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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:63Neutral
Price Target:
$69.00
â–¼(-10.97% Downside)
Action:Downgraded
Date:10/27/26
SHG scores as neutral overall: attractive valuation (low P/E and solid dividend yield) and improving recent cash generation support the score, but a clearly bearish technical trend (price below all key moving averages with very weak momentum) is a major offset. The latest earnings call adds a mixed backdrop—stronger shareholder returns and solid capital, but near-term earnings/NIM pressure and acquisition execution requirements.
Positive Factors
Diversified financial platform
The broad mix of banking and fee-based businesses diversifies earnings across interest income, payments, capital markets, insurance, and asset management. This integrated platform can support customer retention, cross-selling, and resilience when conditions weaken in any single financial segment.
Negative Factors
Elevated balance-sheet leverage
High leverage is inherent to banking but leaves Shinhan more sensitive to funding costs, credit deterioration, and market shocks. It can amplify returns in favorable conditions, yet also limits financial flexibility and raises the potential impact of stress on capital and earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified financial platform
The broad mix of banking and fee-based businesses diversifies earnings across interest income, payments, capital markets, insurance, and asset management. This integrated platform can support customer retention, cross-selling, and resilience when conditions weaken in any single financial segment.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.37B
Dividend Yield3.11%
Average Volume (3M)189.86K
Price to Earnings (P/E)7.7
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. Volume202,331
30 Day Avg. Volume189,860
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 Cap3.46
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)8.99
Revenue Forecast (FY)$12.48B
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:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Neutral
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.Positive Updates
Stable Capital Position and Increased Shareholder Returns
Group CET1 stood at 13.62% at the end of Q3, improving 12 basis points quarter-over-quarter. The Board approved KRW 450 billion in share buybacks and KRW 740 per share in Q3 cash dividends. Full-year DPS would be KRW 2,960 if quarterly dividends are maintained, representing a 14.3% year-over-year increase. Share buybacks completed during the year are expected to total KRW 1.6 trillion, up 28% year-over-year.
Negative Updates
Quarterly Net Income Decline
Q3 net income was KRW 1,584.6 billion, down 12.9% quarter-over-quarter. Group operating income before expenses decreased 13.2% quarter-over-quarter because of lower noninterest income, although gains from property disposals and controlled expenses partly offset the decline.
Read all updates
Q3-2026 Updates
Positive
Negative
Stable Capital Position and Increased Shareholder Returns
Group CET1 stood at 13.62% at the end of Q3, improving 12 basis points quarter-over-quarter. The Board approved KRW 450 billion in share buybacks and KRW 740 per share in Q3 cash dividends. Full-year DPS would be KRW 2,960 if quarterly dividends are maintained, representing a 14.3% year-over-year increase. Share buybacks completed during the year are expected to total KRW 1.6 trillion, up 28% year-over-year.
Read all positive updates
Company Guidance
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.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
77.01
Negative
73.26
Negative
68.49
Negative
Market Momentum
-3.43
Positive
20.85
Positive
5.35
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 72.59, above the 50-day MA of 77.01, and above the 200-day MA of 68.49, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 20.85 is Positive, neither overbought nor oversold. The STOCH value of 5.35 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $31.96B | 11.51 | 10.65% | 2.71% | 0.14% | 18.15% | |
70 Outperform | $48.63B | 18.10 | 8.30% | 3.02% | 15.15% | -12.33% | |
70 Outperform | $31.74B | 12.18 | 8.19% | 3.95% | 23.86% | -14.22% | |
70 Outperform | $37.22B | 9.58 | 10.68% | 2.94% | 3.72% | 10.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $29.37B | 7.69 | 9.20% | 3.11% | 5.37% | 14.38% | |
63 Neutral | $31.26B | 5.86 | 14.24% | 8.61% | 29.04% | 34.36% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
64.34
11.69
22.20%
BBD
Banco Bradesco SA
2.91
-0.42
-12.61%
FITB
Fifth Third Bancorp
53.59
13.17
32.58%
HBAN
Huntington Bancshares
15.71
1.11
7.62%
KB
Kb Financial Group
112.50
31.08
38.17%
MTB
M&T Bank
221.31
45.02
25.54%
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.