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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:75Outperform
Price Target:
$92.00
â–²(18.71% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by solid financial performance (improving profitability and stronger recent cash generation) and a favorable earnings-call backdrop (higher return metrics, strong capital, and sizable buybacks/dividend). Technicals add support via a clear uptrend with neutral momentum, while valuation is attractive with a low P/E and moderate yield. Main constraints are balance-sheet leverage sensitivity and earnings volatility/credit-cost risks highlighted on the call.
Positive Factors
Diversified financial-services platform
The broad subsidiary mix gives Shinhan multiple earnings channels across interest income, fees, capital markets, insurance, and asset management. This diversification can reduce reliance on any single product or market and supports resilience as customer needs and financial conditions change.
Negative Factors
Leverage increases financial sensitivity
Elevated leverage is inherent to banking but increases sensitivity to funding costs, credit deterioration, and market disruptions. If asset quality or financing conditions weaken, leverage can amplify pressure on capital flexibility and profitability, limiting the group’s ability to respond aggressively.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified financial-services platform
The broad subsidiary mix gives Shinhan multiple earnings channels across interest income, fees, capital markets, insurance, and asset management. This diversification can reduce reliance on any single product or market and supports resilience as customer needs and financial conditions change.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.48B
Dividend Yield3.01%
Average Volume (3M)184.03K
Price to Earnings (P/E)7.9
Beta (1Y)0.85
Revenue Growth5.37%
EPS Growth14.38%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)11155.11
Shares Outstanding469,450,230
10 Day Avg. Volume192,776
30 Day Avg. Volume184,032
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.72
Price to Sales (P/S)1.11
P/FCF Ratio4.22
Enterprise Value/Market Cap3.34
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)9.02
Revenue Forecast (FY)$12.46B
Shinhan Financial Group Co Business Overview & Revenue Model
Company Description
Shinhan Financial Group Co., Ltd. is a prominent financial services provider that operates both within South Korea and globally. The company's diverse activities are organized into six primary divisions: Banking, Credit Card services, Securities, ...
How the Company Makes Money
SHG makes money primarily through the earnings generated by its operating subsidiaries across banking and non-banking financial businesses. In its banking business, the largest driver is net interest income: the spread between interest earned on l...
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented multiple material positives: solid and growing quarter net income (+12.2% Q-o-Q), improved ROE/ROTCE, a healthy CET1 ratio with RWA optimization, strong fee and noninterest income growth, meaningful shareholder returns (KRW 1.4 trillion buybacks by Oct and higher dividends), and broad subsidiary/outside-market strength including +13% overseas earnings. Offsetting these, there are notable challenges: a sharp one-quarter drop in insurance-related income (-44.6%), a steep decline at Shinhan Capital (-28.9% Q-o-Q), higher SG&A and a Q-o-Q rise in credit costs (+14.7%), NIM improvement that was smaller-than-expected (+1 bp Q-o-Q), and macro/FX/RWA sensitivities and earnings volatility from securities/insurance items. Overall, the positive operational and capital actions and the scale of earnings improvements outweigh the discrete and manageable headwinds, but management emphasizes cautious, conservative capital and risk management given macro uncertainties.Positive Updates
Strong Quarterly Net Income
Net income for Q2 2026 was KRW 1,820.1 billion, up 12.2% quarter-on-quarter, reflecting group-wide profitability improvements.
Negative Updates
Large Drop in Insurance-Related Income
Insurance-related income declined 44.6% Q-o-Q due to larger expected vs actual losses and the impact of changes in actuarial guidelines, weighing on noninterest income volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Net Income
Net income for Q2 2026 was KRW 1,820.1 billion, up 12.2% quarter-on-quarter, reflecting group-wide profitability improvements.
Read all positive updates
Company Guidance
Guidance emphasized a stable capital and shareholder‑return stance: group CET1 was provisionally 13.43% at end‑Q2 (Q1 revised to 13.30% after a KRW 3.2tn RWA reduction), management range around 13–14% and steady capital growth of ~4–5% expected; RWA growth excluding FX is <2% (but a KRW 1,600 FX scenario would raise RWA ~8%). Management reiterated the Value‑up 2.0 targets (ROE target 10% by 2027; ROE management range 10–12%) while delivering strong Q2 results—net income KRW 1,820.1bn (+12.2% QoQ), group ROE 12.4% and ROTCE 13.9% (≈+1pp YoY), bank NIM ~1.61% (+1bp QoQ, +5bp YoY) with expectation of further NIM tailwinds in 2H (c. +3–4bps if rates rise); credit cost ratio 42bp (credit costs +14.7% QoQ, but -8bp YoY), non‑interest income +22.0% QoQ (custody +29.5%, WM fees +60.8%, IB fees +151.3%, securities gains +30.9%, insurance income -44.6%). Shareholder returns: Q2 cash dividend KRW ~740–741 (record date July 30), if quarterly level persists annual DPS would be KRW 2,951 (+14.3% YoY); the Board approved a KRW 700bn buyback (completed/cancelled H1) and total buyback committed to Oct is KRW 1.4tn with potential additional buybacks in Q4 (management referenced payout flexibility up to the low‑50% range, noting a theoretical maximum ~53% in their framework).Shinhan Financial Group Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.91T | 34.69T | 35.38T | 33.80T | 24.56T | 25.75T |
| Gross Profit | 18.31T | 16.45T | 15.57T | 14.88T | 13.78T | 20.84T |
| EBITDA | 9.92T | 8.22T | 7.31T | 7.15T | 7.37T | 6.49T |
| Net Income | 5.40T | 4.97T | 4.45T | 4.37T | 4.67T | 4.02T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 47.24T | 27.68T | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 60.10T | 53.21T | 56.05T | 53.72T | 50.73T | 47.97T |
Cash Flow | ||||||
| Free Cash Flow | 19.85T | 9.09T | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 20.52T | 9.73T | 4.63T | 529.85B | 7.59T | 11.08T |
| Investing Cash Flow | -14.93T | -10.90T | 148.53B | -4.27T | -11.03T | -12.03T |
| Financing Cash Flow | -742.34B | 1.25T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Negative
77.50
Price Trends
77.44
Negative
73.26
Negative
68.38
Negative
Market Momentum
-2.96
Positive
23.68
Positive
6.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHG, the sentiment is Negative. The current price of 77.5 is above the 20-day moving average (MA) of 74.26, above the 50-day MA of 77.44, and above the 200-day MA of 68.38, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 23.68 is Positive, neither overbought nor oversold. The STOCH value of 6.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHG.
