Shinhan Financial Group reported on the 6th that its annual net profit for 2024 reached 4.5175 trillion won, an increase of 3.4% from the previous year. Shinhan Financial explained that the increase in net profit was due to the growth in loan assets and a decrease in allowance for bad debts.
Shinhan Financial's annual interest income last year was 11.4023 trillion won, up 5.4% compared to the previous year. Non-interest income was 3.2575 trillion won, down 5.0% from a year earlier.
In terms of the last quarter's results, the group's total net profit was 473.4 billion won, a decrease of 63.5% compared to the previous quarter. The decline in securities profits and the increase in one-time expenses, such as voluntary retirement costs and the accumulation of bad debt provisions, impacted the results.
Among its affiliates, Shinhan Bank showed remarkable growth in annual net profit. Last year's net profit for Shinhan Bank was 3.6945 trillion won, marking an increase of 20.5% from the previous year. The growth in net profit at Shinhan Bank was also driven by the increase in loan assets. Throughout last year, Shinhan Bank's won loans grew by 10.3%.
In contrast, another major affiliate, Shinhan Card, recorded a net profit of 572.1 billion won last year, a decrease of 7.8% compared to the previous year. While revenues from credit sales and installment payments increased, the costs associated with the voluntary retirement program implemented in the last quarter impacted the performance.
Last year, the net profits of other affiliates were reported as follows: Shinhan Investment Corp. 245.8 billion won, Shinhan Life 528.4 billion won, and Shinhan Capital 116.9 billion won.
Meanwhile, Shinhan Financial Group determined a dividend of 540 won per share for the fourth quarter. Additionally, it resolved to acquire and retire own shares worth 500 billion won. The common equity tier 1 capital ratio (CET1 ratio), which serves as the basis for shareholder returns, stood at 13.03% as of the end of last year.