Shinhan Financial Group (055550) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 was KRW 3,037.4 billion, up 10.6% YoY, with 2Q25 net income at KRW 1.55 trillion, up 4.1% QoQ, driven by strong non-interest income and stable CIR.

• CET1 ratio improved to 13.59% (+32bp QoQ), reflecting robust capital management.

• Shareholder returns enhanced with a quarterly DPS of KRW 570 and a total 2025 share buyback of KRW 1.25 trillion.

• Digital and SDG initiatives advanced, with significant progress in green and inclusive finance.

• The group maintained a strong capital position, with a BIS ratio of 16.20%.

Financial highlights

• Operating income before expenses for 2Q25 was KRW 4,129 billion, up 8.8% QoQ; H1 2025 operating income was KRW 3,958.5 billion.

• Interest income grew 0.3% QoQ and 1.4% YoY; non-interest income surged 34.7% QoQ.

• Cost-to-income ratio (CIR) remained stable at 36.6%; credit cost ratio (CCR) was 0.50%.

• EPS for H1 2025 was KRW 5,978, up from KRW 5,219 in H1 2024; EPS for 2Q25 was KRW 12,463.

• Total assets as of June 2025 were KRW 752.7 trillion; total equity was KRW 60.2 trillion.

Outlook and guidance

• Value-Up Plan execution to boost ROE and accelerate shareholder returns remains a priority.

• 2025 plan targets ROE improvement by 50bp or more, CET1 ratio above 13%, and swift share buybacks.

• Shareholder return policy aims for a payout ratio above 42% and continued share buybacks.

• Management expects continued growth in both interest and non-interest income, with a focus on digital and global expansion.