1. SFG’s H1 2025 Performance Highlights

SFG reported a net income of KRW 3.0374 trillion for H1 2025, a remarkable 10.6% increase compared to the same period last year. The balanced growth in both interest and non-interest income, coupled with a robust CET1 ratio of 13.59%, exceeded market expectations.

2. Key Drivers of Growth

This strong performance is attributed to SFG’s diversified business portfolio and efficient cost management. The company’s commitment to shareholder value creation, evidenced by the KRW 800 billion share buyback and cancellation program and the quarterly dividend policy, also contributed positively. Furthermore, SFG’s investments in future growth drivers, including AI integration and platform enhancements, are noteworthy.

  • Key Growth Factors:
  • • Balanced growth in interest and non-interest income
  • • Stable capital ratio and sound financial health
  • • Enhanced shareholder return policy (share buyback/cancellation, quarterly dividends)
  • • Accelerated digital transformation (AI, platform)
  • • Strengthened ESG management

3. Outlook and Investment Strategy

Despite the positive momentum, potential risk factors such as global economic slowdown, prolonged high interest rates, and intensifying competition warrant careful consideration. Prudent risk management, particularly regarding real estate project financing, is crucial. A long-term investment perspective is recommended, while closely monitoring the execution of SFG’s digital transformation strategy, ESG performance, and asset quality management.

4. Key Takeaways for Investors

  • • Growth potential of non-banking subsidiaries (Shinhan Card, Shinhan Investment)
  • • Asset quality management (real estate PF risk)
  • • Tangible results of digital transformation efforts
  • • Sustainability of shareholder return policy
  • • Impact of ESG initiatives