Shinhan Financial said on the 5th that last year's net income (based on net income attributable to owners of the parent) totaled 4.9716 trillion won. Thanks to higher interest income on the back of loan growth and a boom in the stock market that boosted fee income, it was an all-time high, up 11.7% from 2024 (4.4502 trillion won).
In detail, Shinhan Financial's interest income (11.6945 trillion won) for the year rose 2.6% from a year earlier. However, due to factors such as the Bank of Korea's base rate cut, the group's and the bank's annual net interest margin (NIM) fell by 0.03 percentage point and 0.02 percentage point, respectively, over the year to 1.90% and 1.56%.
Profit in non-interest segments such as fees (3.7442 trillion won) also increased 14.4%. Shinhan Financial said fee income including securities consignment fees, as well as gains related to securities and insurance, grew evenly.
By affiliate, Shinhan Bank's net income (3.7748 trillion won) rose 2.1% from a year earlier, and Shinhan Investment & Securities' net income (381.6 billion won) more than doubled from the previous year (179.2 billion won). By contrast, Shinhan Card's net income (476.7 billion won) fell 16.7%.
Looking only at fourth-quarter results, Shinhan Financial Group's consolidated net income was 510.6 billion won, up 25.7% from the same quarter a year earlier (406.1 billion won). But it plunged 64.1% from the previous third quarter (1.4235 trillion won). A Shinhan Financial Group Holdings official said, "Although it decreased from the previous quarter due to seasonal factors such as voluntary retirement expenses, recurring profit remained at a stable level after excluding these effects."
Shinhan Financial Group and Shinhan Bank's fourth-quarter NIM (1.91% and 1.58%) rose 0.01 percentage point and 0.02 percentage point, respectively, from the third quarter (1.90% and 1.56%).
Before releasing earnings the same day, Shinhan Financial Group Holdings held a board meeting and approved a fourth-quarter dividend of 880 won per share as part of shareholder returns. As a result, last year's annual dividend per share increased to 2,590 won in total, and total shareholder returns reached 2.005 trillion won, combining 1.25 trillion won in cash dividends with 1.25 trillion won in share buybacks.
A Shinhan Financial Group Holdings official said, "Last year's shareholder return ratio (total shareholder returns/net income) reached 50.2%, achieving the '50% return'—one of the three key goals of the value-up program—earlier than planned."