbitral award, Shinhan Securities Co., Ltd. plans to proceed with follow-up measures regarding the Gen2 Fund.
150
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
29. Commitments and contingencies (continued)
(c) As a Prime Brokerage Service (PBS) provider, Shinhan Securities Co., Ltd. entered into a total return swap (TRS) agreement, derivatives that exchange profits and losses from underlying assets such as stocks, bonds, and funds, with a fund managed by Lime Asset Management (the “Lime Fund”). Through the TRS agreement with Shinhan Securities Co., Ltd., the Lime Fund invested approximately USD 200 million in the IIG Global Trade Finance Fund, IIG Trade Finance Fund, and IIG Trade Finance Fund–FX Hedge (hereinafter referred to as the “IIG Fund”) between May and September 2017. In 2019, under the management instructions of Lime Asset Management, Shinhan Securities Co., Ltd. made an in-kind investment of the IIG Fund into LAM Enhanced Finance III L.P. (the “LAM III Fund”) and acquired beneficiary certificates of the LAM III Fund. The recoverable value of the LAM III Fund’s beneficiary certificates is dependent on the recoverable value of the IIG Fund previously invested in kind. In November 2019, the IIG Fund was subject to a registration cancellation and asset freeze by the U.S. Securities and Exchange Commission (SEC).
In its interim inspection report issued in February 2020, the Financial Supervisory Service (FSS) stated that Shinhan Securities Co., Ltd. was involved in concealing losses and committing fraud in connection with the Lime Fund while operating TRS agreements, and a related prosecution investigation has since been ongoing. On November 12, 2021, the Financial Services Commission (FSC) finalized institutional sanctions against Shinhan Securities Co., Ltd., including a six-month ban on the sale of new private equity funds. In addition, the former director of Prime Brokerage Services at Shinhan Securities Co., Ltd. was arrested and indicted on charges of fraud and violation of the Financial Investment Services and Capital Markets Act. The director was subsequently found guilty.
On January 22, 2021, the prosecution indicted Shinhan Securities Co., Ltd. for violations of the Financial Investment Services and Capital Markets Act arising from the actions of the former director of its Prime Brokerage Services (PBS) division. Subsequently, on March 15, 2023, the court imposed a fine of W 50 million on Shinhan Securities for breach of its supervisory duties.
Taking into consideration the resolutions of the Board of Directors and the results of the dispute settlement committee of the Financial Supervisory Service, Shinhan Securities Co., Ltd. has completed, or plans to carry out, compensation and liquidity support for certain products, including the Lime Trade Finance Fund.
(d) From May 2014 to November 2019, Shinhan Securities Co., Ltd. sold trust instruments related to the Gen2 project. As of June 30, 2026, redemptions for the entire outstanding balance of approximately W 420 billion have been suspended, and repayments have been delayed. In accordance with a resolution of the Board of Directors dated September 28, 2021, Shinhan Securities Co., Ltd. decided to compensate customers who agreed to the suspension of redemption by paying 40% of their invested principal, with the remaining balance to be settled upon recovery of the underlying investments. On August 29, 2023, the Board of Directors resolved to proceed with a private settlement using a post-settlement method. Furthermore, on September 2, 2025, the Complaints Review Committee resolved to proceed with private settlements for the Lime M360 Fund and other trust products using a post-settlement method.
151
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
29. Commitments and contingencies (continued)
(e) Shinhan Asset Trust Co., Ltd. is engaged in completion-guaranteed land trust projects, under which the company assumes responsibility for ensuring project completion in the event the contractor fails to do so. If Shinhan Asset Trust Co., Ltd. fails to fulfill this obligation, it is liable to compensate financial institutions for any losses incurred. For the period ended June 30, 2026, Shinhan Asset Trust Co., Ltd. had entered into agreements for a total of 5 projects (including those already completed), such as a studio apartment development in Sincheon-dong, Siheung-si, Gyeonggi Province, under a management-type land trust with a guaranteed completion clause. As of June 30, 2026, the total project financing (PF) commitment amount from financial institutions related to these projects was W 227,800 million, and the outstanding PF loan balance amounted to W 195,496 million.
As of June 30, 2026, the guaranteed completion deadlines for 3 project sites (including completed ones) have passed. The total project financing (PF) loan commitment limits for these sites amount to W 90,300 million, with loan balances of W 64,496 million.
Shinhan Asset Trust Co., Ltd. continuously assesses the impact of off-balance sheet commitments to ensure that they are appropriately reflected in the financial statements, if necessary.
(f) As of June 30, 2026, Shinhan Asset Trust Co., Ltd. may lend a portion of the total project cost to the trust account in relation to loan-type land trust agreements, etc., and the maximum commitment amount of PF loans (unused limit) is W 187,799 million. Regarding the project, Shinhan Asset Trust Co., Ltd. is not unconditionally obligated to provide trust account loans. Instead, such decisions are made after comprehensively considering factors such as the proprietary account and the cash flow plans of each trust project.
(g) As of June 30, 2026, Shinhan Securities Co., Ltd. is under investigation by the Korea Fair Trade Commission regarding alleged unfair collusion among financial institutions.
(h) Shinhan Bank, in accordance with the Dual Recourse Bonds Act and the covered bond issuance program agreement, separately registers and manages a cover pool to secure the repayment of covered bonds. To maintain the eligibility of the cover pool, Shinhan Bank performs a collateral maintenance ratio test on each calculation date to ensure that the adjusted total collateral amount remains at or above a specified percentage (minimum collateral ratio) of the outstanding issuance balance. In addition, from 12 months prior to the maturity of covered bonds, Shinhan Bank conducts a pre-maturity liquidity test and has agreed to pre-accumulate liquidity assets necessary for repayment at maturity upon the occurrence of certain events, such as a credit rating downgrade.
As of June 30, 2026 and December 31, 2025, the carrying amounts of covered bonds issued by Shinhan Bank are W 1,997,145 million and W 1,916,820 million, respectively. The carrying amounts of the cover pools (including residential mortgage loans and liquidity assets) established to comply with the above agreements are W 3,316,264 million and W 3,647,109 million, respectively.
(i) Shinhan Card Co., Ltd. is currently subject to an investigation by the supervisory authorities in connection with the leakage of personal information of merchant representatives that occurred between March 2022 and May 2025. The outcome of the investigation cannot be reasonably estimated as of June 30, 2026.
152
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
30. Statement of cash flows
Cash and cash equivalents in the consolidated statements of cash flows as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Cash and due from banks at amortized cost |
W |
47,256,842 |
|
39,758,705 |
Adjustments: |
|
|
|
|
Due from banks with a maturity over three months from date of acquisition |
|
(988,732) |
|
(966,755) |
Restricted due from banks |
|
(4,388,230) |
|
(3,496,827) |
|
|
(5,376,962) |
|
(4,463,582) |
|
W |
41,879,880 |
|
35,295,123 |
153
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties
Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. In accordance with K-IFRS No. 1024, the Group defines the retirement benefit plans of the associates, key management and their families, the consolidation group and related parties as the scope of related parties. The amount of profit and loss, receivable balance and payable balance between the Group and the related parties are disclosed. For details of the associates and joint ventures, refer to ‘Note 12’.
(a) Balances with the related parties as of June 30, 2026 and December 31, 2025 are as follows:
Related party |
|
Account |
|
June 30, 2026 |
|
December 31, 2025 |
Investments in associates: |
|
|
|
|
|
|
BNP Paribas Cardif Life Insurance |
|
Credit card loans |
W |
168 |
|
190 |
〃 |
|
ACL |
|
(9) |
|
(1) |
〃 |
|
Accrued income |
|
11 |
|
14 |
〃 |
|
Deposits |
|
3,817 |
|
3,855 |
〃 |
|
Allowance for Undrawn Commitment |
|
14 |
|
1 |
ICSF (The Korea’s Information Center for Savings & Finance) |
|
Credit card loans |
|
1 |
|
1 |
〃 |
|
Deposits |
|
2 |
|
4 |
Nomura-Rifa Private Real Estate Investment Trust 19 |
|
Loans |
|
11,100 |
|
11,400 |
〃 |
|
ACL |
|
- |
|
(3,781) |
〃 |
|
Accrued income |
|
44 |
|
47 |
Korea Finance Security Co., Ltd. |
|
Deposits |
|
116 |
|
123 |
〃 |
|
Credit card loans |
|
7 |
|
7 |
Korea Credit Bureau |
|
Deposits |
|
1,002 |
|
1,671 |
〃 |
|
Credit card loans |
|
480 |
|
907 |
SBC PFV Co., Ltd. |
|
Loans |
|
580,800 |
|
519,800 |
〃 |
|
ACL |
|
(4,406) |
|
(3,990) |
〃 |
|
Accrued income |
|
50 |
|
93 |
〃 |
|
Allowance for Undrawn Commitment |
|
740 |
|
771 |
〃 |
|
Deposits |
|
1 |
|
1 |
〃 |
|
Unearned revenue |
|
336 |
|
- |
Goduck Gangil10 PFV Co., Ltd. |
|
Deposits |
|
179 |
|
340 |
Shinhan Global Healthcare Fund 2 |
|
Deposits |
|
1 |
|
1 |
Future-Creation Neoplux Venture Capital Fund |
|
Account receivables |
|
3,600 |
|
3,600 |
Shinhan-Neoplux Energy Newbiz Fund |
|
Account receivables |
|
643 |
|
643 |
SHINHAN-NEO Core Industrial Technology Fund |
|
Account receivables |
|
125 |
|
288 |
Neoplux No.3 Private Equity Fund |
|
Account receivables |
|
6,250 |
|
9,240 |
Wave Technology |
|
Deposits |
|
16 |
|
106 |
SHINHAN-NEO Market-Frontier 2nd Fund |
|
Account receivables |
|
665 |
|
1,485 |
iPIXEL Co., Ltd. |
|
Credit card loans |
|
21 |
|
10 |
〃 |
|
Deposits |
|
14 |
|
74 |
NewWave 6th Fund |
|
Account receivables |
|
321 |
|
791 |
DDI LVC Master Real Estate Investment Trust Co., Ltd. |
|
Deposits |
|
710 |
|
784 |
Logisvalley Shinhan REIT Co., Ltd. |
|
Loans |
|
32,340 |
|
33,000 |
〃 |
|
ACL |
|
(27) |
|
(29) |
〃 |
|
Accrued income |
|
75 |
|
75 |
〃 |
|
Deposits |
|
804 |
|
932 |
154
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(a) Balances with the related parties as of June 30, 2026 and December 31, 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
December 31, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
Shinhan-Albatross Technology Investment Fund |
|
Deposits |
W |
4,676 |
|
2,331 |
Shinhan VC tomorrow venture fund 1 |
|
Account receivables |
|
1,585 |
|
2,992 |
JS Shinhan Private Equity Fund |
|
Accrued income |
|
- |
|
289 |
SEOKWANG T&I |
|
Deposits |
|
1 |
|
- |
NH-J&-IBKC Label Technology Fund |
|
Deposits |
|
31 |
|
44 |
Shinhan M&A-ESG Fund |
|
Account receivables |
|
81 |
|
- |
SH K-REITs Infra Real Estate Investment Trust (FoFs) |
|
Accrued income |
|
5 |
|
5 |
Shinhan-CJ TechInnovation Fund 1st |
|
Deposits |
|
1,500 |
|
3,500 |
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |
|
Accrued income |
|
12 |
|
14 |
SH Prestige High Dividend Security Feeder No.1[Equity] |
|
Accrued income |
|
77 |
|
34 |
Shinhan General Private Real Estate Investment Trust No.3 |
|
Accrued income |
|
29 |
|
50 |
Capstone REITs No.26 |
|
Loans |
|
- |
|
20,000 |
〃 |
|
ACL |
|
- |
|
(21) |
〃 |
|
Accrued income |
|
- |
|
93 |
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |
|
Accrued income |
|
144 |
|
146 |
PineStreet Global Corporate FoF XIII-2 |
|
Derivative assets |
|
534 |
|
469 |
〃 |
|
Derivative liabilities |
|
4 |
|
17 |
CASCADETECH INC |
|
Deposits |
|
15 |
|
11 |
Songpa biz cluster PFV Co., Ltd. |
|
Loans |
|
1,229,124 |
|
70,272 |
〃 |
|
ACL |
|
(1,550) |
|
(521) |
〃 |
|
Accrued income |
|
- |
|
129 |
〃 |
|
Allowance for Undrawn Commitment |
|
44 |
|
- |
〃 |
|
Deposits |
|
357 |
|
- |
STIC ALT Global II Private Equity Fund |
|
Deposits |
|
418 |
|
805 |
TECHFIN RATINGS Co., Ltd. |
|
Credit card loans |
|
30 |
|
28 |
〃 |
|
ACL |
|
(1) |
|
- |
〃 |
|
Deposits |
|
7,609 |
|
13,548 |
〃 |
|
Allowance for Undrawn Commitment |
|
2 |
|
1 |
Nomura-Rifa Private Real Estate Investment Trust 31 |
|
Loans |
|
13,860 |
|
13,860 |
〃 |
|
ACL |
|
(73) |
|
(54) |
Pacific Private Placement Real Estate Fund No.40 |
|
Loans |
|
14,000 |
|
14,000 |
〃 |
|
ACL |
|
(99) |
|
(99) |
〃 |
|
Accrued income |
|
150 |
|
152 |
Shinhan-DS Mezzanine Fund 1 |
|
Unearned revenue |
|
- |
|
88 |
Shinhan-Csquared Mezzanine Fund 1 |
|
Unearned revenue |
|
39 |
|
19 |
KR Seocho Co., Ltd. |
|
Loans |
|
11,871 |
|
11,871 |
〃 |
|
ACL |
|
(237) |
|
(228) |
〃 |
|
Accrued income |
|
2,245 |
|
1,691 |
Shinhan-Dev healthcare Fund I |
|
Unearned revenue |
|
46 |
|
8 |
Credila Financial Services |
|
Loans |
|
15,241 |
|
19,895 |
〃 |
|
ACL |
|
(60) |
|
(78) |
31. Related parties (continued)
155
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
(a) Balances with the related parties as of June 30, 2026 and December 31, 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
December 31, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
Credila Financial Services |
|
Deposits |
W |
8,150 |
|
3,196 |
Shinhan Rio Green Private Equity Fund |
|
Account receivables |
|
78 |
|
79 |
〃 |
|
Deposits |
|
600 |
|
- |
D2U 12th Fund |
|
Deposits |
|
400 |
|
400 |
Finflow |
|
Credit card loans |
|
22 |
|
- |
〃 |
|
Deposits |
|
424 |
|
574 |
〃 |
|
Allowance for Undrawn Commitment |
|
1 |
|
- |
Fireant Media and Digital Service Joint Stock Company |
|
Deposits |
|
- |
|
4 |
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |
|
Accrued income |
|
2 |
|
4 |
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
Loans |
|
20,000 |
|
20,000 |
〃 |
|
ACL |
|
(141) |
|
(141) |
〃 |
|
Accrued income |
|
140 |
|
140 |
Shinhan-BNK Global Fund I |
