1. What Happened in Q2?

SFG announced its Q2 2025 earnings on July 25th. Operating profit reached ₩20.143 trillion, surpassing estimates by 2%, while net profit reached ₩15.491 trillion, exceeding estimates by 5%. Net profit increased by approximately 2% compared to Q1, driven by strong performance in the banking sector. However, the sluggish performance of credit cards and Shinhan Capital persists.

2. Why These Results?

While the banking sector’s steady growth propelled the overall results, the underperformance of the non-banking sector remains a concern. The higher growth rate of net profit compared to operating profit could be attributed to cost efficiency measures or one-off factors, requiring further clarification. Additionally, macroeconomic factors like the rising won/dollar exchange rate, steady US interest rates, decreasing European interest rates, and fluctuating commodity prices all present a mixed impact on SFG’s performance.

3. What’s Next?

Although Q2 results are positive, the non-banking sector’s continued struggles and external economic uncertainties persist as risk factors. The detailed Q2 results and management’s strategies, along with SFG’s response to macroeconomic shifts, will significantly influence future stock movements.

4. Investor Action Plan

  • • Carefully review the detailed Q2 results and management explanations to be released in early August.
  • • Closely examine the profitability improvement strategies and risk management plans for the non-banking sector.
  • • Analyze SFG’s response strategies to macroeconomic indicator fluctuations and incorporate these into investment decisions.