Shinhan Financial Group posted a 4.4% year-on-year increase in net profit to 3.99 trillion won ($3.1 billion) for the first nine months of 2024, demonstrating resilience despite challenging market conditions.
The group’s quarterly net profit reached 1.24 trillion won in Q3, down 13.1% from the previous quarter, primarily due to trading losses in derivatives and conservative valuation adjustments on overseas alternative investments.
Interest income continued its growth trajectory, rising 1.2% quarter-on-quarter to 2.86 trillion won, supported by loan growth in both retail and corporate sectors. The bank’s core net interest margin contracted 4 basis points to 1.56% due to market rate pressures.
Asset quality remained stable with the group’s non-performing loan ratio at 0.71%. The bank’s household loans expanded 6.3% during the quarter, driven by mortgage lending growth and policy-supported loans. Corporate loans showed moderate growth of 1.4%.
The group maintained strong capital adequacy with a CET1 ratio of 13.13%. The board approved a quarterly dividend of 540 won per share and a share buyback program worth 400 billion won, demonstrating commitment to shareholder returns.
Digital transformation efforts showed progress with the number of monthly active users reaching 5.19 million, while digital sales contributed 2.43 trillion won to operating income before expenses.
“Despite market volatility, our diversified business model and strategic focus on stable growth have helped maintain solid performance,” said a company spokesperson, speaking on condition of anonymity per company policy.
