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Shinhan Financial Group Co., Ltd.
(055550)
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Rating:65Neutral
Price Target:
₩92,235.00
▼(-16.38% Downside)
Action:N/A
Date:10/28/26
The score is driven by solid underlying financial performance and attractive valuation (low P/E and ~3.4% yield), supported by a constructive earnings-call tone with strong capital and shareholder returns. The main offset is very weak technical momentum, with the share price far below key moving averages and bearish indicators.
Positive Factors
Improving profitability and cash generation
Shinhan is converting improved profitability into substantial cash generation, with TTM free cash flow broadly aligned with net income. This supports internal funding, resilience, and shareholder distributions, while rising earnings provide a stronger base for sustaining performance over the next several quarters.
Negative Factors
Elevated bank-style leverage
Elevated leverage is inherent to banking but still increases sensitivity to credit, market, and funding shocks. Although equity has grown and leverage improved from 2025 annual levels, the balance-sheet structure can constrain flexibility and amplify the effect of asset-quality deterioration on returns.
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Positive Factors
Negative Factors
Improving profitability and cash generation
Shinhan is converting improved profitability into substantial cash generation, with TTM free cash flow broadly aligned with net income. This supports internal funding, resilience, and shareholder distributions, while rising earnings provide a stronger base for sustaining performance over the next several quarters.
Read all positive factors
Shinhan Financial Group Co., Ltd. (055550) vs. SPDR S&P 500 ETF (SPY)
Market Cap
₩40.20T
Dividend Yield3.34%
Average Volume (3M)918.90K
Price to Earnings (P/E)7.9
Beta (1Y)0.24
Revenue Growth32.01%
EPS Growth19.24%
CountryKR
Employees189
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)11155.11
Shares Outstanding469,450,230
10 Day Avg. Volume1,150,358
30 Day Avg. Volume918,896
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.72
Price to Sales (P/S)1.10
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12,313.94
Revenue Forecast (FY)₩16.92T
Shinhan Financial Group Co., Ltd. Business Overview & Revenue Model
Company Description
Shinhan Financial Group Co., Ltd. delivers a comprehensive array of financial solutions and offerings to clients both within South Korea and across the globe. Its operations are structured across six primary divisions: Banking, Credit Card, Securi...
Shinhan Financial Group Co., Ltd. Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call had a generally positive tone, supported by strong capital levels, increased shareholder returns, improved ROE and ROTCE, stable asset quality, disciplined expenses, and strategic expansion in insurance, digital services, and commercial paper. However, quarterly earnings declined because of a sharp drop in noninterest income, funding-cost pressure weighed on NIM, capital-market activity remained weak, and the Lotte Insurance acquisition still involves licensing, integration, and capital-planning steps. Highlights significantly outweighed the lowlights.Positive Updates
Strong Capital Position and Shareholder Returns
Group CET1 stood at 13.62% at the end of Q3, improving 12 bp quarter-over-quarter. The Board approved KRW 450 billion of share buybacks and a Q3 cash dividend of KRW 740 per share. Total share buybacks completed during the year are expected to reach KRW 1.6 trillion, up 28% year-over-year. Assuming quarterly dividends remain at this level through year-end, full-year DPS would be KRW 2,960, up 14.3% year-over-year.
Negative Updates
Quarterly Net Income Decline
Q3 net income was KRW 1,584.6 billion, a 12.9% decrease quarter-over-quarter. Group operating income before expenses decreased 13.2% quarter-over-quarter, primarily because of lower noninterest income, although gains from property disposals and controlled expenses partly offset the decline.
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Q3-2026 Updates
Positive
Negative
Strong Capital Position and Shareholder Returns
Group CET1 stood at 13.62% at the end of Q3, improving 12 bp quarter-over-quarter. The Board approved KRW 450 billion of share buybacks and a Q3 cash dividend of KRW 740 per share. Total share buybacks completed during the year are expected to reach KRW 1.6 trillion, up 28% year-over-year. Assuming quarterly dividends remain at this level through year-end, full-year DPS would be KRW 2,960, up 14.3% year-over-year.
Read all positive updates
Company Guidance
Management expects current NIM levels to be maintained until year-end, while maintaining a neutral outlook on NIM; with funding rates stabilizing and lending rates being repriced, NIM is expected to stabilize from next year, and the bank CFO said NIM should improve after the fourth quarter. Funding competition is expected to ease up a little after the end of the year. The group’s mid- to long-term ROE will be managed between 10% to 12%, with a target of 12%. Credit cost ratios are expected to remain in the low 40 bp range, even assuming additional provisioning and provisional delinquencies. Shinhan Securities targets 100 bp margin for its CP business and is considering around KRW 2 trillion volume next year. For Shinhan Life, the lapse ratio will be reflected above the guideline of 30%. Assuming quarterly cash dividends are maintained at this level until year-end, full year DPS would be KRW 2,960, while the group will pursue to increase the level of year-end dividends; the Lotte Insurance acquisition is expected to require about KRW 300 billion of common stock capital increase.Shinhan Financial Group Co., Ltd. Financial Statement Overview
Summary
Income Statement
79
Positive
Balance Sheet
62
Positive
Cash Flow
71
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 | 21.24T | 9.09T | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 22.06T | 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., Ltd. Technical Analysis
Negative
110300.00
Price Trends
104410.00
Negative
103256.09
Negative
97204.38
Negative
Market Momentum
-5523.96
Positive
27.60
Positive
21.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:055550, the sentiment is Negative. The current price of 110300 is above the 20-day moving average (MA) of 96435.00, above the 50-day MA of 104410.00, and above the 200-day MA of 97204.38, indicating a bearish trend. The MACD of -5523.96 indicates Positive momentum. The RSI at 27.60 is Positive, neither overbought nor oversold. The STOCH value of 21.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:055550.
Shinhan Financial Group Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₩22.03T | 7.27 | ― | 4.68% | 37.27% | -6.05% | |
65 Neutral | ₩40.20T | 7.94 | ― | 3.34% | 32.01% | 19.24% | |
62 Neutral | ₩51.96T | 8.92 | ― | 5.39% | 7.48% | 14.84% | |
60 Neutral | ₩9.31T | 16.92 | ― | 2.36% | 2.68% | 15.30% | |
59 Neutral | ₩15.02T | 5.65 | ― | 6.68% | 27.79% | -0.49% | |
57 Neutral | ₩19.94T | 8.44 | ― | 1.10% | 31.19% | 10.76% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
KR:055550
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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.