To the Asia s Leading Financial Group. Shinhan Financial Group

Transcription

1 To the Asia s Leading Financial Group Shinhan Financial Group 1

2 About SFG Korea # 1 Financial Institution Realizing highest net income among peers (consecutive 9 years since 2008) Market Cap ranked 1 st place among peers (24.7 trillion as of Aug. 31, 2017) Successful M&A and Diversification Establishing the most diversified business portfolio among Korean financial groups through a series of successful M&As Thorough Risk Management Maintaining sound asset qualities through preemptive and proactive risk management Growth through Corporate Social Responsibility Implementing the Compassionate Finance to seek shared development for the company and the society 2

3 About SFG SFG at a Glance Overview Well-diversified Business Portfolio Net Income : KRW 1.89 trillion (As of Jun.30, 2017) Total Consolidated Assets : KRW 414 trillion Total Market Cap: KRW 24.7 trillion (As of Aug.31, 2017) ROA : 0.95% ROE : 12.2% 13 direct subsidiaries, 24 indirect subsidiaries Number of Employees : 26,000 Shinhan Card (Credit Card) Shinhan Life (Life Insurance) Shinhan Capital (Leasing Business) Shinhan Bank (Banking) Shinhan Investment (Securities Brokerage) Shinhan BNP Paribas AM (Asset Management) Major Shareholders - Korea National Pension Service 9.55% - BlackRock Fund Advisors 5.13% 1) - SFG ESOP 4.79% - BNP Paribas 3.55% 2) 1) Based on the Large equity ownership disclosure by BlackRock Fund Advisors with the Financial Supervisory Service on Oct. 20, ) Based on the Large equity ownership disclosure by BNP Paribas with the Financial Supervisory Service on Jan. 05, Top 500 Banking Brands Bank Ranking Company Nationality 1 ICBC China 2 Wells Fargo US 9 HSBC UK 37 Mizuho Financial Group Japan 52 DBS Group Singapore 58 Shinhan Financial Group Korea 94 Macquarie Australia * Source: The Banker (Feb. 2017) 3

4 Shinhan Financial Group Financial Highlights Group Consolidated Net Income (KRW billion) Total Consolidatd Assets (KRW trillion) 3,100 2,320 1,899 2,081 2,367 2,775 1, H Loans and Deposits of SHB (KRW trillion) Net Interest Margin (NIM) (%) H17 Loan Deposit SFG (incl. Merchant Fee) Shinhan Bank 4

5 Shinhan Financial Group Financial Highlights NPL Ratio (%) Capital Adequacy (%) BIS Tier 1 CET SFG Shinhan Bank SFG Shinhan Bank ROA / ROE (%) BPS / EPS (KRW) ,738 5,837 52,142 4,684 54,604 3,810 58,076 4,195 61,146 4,789 64,544 5,742 66,748 8, H ROE ROA BPS EPS

6 About SFG Persistent Growth and M&A Market Capitalization (KRW billion) Establishment of SFG Acquisition of Acquisition of Chohung Bank Shinhan Life Acquisition of Jeju bank & GMS Securities Integrated SHB launched Acquisition of LG Card Rights Offering KRW 1.3 trillion Acquisition of Shinhan Savings Bank 6

7 About SFG How SFG is Organized No. 1 Financial Group in Korea 65% Shinhan Bank Shinhan Card Shinhan Investment Corp. Shinhan Life Insurance Shinhan BNP Paribas Asset Management Shinhan Capital The Best Bank in Korea Number 1 Credit Card Company in Korea Market leader in the era of Capital market Acts The Most Profitable Life Insurance Company The Leading Asset Management Firm in Korea Specialized in facility leases and installment financing Total Assets: KRW trillion Total Equity: KRW 21.5 trillion Total Assets: KRW 25.5 trillion Total Equity: KRW 6.1 trillion Total Assets: KRW 45.2 trillion Total Equity: KRW 3.1 trillion Total Assets: KRW 28.7 trillion Total Equity: KRW 1.7 trillion Total Assets: KRW 41.9 trillion Total Equity: KRW billion Total Assets: KRW 5.0 trillion Total Equity: KRW billion 68.9% 99.8% Jeju Bank The Leading Local Bank in Jeju Shinhan Savings Bank Market Leader in Consumer Finance Shinhan Data System IT Company Specialized in Services for Financial Corporations Shinhan AITAS Number 1 Fund Service Company In Korea Shinhan Credit Information Expert in debt collection and credit research Shinhan Private Equity Private Equity Fund Management Firm Total Assets: KRW 5.6 trillion Total Equity: KRW billion Total Assets: KRW 1.1 trillion Total Equity: KRW billion Total Assets: KRW 34.3 billion Total Equity: KRW 14.8 billion Total Assets: KRW 58.2 billion Total Equity: KRW 49.0 billion Total Assets: KRW 22.4 billion Total Equity: KRW 14.0 billion Total Assets: KRW billion Total Equity: KRW 11.5 billion Note) Based on Consolidated Financial Statements, Trust A/C and AUM are included in Total Assets. (As of Jun. 30, 2017) 7