|
Unearned revenue |
|
21 |
|
44 |
IGIS No. 574 Real Estate General Private Investment Company |
|
Loans |
|
9,000 |
|
- |
〃 |
|
ACL |
|
(43) |
|
- |
〃 |
|
Unearned revenue |
|
347 |
|
- |
Shinhan Time Secondary Blind Fund |
|
Deposits |
|
100 |
|
- |
Shinhan-Time Premier Fund |
|
Accrued income |
|
7 |
|
- |
Shinhan-BNK Mezzanine Fund 1 |
|
Unearned revenue |
|
115 |
|
- |
Shinhan-Kiwoom Productive Finance Fund 1 |
|
Unearned revenue |
|
57 |
|
- |
SNM Technology Innovation Fund |
|
Account receivables |
|
146 |
|
- |
ShinhanHelio Black Private Equity Eund |
|
Account receivables |
|
68 |
|
- |
Shinhan Market-Frontier Fund Ⅲ |
|
Account receivables |
|
156 |
|
- |
Key management personnel and their immediate relatives: |
|
|
|
|
|
|
|
|
Loans |
|
4,347 |
|
4,558 |
|
|
Assets |
|
1,953,009 |
|
753,419 |
|
|
Liabilities |
W |
32,709 |
|
33,253 |
156
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows:
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Investments in associates: |
|
|
|
|
|
|
BNP Paribas Cardif Life Insurance |
|
Fees and commission income |
W |
2,613 |
|
397 |
〃 |
|
Provision for credit losses |
|
(8) |
|
- |
〃 |
|
Provision for allowance for undrawn commitments |
|
(13) |
|
- |
〃 |
|
Interest expense |
|
(5) |
|
(6) |
Shinhan-Albatross Technology Investment Fund |
|
Fees and commission income |
|
3 |
|
274 |
〃 |
|
Interest expense |
|
(5) |
|
(4) |
Shinhan-Nvestor Liquidity Solution Fund |
|
Fees and commission income |
|
60 |
|
174 |
Shinhan-PS Investment Fund No.1 |
|
Fees and commission income |
|
- |
|
8 |
Nomura-Rifa Private Real Estate Investment Trust 19 |
|
Interest income |
|
281 |
|
290 |
〃 |
|
Reversal of credit losses |
|
3,781 |
|
167 |
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 (*1) |
|
Fees and commission income |
|
- |
|
116 |
Korea Finance Security Co., Ltd. |
|
Fees and commission income |
|
2 |
|
2 |
〃 |
|
Interest expense |
|
(1) |
|
- |
〃 |
|
Other administrative expense |
|
(74) |
|
(72) |
ShinHan – Soo Young Entrepreneur Investment Fund |
|
Fees and commission income |
|
54 |
|
77 |
Kiwoom-Shinhan Innovation Fund I |
|
Fees and commission income |
|
53 |
|
28 |
FuturePlay-Shinhan TechInnovation Fund 1 |
|
Fees and commission income |
|
150 |
|
179 |
Korea Credit Bureau |
|
Fees and commission income |
|
2,960 |
|
1,614 |
〃 |
|
Fees and commission expense |
|
(2,534) |
|
(2,282) |
〃 |
|
Other administrative expense |
|
(446) |
|
(96) |
〃 |
|
Reversal of credit losses |
|
- |
|
1 |
〃 |
|
Interest expense |
|
(12) |
|
- |
SBC PFV Co., Ltd. |
|
Fees and commission income |
|
- |
|
28,745 |
〃 |
|
Interest income |
|
18,381 |
|
28,479 |
〃 |
|
Provision for credit losses |
|
(416) |
|
(2,459) |
〃 |
|
Reversal of (provision for) allowance for undrawn commitments |
|
31 |
|
(799) |
Goduck Gangil10 PFV Co., Ltd. |
|
Fees and commission income |
|
12 |
|
- |
〃 |
|
Interest expense |
|
- |
|
(78) |
Korea Omega Project Fund I (*2) |
|
Fees and commission income |
|
54 |
|
70 |
Sparklabs-Shinhan Opportunity Fund 1 |
|
Fees and commission income |
|
- |
|
1 |
EDNCENTRAL Co., Ltd. (*1) |
|
Interest income |
|
- |
|
475 |
〃 |
|
Fees and commission income |
|
- |
|
18 |
〃 |
|
Interest expense |
|
- |
|
(14) |
〃 |
|
Provision for credit losses |
|
- |
|
(41) |
〃 |
|
Provision for allowance for undrawn commitments |
|
- |
|
(33) |
Kakao-Shinhan 1st TNYT Fund |
|
Fees and commission income |
|
106 |
|
141 |
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
157
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
Future-Creation Neoplux Venture Capital Fund |
|
Interest income |
W |
95 |
|
39 |
Gyeonggi-Neoplux Superman Fund |
|
Fees and commission income |
|
- |
|
240 |
Shinhan-Neoplux Energy Newbiz Fund |
|
Fees and commission income |
|
- |
|
338 |
NewWave 6th Fund |
|
Fees and commission income |
|
2,806 |
|
403 |
SHINHAN-NEO Core Industrial Technology Fund |
|
Fees and commission income |
|
125 |
|
150 |
Neoplux No.3 Private Equity Fund |
|
Fees and commission income |
|
- |
|
973 |
SHINHAN-NEO Market-Frontier 2nd Fund |
|
Fees and commission income |
|
665 |
|
768 |
SWK-Shinhan New Technology Investment Fund 1st |
|
Fees and commission income |
|
5 |
|
30 |
Ulmus SHC innovation investment fund (*2) |
|
Fees and commission income |
|
1,807 |
|
33 |
iPIXEL Co., Ltd. |
|
Reversal of credit losses |
|
- |
|
1 |
〃 |
|
Reversal of allowance for undrawn commitments |
|
- |
|
1 |
Shinhan Praxis K-Growth Global Private Equity Fund |
|
Fees and commission income |
|
5,155 |
|
- |
Reverent-Shinhan Vista Fund |
|
Fees and commission income |
|
40 |
|
40 |
Kiwoom-Shinhan Innovation Fund 2 |
|
Fees and commission income |
|
168 |
|
96 |
ETRI Holdings-Shinhan 1st Unicorn Fund |
|
Fees and commission income |
|
39 |
|
39 |
Shinhan VC tomorrow venture fund 1 |
|
Fees and commission income |
|
1,585 |
|
1,404 |
JS Shinhan Private Equity Fund |
|
Fees and commission income |
|
170 |
|
297 |
Stonebridge-Shinhan Unicorn Secondary Fund |
|
Fees and commission income |
|
448 |
|
14 |
Shinhan-Kunicorn first Fund |
|
Fees and commission income |
|
261 |
|
261 |
Shinhan-Quantum Startup Fund |
|
Fees and commission income |
|
45 |
|
63 |
Shinhan Simone Fund Ⅰ |
|
Fees and commission income |
|
10 |
|
10 |
Shinhan Whitrin New Tech Fund |
|
Fees and commission income |
|
36 |
|
38 |
DDI LVC Master Real Estate Investment Trust Co., Ltd. |
|
Interest expense |
|
(1) |
|
- |
Logisvalley Shinhan REIT Co., Ltd. |
|
Interest income |
|
786 |
|
844 |
〃 |
|
Fees and commission income |
|
38 |
|
38 |
〃 |
|
Interest expense |
|
(1) |
|
(1) |
〃 |
|
Reversal of credit losses |
|
2 |
|
- |
Shinhan Dev Healthcare Investment Fund 1 |
|
Fees and commission income |
|
37 |
|
30 |
Shinhan-Cognitive Start-up Fund L.P. |
|
Fees and commission income |
|
167 |
|
120 |
Global Commerce New Technology Investment Fund |
|
Fees and commission income |
|
15 |
|
15 |
Shinhan-HGI Entities with social responsibility Investment Fund |
|
Fees and commission income |
|
19 |
|
31 |
Shinhan WWG Energy Fund New Technology Investment Fund |
|
Fees and commission income |
|
11 |
|
34 |
Shinhan-Ji and Tec Smart Innovation Fund |
|
Fees and commission income |
|
130 |
|
130 |
158
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
Shinhan Time 1st Investment fund |
|
Fees and commission income |
|
26 |
|
26 |
Shinhan SGC ESG Investment Fund 1st |
|
Fees and commission income |
|
2 |
|
57 |
Shinhan-iSquare Venture PEF 1st |
|
Fees and commission income |
|
50 |
|
50 |
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |
|
Fees and commission income |
|
198 |
|
207 |
DS-Shinhan-JBWoori New Media New Tehchnology Investment Fund No.1 (*2) |
|
Fees and commission income |
|
6 |
|
216 |
Bonanza-Shinhan GIB Innovative Semiconductor Investment Fund |
|
Fees and commission income |
|
55 |
|
55 |
2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund |
|
Fees and commission income |
|
41 |
|
105 |
Shinhan M&A-ESG Investment Fund |
|
Fees and commission income |
|
494 |
|
536 |
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |
|
Fees and commission income |
|
38 |
|
36 |
SH Prestige High Dividend Security Feeder No.1[Equity] |
|
Fees and commission income |
|
169 |
|
38 |
Shinhan Time Secondary Blind New Technology Investment Association |
|
Fees and commission income |
|
47 |
|
49 |
〃 |
|
Interest expense |
|
(1) |
|
- |
Shinhan-OpenWater Pre-IPO Fund-1 |
|
Fees and commission income |
|
100 |
|
100 |
Shinhan-CJ Technology Innovation Fund No. 1 |
|
Fees and commission income |
|
99 |
|
99 |
〃 |
|
Interest expense |
|
(25) |
|
(29) |
Shinhan-Eco Venture Fund 2nd |
|
Fees and commission income |
|
50 |
|
50 |
Heungkuk-Shinhan The First Visionary Fund No.1 |
|
Fees and commission income |
|
200 |
|
200 |
Koreainvestment-Shinhan-LEP K beauty |
|
Fees and commission income |
|
57 |
|
47 |
Shinhan HB Wellness 1st Fund |
|
Fees and commission income |
|
39 |
|
39 |
Shinhan J&Wave New Technology Business Investment Association |
|
Fees and commission income |
|
7 |
|
7 |
Shinhan General Private Real Estate Investment Trust No.3 |
|
Fees and commission income |
|
87 |
|
99 |
159
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
Shinhan DS Secondary Investment Fund |
|
Fees and commission income |
W |
150 |
|
150 |
Shinhan-Timefolio Bio Accelerator Fund |
|
Fees and commission income |
|
307 |
|
- |
Fortress-Shinhan Air Cargo No. 1 New Technology Investment Association |
|
Fees and commission income |
|
3 |
|
3 |
Shinhan Ulmus Small Manager Innovative Enterprise Investment Association No. 7 |
|
Fees and commission income |
|
31 |
|
47 |
Shinhan SM Office Value Add – Outsource Management Real Estate Investment Co., Ltd. |
|
Fees and commission income |
|
21 |
|
21 |
Shinhan-GB FutureFlow Fund L.P. |
|
Fees and commission income |
|
- |
|
148 |
LB Scotland Amazon Fulfillment Center Fund 29 |
|
Derivative-related income |
|
- |
|
123 |
Pinestreet Grobal Fund 13-2 |
|
Derivative-related income |
|
192 |
|
129 |
〃 |
|
Derivative-related expense |
|
(4) |
|
- |
Shinhan Regent New Technology Business Investment Association No. 1 |
|
Fees and commission income |
|
84 |
|
84 |
Shinhan-soo secondary Fund |
|
Fees and commission income |
|
169 |
|
113 |
E&Shinhan New Growth-Up Fund |
|
Fees and commission income |
|
80 |
|
80 |
TECHFIN RATINGS Co., Ltd. |
|
Fees and commission income |
|
2 |
|
2 |
〃 |
|
Interest expense |
|
(134) |
|
(304) |
〃 |
|
Fees and commission expense |
|
- |
|
(1) |
〃 |
|
Reversal of (provision for) credit losses |
|
(1) |
|
2 |
〃 |
|
Reversal of (provision for) allowance for undrawn commitments |
|
(1) |
|
6 |
Songpa biz cluster PFV Co., Ltd. |
|
Interest income |
|
25,586 |
|
1,017 |
〃 |
|
Fees and commission income |
|
21,749 |
|
- |
〃 |
|
Provision for credit losses |
|
(1,029) |
|
(119) |
〃 |
|
Reversal of (provision for) allowance for undrawn commitments |
|
(44) |
|
47 |
STIC ALT Global II Private Equity Fund |
|
Interest expense |
|
- |
|
(1) |
Rifa Private Real Estate Investment Trust 31 |
|
Interest income |
|
357 |
|
382 |
〃 |
|
Provision for credit losses |
|
(19) |
|
(12) |
Pacific Private Placement Real Estate Fund No.40 |
|
Interest income |
|
423 |
|
378 |
Shinhan-DS Mezzanine New Technology Investment Association No. 1 |
|
Fees and commission income |
|
88 |
|
137 |
Shinhan-Csquared Mezzanine Fund 1 |
|
Fees and commission income |
|
20 |
|
20 |
Shinhan Time BM Sub-Director New Technology Association |
|
Fees and commission income |
|
55 |
|
27 |
160
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Investments in associates (continued): |
|
|
|
|
|
|
KR Seocho Co., Ltd. |
|
Interest income |
W |
790 |
|
683 |
〃 |
|
Provision for credit losses |
|
(9) |
|
(9) |
Shinhan Market-Frontier Investment Association No. 3 |
|
Fees and commission income |
|
682 |
|
780 |
K-REITs Infrastructure Real Estate Fund |
|
Fees and commission income |
|
35 |
|
33 |
KB Distribution Private Real Estate 3-1 |
|
Interest income |
|
- |
|
41 |
Capstone REITs No.26 |
|
Interest income |
|
416 |
|
496 |
〃 |
|
Reversal of credit losses |
|
21 |
|
- |
Wave Technology |
|
Fees and commission expense |
|
- |
|
(300) |
Credila Financial Services |
|
Interest income |
|
648 |
|
1,061 |
〃 |
|
Fees and commission income |
|
- |
|
9 |
〃 |
|
Reversal of (provision for) credit losses |
|
18 |
|
(93) |
〃 |
|
Interest expense |
|
(91) |
|
(10) |
Shinhan Rio Green Private Equity Fund |
|
Interest expense |
|
(5) |
|
(16) |
Startup Korea Vision 2024 Fund |
|
Fees and commission income |
|
428 |
|
372 |
Shinhan-soo Investment Green Wiz Fund |
|
Fees and commission income |
|
375 |
|
287 |
Shinhan-Time Premier Fund |
|
Fees and commission income |
|
7 |
|
120 |
Finflow (*3) |
|
Other non-operating income |
|
- |
|
2,652 |
〃 |
|
Fees and commission expense |
|
(1,331) |
|
- |
〃 |
|
Other administrative expense |
|
(271) |
|
- |
〃 |
|
Provision for allowance for undrawn commitments |
|
(1) |
|
- |
D2U 12th Fund |
|
Interest expense |
|
(6) |
|
(1) |
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |
|
Fees and commission income |
|
15 |
|
- |
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
Interest income |
|
603 |
|
- |
IGIS No. 574 Real Estate General Private Investment Company (*2) |
|
Interest income |
|
435 |
|
- |
〃 |
|
Fees and commission income |
|
479 |
|
- |
〃 |
|
Provision for credit losses |
|
(43) |
|
- |
Shinhan-BNK Global Fund I |
|
Fees and commission income |
|
22 |
|
- |
Shinhan-Time Premier Mezzanine New Technology Business Investment Association No.2 |
|
Fees and commission income |
|
123 |
|
- |
Shinhan-Kiwoom Productive Finance Fund 1 |
|
Fees and commission income |
|
8 |
|
- |
Shinhan-BNK Mezzanine Fund 1 |
|
Fees and commission income |
|
24 |
|
- |
SNM Technology Innovation Fund |
|
Fees and commission income |
|
146 |
|
- |
SYNERGY-SHINHAN Mezzanine New Technology Investment Fund 3rd |
|
Fees and commission income |
|
84 |
|
- |
|
|
|
|
|
|
|
Key management personnel and their close family members |
|
Interest income |
|
85 |
|
142 |
|
|
|
W |
93,201 |
|
72,564 |
161
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(b) Transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
(*1) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2025.
(*2) Excluded from the associates due to disposal and liquidation for the six-month period ended June 30, 2026.
(*3) During the six-month period ended June 30, 2025, the Group acquired shares of Finflow through an in-kind contribution. The gain on disposal related to the in-kind contribution of W 2,652 million is included in other non-operating income.
162
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(c) Key management personnel compensation
Key management personnel compensation for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Short-term employee benefits |
W |
3,102 |
|
9,435 |
|
5,651 |
|
11,429 |
Severance benefits |
|
113 |
|
277 |
|
192 |
|
375 |
Share-based payments (*) |
|
5,618 |
|
12,041 |
|
8,107 |
|
9,627 |
|
W |
8,833 |
|
21,753 |
|
13,950 |
|
21,431 |
(*) The above share-based compensation expenses are costs related to share-based compensation arrangements that are still within the vesting period.
