Shinhan Financial Group to enhance corporate value by 2027


Shinhan Financial Group introduced a plan aimed at enhancing corporate value, outlining specific targets and strategies to improve profitability. The plan includes objectives such as achieving a 10 percent return on equity, a 50 percent shareholder return rate, and reducing the number of shares by 50 million by 2027. To accomplish the 50 percent shareholder return rate, the company plans to decrease the number of shares through ongoing stock buybacks and cancellations. Additionally, the group intends to lower the current 510 million listed shares to 500 million by the end of this year and to 450 million by 2027, with an estimated 3 trillion won in treasury shares to be sold or canceled over the next three years. Furthermore, Shinhan aims to increase its Common Equity Tier 1 target from 12 percent to 13 percent to strengthen its loss-absorption capacity. The group also plans to adopt a return on group capital metric to evaluate profitability across its subsidiaries. In addition, to enhance communication with shareholders, the company will gather questions and feedback on the plan via its website and respond through its official YouTube channel. On the same day, Shinhan Financial Group reported a second-quarter net income of 1.4 trillion won, marking a 15.1 percent increase year-on-year. The company highlighted that this operational net income for the second quarter is its highest ever recorded. Moreover, the net income from global operations saw a notable 32.4 percent year-on-year increase, reaching 410.8 billion won, driven by successful performances of Shinhan Bank in Vietnam and Japan.


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