Shinhan Financial Group posted net income of 4.5 trillion won through the third quarter of this year. That is the largest on record.
Shinhan Financial said on the 28th that cumulative net income for the third quarter this year (based on net income attributable to the equity of the parent) was 4.4609 trillion won, up 10.3% from the same period a year earlier (4.0441 trillion won). Third-quarter net income was 1.4235 trillion won, up 9.8% from a year earlier (1.2971 trillion won).
A Shinhan Financial official said, "We delivered stable results thanks to asset growth centered on loans to corporations, higher fee income, and efforts to manage expense efficiently," adding, "As one-off expenses such as the provision related to equity-linked securities (ELS) last year disappeared, cumulative net income for the third quarter also increased by more than 10%."
Third-quarter group interest income was 2.9476 trillion won, up 3.2% from a year earlier (2.855 trillion won). Interest income increased as the size of the loan asset portfolio expanded. The third-quarter net interest margin (NIM) of Shinhan Financial and Shinhan Bank was 1.90% and 1.56%, respectively, up 0.01 percentage point from the second quarter (1.89% and 1.55%). Noninterest income, including fees, was 964.9 billion won, up 6.4% on-year.
A Shinhan Financial official said, "The strength in noninterest income was due to increases in fees related to stock or investment banking (IB) transactions." The official added, "As of the end of September this year, the common equity tier 1 (CET1) ratio and the Bank for International Settlements (BIS) total capital ratio were 13.56% and 16.10%, respectively, maintaining stable capital ratios."
By affiliate, Shinhan Bank's third-quarter net income (1.0892 trillion won) rose 3.8% from a year earlier (1.0493 trillion won). Net income at Shinhan Investment & Securities (100.5 billion won) and Shinhan Life (170.2 billion won) also increased by 141.2% and 10.4%, respectively. Shinhan Card (133.8 billion won) fell 22.9% from a year earlier.
Meanwhile, ahead of the earnings release, Shinhan Financial held a board meeting the same day and approved a cash dividend of 570 won per share.