(d) The guarantees and purchase agreement provided between the related parties as of June 30, 2026 and December 31, 2025 are as follows:
|
|
|
|
Amount of guarantees |
|
|
||
Guarantor |
|
Guaranteed Parties |
|
June 30, 2026 |
|
December 31, 2025 |
|
Account |
Shinhan Bank |
|
SBC PFV Co., Ltd. |
W |
1,178,000 |
|
1,226,300 |
|
Unused lines of credit for loans |
〃 |
|
Songpa biz cluster PFV Co., Ltd. |
|
378,947 |
|
- |
|
|
〃 |
|
Key Management Personnel |
|
1,138 |
|
989 |
|
|
Shinhan Life Insurance Co., Ltd. |
|
SBC PFV Co., Ltd. |
|
164,900 |
|
171,700 |
|
|
Shinhan Securities Co., Ltd. |
|
SBC PFV Co., Ltd. |
|
3,900 |
|
4,100 |
|
|
〃 |
|
Songpa biz cluster PFV Co., Ltd. |
|
- |
|
30,000 |
|
|
Shinhan Capital |
|
SBC PFV Co., Ltd. |
|
58,900 |
|
61,300 |
|
|
〃 |
|
Songpa biz cluster PFV Co., Ltd. |
|
14,760 |
|
- |
|
|
Shinhan Card Co., Ltd. |
|
BNP Paribas Cardif Life Insurance |
|
832 |
|
810 |
|
Unused lines of credit for credit card |
The Group |
|
Structured entities |
|
99,743 |
|
131,704 |
|
Purchase agreement |
|
|
7,024 |
|
6,286 |
|
Derivatives agreement |
||
|
|
|
W |
1,908,144 |
|
1,633,189 |
|
|
163
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(e) Details of collaterals provided by the related parties as of June 30, 2026 and December 31, 2025 are as follows:
|
|
|
|
|
|
Amount of assets pledged |
||
Provided to |
|
Provided by |
|
Pledged assets |
|
June 30, 2026 |
|
December 31, 2025 |
Shinhan Bank |
|
Logisvalley Shinhan REIT Co., Ltd. |
|
Collateral trust |
W |
39,600 |
|
39,600 |
|
Nomura-Rifa Private Real Estate Investment Trust 31 |
|
Collateral trust |
|
16,632 |
|
16,632 |
|
|
SBC PFV Co., Ltd. |
|
Collateral trust |
|
1,440,000 |
|
1,440,000 |
|
|
〃 |
|
Shares |
|
7,529 |
|
7,529 |
|
|
|
|
|
|
1,447,529 |
|
1,447,529 |
|
|
Songpa biz cluster PFV Co., Ltd. |
|
Collateral trust |
|
1,800,000 |
|
- |
|
|
Key Management Personnel |
|
Properties |
|
7,130 |
|
9,103 |
|
|
〃 |
|
Deposits, etc. |
|
1,729 |
|
1,783 |
|
|
〃 |
|
Guarantee |
|
955 |
|
980 |
|
|
|
|
|
|
9,814 |
|
11,866 |
|
|
|
|
|
|
W |
3,313,575 |
|
1,515,627 |
164
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(f) Significant loans and financing transactions with related parties
i) Details of significant loan transactions with related parties for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
|
|
June 30, 2026 |
||||||||
Classification |
|
Company |
|
Beginning |
|
Loan |
|
Collection |
|
Others |
|
Ending |
Investments in associates |
|
Nomura-Rifa Private Real Estate Investment Trust 19 |
W |
11,400 |
|
- |
|
(300) |
|
- |
|
11,100 |
|
SBC PFV Co., Ltd. |
|
519,800 |
|
115,700 |
|
(54,700) |
|
- |
|
580,800 |
|
|
Logisvalley Shinhan REIT Co., Ltd. |
|
33,000 |
|
- |
|
(660) |
|
- |
|
32,340 |
|
|
Nomura-Rifa Private Real Estate Investment Trust 31 |
|
13,860 |
|
83 |
|
(83) |
|
- |
|
13,860 |
|
|
Pacific Private Placement Real Estate Fund No.40 |
|
14,000 |
|
- |
|
- |
|
- |
|
14,000 |
|
|
KR Seocho Co., Ltd. |
|
11,871 |
|
- |
|
- |
|
- |
|
11,871 |
|
|
Songpa biz cluster PFV Co., Ltd. |
|
70,272 |
|
2,568,655 |
|
(1,409,803) |
|
- |
|
1,229,124 |
|
|
Capstone REITs No.26 |
|
20,000 |
|
- |
|
(20,000) |
|
- |
|
- |
|
|
Credila Financial Services |
|
19,895 |
|
- |
|
(4,654) |
|
- |
|
15,241 |
|
|
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
20,000 |
|
- |
|
- |
|
- |
|
20,000 |
|
|
IGIS No. 574 Real Estate General Private Investment Company |
|
- |
|
9,000 |
|
- |
|
- |
|
9,000 |
|
Key Management Personnel |
|
4,559 |
|
1,262 |
|
(1,474) |
|
- |
|
4,347 |
||
Total |
W |
738,657 |
|
2,694,700 |
|
(1,491,674) |
|
- |
|
1,941,683 |
||
165
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(f) Significant loans and financing transactions with related parties (continued)
|
|
|
|
December 31, 2025 |
||||||||
Classification |
|
Company |
|
Beginning |
|
Loan |
|
Collection |
|
Others |
|
Ending |
Investments in associates |
|
Nomura-Rifa Private Real Estate Investment Trust 19 |
W |
11,700 |
|
- |
|
(300) |
|
- |
|
11,400 |
|
SBC PFV Co., Ltd. |
|
984,600 |
|
1,270,300 |
|
(1,735,100) |
|
- |
|
519,800 |
|
|
Logisvalley Shinhan REIT Co., Ltd. |
|
33,000 |
|
- |
|
- |
|
- |
|
33,000 |
|
|
Nomura-Rifa Private Real Estate Investment Trust 31 |
|
14,000 |
|
- |
|
(140) |
|
- |
|
13,860 |
|
|
Pacific Private Placement Real Estate Fund No.40 |
|
14,000 |
|
- |
|
- |
|
- |
|
14,000 |
|
|
KR Seocho Co., Ltd. |
|
11,871 |
|
- |
|
- |
|
- |
|
11,871 |
|
|
Songpa biz cluster PFV Co., Ltd. |
|
22,424 |
|
47,848 |
|
- |
|
- |
|
70,272 |
|
|
KB Distribution Private Real Estate 3-1 |
|
2,000 |
|
- |
|
(2,000) |
|
- |
|
- |
|
|
Capstone REITs No.26 |
|
20,000 |
|
- |
|
- |
|
- |
|
20,000 |
|
|
EDNCENTRAL Co., Ltd. (*) |
|
25,400 |
|
7,930 |
|
- |
|
(33,330) |
|
- |
|
|
Credila Financial Services |
|
- |
|
26,567 |
|
(6,672) |
|
- |
|
19,895 |
|
|
IGIS Yongsan Office General Private Real Estate Investment Trust 518 |
|
20,000 |
|
- |
|
- |
|
- |
|
20,000 |
|
Key Management Personnel |
|
3,403 |
|
3,747 |
|
(2,591) |
|
- |
|
4,559 |
||
Total |
W |
1,162,398 |
|
1,356,392 |
|
(1,746,803) |
|
(33,330) |
|
738,657 |
||
(*) Excluded from associates due to the loss of significant influence during the year ended December 31, 2025, and the year-end balance has been reclassified under 'Others'
166
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
31. Related parties (continued)
(f) Significant loans and financing transactions with related parties (continued)
ii) Details of significant borrowing and repayment transactions with related parties for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
|
|
|
|
June 30, 2026 |
||||||
Liabilities |
|
Classification |
|
Company |
|
Beginning |
|
Borrowing |
|
Repayment |
|
Ending |
Deposits (*) |
|
Investments in associates |
|
Shinhan Rio Green Private Equity Fund |
W |
- |
|
1,250 |
|
(650) |
|
600 |
TECHFIN RATINGS Co., Ltd. |
|
13,500 |
|
7,500 |
|
(13,500) |
|
7,500 |
||||
Shinhan-CJ TechInnovati-on Fund 1st |
|
3,500 |
|
3,000 |
|
(5,000) |
|
1,500 |
||||
D2U 12th Fund |
|
400 |
|
400 |
|
(400) |
|
400 |
||||
Korea Credit Bureau |
|
1,000 |
|
- |
|
- |
|
1,000 |
||||
Korea Finance Security Co., Ltd. |
|
- |
|
100 |
|
- |
|
100 |
||||
|
Shinhan Time Secondary Blind Fund |
|
- |
|
100 |
|
- |
|
100 |
|||
Total |
W |
18,400 |
|
12,350 |
|
(19,550) |
|
11,200 |
||||
|
|
|
|
|
|
December 31, 2025 |
||||||
Liabilities |
|
Classification |
|
Company |
|
Beginning |
|
Borrowing |
|
Repayment |
|
Ending |
Deposits (*) |
|
Investments in associates |
|
NH-J&-IBKC Label Technology Fund |
W |
59 |
|
- |
|
(59) |
|
- |
Shinhan Rio Green Private Equity Fund |
|
- |
|
4,600 |
|
(4,600) |
|
- |
||||
TECHFIN RATINGS Co., Ltd. |
|
18,000 |
|
24,500 |
|
(29,000) |
|
13,500 |
||||
Shinhan-CJ TechInnovati-on Fund 1st |
|
3,100 |
|
14,500 |
|
(14,100) |
|
3,500 |
||||
D2U 12th Fund |
|
- |
|
900 |
|
(500) |
|
400 |
||||
Meta TB ESG Private Equity Fund I |
|
- |
|
300 |
|
(300) |
|
- |
||||
Korea Credit Bureau |
|
- |
|
1,000 |
|
- |
|
1,000 |
||||
Total |
W |
21,159 |
|
45,800 |
|
(48,559) |
|
18,400 |
||||
(*) Settlement balances between related parties and payable deposits with frequent movements are excluded.
167
SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2026 and 2025(Unaudited), and December 31, 2025
(In millions of won)
32. Subsequent events
(a) Resolution of Quarterly Dividend
At the Board of Directors meeting held on July 23, 2026, the Parent Company resolved to pay a quarterly cash dividend of W 740 per ordinary share. The total amount of dividends is W 347,393 million, and the dividend record date is July 30, 2026.
(b) Acquisition and Retirement of Treasury Shares
To enhance shareholder value, the Parent Company resolved at the Board of Directors meeting on July 23, 2026 to acquire and retire treasury shares worth W 700 billion.
168
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Financial Statements
June 30, 2026 and 2025
(Unaudited)
Contents
|
|
Page |
|
|
|
Report on Review of Condensed Separate Interim Financial Statements |
|
1 |
|
|
|
Condensed Separate Interim Statements of Financial Position |
|
3 |
|
|
|
Condensed Separate Interim Statements of Comprehensive Income |
|
4 |
|
|
|
Condensed Separate Interim Statements of Changes in Equity |
|
5 |
|
|
|
Condensed Separate Interim Statements of Cash Flows |
|
6 |
|
|
|
Notes to the Condensed Separate Interim Financial Statements |
|
8 |
Report on Review of Condensed Separate Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Shareholders and Board of Directors of
Shinhan Financial Group Co., Ltd.:
Reviewed Financial Statements
We have reviewed the accompanying condensed separate interim financial statements of Shinhan Financial Group Co., Ltd. (the “Company”). These condensed separate interim financial statements consist of the condensed separate interim statement of financial position of the Company as at June 30, 2026, and the related condensed separate interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2026, and condensed separate interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2026, and material accounting policy information and other selected explanatory notes, expressed in Korean won.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and presentation of these condensed separate interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on these condensed separate interim financial statements based on our review.
We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed separate interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
The condensed separate interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2025, and condensed separate interim statements of changes in equity and cash flows for the six-month period ended June 30, 2025, presented herein for comparative purposes, were reviewed by another auditor whose report dated August 14, 2025. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed separate interim financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
The separate statement of financial position as at December 31, 2025, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 3, 2026. The separate statement of financial position as at December 31, 2025, presented herein for comparative purposes, is consistent, in all material respects, with the above audited separate statement of financial position as at December 31, 2025.
Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.
/s/ Samil PricewaterhouseCoopers
1
August 14, 2026
Seoul, Korea
This report is effective as of August 14, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any. |
2
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Financial Position
As of June 30, 2026 and December 31, 2025
(In millions of won) |
|
Notes |
|
June 30, 2026 (Unaudited) |
|
December 31, 2025 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and due from banks at amortized cost |
|
4, 5, 24 |
W |
1,187 |
|
2,589 |
Financial assets at fair value through profit or loss |
|
4, 6, 24 |
|
3,183,425 |
|
3,160,174 |
Loans at amortized cost |
|
4, 7, 24 |
|
2,428,373 |
|
2,951,878 |
Property and equipment |
|
24 |
|
4,809 |
|
4,833 |
Intangible assets |
|
24 |
|
6,862 |
|
7,114 |
Investments in subsidiaries |
|
8 |
|
30,713,901 |
|
30,723,705 |
Net defined benefit asset |
|
11 |
|
8,971 |
|
9,676 |
Deferred tax assets |
|
|
|
39,812 |
|
6,388 |
Other assets |
|
4, 7, 24 |
|
601,206 |
|
927,470 |
Total assets |
|
|
W |
36,988,546 |
|
37,793,827 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Borrowings |
|
4, 9 |
|
9,899 |
|
9,975 |
Debt securities issued |
|
4, 10, 24 |
|
9,970,863 |
|
10,457,205 |
Deferred tax liabilities |
|
|
|
- |
|
- |
Other liabilities |
|
4, 24 |
|
660,905 |
|
991,187 |
Total liabilities |
|
|
|
10,641,667 |
|
11,458,367 |
|
|
|
|
|
|
|
Equity |
|
12 |
|
|
|
|
Share capital |
|
|
|
2,969,641 |
|
2,969,641 |
Hybrid bonds |
|
|
|
4,163,879 |
|
4,749,837 |
Capital surplus |
|
|
|
1,484,821 |
|
11,350,744 |
Capital adjustments |
|
|
|
(726,985) |
|
(647,347) |
Accumulated other comprehensive loss |
|
|
|
(9,666) |
|
(11,363) |
Retained earnings |
|
|
|
18,465,189 |
|
7,923,948 |
Total equity |
|
|
|
26,346,879 |
|
26,335,460 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
W |
36,988,546 |
|
37,793,827 |
See accompanying notes to the condensed separate interim financial statements.
3
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Comprehensive Income
For the three-month and six-month periods ended June 30, 2026 and 2025
(In millions of won, except earnings per share data) |
|
Notes |
|
June 30, 2026 (Unaudited) |
|
June 30, 2025 (Unaudited) |
||||
|
|
|
|
Three-month |
|
Six- month |
|
Three- month |
|
Six- month |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
21, 24 |
W |
24,402 |
|
48,088 |
|
19,645 |
|
41,226 |
Interest expense |
|
24 |
|
(87,827) |
|
(172,844) |
|
(80,036) |
|
(163,354) |
Net interest expense |
|
13 |
|
(63,425) |
|
(124,756) |
|
(60,391) |
|
(122,128) |
|
|
|
|
|
|
|
|
|
|
|
Fees and commission income |
|
21, 24 |
|
19,335 |
|
37,094 |
|
17,760 |
|
35,519 |
Fees and commission expense |
|
24 |
|
(225) |
|
(456) |
|
(433) |
|
(580) |
Net fees and commission income |
|
14 |
|
19,110 |
|
36,638 |
|
17,327 |
|
34,939 |
|
|
|
|
|
|
|
|
|
|
|
Dividend income |
|
15, 21, 24 |
|
15,528 |
|
2,478,041 |
|
14,620 |
|
2,574,671 |
Net gain on financial assets at fair value through profit or loss |
|
21 |
|
8,985 |
|
8,844 |
|
18,543 |
|
35,840 |
Net loss on foreign currency transaction |
|
21 |
|
(19,223) |
|
(17,580) |
|
(949) |
|
(583) |
Reversal of credit losses |
|
16, 21 |
|
274 |
|
351 |
|
295 |
|
368 |
General and administrative expense |
|
17, 24 |
|
(36,888) |
|
(70,661) |
|
(38,365) |
|
(68,052) |
|
|
|
|
|
|
|
|
|
|
|
Operating income (expenses) |
|
|
|
(75,639) |
|
2,310,877 |
|
(48,920) |
|
2,455,055 |
|
|
|
|
|
|
|
|
|
|
|
Non-operating expenses |
|
|
|
(249) |
|
(619) |
|
(371) |
|
(3,473) |
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income taxes |
|
|
|
(75,888) |
|
2,310,258 |
|
(49,291) |
|
2,451,582 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (income) |
|
19 |
|
(58,721) |
|
(32,891) |
|
(1,580) |
|
12 |
Profit (loss) for the period |
|
|
|
(17,167) |
|
2,343,149 |
|
(47,711) |
|
2,451,570 |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of income tax Items that will not be reclassified to profit or loss: |
|
|
|
1,697 |
|
1,697 |
|
(2,068) |
|
(2,068) |
Remeasurements of net defined benefit liability (asset) |
|
|
|
1,697 |
|
1,697 |
|
(2,068) |
|
(2,068) |
Total comprehensive income (loss) for the period |
|
|
W |
(15,470) |
|
2,344,846 |
|
(49,779) |
|
2,449,502 |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share in won |
|
20 |
W |
(155) |
|
4,748 |
|
(214) |
|
4,786 |
See accompanying notes to the condensed separate interim financial statements.
