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Shinhan Financial Group Co
(NYSE:SHG)
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Rating:68Neutral
Price Target:
$73.00
▲(33.97% Upside)
Action:Reiterated
Date:07/03/26
The score is driven primarily by improved profitability and a supportive earnings-call outlook with clear capital-return targets, reinforced by attractive valuation (low P/E and solid yield). These positives are tempered by financial quality risks—especially weak/volatile TTM free cash flow, elevated leverage, and earnings-call flags around CET1 pressure, rising credit costs, and lower NPL coverage—while technical signals remain mixed.
Positive Factors
Improved Returns
Sustained ROE above 10% signals the bank is converting capital into profits more effectively. Management's explicit ROE target and updated value-creation framework align incentives toward higher capital efficiency, supporting durable shareholder returns and disciplined capital allocation over the medium term.
Negative Factors
Elevated Leverage
High debt-to-equity constrains financial flexibility and magnifies earnings volatility if funding costs rise or asset quality weakens. Persistent elevated leverage reduces shock-absorption capacity and could force tighter capital management or slower dividend/buyback plans in adverse macro scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Returns
Sustained ROE above 10% signals the bank is converting capital into profits more effectively. Management's explicit ROE target and updated value-creation framework align incentives toward higher capital efficiency, supporting durable shareholder returns and disciplined capital allocation over the medium term.
Read all positive factors
Shinhan Financial Group Co (SHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.00B
Dividend Yield2.86%
Average Volume (3M)293.38K
Price to Earnings (P/E)10.1
Beta (1Y)0.71
Revenue Growth1.72%
EPS Growth13.27%
CountryUS
Employees189
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)10307.76
Shares Outstanding474,654,360
10 Day Avg. Volume271,670
30 Day Avg. Volume293,380
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.72
Price to Sales (P/S)1.11
P/FCF Ratio6.59
Enterprise Value/Market Cap4.73K
Enterprise Value/Revenue4.49
Enterprise Value/Gross Profit9.39
Enterprise Value/Ebitda18.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.86
Revenue Forecast (FY)$11.07B
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 earnings generated by its operating subsidiaries across several financial verticals:
1) Banking (typically the largest contributor)
- Net interest income: The core banking business earns interest on loans (e.g., ...
Shinhan Financial Group Co Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a growth and shareholder‑friendly narrative: solid top‑line momentum led by a 26.5% increase in non‑interest income, a strong rebound in securities (167.4% YoY) and improved ROE/ROTCE above 10% targets, supported by a clear new value framework (Shinhan Value Up 3.0 Plus) with progressive dividend and buyback measures. Offsetting these positives are capital and asset‑quality pressures — CET1 was pressured by RWA growth, credit costs and NPL coverage declined materially (to ~110–113%), and the card and life businesses showed weakness. Overall the company appears to be executing on strategic capital return and profitability improvements while managing cyclical credit and interest‑rate headwinds.Positive Updates
Strong Non‑Interest Income and Fee Growth
Group non‑interest income increased 26.5% YoY; brokerage fees surged 215.2% YoY; fees from fund sales and bancassurance grew 54.7% YoY; insurance‑related profit rose 8.7% YoY.
Negative Updates
CET1 and RWA Pressure
Group CET1 declined by a reported 68 basis points driven by RWA growth and shareholder returns (though only ~16 bps decline relative to year‑end); Group RWA increased by KRW 7.3 trillion from asset growth and KRW 3.1 trillion from FX impacts.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Non‑Interest Income and Fee Growth
Group non‑interest income increased 26.5% YoY; brokerage fees surged 215.2% YoY; fees from fund sales and bancassurance grew 54.7% YoY; insurance‑related profit rose 8.7% YoY.
