Shinhan Financial Group Co (SHGN) Q3 2026 Earnings Report

The call presented a mixed outlook. Shinhan maintained strong capital levels, increased shareholder returns, controlled expenses, improved profitability ratios, and reported manageable asset quality. However, these positives were offset by a 12.9% quarter-over-quarter decline in net income, a 45.5% decline in noninterest income, funding-driven NIM pressure, weak capital-market activity, declines at several subsidiaries, foreign-exchange-related OCI pressure, and execution requirements for the Lotte Insurance acquisition.

Shinhan said it would execute KRW 200 billion of the approved KRW 450 billion buyback within the year and the remaining KRW 250 billion by January next year, while pursuing to increase year-end dividends; assuming quarterly cash dividends are maintained at this level until year-end, full year DPS would be KRW 2,960, a 14.3% Y-o-Y increase. The bank expects current NIM levels to be maintained until year-end, is maintaining a neutral outlook on NIM, and expects NIM to stabilize from next year; after the fourth quarter is over, it believes NIM will improve. The group expects credit cost ratios to remain in the low 40 bp range, will manage ROE between 10% to 12%, with the minimum at least an ROE of 10% and an aim for 12%, and expects around KRW 2 trillion of Shinhan Securities commercial paper volume next year. For Lotte Insurance, about KRW 300 billion of common stock capital increase is being considered, versus about KRW 900 billion on a simple calculation, and the acquisition would reduce CET1 by around 19 bp.