Jin Ok-dong, chairman of Shinhan Financial Group, said in a letter to shareholders, "Based on a profound reflection on last year’s securities exchange-traded fund (ETF) liquidity provider (LP) incident, we are identifying issues within our internal control system and vigorously implementing improvement measures."
According to Shinhan Financial Group on the 30th, Chairman Jin emphasized "sustainability" as the group's top priority in a recent shareholder letter and reiterated the commitment to strengthen internal controls for this purpose.
He presented key strategies to ensure sustainability, including ▲ thorough risk management and internal control ▲ continuous efforts to enhance corporate value to increase shareholder value ▲ qualitative growth through a sustainable revenue base.
Chairman Jin further emphasized, "We are focusing on the development of the capital market and the expansion of shareholder value through the corporate value enhancement plan announced last year," and stated, "We will make every effort to represent shareholders' positions and find constructive points of negotiation through active communication with financial authorities."
He also explained, "To achieve qualitative growth, we will manage the operating profit-to-expense ratio and the common equity tier 1 (CET1) ratio stably to pursue profitability-centered margins," adding, "We will develop the asset management (WM) business centered around PIB (private banking PB + corporate finance IB) to increase non-interest income."
Chairman Jin quoted Roman politician Cicero, saying, "Divine nature comes from executing what has been said," and urged shareholders to encourage the achievement of goals of a 10% return on equity (ROE), a 50% shareholder return rate, and a reduction in the number of shares to 50 million by 2027.