8 About SFG Market Position Outstanding Profitability Diversified Profit Base Net Income (1H16/ 1H17) 1,889 (KRW billion) 1H16 1H17 Net Income Contribution by Non-bank Subsidiaries (1H17) Non-bank Bank 1,455 1, % SFG 1,125 1,031 1, % 34.6% SFG A B C A B 8

9 Group s Value Management System Shinhan Way Shinhan Way is the value system and guiding principle for all Shinhan employees thoughts and actions. Mission A Better World through the Power of Finance Core Value Customer Respect Change Excellence Ownership Vision World Class Financial Group 9

10 Group s Mission Compassionate Finance Compassionate Finance, Your Companion for Future " Promote a virtuous cycle of shared prosperity with creative financial services " Methodology Through the Power of Finance' Ultimate Goal Building a Better World' 1 2 Help customers reach their goals with timely financial products and services The Core of Financial Business Enhance the value of our customers assets Shinhan s Values Value for our Customers Value for Society Innovate the way we deliver products and services and manage our customers assets in changing markets Creative Finance Grow value for customers, businesses and society leading to shared prosperity Virtuous Cycle of Shared Prosperity 10

11 SFG Socially Responsible Management CSR evaluation Shinhan Financial Group is included in global CSR initiatives, as well as composed of S ocially Responsible Investment funds following ESG index. Due to continuous CSR activities, Our group is recognized as a role model corporation that fits the global CSR standard by global investment and research firms. The evaluation is above the industrial average. Index Grade / Score Benchmark Index Award / Certification DJSI Score: 88 DJSI World DJSI Asia-Pacific DJSI Korea Included in DJSI World index for the first time among Korean financial groups for five consecutive years Global 100 Rank: 40 th Score: Global 100 Selected Global 100 Most Sustainable Corporations be the Davos Forum for five consecutive years Foreign CDP Leadership A - MSCI ESG Grade: AA (Highest:AAA) MSCI ACWI ESG MSCI EM ESG MSCI Korea ESG First financial group in Korea to be included in the Honors Club for three consecutive years - FTSE4Good Grade: 3.8 (Highest:5) FTSE ACWI ESG FTSE Asia Pacific ESG FTSE Korea ESG - ISS Quality Score Grade: 1 (Highest: 1) - - Domestic Korea Corporate Governance Service (CGS) Daeshin Corporate Governance Inst. Grade: A+ (Governance: S, sole recipient in Korea) The Best Company among Korean financial groups - Awarded the Grand Prize in the Korea Corporate Governance Service for two consecutive years

12 Group Vision SFG Vision History & Vision World Class Financial Group Since the establishment of the financial holding company in 2001, Shinhan Financial Group has strived to become Korea s leading world-class financial group. Foundation Building Period ~ 2000 Growth Period 2001 ~ 2007 Overcoming crisis 2008 ~ 2010 Solidifying No.1 Financial Brand 2011 ~ 2016 New initiative 2017 ~ 2020 Organic growth in the early stages Switched to a holding company Overcoming global crisis Solidifying sustainable growth momentum Solidifying our position as a leading financial group in Korea Establishment of Shinhan Bank Consistent growth through innovated products & services Strengthen the banking & non-banking operations through series of successful M&A Innovation of group operation system Declaration of Compassionate Finance Achieving the highest net income in the industry for nine consecutive years Leap to the Asia Leading Financial Group Balanced Growth Glocalization Digital Transformation Uphold the Shinhan Culture 12