4
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Changes in Equity
For the six-month periods ended June 30, 2026 and 2025
(In millions of won) |
|
Share Capital |
|
Hybrid Bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other comprehensive loss |
|
Retained earnings |
|
Total equity |
Balance at January 1, 2025 |
W |
2,969,641 |
|
4,600,121 |
|
11,350,744 |
|
(296,024) |
|
(9,307) |
|
7,733,000 |
|
26,348,175 |
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,451,570 |
|
2,451,570 |
Other comprehensive income (loss) |
|
- |
|
- |
|
- |
|
- |
|
(2,068) |
|
- |
|
(2,068) |
Remeasurements of the net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
(2,068) |
|
- |
|
(2,068) |
|
|
- |
|
- |
|
- |
|
- |
|
(2,068) |
|
2,451,570 |
|
2,449,502 |
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(267,755) |
|
(267,755) |
Quarterly dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(278,127) |
|
(278,127) |
Dividends to hybrid bonds |
|
- |
|
- |
|
|
|
|
|
|
|
(99,133) |
|
(99,133) |
Redemption of hybrid bonds |
|
- |
|
(199,455) |
|
- |
|
(545) |
|
- |
|
- |
|
(200,000) |
Transfer of redemption loss on hybrid bonds to retained earnings |
|
- |
|
- |
|
- |
|
524 |
|
- |
|
(524) |
|
- |
Issuance of hybrid bonds |
|
- |
|
398,835 |
|
- |
|
- |
|
- |
|
- |
|
398,835 |
Acquisition of treasury shares |
|
- |
|
- |
|
- |
|
(650,000) |
|
- |
|
- |
|
(650,000) |
Retirement of treasury shares |
|
- |
|
- |
|
- |
|
900,000 |
|
- |
|
(900,112) |
|
(112) |
|
|
- |
|
199,380 |
|
- |
|
249,979 |
|
- |
|
(1,545,651) |
|
(1,096,292) |
Balance at June 30, 2025 (Unaudited) |
W |
2,969,641 |
|
4,799,501 |
|
11,350,744 |
|
(46,045) |
|
(11,375) |
|
8,638,919 |
|
27,701,385 |
5
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Changes in Equity (Continued)
For the six-month periods ended June 30, 2026 and 2025
(In millions of won) |
|
Share Capital |
|
Hybrid Bonds |
|
Capital surplus |
|
Capital adjustments |
|
Accumulated other comprehensive loss |
|
Retained earnings |
|
Total equity |
Balance at January 1, 2026 |
W |
2,969,641 |
|
4,749,837 |
|
11,350,744 |
|
(647,347) |
|
(11,363) |
|
7,923,948 |
|
26,335,460 |
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,343,149 |
|
2,343,149 |
Other comprehensive income (loss) |
|
- |
|
- |
|
- |
|
- |
|
1,697 |
|
- |
|
1,697 |
Remeasurements of the net defined benefit liability (asset) |
|
- |
|
- |
|
- |
|
- |
|
1,697 |
|
- |
|
1,697 |
|
|
- |
|
- |
|
- |
|
- |
|
1,697 |
|
2,343,149 |
|
2,344,846 |
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(417,502) |
|
(417,502) |
Quarterly dividends |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(348,750) |
|
(348,750) |
Dividends to hybrid bonds |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(99,728) |
|
(99,728) |
Redemption of hybrid bonds |
|
- |
|
(985,016) |
|
- |
|
(181,484) |
|
- |
|
- |
|
(1,166,500) |
Transfer of redemption loss on hybrid bonds to retained earnings |
|
- |
|
- |
|
- |
|
1,846 |
|
- |
|
(1,846) |
|
- |
Issuance of hybrid bonds |
|
- |
|
399,058 |
|
- |
|
- |
|
- |
|
- |
|
399,058 |
Acquisition of treasury shares |
|
- |
|
- |
|
- |
|
(700,000) |
|
- |
|
- |
|
(700,000) |
Retirement of treasury shares |
|
- |
|
- |
|
- |
|
800,000 |
|
- |
|
(800,005) |
|
(5) |
Transfer of share premium to retained earnings |
|
- |
|
- |
|
(9,865,923) |
|
- |
|
- |
|
9,865,923 |
|
- |
Balance at June 30, 2026 (Unaudited) |
W |
2,969,641 |
|
4,163,879 |
|
1,484,821 |
|
(726,985) |
|
(9,666) |
|
18,465,189 |
|
26,346,879 |
See accompanying notes to the condensed separate interim financial statements.
6
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Cash Flows
For the six-month periods ended June 30, 2026 and 2025
|
|
|
|
Six-month periods ended June 30 |
||
(In millions of Won) |
|
Notes |
|
2026 (Unaudited) |
|
2025 (Unaudited) |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Profit for the period |
|
|
W |
2,343,149 |
|
2,451,570 |
Adjustments for: |
|
|
|
|
|
|
Interest income |
|
13, 21 |
|
(48,089) |
|
(41,226) |
Interest expense |
|
13 |
|
172,844 |
|
163,354 |
Dividend income |
|
15, 21 |
|
(2,478,041) |
|
(2,574,671) |
Income tax expense |
|
19 |
|
(32,891) |
|
12 |
Net loss(gain)on financial instruments at fair value through profit or loss |
|
|
|
8,052 |
|
(10,987) |
Reversal of credit losses |
|
16, 21 |
|
(351) |
|
(368) |
Employee benefits |
|
|
|
6,546 |
|
5,398 |
Depreciation and amortization |
|
17 |
|
2,188 |
|
2,110 |
Net gain on foreign currency transaction |
|
|
|
37,494 |
|
978 |
Non-operating expenses |
|
|
|
(10) |
|
2,265 |
|
|
|
|
(2,332,258) |
|
(2,453,135) |
Changes in assets and liabilities: |
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
|
|
(106,647) |
|
(1,101,058) |
Other assets |
|
|
|
4,810 |
|
165 |
Net defined benefit asset |
|
|
|
(498) |
|
1,645 |
Other liabilities |
|
|
|
(10,410) |
|
(10,734) |
|
|
|
|
(112,745) |
|
(1,109,982) |
|
|
|
|
|
|
|
Income tax paid |
|
|
|
(462) |
|
(136) |
Interest received |
|
|
|
55,980 |
|
49,593 |
Interest paid |
|
|
|
(172,696) |
|
(171,786) |
Dividends received |
|
|
|
2,477,923 |
|
2,574,489 |
Net cash inflow from operating activities |
|
|
|
2,258,891 |
|
1,340,613 |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Acquisition of financial assets at fair value through profit or loss |
|
|
|
(300,000) |
|
(100,000) |
Decrease in financial assets at fair value through profit or loss |
|
|
|
383,636 |
|
100,000 |
Lending of loans at amortized cost |
|
|
|
(468,949) |
|
(369,693) |
Collection of loans at amortized cost |
|
|
|
1,050,027 |
|
1,140,300 |
Acquisition of property and equipment |
|
|
|
(191) |
|
(102) |
Acquisition of intangible assets |
|
|
|
(318) |
|
(826) |
Increase in other assets |
|
|
|
- |
|
(8,225) |
Acquisition of investments in subsidiaries |
|
|
|
9,804 |
|
(100,054) |
Net cash inflow from investing activities |
|
|
W |
674,009 |
|
661,400 |
7
SHINHAN FINANCIAL GROUP CO., LTD.
Condensed Separate Interim Statements of Cash Flows (Continued)
For the six-month periods ended June 30, 2026 and 2025
|
|
|
|
Six-month periods ended June 30 |
||
(In millions of won) |
|
Note |
|
2026 (Unaudited) |
|
2025 (Unaudited) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Issuance of hybrid bonds |
|
|
W |
399,058 |
|
398,835 |
Redemption of hybrid bonds |
|
|
|
(1,166,500) |
|
(200,000) |
Issuance of debt securities |
|
|
|
1,347,061 |
|
998,364 |
Redemption of debt securities issued |
|
|
|
(1,947,450) |
|
(2,045,000) |
Increase in borrowings |
|
|
|
109,774 |
|
9,700 |
Decrease in borrowings |
|
|
|
(110,000) |
|
(20,000) |
Dividends paid |
|
|
|
(865,858) |
|
(644,704) |
Acquisition of treasury shares |
|
|
|
(700,000) |
|
(650,000) |
Retirement of treasury shares |
|
|
|
(5) |
|
(47) |
Repayments of leased liabilities |
|
|
|
(383) |
|
(351) |
Net cash outflow from financing activities |
|
|
|
(2,934,303) |
|
(2,153,203) |
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
|
(1,403) |
|
(151,190) |
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
23 |
|
2,587 |
|
151,203 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
23 |
W |
1,184 |
|
13 |
See accompanying notes to the condensed separate interim financial statements.
8
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
1. Reporting entity
Shinhan Financial Group Co., Ltd. (the “Company”) was incorporated on September 1, 2001 for the purpose of controlling and managing companies operating in the financial industry and providing financial support to its subsidiaries.
In addition, the shares have been listed on the Korea Exchange since September 10, 2001, and the Company was registered with the Securities and Exchange Commission (SEC) on September 16, 2003, and on the same date, its American Depositary Shares (ADS) were listed on the New York Stock Exchange (NYSE).
2. Basis of preparation
The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying separate interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.
The condensed separate interim financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”), as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. These financial statements were prepared in accordance with K-IFRS No.1034, ‘Interim Financial Reporting’ as part of the period covered by the Company’s K-IFRS annual financial statements and contain less information than required in the annual separate financial statements. Selective comments include a description of transactions or events that are significant in understanding the changes in the financial position and management performance of the Company that occurred after December 31, 2025.
The condensed separate interim financial statements of the Company are separate financial statements prepared in accordance with K-IFRS No.1027 ‘Separate Financial Statements’, in which a parent, an investor in an associate or participant in a joint venture account for its investment on the basis of direct equity interest rather than on the basis of the investee’s reported performance and net assets.
(b) Use of estimates and judgments
The preparation of the condensed separate interim financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions about estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Income tax expense in the interim period is measured by applying the expected annual income tax rate, i.e. the estimated average annual effective income tax rate.
In preparing the condensed separate interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2025 except for the method of estimation used to determine the income tax expense for the interim period.
9
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
3. Material accounting policies
(a) The Company applies the same accounting policies as in the preparation of the annual separate financial statements for the year ended December 31, 2025, except for the following amendments first applied from January 1, 2026, as described in Note 2(b).
i) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’
To address questions raised in practice and incorporate new requirements, Korean IFRS No. 1109 ‘Financial Instruments’ and No. 1107 ‘Financial Instruments: Disclosures’ have been amended. There is no significant impact on the separate financial statements from these amendments.
- Permit a financial liability to be regarded as settled (derecognized) through an electronic payment system before the settlement date, provided that specified criteria are met.
- Clarify and add further guidance for assessing whether financial assets meet the criterion of consisting solely of payments of principal and interest (SPPI).
- Require disclosure, by each class of financial instruments, of the effects of contractual terms that may change the timing or amount of contractual cash flows, as well as the extent of the entity’s exposure.
- Require additional disclosures for equity instruments designated at FVOCI.
ii) Annual Improvements to K-IFRS Volume 11
Annual Improvements to K-IFRS Volume 11 are effective for annual reporting periods beginning on or after January 1, 2026. There is no significant impact on the separate financial statements from these amendments.
- K-IFRS No. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – Hedge accounting by a first-time adopter
- K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ – Gain or loss on derecognition
and Guidance on implementing K-IFRS No. 1107
- K-IFRS No. 1109 ‘Financial Instruments’ – Derecognition of lease liabilities and transaction price
- K-IFRS No. 1110 ‘Consolidated Financial Statements’ – Determination of ‘de facto agent’
- K-IFRS No. 1007 ‘Statement of Cash Flows’ – Cost method
iii) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ - Contracts referencing nature-dependent electricity
Contracts referencing nature-dependent electricity were defined as contracts in which an entity is exposed to variability in the underlying volume of electricity because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). It was also clarified that contracts to purchase or sell nature-dependent electricity are subject to assessment for the own-use exemption. In addition, the hedge accounting requirements were amended to allow the variable nominal amount of forecast nature-dependent electricity transactions to be designated as a hedged item, and related disclosure requirements were added. There is no significant impact on the separate financial statements from these amendments.
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’
K-IFRS No. 1118, ‘Presentation and Disclosure in Financial Statements’, replaces K-IFRS 1001, ‘Presentation of Financial Statements’. K-IFRS No. 1118 is expected to enhance comparability of financial performance among similar entities by providing information useful to users of financial statements in analyzing and comparing an entity’s performance, with a particular focus on the statement of profit or loss.
10
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
3. Material accounting policies (continued)
(b) As of June 30, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’ (continued)
When the Company prepares its financial statements in accordance with K-IFRS No. 1118, the principal accounting policies that may result in significant differences from the current financial statements are as follows. These matters do not include all possible differences that may arise and are subject to change based on further analysis.
K-IFRS No. 1118 requires all income and expenses included in the statement of profit or loss to be classified into one of five categories: operating, investing, financing, income tax, and discontinued operations. The Standard classifies all income and expenses not included in the investing, financing, income tax, or discontinued operations categories as operating, and defines operating profit or loss as a residual measure.
The Company is required to assess its main business activities in order to classify income and expenses into categories. If the Company’s main business activities include investing in a particular type of asset or providing financing to customers, certain income and expenses that would otherwise have been classified in the investing or financing categories are classified in the operating category.
Accordingly, operating profit or loss under K-IFRS No. 1118 may differ significantly from operating profit or loss as defined under K-IFRS No. 1001, which is generally calculated as operating revenue less operating expenses. K-IFRS No. 1118 requires disclosure in the notes of operating profit or loss as determined under K-IFRS No. 1001, as well as a reconciliation of the differences between operating profit or loss under K-IFRS No. 1118 and that under K-IFRS No. 1001.
In addition, K-IFRS No. 1118 requires the presentation of the following subtotals in the statement of profit or loss: ‘operating profit or loss’, comprising all income and expenses classified in the operating category; ‘profit or loss before financing and income tax’, comprising operating profit or loss and all income and expenses classified in the investing category; and ‘profit or loss’. However, if the Company’s main business activity is to provide financing to customers, the presentation of ‘profit or loss before financing and income tax’ may not be required, depending on the accounting policy elected.
K-IFRS No. 1118 introduces disclosure requirements for management-defined performance measures (MPMs), which are used by management in public communications outside the financial statements to convey management’s view of the entity’s overall financial performance. MPMs are defined as subtotals of income and expenses that are not specified in paragraph 118 of K-IFRS No. 1118 and are not otherwise required to be presented or disclosed by the Standard.
If MPMs are used, the Company is required to disclose the reasons for using such measures, how they are calculated, a reconciliation to the most directly comparable subtotal specified by K-IFRS No. 1118, the tax effects of each reconciling item, and the effects on non-controlling interests.
As a result of the issuance of K-IFRS No. 1118, certain amendments were made to K-IFRS No. 1007, ‘Statement of Cash Flows’. Under these amendments, the starting point for determining cash flows from operating activities using the indirect method has been changed from profit for the period to operating profit or loss, and the option to classify cash flows related to interest and dividends has been removed.
K-IFRS No. 1118 is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted. Entities are required to apply the Standard retrospectively in accordance with K-IFRS No. 1008, ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the year ending December 31, 2026 will be restated in accordance with K-IFRS No. 1118. Amendments to K-IFRS No. 1007 and K-IFRS No. 1033 resulting from the issuance of K-IFRS No. 1118, as well as amendments to K-IFRS No. 1008 and K-IFRS No. 1107, become effective upon application of K-IFRS No. 1118.
The Company has not applied K-IFRS No. 1118 as its mandatory effective date has not yet been reached, and it plans to present its first interim financial statements for the period ending March 31, 2027 in accordance with K-IFRS No. 1118.
11
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
3. Material accounting policies (continued)
(b) As of June 30, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):
i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’ (continued)
As of June 30, 2026, based on the information available and the impact analysis performed, the Company is conducting a preliminary assessment of the expected effects of applying K-IFRS No. 1118. Based on the analysis performed to date, changes in the classification of income and expenses into categories are expected to result in changes to certain subtotals in the statement of profit or loss, including operating profit or loss. In particular, the reclassification of interest expense, which is currently included in operating profit or loss, to the financing category is expected to be a major factor affecting operating profit or loss. This reclassification of categories itself is not expected to affect profit or loss for the period.
The Company is evaluating whether any financial performance measures disclosed externally qualify as management-defined performance measures under K-IFRS No. 1118. It is also assessing the impact of the amendments to K-IFRS No. 1007 Statement of Cash Flows on the calculation of cash flows from operating activities and the classification of cash flows related to interest and dividends.
This assessment is preliminary and may change as the Company finalizes its detailed accounting policies, updates its financial reporting and closing systems, restates comparative information, and completes further analysis. The Company is currently quantifying the specific financial effects of applying this Standard.
12
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
4. Financial risk management
(a) Overview
The Company manages various risks that may arise within the business sector of Shinhan Financial Group Co., Ltd. (the “Group”) and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with risk management guidelines established at the Parent Company level and the subsidiary level.
i) Risk management principles
The risk management principles of the Group are as follows:
- All business activities take into account the balance of risks and profits within a predetermined risk appetite.
- The Parent Company shall present the Group Risk Management Model Standard, supervise their compliance, and have responsibility and authority for group-level monitoring.
