Shinhan Financial Group said on the 23rd that it posted 1.6226 trillion won in net income for the first quarter on a consolidation basis. It was the highest quarterly result on record. The figure rose 9.0% from the same period last year (1.4883 trillion won), which had been the largest for a first quarter.
A Shinhan Financial Group official said, "Noninterest and nonbank earnings improved sharply on better securities performance, and interest income also maintained a solid trend."
By affiliate, Shinhan Bank's first-quarter net income was 1.1571 trillion won, up 2.6% from a year earlier. Shinhan Investment & Securities' (288.4 billion won) net income rose 167.4% from last year. By contrast, Shinhan Card (115.4 billion won) and Shinhan Life (103.1 billion won) fell 14.9% and 37.6%, respectively, from the same period last year.
The net interest margin (NIM) for the group and Shinhan Bank in the first quarter was 1.93% and 1.60%, respectively, each up 0.02 percentage point from the fourth quarter of last year (1.91% and 1.58%). The group's first-quarter interest income (3.0241 trillion won) increased 5.9% year over year. Shinhan Financial said interest income grew on rising market rates and expansion of the loan asset book.
Noninterest income such as fees (1.1882 trillion won) increased 26.5% from last year. As of the end of March this year, the common equity tier 1 (CET1) ratio and the Bank for International Settlements (BIS) total capital ratio stood at 13.19% and 15.72%, respectively, maintaining stable levels.
Ahead of the earnings release that day, Shinhan Financial held a board meeting and resolved a cash dividend of 740 won per share, and said it had completed the purchase of 404.3 billion won out of a total 700 billion won in treasury shares scheduled to be acquired by July this year.