Shinhan Financial Group(055550) said on the 23rd it posted a net profit of 1.8201 trillion won in the second quarter this year. That was up 17.5% from a year earlier. Cumulative net profit for the first half was 3.4427 trillion won, up 13.3%. Both the quarterly and half-year figures were record highs.
First-half interest income was 6.1585 trillion won, up 7.7% from a year earlier. As of the end of June, the group net interest margin (NIM) was 1.93%, unchanged from the prior quarter. Non-interest income was 1.4499 trillion won, up 14.6% from a year earlier.
Second-quarter group loan-loss provisions came to 437.3 billion won, down 14.7% from the first quarter. On a first-half cumulative basis, they were 949.8 billion won, down 10.8% from the first half last year. First-half nonbank institutional sector profit was 1.3277 trillion won, up 38.3% from a year earlier.
First-half selling, general, and administrative expenses were 3.2161 trillion won, up 10.9% from a year earlier. Shinhan Financial Group said expenses increased due to one-off factors such as a voluntary retirement program in the first quarter. First-half group overseas institutional sector profit was 472.5 billion won, up 9.5% from a year earlier. As of the end of June, the common equity tier 1 (CET1) ratio was 13.43%, and the Bank for International Settlements (BIS) total capital ratio was 15.74%.
By affiliate, Shinhan Bank posted a second-quarter net profit of 1.0314 trillion won. That was up 14.3% from the second quarter last year. As of the end of June, the bank delinquency rate was 0.34%. Over the same period, Shinhan Investment Corp.'s net profit rose 91.6% to 289.3 billion won. Shinhan Asset Management's net profit was 35.3 billion won, up 153.7%.
Shinhan Card (138 billion won) saw net profit rise 24.4%, and Shinhan Life (187.5 billion won) rose 4.6%.
Shinhan Financial Group said its board on the day set the second-quarter dividend per share at 740 won. It will additionally buy back and cancel treasury shares worth a total of 700 billion won through direct purchases by October this year. The cumulative buyback and cancellation this year will reach 1.4 trillion won, exceeding last year's annual total of 1.25 trillion won.