- Operate a risk-related decision-making system that enhances management's involvement.
- Organize and operate risk management organizations independent of the business sector.
- Operate a performance management system that clearly considers risks when making business decisions.
- Aim for proactive and practical risk management functions.
- Share a cautious view to prepare for possible deterioration of the situation.
ii) Risk management organization
The fundamental policies for risk management of the Group are established by the Board of Directors of the Parent Company, while the basic risk management strategies are established by the Risk Management Committee (the “Group Risk Management Committee”) within the Parent Company’s Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiaries implement the risk management policies and strategies of the Group through their risk management committees, risk-related committees, and risk management organizations, and consistently establish and implement the detailed risk management policies and strategies. The risk management department of the Company assists the Group's Chief Risk Officer for risk management and supervision.
The Company has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Committees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.
ii-1) Group Risk Management Committee
The Committee establishes the risk management framework for the Company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group’s fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the Parent Company.
The resolution of the Committee is as follows:
- Establish risk management basic policy in line with management strategy
- Determine the level of risk that can be assumed by the Group and each subsidiary
- Approve the appropriate investment limits or loss allowance limit
- Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations
- Matters concerning risk management organizational structure and division of duties
- Matters concerning the operation of the risk management system
- Matters concerning the establishment of various limits and approval of limits
13
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
4. Financial risk management (continued)
(a) Overview (continued)
ii-1) Group Risk Management Committee(continued)
- Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems
- Matters concerning risk disclosure policy
- Crisis situation analysis results and related capital management plans and financing plans
- Matters deemed necessary by the Board of Directors
- Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines
- Matters deemed necessary by the Chairman
ii-2) Group Risk Management Council
In order to maintain the Group's risk management policies and strategies consistently, the Company resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group’s Chief Risk Officer and shall consist of the Chief Risk Officers of major subsidiaries.
iii) Group Risk Management System
iii-1) Management of the Risk Capital
Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Company and its subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management and establish a risk limit management system to control risk to an appropriate level.
iii-2) Risk monitoring
In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Company has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Company on key issues that affect risk management at the Group level. The Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.
In addition, the Company operates a Risk Dashboard to monitor key risks arising from changes in the business portfolios of the Group and its subsidiaries, loss-absorbing capacity, and changes in the external market environment. Based on the results of such monitoring, the Company conducts proactive risk management by identifying high-risk and vulnerable areas, analyzing the underlying causes, and establishing and implementing appropriate response measures.
iii-3) Risk reviewing
When promoting new products and businesses or implementing major policy changes, risk factors are reviewed using a pre-defined checklist to prevent the promotion of businesses where risks are difficult to assess and to support rational decision-making.
The risk management departments of subsidiaries conduct prior reviews of new products, services, and business initiatives and monitor associated risks on an ongoing basis after implementation. In cases involving multiple subsidiaries or joint initiatives, the relevant risk management departments are required to consult with the risk management function of the Parent Company prior to conducting risk reviews.
iii-4) Crisis management
The Company maintains a group-wide crisis management system to detect the signals of potential crisis proactively and, in the event of a crisis, to respond on a timely, efficient and coordinated basis so as to overcome the crisis and ultimately maintain a sustainable organization. Each subsidiary maintains crisis planning for four levels of contingencies, namely, ‘Caution’, ‘Alert’, ‘Imminent crisis’ and ‘Crisis’, the determination of which is made based on quantitative and qualitative monitoring and impact
14
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
4. Financial risk management (continued)
(a) Overview (continued)
iii-4) Crisis management (continued)
analysis, and upon the occurrence of any such contingency, is required to respond according to a prescribed contingency plan.
The Parent Company establishes and operates a group-wide crisis identification and response framework to ensure consistent recognition of and response to crisis situations across the Group. When a Group-wide crisis response is deemed necessary, such as when two or more subsidiaries reach the ‘Caution’ level or above, the Parent Company determines appropriate crisis response measures based on the applicable crisis situation level.
(b) Credit risk
Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Company faces. The Company’s credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.
i) Techniques, assumptions and input variables used to measure impairment
i-1) Determining significant increases in credit risk since initial recognition
At the end of each reporting period, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make the assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Company and analysis by an internal credit rating expert.
① Measuring the risk of default
The Company assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.
② Measuring term structure of probability of default
Internal credit rating is a key input variable for determining term structure of probability of default. The Company accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Company uses information obtained from external credit rating agencies when performing these analyses. The Company applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.
③ Significant increases in credit risk
The Company uses the indicators defined as per portfolio to determine the significant increase in credit risk, and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others.
15
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions and input variables used to measure impairment (continued)
i-2) Risk of default
The Company considers a financial asset to be in default if it meets one or more of the following conditions:
- If a borrower is overdue by 90 days or more from the contractual payment date,
- If the Company judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset
The Company uses the following indicators when determining whether a borrower is in default:
- Qualitative factors (e.g. breach of contractual terms),
- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Company, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Company uses the number of days past due for each financial instrument)
- Internal observation data and external data
The definition of default applied by the Company generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred and the extent thereof may vary.
i-3) Reflection of forward-looking information
The Company reflects forward-looking information presented by internal experts based on a variety of information when measuring expected credit losses. For the purpose of estimating this forward-looking information, the Company utilizes the economic outlook published by domestic and overseas research institutes or government and public agencies.
The Company analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation.
Key macroeconomic variables |
|
Correlation between credit risks |
GDP growth rate |
|
(-) |
Private consumption index growth rate |
|
(-) |
Index of equipment investment growth rate |
|
(-) |
Consumer price index growth rate |
|
(+) |
Balance on current account ($0.1 billion) |
|
(-) |
The predicted correlations between the macroeconomic variables and the risk of default, used by the Company, are derived based on long-term data over the past ten years.
16
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions and input variables used to measure impairment (continued)
i-4) Measurement of expected credit losses
Key variables used in measuring expected credit losses are as follows:
- Probability of default (“PD”)
- Loss given default (“LGD”)
- Exposure at default (“EAD”)
These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Company and have been adjusted to reflect forward-looking information.
Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.
LGD refers to the expected loss in the event of a default. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.
EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the assets, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.
In measuring expected credit losses on financial assets, the Company uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.
Risk factors of PD, LGD and EAD are collectively estimated according to the following criteria:
- Type of products
- Internal credit risk rating
- Type of collateral
- Loan to value (“LTV”)
- Industry that the borrower belongs to
- Location of the borrower or collateral
- Days of delinquency
The criteria for classifying groups are periodically reviewed to maintain homogeneity within groups and adjusted if necessary. The Company uses external benchmark information to supplement internal data for portfolios where sufficient historical data is not available internally.
17
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
i) Techniques, assumptions and input variables used to measure impairment (continued)
i-5) Write-off of financial assets
The Company writes off a portion of or entire loan or debt security for which the Company does not expect to receive its principal and interest. In general, the Company writes off the balance when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of the Financial Supervisory Service, if necessary. The Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.
ii) Maximum exposure to credit risk
The maximum exposure to credit risk of financial instruments, excluding equity instruments, as of June 30, 2026 and December 31, 2025 is as follows:
|
|
|
June 30, 2026 |
|
December 31, 2025 |
Due from banks and loans at amortized cost (*1): |
Banks |
W |
1,187 |
|
2,589 |
Corporations |
|
2,428,373 |
|
2,951,878 |
|
|
|
2,429,560 |
|
2,954,467 |
|
Financial assets at fair value through profit or loss |
|
1,788,805 |
|
1,667,654 |
|
Other financial assets at amortized cost (*1), (*2) |
|
600,919 |
|
927,158 |
|
|
|
W |
4,819,284 |
|
5,549,279 |
(*1) The maximum exposure amounts for due from banks, loans, and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.
(*2) Other financial assets mainly comprise accounts receivable, accrued income, and guarantee deposits.
18
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(b) Credit risk (continued)
iii) Impairment information by credit risk of financial assets
Detailed information of financial assets at amortized costs on impairment as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||
|
|
12-month ECL |
|
Lifetime ECL |
|
Gross amount |
|
Allowance |
|
Total, net |
Due from banks and loans at amortized cost (*): |
|
|
|
|
|
|
|
|
|
|
Banks |
W |
1,187 |
|
- |
|
1,187 |
|
- |
|
1,187 |
Corporations |
|
2,429,381 |
|
- |
|
2,429,381 |
|
(1,008) |
|
2,428,373 |
|
|
2,430,568 |
|
- |
|
2,430,568 |
|
(1,008) |
|
2,429,560 |
Other financial assets at amortized cost |
|
601,160 |
|
- |
|
601,160 |
|
(241) |
|
600,919 |
|
W |
3,031,728 |
|
- |
|
3,031,728 |
|
(1,249) |
|
3,030,479 |
|
|
December 31, 2025 |
||||||||
|
|
12-month ECL |
|
Lifetime ECL |
|
Gross amount |
|
Allowance |
|
Total, net |
Due from banks and loans at amortized cost (*): |
|
|
|
|
|
|
|
|
|
|
Banks |
W |
2,590 |
|
- |
|
2,590 |
|
(1) |
|
2,589 |
Corporations |
|
2,953,103 |
|
- |
|
2,953,103 |
|
(1,225) |
|
2,951,878 |
|
|
2,955,693 |
|
- |
|
2,955,693 |
|
(1,226) |
|
2,954,467 |
Other financial assets at amortized cost |
|
927,532 |
|
- |
|
927,532 |
|
(374) |
|
927,158 |
|
W |
3,883,225 |
|
- |
|
3,883,225 |
|
(1,600) |
|
3,881,625 |
(*) Credit quality of due from banks and loans is divided into Prime and Normal. Credit quality of due from banks and loans as of June 30, 2026 and December 31, 2025 is classified as Prime. The distinction between Prime grade and Normal grade is as follows:
Type of Borrower |
|
Corporations and banks |
Grade: 1. Prime |
|
Internal credit rating of BBB+ or above |
Grade: 2. Normal |
|
Internal credit rating of below BBB+ |
19
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(c) Liquidity risk
Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets at abnormal prices, high interest-rate financing, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.
In accordance with the Financial Holding Companies Act, the Company manages liquidity such that, at each month-end, the total amount of assets with a residual maturity of one month or less in the statement of financial position exceeds the total amount of liabilities with a residual maturity of one month or less.
The maturity analysis of non-derivative financial liabilities as of June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
1 month or less |
|
1 month ~ 3 months |
|
3 months ~ 6 months |
|
6 months ~ 1 year |
|
1 year ~ 5 years |
|
More than 5 years |
|
Total |
Non-derivative financial liabilities (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
W |
5,000 |
|
- |
|
- |
|
5,000 |
|
- |
|
- |
|
10,000 |
Debt securities issued |
|
313,459 |
|
341,978 |
|
188,556 |
|
1,194,549 |
|
8,754,944 |
|
95,853 |
|
10,889,339 |
Other financial liabilities |
|
29,070 |
|
75,750 |
|
76,145 |
|
92,116 |
|
142,893 |
|
- |
|
415,974 |
|
W |
347,529 |
|
417,728 |
|
264,701 |
|
1,291,665 |
|
8,897,837 |
|
95,853 |
|
11,315,313 |
|
|
December 31, 2025 |
||||||||||||
|
|
1 month or less |
|
1 month ~ 3 months |
|
3 months ~ 6 months |
|
6 months ~ 1 year |
|
1 year ~ 5 years |
|
More than 5 years |
|
Total |
Non-derivative financial liabilities (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
W |
10,000 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10,000 |
Debt securities issued |
|
880,482 |
|
591,353 |
|
581,788 |
|
816,521 |
|
8,337,526 |
|
148,540 |
|
11,356,210 |
Other financial liabilities |
|
27,733 |
|
64,960 |
|
7,235 |
|
4,987 |
|
159,489 |
|
- |
|
264,404 |
|
W |
918,215 |
|
656,313 |
|
589,023 |
|
821,508 |
|
8,497,015 |
|
148,540 |
|
11,630,614 |
(*) These amounts include both principal and interest cash flows of financial liabilities.
20
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments
The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Company are based on the trading agencies’ notifications.
If the market for a financial instrument is not active, such as OTC (Over-The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Company uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.
The fair value of financial instruments is determined using various valuation techniques, including recent transactions between independent parties conducted on an arm’s length basis, reference to the current fair value of other substantially identical financial instruments where available, discounted cash flow methods, and option pricing models.
The Company classifies and discloses fair value of financial instruments into the following three-level hierarchy:
Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level 1.
Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.
Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.
i) Financial instruments measured at fair value
i-1) The fair value hierarchy of financial assets measured at fair value as of June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets |
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
W |
- |
|
1,788,805 |
|
1,394,620 |
|
3,183,425 |
|
|
December 31, 2025 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets |
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
W |
- |
|
1,667,654 |
|
1,492,520 |
|
3,160,174 |
21
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments (continued)
i) Financial instruments measured at fair value (continued)
i-2) Classification of financial instruments as fair value level 3
Changes in carrying amounts of financial instruments classified as Level 3 for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
|
Financial assets at FVTPL |
Beginning balance |
W |
1,492,520 |
Recognized in profit or loss |
|
12,608 |
Purchases |
|
300,000 |
Settlement |
|
(410,508) |
Ending balance |
W |
1,394,620 |
|
|
December 31, 2025 |
|
|
Financial assets at FVTPL |
Beginning balance |
W |
1,483,122 |
Recognized in profit or loss |
|
9,398 |
Purchases |
|
100,000 |
Settlement |
|
(100,000) |
Ending balance |
W |
1,492,520 |
i-3) Valuation techniques and input variables unobservable in markets
i-3-1) Valuation techniques and input variables used in measuring the fair value of financial instruments classified as level 2 as of June 30, 2026 and December 31, 2025 are as follows:
|
|
Type of financial instrument |
|
Valuation techniques |
|
Type |
|
Carrying amount |
|
Inputs |
2026 |
|
Financial assets at fair value through profit or loss |
|
Net asset valuation approach |
|
Beneficiary certificates |
|
1,788,805 |
|
Prices of underlying assets such as bonds |
2025 |
|
Financial assets at fair value through profit or loss |
|
Net asset valuation approach |
|
Beneficiary certificates |
|
1,667,654 |
|
Prices of underlying assets such as bonds |
22
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments (continued)
i) Financial instruments measured at fair value (continued)
i-3) Valuation techniques and input variables unobservable in markets (continued)
i-3-2) Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|||||||||
|
|
Valuation technique |
|
Type of financial instrument |
|
|
Carrying amount |
|
Significant unobservable input |
|
Range of estimates for unobservable input |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Financial assets |
|
|
|
|
|
|
|
|
|
||
Financial assets at fair value through profit or loss |
|
Option model (*) |
|
Hybrid bonds |
|
W |
1,394,620 |
|
Volatility of interest rate |
|
0.52%~0.82% |
|
|
December 31, 2025 |
|||||||||
|
|
Valuation technique |
|
Type of financial instrument |
|
|
Carrying amount |
|
Significant unobservable input |
|
Range of estimates for unobservable input |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Financial assets |
|
|
|
|
|
|
|
|
|
||
Financial assets at fair value through profit or loss |
|
Option model (*) |
|
Hybrid bonds |
|
W |
1,492,520 |
|
Volatility of interest rate |
|
0.46%~0.86% |
(*) It is calculated by applying the Hull-White model method.