13 SFG Mid-term Goal Project 2020 SFG launched Project 2020 to give Shinhan a practical means of making the leap forward into Asia s Leading Financial Group, which is our mid-term goal. Present Mid-term Goal for 2020 Asia s Leading Financial Group Group Vision World Class Financial Group Highlights of 2020 Project 1 Driving Force First to See, First to Decide, First to Act 2 Strategic Direction 1. Balanced Growth 2. Glocalization 3. Digital Transformation 4. Uphold the Shinhan Culture 13

14 SFG Project 2020 Balanced Growth Based on the stable source of income, SFG implements balanced growth strategy for banks and nonbank subsidiaries by finding new growth drivers to maximize the value Organic Growth Inorganic Growth (M&A, Equity Investment) Solidifying No.1 Position No.1 in segmented market Bank/Card Investment/ Insurance/ other Domestic : Non-bank Overseas : Bank + Non-Bank 14

15 SFG Project 2020 Glocalization SFG has been consistently putting a lot of effort into the global business operations not only to secure the long-term future growth driver to diversify the profit base as well. Contribution to Group NI 4.3% 3.7% No. of Networks 99 18,318 17,223 15,334 16,011 13,506 FY FY % Global Assets & Profits Net income Assets 102 FY % 7.0% 6.9% 123 FY2014 2) FY ,519 FY % ,298 20, H 1Q H 1Q 1) 7.0% 6.0% 168 (USD millions) Global Network (168 Networks in 20 Countries) Europe (3) [Shinhan Bank Kazakhstan] ROA : 2.35% NIM : 6.86% Asset : 69 mil. NI : 1.5 mil. Asia -Pacific (25) [Shinhan Bank India] ROA : 1.17% NIM : 2.75% Asset : 1,093 mil. NI : 10.8 mil. [Shinhan Bank Khmer] ROA : 3.38% NIM : 5.36% Asset : 135 mil. NI : 4.4 mil. China (19) Indonesia (68) 1) Excluding one-off write-backs from Shinhan Card 2) Acquisition of BME(19) & CNB(41), Indonesia Japan (10) Vietnam (21) America (22) [Shinhan Bank Vietnam] ROA : 2.21% NIM : 3.68% Asset : 2,430 mil. NI : 45.6 mil. (USD millions) [Shinhan Bank Japan] ROA : 0.88% NIM : 1.55% Asset : 5,073 mil. NI : 42.3 mil. (Financial Figs., as of the end of 2016) 15

16 SFG Project 2020 Digital Transformation In order to perfect Project 2020 and take the Group business model to a next level, SFG established Digital Shinhan Upgrade Plan : Digital Transformation. Respond to/ create disruptive model Redefine concept of core business Transform business model Response Collaborate Create Response to internet bank Collaboration with fin-tech startups Innovate business model Front Enhancement of customer s experience Middle New products/ services Back Operational efficiency (through digital technologies) Connect to platform through new digital technologies (AI, IoT, big data) (Sunny Bank) (Shinhan Future s lab) (Shinhan FAN) (Robo Advisor) (Digital Kiosk, Paperless system) 16

17 SFG Capability Group Synergy Creation One Shinhan SFG pushes forward One Shinhan strategy which focuses on providing the very best products and services to clients by establishing the group-wide cooperative and efficient business structure. One Shinhan Business Model Number of Combined Branch Group (SFG) Bank Investment Corp Life Insurance Capital Credit Card AM, etc PWM(Combined Branch) Group/Global IB Combined Branch Network Distribution Channel Customer Base Synergy Creation Activities and Programs - Enhancing Co-marketing, Hybrid Financial Instruments Cross-selling Synergy Products, Referral of Customers, Group-wise integrated reward program (FAN) Seoul/ Gyeonggi (45) Daejeon/ Chungcheong (3) Jeju (1) Jeolla/ Kwangju (2) Daegu/ Kyeongbuk (2) Pusan/ Kyeongnam (6) # of Combined Branch - PWM Center (27) - PWM Lounge (18) - Creative Finance Plaza (14) (As of Jun. 30, 2017) 17