Shinhan Financial Group (055550) Q2 2026 earnings summary

Executive summary

• Net income for H1 2026 was KRW 3,442.7 billion, up 13.3% YoY, and for 2Q26 reached KRW 1.82tn, up 12.2% QoQ, driven by balanced growth in interest and non-interest income.

• ROE and ROTCE improved YoY, standing at 12.37% and 13.88% respectively for 1H26.

• CET1 ratio increased to 13.43% (+13bp QoQ), with a BIS capital adequacy ratio of 15.74% as of June 2026.

• Shareholder returns enhanced with a KRW 700bn buyback and KRW 740 per share dividend for 2Q26.

Financial highlights

• Operating income before expenses rose 8.8% QoQ, with non-interest income up 22.0% and interest income up 3.6% QoQ; net interest income for H1 2026 was KRW 6,158.5 billion, up 7.7% YoY.

• Cost-to-income ratio (CIR) remained stable at 36.6% YoY.

• Credit cost ratio improved by 8bp YoY to 0.42%, and loan loss provisions declined 14.7% QoQ.

• Group total assets grew 7.0% YTD to KRW 840.9tn; total equity was KRW 62.5tn at June 2026.

Outlook and guidance

• Flexible and progressive shareholder return policy to continue, targeting a 50%+ shareholder return ratio and sustainable ROE above 10%.

• Focus remains on profitability-aligned asset growth, digital transformation, ESG initiatives, and maintaining strong capital ratios.