23
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments (continued)
i) Financial instruments measured at fair value (continued)
i-4) Sensitivity to changes in unobservable inputs
For Level 3 fair value measurements, the effects on profit or loss of changes in unobservable inputs to reasonably possible alternative assumptions as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|||
|
|
Profit (loss) for the period |
|||
|
|
Favorable change |
|
Unfavorable change |
|
Recognized in profit or loss (*) |
Financial assets at fair value through profit or loss |
W |
31 |
|
(25) |
|
|
December 31, 2025 |
|||
|
|
Profit (loss) for the year |
|||
|
|
Favorable change |
|
Unfavorable change |
|
Recognized in profit or loss (*) |
Financial assets at fair value through profit or loss |
W |
207 |
|
(233) |
(*) Fair value changes are calculated based on a 10% increase or decrease in interest rate volatility, which is a significant unobservable input.
ii) Financial instruments measured at amortized cost
ii-1) Methods for determining the fair value of financial instruments measured at amortized cost
Type |
|
Measurement methods of fair value |
Due from banks |
|
The carrying amount and fair value of cash are identical. Most due from banks are floating-rate deposits or overnight deposits with very short maturities; accordingly, the carrying amount is used as a proxy for fair value. |
Loans |
|
The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower. |
Borrowings and debt securities issued |
|
The fair value is based on quoted prices in active markets. Where such prices are not available, fair value is determined as the present value of contractual cash flows discounted using a market interest rate adjusted for residual risk. |
24
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments (continued)
ii) financial instruments measured at amortized cost (continued)
ii-2) The carrying amounts and fair value of the financial instruments measured at amortized cost as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
|
Carrying amount |
|
Fair value |
|
Carrying amount |
|
Fair value |
Assets: |
|
|
|
|
|
|
|
|
Due from banks at amortized cost |
W |
1,187 |
|
1,187 |
|
2,589 |
|
2,589 |
Loans at amortized cost |
|
2,428,373 |
|
2,579,654 |
|
2,951,878 |
|
3,109,700 |
Other financial assets |
|
600,919 |
|
600,919 |
|
927,158 |
|
927,158 |
|
W |
3,030,479 |
|
3,181,760 |
|
3,881,625 |
|
4,039,447 |
Liabilities: |
|
|
|
|
|
|
|
|
Borrowings |
W |
9,899 |
|
9,885 |
|
9,975 |
|
9,976 |
Debt securities issued |
|
9,970,863 |
|
9,857,928 |
|
10,457,205 |
|
10,492,523 |
Other financial liabilities |
|
479,829 |
|
479,829 |
|
329,942 |
|
329,942 |
|
W |
10,460,591 |
|
10,347,642 |
|
10,797,122 |
|
10,832,441 |
ii-3) The fair value hierarchy of financial instruments that are not measured at fair value in the statement of financial position but for which fair values are disclosed as of June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets: |
|
|
|
|
|
|
|
|
Due from banks at amortized cost |
W |
1,184 |
|
3 |
|
- |
|
1,187 |
Loans at amortized cost |
|
- |
|
- |
|
2,579,654 |
|
2,579,654 |
Other financial assets |
|
- |
|
- |
|
600,919 |
|
600,919 |
|
W |
1,184 |
|
3 |
|
3,180,573 |
|
3,181,760 |
Liabilities: |
|
|
|
|
|
|
|
|
Borrowings |
W |
- |
|
9,885 |
|
- |
|
9,885 |
Debt securities issued |
|
- |
|
9,857,928 |
|
- |
|
9,857,928 |
Other financial liabilities |
|
- |
|
- |
|
479,829 |
|
479,829 |
|
W |
- |
|
9,867,813 |
|
479,829 |
|
10,347,642 |
|
|
December 31, 2025 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets: |
|
|
|
|
|
|
|
|
Due from banks at amortized cost |
W |
2,586 |
|
3 |
|
- |
|
2,589 |
Loans at amortized cost |
|
- |
|
- |
|
3,109,700 |
|
3,109,700 |
Other financial assets |
|
- |
|
- |
|
927,158 |
|
927,158 |
|
W |
2,586 |
|
3 |
|
4,036,858 |
|
4,039,447 |
Liabilities: |
|
|
|
|
|
|
|
|
Borrowings |
W |
- |
|
9,976 |
|
- |
|
9,976 |
Debt securities issued |
|
- |
|
10,492,523 |
|
- |
|
10,492,523 |
Other financial liabilities |
|
- |
|
- |
|
329,942 |
|
329,942 |
|
W |
- |
|
10,502,499 |
|
329,942 |
|
10,832,441 |
25
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(d) Measurement for the fair value of financial instruments (continued)
ii) financial instruments measured at amortized cost (continued)
ii-4) Valuation techniques and inputs used in measuring the fair value of financial instruments not measured at fair value but classified as Level 2 or Level 3 for fair value disclosures as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||
|
|
Valuation technique |
|
Fair value |
|
Inputs |
Assets: |
|
|
|
|
|
|
Due from banks at amortized cost |
|
- |
W |
3 |
|
- |
Loans at amortized cost |
|
DCF |
|
2,579,654 |
|
Discount rate |
Other financial assets |
|
DCF |
|
600,919 |
|
Discount rate |
|
|
|
W |
3,180,576 |
|
|
Liabilities: |
|
|
|
|
|
|
Borrowings |
|
DCF |
W |
9,885 |
|
Discount rate |
Debt securities issued |
|
DCF |
|
9,857,928 |
|
Discount rate |
Other financial liabilities |
|
DCF |
|
479,829 |
|
Discount rate |
|
|
|
W |
10,347,642 |
|
|
|
|
December 31, 2025 |
||||
|
|
Valuation technique |
|
Fair value |
|
Inputs |
Assets: |
|
|
|
|
|
|
Due from banks at amortized cost |
|
- |
W |
3 |
|
- |
Loans at amortized cost |
|
DCF |
|
3,109,700 |
|
Discount rate |
Other financial assets |
|
DCF |
|
927,158 |
|
Discount rate |
|
|
|
W |
4,036,861 |
|
|
Liabilities: |
|
|
|
|
|
|
Borrowings |
|
DCF |
W |
9,976 |
|
Discount rate |
Debt securities issued |
|
DCF |
|
10,492,523 |
|
Discount rate |
Other financial liabilities |
|
DCF |
|
329,942 |
|
Discount rate |
|
|
|
W |
10,832,441 |
|
|
26
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
4. Financial risk management (continued)
(e) Classification by categories of financial instruments
Financial assets and liabilities are measured at fair value or amortized cost. The carrying amounts of each category of financial assets and financial liabilities as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||
|
|
Financial assets at fair value through profit or loss |
|
Financial assets at amortized cost |
|
Financial liabilities at amortized cost |
Assets: |
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
- |
|
1,187 |
|
- |
Financial assets at fair value through profit or loss |
|
3,183,425 |
|
- |
|
- |
Loans at amortized cost |
|
- |
|
2,428,373 |
|
- |
Other financial assets at amortized cost |
|
- |
|
600,919 |
|
- |
|
W |
3,183,425 |
|
3,030,479 |
|
- |
Liabilities: |
|
|
|
|
|
|
Borrowings |
W |
- |
|
- |
|
9,899 |
Debt securities issued |
|
- |
|
- |
|
9,970,863 |
Other financial liabilities (*) |
|
- |
|
- |
|
479,829 |
|
W |
- |
|
- |
|
10,460,591 |
(*) Includes lease liabilities under K-IFRS No. 1116.
|
|
December 31, 2025 |
||||
|
|
Financial assets at fair value through profit or loss |
|
Financial assets at amortized cost |
|
Financial liabilities at amortized cost |
Assets: |
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
- |
|
2,589 |
|
- |
Financial assets at fair value through profit or loss |
|
3,160,174 |
|
- |
|
- |
Loans at amortized cost |
|
- |
|
2,951,878 |
|
- |
Other financial assets at amortized cost |
|
- |
|
927,158 |
|
- |
|
W |
3,160,174 |
|
3,881,625 |
|
- |
Liabilities: |
|
|
|
|
|
|
Borrowings |
W |
- |
|
- |
|
9,975 |
Debt securities issued |
|
- |
|
- |
|
10,457,205 |
Other financial liabilities (*) |
|
- |
|
- |
|
329,942 |
|
W |
- |
|
- |
|
10,797,122 |
(*) Includes lease liabilities under K-IFRS No. 1116.
27
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
5. Cash and due from banks
(a) Cash and due from banks by type
Details of cash and due from banks by type as of June 30, 2026 and December 31, 2025, are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Due from banks at amortized cost |
W |
1,187 |
|
2,590 |
Less: allowance |
|
- |
|
(1) |
|
W |
1,187 |
|
2,589 |
(b) Details of restricted due from banks in accordance with the Banking Act and other relevant laws and regulations as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Checking account guarantee deposit |
W |
3 |
|
3 |
6. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Beneficiary certificates |
|
|
|
|
Beneficiary certificates in Korean won |
W |
1,612,762 |
|
907,013 |
Beneficiary certificates in foreign currency |
|
176,043 |
|
760,641 |
|
|
1,788,805 |
|
1,667,654 |
Hybrid Bonds |
|
|
|
|
Hybrid Bonds in Korean won |
|
1,394,620 |
|
1,108,884 |
Hybrid Bonds in foreign currency |
|
- |
|
383,636 |
|
W |
1,394,620 |
|
1,492,520 |
|
|
3,183,425 |
|
3,160,174 |
7. Loans at amortized cost
(a) Loans at amortized cost as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Corporate loans (Working Capital loan) |
W |
2,429,381 |
|
2,953,103 |
Less: allowance |
|
(1,008) |
|
(1,225) |
|
W |
2,428,373 |
|
2,951,878 |
28
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
7. Loans at amortized cost (continued)
(b) Changes in loans at amortized cost and other assets for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
|
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
Total |
Beginning balance |
W |
2,953,103 |
|
- |
|
- |
|
930,122 |
|
- |
|
- |
|
3,883,225 |
Transfer (from) to 12-month expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to credit- impaired financial assets |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Origination |
|
469,180 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
469,180 |
Collection |
|
(1,050,027) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(1,050,027) |
Others (*) |
|
57,125 |
|
- |
|
- |
|
(327,775) |
|
- |
|
- |
|
(270,650) |
Ending balance |
W |
2,429,381 |
|
- |
|
- |
|
602,347 |
|
- |
|
- |
|
3,031,728 |
|
|
December 31, 2025 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
|
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
Total |
Beginning balance |
W |
3,838,903 |
|
- |
|
- |
|
640,160 |
|
- |
|
- |
|
4,479,063 |
Transfer (from) to 12-month expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to credit- impaired financial assets |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Origination |
|
1,576,004 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,576,004 |
Collection |
|
(2,480,890) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(2,480,890) |
Others (*) |
|
19,086 |
|
- |
|
- |
|
289,962 |
|
- |
|
- |
|
309,048 |
Ending balance |
W |
2,953,103 |
|
- |
|
- |
|
930,122 |
|
- |
|
- |
|
3,883,225 |
(*) Other changes are due to dividends receivables from subsidiaries, consolidation tax receivables, accrued income, changes in foreign exchange rate, etc.
29
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
7. Loans at amortized cost (continued)
(c) Changes in the allowance for credit losses on loans at amortized cost and other assets for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
|
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
Total |
Beginning balance |
W |
1,225 |
|
- |
|
- |
|
375 |
|
- |
|
- |
|
1,600 |
Transfer (from) to 12-month expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to credit- impaired financial assets |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Reversal |
|
(217) |
|
- |
|
- |
|
(134) |
|
- |
|
- |
|
(351) |
Ending balance |
W |
1,008 |
|
- |
|
- |
|
241 |
|
- |
|
- |
|
1,249 |
|
|
December 31, 2025 |
||||||||||||
|
|
Loans at amortized cost |
|
Due from banks at amortized cost and other financial assets |
|
|
||||||||
|
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
12-month expected credit losses |
|
Lifetime expected credit losses |
|
Credit-impaired financial asset |
|
Total |
Beginning balance |
W |
1,605 |
|
- |
|
- |
|
261 |
|
- |
|
- |
|
1,866 |
Transfer (from) to 12-month expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to lifetime expected credit losses |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Transfer (from) to credit- impaired financial assets |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Provision (reversal) |
|
(380) |
|
- |
|
- |
|
114 |
|
- |
|
- |
|
(266) |
Ending balance |
W |
1,225 |
|
- |
|
- |
|
375 |
|
- |
|
- |
|
1,600 |
30
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
8. Investments in subsidiaries
Investments in subsidiaries as of June 30, 2026 and December 31, 2025 are as follows:
|
|
|
|
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
Investees |
|
Location |
|
Reporting month |
|
Ownership Interest (%) |
|
Carrying amount |
|
Ownership Interest (%) |
|
Carrying amount |
Shinhan Bank |
|
Korea |
|
December |
|
100.0 |
|
13,617,579 |
|
100.0 |
|
13,617,579 |
Shinhan Card Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
7,919,672 |
|
100.0 |
|
7,919,672 |
Shinhan Securities Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
3,001,420 |
|
100.0 |
|
3,001,420 |
Shinhan Life Insurance Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
4,204,365 |
|
100.0 |
|
4,204,526 |
Shinhan Capital Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
558,921 |
|
100.0 |
|
558,921 |
Shinhan Asset Management Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
326,206 |
|
100.0 |
|
326,206 |
Jeju Bank |
|
Korea |
|
December |
|
64.0 |
|
179,643 |
|
64.0 |
|
179,643 |
Shinhan Savings Bank |
|
Korea |
|
December |
|
100.0 |
|
157,065 |
|
100.0 |
|
157,065 |
Shinhan Asset Trust Co., Ltd. (*) |
|
Korea |
|
December |
|
100.0 |
|
355,146 |
|
100.0 |
|
364,789 |
Shinhan DS |
|
Korea |
|
December |
|
100.0 |
|
23,026 |
|
100.0 |
|
23,026 |
Shinhan Fund Partners Co., Ltd. |
|
Korea |
|
December |
|
99.8 |
|
50,092 |
|
99.8 |
|
50,092 |
Shinhan REITs Management Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
30,000 |
|
100.0 |
|
30,000 |
Shinhan Venture Investment Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
75,840 |
|
100.0 |
|
75,840 |
Shinhan EZ General Insurance Co., Ltd. |
|
Korea |
|
December |
|
91.7 |
|
206,271 |
|
91.7 |
|
206,271 |
SHC Management Co., Ltd. |
|
Korea |
|
December |
|
100.0 |
|
8,655 |
|
100.0 |
|
8,655 |
|
|
|
|
|
|
|
W |
30,713,901 |
|
|
W |
30,723,705 |
(*) The decrease in the carrying amount resulted from a post-settlement adjustment to the acquisition cost pursuant to the previous share purchase agreement, and there has been no change in the ownership interest in the subsidiary.
9. Borrowings
Borrowings as of June 30, 2026 and December 31, 2025 are as follows:
|
Lender |
|
Period |
|
Interest rate (%) |
|
June 30, 2026 |
|
December 31, 2025 |
Borrowings in Korean won |
DB Financial Investment Co., LTD. |
|
2025.01.31 ~2026.01.30 |
|
3.01 |
W |
- |
|
9,975 |
Kyobo Securities Co., Ltd. |
|
2026.01.30 ~2026.07.31 |
|
2.99 |
|
4,988 |
|
- |
|
〃 |
|
2026.01.30 ~2027.01.29 |
|
3.04 |
|
4,911 |
|
- |
|
|
|
|
|
|
|
W |
9,899 |
|
9,975 |
31
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
10. Debt securities issued
Debt securities issued as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
|
Interest rate (%) |
|
Amount |
|
Interest rate (%) |
|
Amount |
Debt securities issued in Korean won: |
|
|
|
|
|
|
|
|
Debt securities issued |
|
1.43 ~ 6.17 |
W |
8,290,000 |
|
1.43 ~ 6.17 |
W |
8,320,000 |
Discount |
|
|
|
(6,848) |
|
|
|
(6,665) |
|
|
|
|
8,283,152 |
|
|
|
8,313,335 |
Debt securities issued in foreign currency: |
|
|
|
|
|
|
|
|
Debt securities issued |
|
4.54 ~ 5.06 |
|
1,695,650 |
|
1.37 ~ 5.06 |
|
2,152,350 |
Discount |
|
|
|
(7,939) |
|
|
|
(8,480) |
|
|
|
|
1,687,711 |
|
|
|
2,143,870 |
|
|
|
W |
9,970,863 |
|
|
W |
10,457,205 |
11. Net defined benefit assets and liabilities
(a) Defined benefit obligations and plan assets as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Present value of defined benefit obligations |
W |
26,992 |
|
26,483 |
Fair value of plan assets |
|
(35,963) |
|
(36,159) |
Net defined benefit liability (asset) |
W |
(8,971) |
|
(9,676) |
(b) Profit or loss related to defined benefit plans for the three-month and six-month periods ended June 30, 2026 and 2025 is as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Current service costs |
W |
353 |
|
875 |
|
602 |
|
1,044 |
Net interest income |
|
(260) |
|
(321) |
|
(32) |
|
(121) |
|
W |
93 |
|
554 |
|
570 |
|
923 |
(*) Profit or loss related to defined benefit plans is included in general and administrative expenses.
32
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
12. Equity
(a) Equity as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Share Capital |
|
|
|
|
Ordinary shares (*1) |
W |
2,695,586 |
|
2,695,586 |
Preferred shares (*1), (*2) |
|
274,055 |
|
274,055 |
|
|
2,969,641 |
|
2,969,641 |
|
|
|
|
|
Hybrid bonds |
|
4,163,879 |
|
4,749,837 |
|
|
|
|
|
Capital surplus |
|
|
|
|
Share premium |
|
1,484,821 |
|
11,350,744 |
|
|
|
|
|
Capital adjustments |
|
(726,985) |
|
(647,347) |
|
|
|
|
|
Accumulated other comprehensive loss |
|
(9,666) |
|
(11,363) |
Retained earnings |
|
|
|
|
Legal reserve (*3) |
|
2,969,641 |
|
2,969,641 |
Regulatory reserve for loan losses |
|
17,708 |
|
20,462 |
Other legal reserves |
|
2,000 |
|
2,000 |
Unappropriated retained earnings |
|
15,475,840 |
|
4,931,845 |
|
|
18,465,189 |
|
7,923,948 |
|
W |
26,346,879 |
|
26,335,460 |
(*1) Due to the retirement of shares using retained earnings, etc., the Company’s capital differs from the aggregate par value of its issued shares.
