Shinhan Financial Group announced on the 25th that it recorded a net profit of 3.0374 trillion won in the first half of this year. This represents an increase of 10.6% compared to the same period last year and is the largest on a half-year basis.
The net profit for the second quarter was 1.5491 trillion won, an increase of 4.1% compared to the previous quarter. Shinhan Financial noted, "Despite the increase in provisions due to concerns about economic downturns and a slowdown in interest income growth from falling interest rates, non-interest income from corporations (IB), foreign exchange, and securities capital markets improved."
In the first half of the year, interest income was 5.7188 trillion won, a 1.4% increase compared to the same period last year. The second quarter saw interest income rise 0.3% quarter-on-quarter to 2.8640 trillion won, while non-interest income increased by 34.7% to 1.2650 trillion won during the same period.
The amount set aside for provisions increased. The provision amount for the first half was 1.0647 trillion won, up 7.8% compared to the same period last year. The global profit and loss for the first half was 431.5 billion won, a 4.9% increase.
Shinhan Financial's common equity Tier 1 (CET1) ratio increased to 13.59%, up 0.53 percentage points from 13.06% at the end of last year.
Shinhan Financial's board of directors resolved to pay cash dividends of 570 won per share. It also announced plans to repurchase and retire 800 billion won in its own shares during the second half. By the end of the year, it aims to acquire and retire 600 billion won, with an additional 200 billion won planned for early next year.
Meanwhile, Shinhan Bank's net profit for the first half was 2.2668 trillion won, an increase of 10.4% compared to the same period last year. In contrast, Shinhan Card's net profit dropped to 246.6 billion won, a decrease of 35.0%. This decline is attributed to lower merchant fees, along with increased financing and provisions compared to the previous year.
Shinhan Investment Corp. and Shinhan Life reported net profits of 258.9 billion won and 344.3 billion won, respectively, reflecting increases of 25% and 10% compared to the same period last year. Shinhan Capital's net profit decreased by 41% to 63.9 billion won.