1. Shinhan’s H1 2025 Performance: What Happened?

Shinhan maintained steady growth despite the challenging macroeconomic environment. Improved performance in banking and securities, strategic restructuring at Shinhan Card, and stable performance at Shinhan Life demonstrate the strength of its diversified business portfolio. The high CET1 ratio of 13.59% and the KRW 800 billion share buyback signal a strong commitment to shareholder value.

2. Reasons for Strong Performance: Why?

  • Solid Fundamentals: Steady profit growth in banking and securities underpins the group’s stability.
  • Financial Soundness: The high CET1 ratio demonstrates strong risk management capabilities and provides a foundation for long-term growth.
  • Shareholder Return Policy: The share buyback demonstrates a commitment to enhancing shareholder value.
  • Future Growth Drivers: Digital transformation, AI integration, and strengthened ESG management are crucial for securing future competitiveness.

3. Future Outlook and Investment Strategies: What’s Next?

Despite the positives, potential slowdown in Shinhan Card’s profitability, real estate PF risks, and intensifying competition require ongoing management. Shinhan is expected to strengthen its fundamentals through proactive responses to these challenges. The current investment recommendation is ‘Hold’ with a target price of KRW 64,000.

4. Key Action Plan for Investors

  • Continuous Monitoring: Investors should monitor macroeconomic indicators, regulatory changes, and the group’s risk management and growth strategies.
  • Balanced Investment: Diversifying investment portfolios is crucial for risk mitigation.
  • Seek Expert Advice: Consulting with investment professionals can be beneficial for developing investment strategies.