(*2) All redeemable convertible preferred shares and similar instruments previously issued by the Company have been redeemed through retained earnings. Accordingly, although preferred share capital remains outstanding, there are no preferred shares currently issued and outstanding.
(*3) As of June 30, 2026, retained earnings include a legal reserve that is restricted from being distributed as dividends under applicable laws and regulations. In accordance with Article 53 of the Financial Holding Companies Act, the Company is required to appropriate at least 10% of net income as a legal reserve each time dividends are declared, until such reserve equals 100% of its share capital. This reserve may only be used to offset accumulated deficits or to be capitalized.
33
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
12. Equity (continued)
(b) Hybrid bonds
Hybrid bonds classified as other equity instruments as of June 30, 2026 and December 31, 2025 are as follows:
|
Issue date |
|
Maturity date |
|
Interest rate (%) |
|
June 30, 2026 |
|
December 31, 2025 |
Hybrid bonds in KRW |
September 15, 2017 |
|
Perpetual bond |
|
4.25 |
W |
89,783 |
|
89,783 |
April 13, 2018 |
|
Perpetual bond |
|
4.56 |
|
14,955 |
|
14,955 |
|
March 16, 2021 |
|
Perpetual bond |
|
2.94 |
|
- |
|
429,009 |
|
March 16, 2021 |
|
Perpetual bond |
|
3.30 |
|
169,581 |
|
169,581 |
|
January 25, 2022 |
|
Perpetual bond |
|
3.90 |
|
560,438 |
|
560,438 |
|
January 25, 2022 |
|
Perpetual bond |
|
4.00 |
|
37,853 |
|
37,853 |
|
August 26, 2022 |
|
Perpetual bond |
|
4.93 |
|
343,026 |
|
343,026 |
|
August 26, 2022 |
|
Perpetual bond |
|
5.15 |
|
55,803 |
|
55,803 |
|
January 30, 2023 |
|
Perpetual bond |
|
5.14 |
|
398,831 |
|
398,831 |
|
July 13, 2023 |
|
Perpetual bond |
|
5.40 |
|
498,815 |
|
498,815 |
|
January 31, 2024 |
|
Perpetual bond |
|
4.49 |
|
398,833 |
|
398,833 |
|
September 12, 2024 |
|
Perpetual bond |
|
4.00 |
|
399,033 |
|
399,033 |
|
February 13, 2025 |
|
Perpetual bond |
|
3.90 |
|
398,835 |
|
398,835 |
|
September 9, 2025 |
|
Perpetual bond |
|
3.26 |
|
399,035 |
|
399,035 |
|
March 16, 2026 |
|
Perpetual bond |
|
4.20 |
|
399,058 |
|
- |
|
Hybrid bonds in USD |
May 12, 2021 |
|
Perpetual bond |
|
2.88 |
|
- |
|
556,007 |
|
|
|
|
|
|
W |
4,163,879 |
|
4,749,837 |
(*) For the period ended June 30, 2026, the deduction for capital related to hybrid bond issued is W 942 million.
The hybrid bonds may be redeemed early after 5 or 10 years from the date of issuance, and are either perpetual in nature or may have their maturity extended under the same terms.
(c) Capital adjustments
i) Changes in accumulated capital adjustments for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Beginning balance |
W |
(647,347) |
|
(296,024) |
Disposal of retained earnings |
|
1,846 |
|
524 |
Redemption of hybrid bonds |
|
(181,484) |
|
(1,846) |
Acquisition of treasury shares |
|
(700,000) |
|
(1,250,001) |
Retirement of treasury shares |
|
800,000 |
|
900,000 |
Ending balance |
W |
(726,985) |
|
(647,347) |
34
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
12. Equity (continued)
ii) Changes in treasury shares for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||
|
|
Beginning balance |
|
Acquisition |
|
Disposal |
|
Retirement (*) |
|
Ending balance |
The number of shares |
|
8,337,535 |
|
7,707,161 |
|
- |
|
(10,840,573) |
|
5,204,123 |
Carrying amount |
W |
600,001 |
|
700,000 |
|
- |
|
(800,000) |
|
500,001 |
(*) For the period ended June 30, 2026, the Company acquired treasury shares for retirement and completed the retirement of 10,840,573 shares on February 6, 2026.
|
|
December 31, 2025 |
||||||||
|
|
Beginning balance |
|
Acquisition |
|
Disposal |
|
Retirement (*) |
|
Ending balance |
The number of shares |
|
4,585,561 |
|
21,702,365 |
|
- |
|
(17,950,391) |
|
8,337,535 |
Carrying amount |
W |
250,000 |
|
1,250,001 |
|
- |
|
(900,000) |
|
600,001 |
(*) For the year ended December 31, 2025, the Company acquired treasury shares for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively.
(d) Accumulated other comprehensive income (loss)
Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Beginning balance |
W |
(11,363) |
|
(9,307) |
Remeasurements of net defined benefit liability (asset) |
|
2,341 |
|
(3,028) |
Tax effect |
|
(644) |
|
972 |
Ending balance |
W |
(9,666) |
|
(11,363) |
35
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
12. Equity (continued)
(e) Regulatory reserve for loan losses
In accordance with the Supervisory Regulations on Financial Holding Companies (the “Regulations”), when the allowance for credit losses under K-IFRS is less than the minimum required under the Regulations, the Company appropriates the shortfall as a regulatory reserve for loan losses at each reporting date.
i) Regulatory reserve for loan losses as of June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Beginning balance |
W |
17,708 |
|
20,462 |
Expected regulatory reserve for loan losses |
|
(3,905) |
|
(2,754) |
Ending balance |
W |
13,803 |
|
17,708 |
ii) Profit and earnings per share after adjustment for the regulatory reserve for loan losses for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
Profit for the period |
W |
2,343,149 |
|
2,451,570 |
Provision for regulatory reserve for loan losses |
|
3,905 |
|
4,018 |
Profit adjusted for regulatory reserve |
W |
2,347,054 |
|
2,455,588 |
Basic and diluted earnings per share adjusted for regulatory reserve (*) |
W |
4,756 |
|
4,795 |
(*) Dividends for hybrid bonds are deducted.
36
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
13. Net interest expense
Net interest expense for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Interest income: |
|
|
|
|
|
|
|
|
Cash and due from banks at amortized cost |
W |
855 |
|
1,624 |
|
999 |
|
2,869 |
Loans at amortized cost |
|
23,404 |
|
46,178 |
|
18,492 |
|
38,056 |
Others |
|
143 |
|
286 |
|
154 |
|
301 |
|
|
24,402 |
|
48,088 |
|
19,645 |
|
41,226 |
Interest expense: |
|
|
|
|
|
|
|
|
Borrowings |
|
(76) |
|
(218) |
|
(166) |
|
(300) |
Debt securities issued |
|
(87,740) |
|
(172,609) |
|
(79,861) |
|
(163,037) |
Others |
|
(11) |
|
(17) |
|
(9) |
|
(17) |
|
|
(87,827) |
|
(172,844) |
|
(80,036) |
|
(163,354) |
Net interest expense |
W |
(63,425) |
|
(124,756) |
|
(60,391) |
|
(122,128) |
14. Net fees and commission income
Net fees and commission income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Fees and commission income: |
|
|
|
|
|
|
|
|
Royalty |
W |
19,335 |
|
37,094 |
|
17,760 |
|
35,519 |
|
|
19,335 |
|
37,094 |
|
17,760 |
|
35,519 |
Fees and commission expense: |
|
|
|
|
|
|
|
|
Others |
|
(225) |
|
(456) |
|
(433) |
|
(580) |
Net Fees and commission income: |
W |
19,110 |
|
36,638 |
|
17,327 |
|
34,939 |
15. Dividend income
Dividend income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Dividend from subsidiaries |
W |
- |
|
2,447,136 |
|
- |
|
2,545,456 |
Dividend from hybrid bonds |
|
15,528 |
|
30,905 |
|
14,620 |
|
29,215 |
|
W |
15,528 |
|
2,478,041 |
|
14,620 |
|
2,574,671 |
37
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
16. Reversal of credit losses
Reversal of credit losses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Reversal of credit losses |
W |
274 |
|
351 |
|
295 |
|
368 |
17. General and administrative expenses
General and administrative expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Salaries: |
|
|
|
|
|
|
|
|
Salary expenses and bonuses |
W |
14,296 |
|
30,099 |
|
15,224 |
|
26,055 |
Severance benefits |
|
93 |
|
554 |
|
570 |
|
923 |
Rent |
|
509 |
|
1,156 |
|
605 |
|
1,106 |
Lease |
|
34 |
|
71 |
|
26 |
|
63 |
Entertainment |
|
523 |
|
999 |
|
452 |
|
840 |
Depreciation |
|
820 |
|
1,627 |
|
834 |
|
1,666 |
Amortization |
|
285 |
|
561 |
|
233 |
|
444 |
Taxes and dues |
|
162 |
|
472 |
|
198 |
|
537 |
Advertising |
|
13,687 |
|
24,284 |
|
12,410 |
|
21,943 |
Others |
|
6,479 |
|
10,838 |
|
7,813 |
|
14,475 |
|
W |
36,888 |
|
70,661 |
|
38,365 |
|
68,052 |
38
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
18. Share-based payments
(a) Performance shares granted as of June 30, 2026 are as follows:
|
|
Expired |
|
Not expired |
Type |
|
Cash-settled share-based payment |
||
|
|
|
||
Performance conditions |
|
Relative stock price linked (20.0%), management index (80.0%) |
||
|
|
|
||
Exercising period |
|
4 years from the commencement date of the year to which the grant date belongs |
||
|
|
|
|
|
Estimated number of shares vested at June 30, 2026 |
|
178,692 |
|
2,236,914 |
|
|
|
|
|
Fair value per share in Korean won (*) |
|
W 37,387, W 37,081, W 38,156, W 50,444 and W 77,757 for the expiration of the exercising period from 2021 to 2025 |
|
W 95,800 |
(*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two months, the previous one month, and the past one week) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock to be paid in the future is assessed as the closing price of the settlement.
(b) Share-based compensation costs
The share-based compensation costs for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||
|
|
Employees of |
|
|
||
|
|
Shinhan Financial Group |
|
Subsidiaries |
|
Total |
Performance shares |
W |
5,991 |
|
49,140 |
|
55,131 |
|
|
June 30, 2025 |
||||
|
|
Employees of |
|
|
||
|
|
Shinhan Financial Group |
|
Subsidiaries |
|
Total |
Performance shares |
W |
4,475 |
|
36,262 |
|
40,737 |
39
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won, except per share data)
18. Share-based payments (continued)
(c) Share-based compensation payable
In accordance with the share-based compensation agreements by the Company, the share-based compensation payable as of June 30, 2026 and December 31, 2025 are as follows.
|
|
June 30, 2026 |
||||
|
|
Accrued expense |
|
|
||
|
|
Shinhan Financial Group |
|
Subsidiaries (*) |
|
Total |
Performance shares |
W |
21,804 |
|
200,005 |
|
221,809 |
(*) As of June 30,2026, the Company recognizes W 200,005 million to be preserved by the subsidiary as the amount to be paid to the executives and employees of the subsidiary.
|
|
December 31, 2025 |
||||
|
|
Accrued expense |
|
|
||
|
|
Shinhan Financial Group |
|
Subsidiaries (*) |
|
Total |
Performance shares |
W |
22,537 |
|
197,518 |
|
220,055 |
(*) As of December 31, 2025, the Company recognizes W 197,518 million to be preserved by the subsidiary as the amount to be paid to the executives and employees of the subsidiary.
40
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
19. Income taxes
Income tax expense for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Current income tax expense (*) |
W |
564 |
|
1,177 |
|
- |
|
936 |
Temporary differences (*) |
|
(58,641) |
|
(33,424) |
|
(2,322) |
|
(1,666) |
Income tax recognized directly in equity |
|
(644) |
|
(644) |
|
742 |
|
742 |
Income tax expense |
W |
(58,721) |
|
(32,891) |
|
(1,580) |
|
12 |
(*) Due to the application of the global minimum tax, income tax expense of W 1,177 million and W 936 million was recognized for the current and prior interim periods, respectively. The Company does not recognize deferred tax assets and liabilities associated with the Global Minimum Corporate Tax Act by applying the temporary exception to deferred tax in K-IFRS No.1012.
20. Earnings per share
Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Net profit (loss) for the period |
W |
(17,167) |
|
2,343,149 |
|
(47,711) |
|
2,451,570 |
Less: |
|
|
|
|
|
|
|
|
Dividends to hybrid bonds |
|
(55,677) |
|
(99,728) |
|
(56,543) |
|
(99,133) |
Net profit (loss) available for common stock |
W |
(72,844) |
|
2,243,421 |
|
(104,254) |
|
2,352,437 |
|
|
|
|
|
|
|
|
|
Weighted average number of common stocks outstanding (*) |
|
470,565,045 |
|
472,501,826 |
|
487,414,572 |
|
491,479,027 |
Basic and diluted earnings (loss) per share in Korean won |
W |
(155) |
|
4,748 |
|
(214) |
|
4,786 |
(*) The number of ordinary shares issued by the Company is 474,654,361shares as of June 30, 2026. The weighted average number of ordinary shares outstanding has been calculated after reflecting changes in treasury shares resulting from acquisitions, retirements and other transactions during the current and prior interim periods.
41
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
21. Operating income
Operating income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
||||
|
|
Three-month |
|
Six-month |
|
Three-month |
|
Six-month |
Dividend income |
W |
15,528 |
|
2,478,041 |
|
14,620 |
|
2,574,671 |
Fees and Commission income |
|
19,335 |
|
37,094 |
|
17,760 |
|
35,519 |
Interest income |
|
24,402 |
|
48,088 |
|
19,645 |
|
41,226 |
Gains on financial instruments at FVTPL |
|
15,241 |
|
24,270 |
|
18,925 |
|
36,222 |
Gains on foreign currency transaction |
|
24,314 |
|
112,199 |
|
110,496 |
|
115,071 |
Reversal of credit losses |
|
274 |
|
351 |
|
295 |
|
368 |
|
W |
99,094 |
|
2,700,043 |
|
181,741 |
|
2,803,077 |
22. Commitments and contingencies
The commitments with financial institutions for the six-month periods ended June 30, 2026 and for the year ended December 31, 2025 are as follows:
|
|
|
June 30, 2026 |
|
December 31, 2025 |
||||
|
Financial institutions |
|
Borrowing Limit |
|
Balance after Execution |
|
Borrowing Limit |
|
Balance after Execution |
Borrowing agreement in Korean won |
Korea Development Bank |
W |
100,000 |
|
- |
|
100,000 |
|
- |
Kookmin Bank |
|
200,000 |
|
- |
|
200,000 |
|
- |
|
Hana Bank |
|
200,000 |
|
- |
|
200,000 |
|
- |
|
|
|
W |
500,000 |
|
- |
|
500,000 |
|
- |
42
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
23. Statement of cash flows
(a) Cash and cash equivalents in the condensed separate statement of cash flows as of June 30, 2026 and December 31, 2025 are as follows:
|
|
June 30, 2026 |
|
December 31, 2025 |
Due from banks with a maturity less than three months from date of acquisition |
W |
1,184 |
|
2,587 |
(b) Changes in liabilities arising from financing activities for the six-month periods ended June 30, 2026 and 2025 are as follows:
|
|
June 30, 2026 |
||||||
|
|
Borrowings |
|
Debentures |
|
Lease liabilities |
|
Total |
Balance at January 1, 2026 |
W |
9,975 |
|
10,457,205 |
|
855 |
|
10,468,035 |
Changes from cash flows |
|
(226) |
|
(600,389) |
|
(383) |
|
(600,998) |
Changes from non-cash flows: |
|
|
|
|
|
|
|
|
Amortization of discount on debentures |
|
150 |
|
3,186 |
|
18 |
|
3,354 |
Foreign currency difference |
|
- |
|
110,861 |
|
- |
|
110,861 |
Other changes: |
|
- |
|
- |
|
812 |
|
812 |
Balance at June 30, 2026 |
W |
9,899 |
|
9,970,863 |
|
1,302 |
|
9,982,064 |
|
|
June 30, 2025 |
||||||
|
|
Borrowings |
|
Debentures |
|
Lease liabilities |
|
Total |
Balance at January 1, 2025 |
W |
19,914 |
|
10,731,336 |
|
843 |
|
10,752,093 |
Changes from cash flows |
|
(10,300) |
|
(1,046,636) |
|
(351) |
|
(1,057,287) |
Changes from non-cash flows: |
|
|
|
|
|
|
|
|
Amortization of discount on debentures |
|
209 |
|
3,546 |
|
17 |
|
3,772 |
Foreign currency difference |
|
- |
|
(114,287) |
|
- |
|
(114,287) |
Other changes: |
|
- |
|
2,273 |
|
660 |
|
2,933 |
Balance at June 30, 2025 |
W |
9,823 |
|
9,576,232 |
|
1,169 |
|
9,587,224 |
43
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
24. Related party transactions
The Company defines subsidiaries, key managements, and their families as a range of related parties in accordance with K-IFRS No.1024 and discloses the amount of transactions between the Company and related parties and the balance of receivables and payables. For details of subsidiaries, refer to 'Note 8'.