Read all positive updates
Company Guidance
Shinhan’s guidance under the new “Value Up 3.0 Plus” framework targets ROE >10% (managing 10–12% through 2028) and a total shareholder return (TSR) ratio ≥50% with no upper cap, DPS growth of >10% p.a. for the next three years and priority for tax‑exempt dividends; it will maintain CET1 ≥13% (Q1 CET1 ~13.19%) and manage CET1 in roughly a 13.0–14.4% operating band with potential 10–20 bps upside from regulatory easing. Operational and capital metrics include Q1 net income KRW 1,622.6bn (+9% YoY), ROE 11.9% (tangible ROE 9.1%), ROTCE 13.4%, group NII +5.9% YoY, non‑interest income +26.5% YoY (brokerage fees +215.2% YoY; fund/bancassurance fees +54.7% YoY), operating profit before expense +11% YoY, cost/income 36.7% (SG&A +10.4% YoY), Q1 credit‑cost ratio 46bps (credit costs +17.5% YoY) with a full‑year credit‑cost target in the mid‑40bps, group RWA up KRW 7.3tr (+KRW 3.1tr FX), group NPL coverage ~110% (bank target 150%), a KRW 700bn buyback/retirement program (completion of 4.3bn shares) and a Q1 cash dividend KRW 741/share (record Apr 30, pay May 29).Shinhan Financial Group Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.80T | 34.69T | 35.38T | 33.80T | 24.56T | 25.75T |
| Gross Profit | 16.62T | 16.45T | 15.57T | 14.88T | 13.78T | 20.84T |
| EBITDA | 8.42T | 8.22T | 7.31T | 7.15T | 7.37T | 6.49T |
| Net Income | 5.11T | 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 | 10.00T> | 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 | 59.06T | 53.21T | 56.05T | 53.72T | 50.73T | 47.97T |
Cash Flow | ||||||
| Free Cash Flow | 15.89T | 5.82T | 3.85T | -186.39B | 6.65T | 10.19T |
| Operating Cash Flow | 16.67T | 6.46T | 4.63T | 529.85B | 7.59T | 11.08T |
| Investing Cash Flow | -16.56T | -10.90T | 148.53B | -4.27T | -11.03T | -12.03T |
| Financing Cash Flow | -2.60T | 1.25T | -182.65B | 9.76T | 3.39T | 4.96T |
Shinhan Financial Group Co Technical Analysis
Positive
54.49
Price Trends
65.84
Positive
65.29
Positive
59.74
Positive
Market Momentum
1.16
Negative
60.18
Neutral
93.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHG, the sentiment is Positive. The current price of 54.49 is below the 20-day moving average (MA) of 66.41, below the 50-day MA of 65.84, and below the 200-day MA of 59.74, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 93.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $30.34B | 14.71 | 19.66% | 4.82% | 22.61% | 34.04% | |
68 Neutral | $33.00B | 10.11 | 9.08% | 2.86% | 1.72% | 13.27% | |
68 Neutral | $38.31B | 10.68 | 10.54% | 2.79% | 1.35% | 7.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $14.72B | 7.21 | 9.33% | 3.71% | 7.90% | 8.29% | |
58 Neutral | $18.69B | 30.88 | 11.11% | 4.98% | 17.17% | -1.33% | |
53 Neutral | $34.13B | 9.11 | 13.55% | 2.48% | 28.16% | 28.12% |
* Financial Sector Average
SHG
Shinhan Financial Group Co
70.58
20.36
40.54%
BBD
Banco Bradesco SA
3.48
0.72
25.90%
BSBR
Banco Santander Brasil
5.14
0.33
6.77%
BAP
Credicorp
391.92
178.64
83.76%
KB
Kb Financial Group
115.37
29.95
35.06%
WF
Woori Finance Holdings Co
61.60
6.94
12.70%
Shinhan Financial Group Co Corporate Events
Shinhan Financial Group Files 2025 Sustainability Report with Korea Exchange
Jun 30, 2026
Shinhan Financial Group Co., Ltd. is a leading South Korean financial services conglomerate headquartered in Seoul, offering a broad range of banking, credit, investment and insurance services. The group serves retail and corporate clients domesti...
Shinhan Financial Clarifies Status of Potential Lotte Insurance Acquisition Review
Jun 29, 2026
On June 29, 2026, Shinhan Financial Group disclosed that it is reviewing various options to enhance its non-bank competitiveness amid broader reforms in South Korea’s insurance sector. The group issued the clarification after a Korean media ...
Shinhan Financial Group Boosts Capital Return Strategy with New ‘Value-Up +++’ Plan After Strong Q1 2026
May 15, 2026
On May 15, 2026, Shinhan Financial Group reported first-quarter 2026 results and outlined updates to its capital return strategy, highlighting consolidated net income of KRW 1.62 trillion and earnings per share of KRW 3,327 for the period ended Ma...
Shinhan Financial Group Reports Slight Stake Reduction by Largest Shareholder NPS
May 15, 2026
On May 15, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service, its largest shareholder, modestly reduced its stake in the company between March 31 and April 30, 2026. NPS’s holdings fell from 42,747,919 commo...
Shinhan Financial Group Board Approves KRW 348.9 Billion Quarterly Cash Dividend
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group’s board approved a quarterly cash dividend, underscoring its continued commitment to shareholder returns in the Korean financial sector. The decision reflects stable capital management at one of Sou...
Shinhan Financial Group Posts Strong Profit Rebound in Preliminary 1Q 2026 Results
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group reported preliminary consolidated results for the first quarter of 2026 showing a sharp rebound in profitability. Group revenue surged 80% quarter-on-quarter and 77% year-on-year to KRW 28.5 trillion, whi...
Shinhan Financial Group Adopts ‘Value-Up +++’ Plan to Lift Returns and Strengthen Capital
Apr 23, 2026
On April 23, 2026, Shinhan Financial Group’s board approved an upgraded medium-term capital and shareholder return framework, branded “Shinhan Value-Up +++ (Triple Plus),” building on a value-up plan first announced on July 26, 2...
Shinhan Financial Group Reports Slight Stake Reduction by National Pension Service
Apr 20, 2026
On April 20, 2026, Shinhan Financial Group disclosed that Korea’s National Pension Service, its largest shareholder, had reduced its stake in the group. NPS’s holdings fell from 43,441,749 common shares, or 9.15% as of February 20, 202...
Shinhan Financial Group Sets April 23, 2026 Date for 1Q Earnings Release and Investor Call
Apr 8, 2026
Shinhan Financial Group announced that it will hold its first-quarter 2026 earnings release conference on April 23, 2026, with the event streamed live online for both PC and mobile in Korean and English. Investors will be able to participate in a ...
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.