Shinhan Financial Group Co Risk Analysis
Shinhan Financial Group Co disclosed 46 risk factors in its most recent earnings report. Shinhan Financial Group Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The implementation of IFRS 17 beginning on January 1, 2023 renders certain of our historical financial information as of December 31, 2021 and for the year ended December 31, 2021, included in this annual report, not directly comparable with our financial information as of December 31, 2022 and 2023 and for the years ended December 31, 2022 and 2023 included in this annual report. Q4, 2023
2.
Evolving regulatory framework for artificial intelligence and machine learning technology, may have an adverse impact on our business, financial condition and results of operations. Q4, 2023
3.
Our business may be materially and adversely affected by legal claims and regulatory actions against us. Q4, 2023
Shinhan Financial Group Co Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $30.48B | 7.90 | 9.20% | 3.01% | 5.37% | 14.38% | |
73 Outperform | $31.78B | 12.19 | 8.19% | 3.94% | 23.86% | -14.22% | |
72 Outperform | $32.01B | 11.53 | 10.65% | 2.71% | 0.14% | 18.15% | |
71 Outperform | $43.21B | 7.43 | 14.24% | 7.54% | 29.04% | 34.36% | |
70 Outperform | $48.05B | 17.90 | 8.30% | 3.06% | 15.15% | -12.33% | |
70 Outperform | $39.00B | 8.86 | 10.68% | 2.88% | 3.72% | 10.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
66.30
13.76
26.19%
BBD
Banco Bradesco SA
4.07
0.85
26.55%
FITB
Fifth Third Bancorp
52.98
11.90
28.97%
HBAN
Huntington Bancshares
15.73
0.67
4.45%
KB
Kb Financial Group
114.74
32.78
40.00%
MTB
M&T Bank
221.66
43.84
24.65%
Shinhan Financial Group Co Corporate Events
Shinhan Financial Group Reports Slight Stake Cut by National Pension Service
Oct 21, 2026
Shinhan Financial Group Co., Ltd., based in Seoul, is a leading South Korean financial services holding company operating across banking, securities, insurance and related financial businesses. It serves retail and institutional clients domestical...
Shinhan Bank Declares KRW 1 Trillion Interim Dividend to Parent Shinhan Financial Group
Oct 21, 2026
On October 21, 2026, Shinhan Bank’s board approved an interim cash dividend of KRW 630.67 per common share, totaling KRW 1 trillion. The decision underscores the bank’s solid capital position and supports Shinhan Financial Group’...
Shinhan Financial Group Completes KRW 700 Billion Share Buyback
Oct 20, 2026
Shinhan Financial Group Co., Ltd., a major South Korean financial services holding company with businesses spanning banking, securities, credit cards, and asset management, reported changes to its capital structure through a treasury share program...
Shinhan Financial Group Reports Cybersecurity Incident at Shinhan Bank
Oct 1, 2026
Shinhan Bank, the main banking arm of Shinhan Financial Group, disclosed on October 1, 2026, that an external party had gained unauthorized access to certain services and obtained customer information. The bank immediately began reviewing affected...
Shinhan Financial Group Files First-Half 2026 Business Report in Korea
Aug 14, 2026
On August 14, 2026, Shinhan Financial Group filed its first-half 2026 Business Report with Korean regulators, providing an English summary prepared under Korean International Financial Reporting Standards. The filing outlines business results, gov...
Shinhan Financial Group Reports Increase in National Pension Service Shareholding
Aug 11, 2026
On August 11, 2026, Shinhan Financial Group disclosed a change in the shareholding of its largest shareholder, Korea’s National Pension Service, based on the shareholder registry closing as of July 30, 2026. The announcement reflects updated...
Shinhan Financial Group Moves to Merge Real Estate Units Shinhan Asset Trust and Shinhan REITs Management
Jul 30, 2026
On July 30, 2026, Shinhan Financial Group reported that the boards of its wholly owned subsidiaries Shinhan Asset Trust and Shinhan REITs Management had resolved to approve a merger, with Shinhan Asset Trust remaining as the surviving company. The...
Shinhan Financial Clarifies Status of Potential Lotte Insurance Acquisition Review
Jul 28, 2026
On July 28, 2026, Shinhan Financial Group issued a supplemental disclosure addressing market speculation about a potential acquisition of Lotte Insurance. The group stated it is continuing to review various measures to enhance its non-bank competi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.