(a) Significant transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows:
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Revenue: |
|
|
|
|
|
|
Shinhan Bank |
|
Interest income |
W |
286 |
|
301 |
〃 |
|
Fees and commission income |
|
25,109 |
|
23,221 |
〃 |
|
Dividend income |
|
1,887,383 |
|
1,662,952 |
〃 |
|
Reversal of credit losses |
|
115 |
|
- |
Shinhan Card Co., Ltd. |
|
Interest income |
|
16,825 |
|
18,153 |
〃 |
|
Fees and commission income |
|
6,037 |
|
6,670 |
〃 |
|
Dividend income |
|
254,336 |
|
301,977 |
〃 |
|
Reversal of credit losses |
|
155 |
|
205 |
〃 |
|
Non-operating income |
|
6 |
|
- |
Shinhan Securities Co., Ltd. |
|
Interest income |
|
18,842 |
|
9,658 |
〃 |
|
Fees and commission income |
|
2,089 |
|
1,762 |
〃 |
|
Dividend income |
|
196,289 |
|
95,182 |
〃 |
|
Reversal of credit losses |
|
- |
|
81 |
Shinhan Life Insurance Co., Ltd. |
|
Fees and commission income |
|
2,567 |
|
2,440 |
〃 |
|
Dividend income |
|
- |
|
378,307 |
〃 |
|
Reversal of credit losses |
|
6 |
|
1 |
Shinhan Capital Co., Ltd. |
|
Interest income |
|
7,086 |
|
6,282 |
〃 |
|
Fees and commission income |
|
706 |
|
997 |
〃 |
|
Dividend income |
|
58,554 |
|
33,587 |
〃 |
|
Reversal of credit losses |
|
51 |
|
49 |
Jeju Bank |
|
Fees and commission income |
|
58 |
|
20 |
〃 |
|
Dividend income |
|
2,420 |
|
2,420 |
Shinhan Asset Management Co., Ltd. |
|
Fees and commission income |
|
193 |
|
82 |
〃 |
|
Dividend income |
|
50,400 |
|
79,200 |
〃 |
|
Reversal of credit losses |
|
- |
|
2 |
Shinhan DS |
|
Interest income |
|
153 |
|
157 |
〃 |
|
Fees and commission income |
|
5 |
|
8 |
〃 |
|
Reversal of credit losses |
|
- |
|
1 |
Shinhan Fund Partners Co., Ltd. |
|
Fees and commission income |
|
90 |
|
52 |
〃 |
|
Dividend income |
|
8,536 |
|
7,669 |
Shinhan Savings Bank |
|
Interest income |
|
700 |
|
1,268 |
〃 |
|
Fees and commission income |
|
158 |
|
161 |
〃 |
|
Dividend income |
|
15,000 |
|
10,000 |
〃 |
|
Reversal of credit losses |
|
43 |
|
22 |
Shinhan REITS management |
|
Fees and commission income |
|
31 |
|
38 |
Shinhan Asset Trust |
|
Interest income |
|
1,869 |
|
1,869 |
〃 |
|
Fees and commission income |
|
31 |
|
48 |
〃 |
|
Dividend income |
|
5,123 |
|
3,377 |
Shinhan Venture Investment Co., Ltd. |
|
Interest income |
|
954 |
|
979 |
〃 |
|
Fees and commission income |
|
21 |
|
20 |
44
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
|
|
|
W |
2,562,227 |
|
2,649,218 |
24. Related party transactions (continued)
(a) Significant transactions with the related parties for the six-month periods ended June 30, 2026 and 2025 are as follows (continued):
Related party |
|
Account |
|
June 30, 2026 |
|
June 30, 2025 |
Expense: |
|
|
|
|
|
|
Shinhan Bank |
|
General and administrative expenses |
W |
653 |
|
657 |
〃 |
|
Provision for credit losses |
|
- |
|
57 |
Shinhan Card Co., Ltd. |
|
Interest expenses |
|
2 |
|
1 |
〃 |
|
General and administrative expenses |
|
34 |
|
28 |
Shinhan Securities Co., Ltd. |
|
Interest expenses |
|
99 |
|
82 |
〃 |
|
Fees and commission expense (*) |
|
105 |
|
150 |
〃 |
|
General and administrative expenses |
|
- |
|
3 |
〃 |
|
Provision for credit losses |
|
14 |
|
- |
Shinhan Life Insurance Co., Ltd. |
|
Interest expenses |
|
- |
|
110 |
Shinhan Asset Management Co., Ltd. |
|
Provision for credit losses |
|
4 |
|
- |
Shinhan DS |
|
General and administrative expenses |
|
1,535 |
|
1,068 |
Shinhan Fund Partners Co., Ltd. |
|
Provision for credit losses |
|
1 |
|
- |
Shinhan Venture Investment Co., Ltd. |
|
Provision for credit losses |
|
1 |
|
- |
|
|
|
W |
2,448 |
|
2,156 |
(*) It consists of commissions paid for acquisitions of hybrid bonds, and was directly deducted from the equity.
45
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
24. Related party transactions (continued)
(b) Significant balances with the related parties as of June 30, 2026 and December 31, 2025 are as follows:
Creditor |
|
Debtor |
|
Account |
|
June 30, 2026 |
|
December 31, 2025 |
Assets: |
|
|
|
|
|
|
|
|
Shinhan Financial Group Co., Ltd. |
|
Shinhan Bank |
|
Cash and due from banks |
W |
10 |
|
17 |
〃 |
|
〃 |
|
Property and equipment |
|
289 |
|
- |
〃 |
|
〃 |
|
Other assets |
|
359,251 |
|
637,533 |
〃 |
|
Shinhan Card Co., Ltd. |
|
Financial assets at fair value through profit or loss (*1) |
|
703,572 |
|
713,983 |
|
|
〃 |
|
Loans |
|
1,040,000 |
|
1,383,047 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(431) |
|
(574) |
〃 |
|
〃 |
|
Property and equipment |
|
102 |
|
44 |
〃 |
|
〃 |
|
Other assets |
|
84,660 |
|
115,259 |
〃 |
|
Shinhan Securities Co., Ltd. |
|
Financial assets at fair value through profit or loss (*2) |
|
200,418 |
|
383,636 |
〃 |
|
〃 |
|
Loans |
|
755,335 |
|
703,101 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(313) |
|
(292) |
〃 |
|
〃 |
|
Other assets |
|
41,611 |
|
60,923 |
〃 |
|
Shinhan Life Insurance Co., Ltd. |
|
Other assets |
|
18,183 |
|
33,116 |
〃 |
|
Shinhan Capital Co., Ltd. |
|
Financial assets at fair value through profit or loss (*3) |
|
245,942 |
|
247,939 |
〃 |
|
〃 |
|
Loans |
|
464,150 |
|
596,980 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(193) |
|
(248) |
〃 |
|
〃 |
|
Other assets |
|
44,317 |
|
35,563 |
〃 |
|
Shinhan Asset Management Co., Ltd. |
|
Other assets |
|
19,845 |
|
10,430 |
〃 |
|
Jeju Bank |
|
Other assets |
|
4,301 |
|
3,879 |
〃 |
|
Shinhan DS |
|
Loans |
|
9,896 |
|
9,975 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(4) |
|
(4) |
〃 |
|
〃 |
|
Property and equipment |
|
142 |
|
158 |
〃 |
|
〃 |
|
Intangible assets |
|
174 |
|
126 |
〃 |
|
〃 |
|
Other assets |
|
2,810 |
|
1,965 |
46
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
24. Related party transactions (continued)
(b) Significant balances with the related parties June 30, 2026, and December 31, 2025, are as follows (continued):
Creditor |
|
Debtor |
|
Account |
|
June 30, 2026 |
|
December 31, 2025 |
Assets: |
|
|
|
|
|
|
|
|
Shinhan Financial Group Co., Ltd. |
|
Shinhan Fund Partners Co., Ltd. |
|
Other assets |
W |
7,704 |
|
5,141 |
〃 |
|
Shinhan Savings Bank |
|
Loans |
|
- |
|
100,000 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
- |
|
(41) |
〃 |
|
〃 |
|
Other assets |
|
7,919 |
|
11,402 |
〃 |
|
Shinhan Asset Trust Co., Ltd. |
|
Financial assets at fair value through profit or loss (*4) |
|
244,687 |
|
146,962 |
〃 |
|
〃 |
|
Loans |
|
100,000 |
|
100,000 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(41) |
|
(41) |
〃 |
|
〃 |
|
Other assets |
|
5,171 |
|
4,291 |
〃 |
|
Shinhan REITs Management Co., Ltd. |
|
Other assets |
|
1,849 |
|
994 |
〃 |
|
Shinhan Venture Investment Co., Ltd. |
|
Loans |
|
60,000 |
|
60,000 |
〃 |
|
〃 |
|
Reserve for loan losses |
|
(25) |
|
(25) |
〃 |
|
〃 |
|
Other assets |
|
2,144 |
|
813 |
〃 |
|
Shinhan EZ General Insurance Co., Ltd. |
|
Other assets |
|
391 |
|
348 |
|
|
|
|
|
W |
4,423,866 |
|
5,366,400 |
Liabilities: |
|
|
|
|
|
|
|
|
Shinhan Bank. |
|
Shinhan Financial Group Co., Ltd. |
|
Other liabilities |
W |
1,692 |
|
1,707 |
Shinhan Card Co., Ltd. |
|
〃 |
|
Other liabilities |
|
543 |
|
610 |
Shinhan Securities Co., Ltd |
|
〃 |
|
Other liabilities |
|
74,354 |
|
6,403 |
Shinhan Life Insurance Co., Ltd. |
|
〃 |
|
Other liabilities |
|
98,541 |
|
6,460 |
Shinhan Capital Co., Ltd. |
|
〃 |
|
Other liabilities |
|
23 |
|
25 |
Shinhan Asset Management Co., Ltd. |
|
〃 |
|
Other liabilities |
|
3 |
|
3 |
Shinhan DS |
|
〃 |
|
Other liabilities |
|
137 |
|
108 |
Shinhan Savings Bank |
|
〃 |
|
Other liabilities |
|
- |
|
5 |
Shinhan REITs Management Co., Ltd. |
|
〃 |
|
Other liabilities |
|
1 |
|
87 |
Shinhan Venture Investment Co., Ltd. |
|
〃 |
|
Other liabilities |
|
- |
|
1,434 |
Shinhan EZ General Insurance Co., Ltd |
|
〃 |
|
Other liabilities |
|
264 |
|
- |
|
|
|
|
|
W |
175,558 |
|
16,842 |
24. Related party transactions (continued)
47
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
(b) Significant balances with the related parties June 30, 2026, and December 31, 2025, are as follows (continued):
(*1) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 10,411 million and W 4,508 million for the period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
(*2) The amount represents the carrying amount of hybrid bonds purchased and includes fair value gains recognized in profit or loss of W 418 million and W 23,998 million for the period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
(*3) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 1,997 million and gains recognized in profit or loss of W 2,103 million for the period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
(*4) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 2,274 million and W 3,764 million for the period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
48
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
24. Related party transactions (continued)
(c) Right-of-use assets and lease liabilities recognised through lease transactions with related parties as of June 30, 2026, and December 31, 2025, are as follows:
Related parties |
|
June 30, 2026 |
|
December 31, 2025 |
Right-of-use assets |
|
|
|
|
Shinhan Bank |
W |
289 |
|
- |
Shinhan Card Co., Ltd. |
|
102 |
|
44 |
|
W |
391 |
|
44 |
Lease liabilities |
|
|
|
|
Shinhan Card Co., Ltd. |
|
110 |
|
49 |
|
W |
110 |
|
49 |
(d) Financing transaction
Major financing transactions with related parties for the six-month period ended June 30, 2026, and for the year ended December 31, 2025 are as follows:
|
|
June 30, 2026 |
||||||||||
|
|
Beginning balance |
|
Loan |
|
Acquisition (*1) |
|
Collection |
|
Others (*2) |
|
Ending balance |
Shinhan Card Co., Ltd. |
W |
2,097,029 |
|
100,000 |
|
- |
|
(443,047) |
|
(10,411) |
|
1,743,571 |
Shinhan Securities Co., Ltd. |
|
1,086,736 |
|
- |
|
200,000 |
|
(383,636) |
|
52,652 |
|
955,752 |
Shinhan Capital Co., Ltd. |
|
844,920 |
|
299,180 |
|
- |
|
(436,980) |
|
2,973 |
|
710,093 |
Shinhan Asset Trust Co., Ltd. |
|
246,961 |
|
- |
|
100,000 |
|
- |
|
(2,274) |
|
344,687 |
Shinhan Savings Bank |
|
100,000 |
|
- |
|
- |
|
(100,000) |
|
- |
|
- |
Shinhan DS |
|
9,977 |
|
10,000 |
|
- |
|
(10,000) |
|
(78) |
|
9,899 |
Shinhan Venture Investment Co., Ltd. |
|
60,000 |
|
60,000 |
|
- |
|
(60,000) |
|
- |
|
60,000 |
|
W |
4,445,623 |
|
469,180 |
|
300,000 |
|
(1,433,663) |
|
42,862 |
|
3,824,002 |
|
|
December 31, 2025 |
||||||||||
|
|
Beginning balance |
|
Loan |
|
Acquisition (*1) |
|
Collection |
|
Others (*2) |
|
Ending balance |
Shinhan Card Co., Ltd. |
W |
2,570,590 |
|
670,000 |
|
- |
|
(1,138,000) |
|
(5,561) |
|
2,097,029 |
Shinhan Securities Co., Ltd. |
|
1,231,335 |
|
676,004 |
|
- |
|
(862,890) |
|
42,287 |
|
1,086,736 |
Shinhan Capital Co., Ltd. |
|
1,049,461 |
|
160,000 |
|
100,000 |
|
(460,000) |
|
(4,541) |
|
844,920 |
Shinhan Asset Trust Co., Ltd. |
|
250,725 |
|
- |
|
- |
|
- |
|
(3,764) |
|
246,961 |
Shinhan Savings Bank |
|
150,000 |
|
- |
|
- |
|
(50,000) |
|
- |
|
100,000 |
Shinhan DS |
|
9,970 |
|
10,000 |
|
- |
|
(10,000) |
|
7 |
|
9,977 |
Shinhan Venture Investment Co., Ltd. |
|
59,944 |
|
60,000 |
|
- |
|
(60,000) |
|
56 |
|
60,000 |
|
W |
5,322,025 |
|
1,576,004 |
|
100,000 |
|
(2,580,890) |
|
28,484 |
|
4,445,623 |
(*1) The purchase amount of hybrid bonds issued by subsidiaries.
(*2) Other transactions are amounts resulting from financial asset valuation and foreign currency translation, among others.
49
SHINHAN FINANCIAL GROUP CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
June 30, 2026 and 2025 (Unaudited), and December 31, 2025
(In millions of won)
24. Related party transactions (continued)
(e) Management Compensation
Compensation for key management executives for the six-month periods ended June 30, 2026, and 2025 are as follows:
|
|
June 30, 2026 |
|
June 30, 2025 |
Short-term employee benefits |
W |
2,234 |
|
2,219 |
Severance benefits |
|
27 |
|
63 |
Share-based payment expenses (*) |
|
3,008 |
|
2,313 |
|
W |
5,269 |
|
4,595 |
(*) Expenses recognized during the vesting period under the agreement on share-based payments.
(f) Shinhan Securities Co., Ltd., a subsidiary, acquired debt securities and hybrid bonds of W 130 billion and W 155 billion issued by the Company for the six-month periods ended June 30, 2026, and 2025, respectively.
(g) As of June 30, 2026, the deposit of credit card use provided by Shinhan Card Co., Ltd., a subsidiary company, is W 7,200 million.
25. Subsequent events
(a) Resolution of Quarterly Dividend
At the Board of Directors meeting held on July 23, 2026, the Company resolved to pay a quarterly cash dividend of W 740 per ordinary share. The total amount of dividends is W 347,393 million, and the dividend record date is July 30, 2026.
(b) Acquisition and Retirement of Treasury Shares
To enhance shareholder value, the Company resolved at the Board of Directors meeting on July 23, 2026 to acquire and retire treasury shares worth W 700 billion.
50