Business Results 2018 3Q
Disclaimer Statement The financial information contained herein has neither been reviewed or audited by independent auditors. Therefore, no assurance is given that the financial information contained herein is accurate or complete, and such financial information may differ from the financial information to be contained in our financial statements audited by independent auditors. The information contained herein is subject to change without further notice. We also note the following: 1) Financial information has been prepared in accordance with the Korean IFRS. 2) Financial information for the years ended December 31, 2011, 2012 and 2013 have been retroactively restated to reflect changes in accounting policies. 3) The financial figures have been derived following K-IFRS No.1109, Financial instruments and K-IFRS No.1115, Revenue from Contracts with Customers for the year beginning on January 1, 2018. (Financial information for periods prior to December 31, 2017 has not been restated) This presentation material is available at our website, www.shinhangroup.com.
Contents. 2018 3Q Business Results Highlights. Income. Assets & Liabilities. Asset Quality. Capital Adequacy. Appendix
2018 3Q Business Result Highlights 1 1,899 Group Net Income 2,706 2,081 581 Interest Income* Annual NI 2,367 56 Non- Interest Income* 2,775 79 SG&A* 2,918 364 Absence of write-back from SHC* 2,706 276 2,430 45 56 Provision for Noncredit Operating losses * Income* Quarterly NI -2% +9% Plus Factors Minus Factors 156 Tax 2,643 2,643 1 2 3 4 Bank-centric consistent profit stream despite increasing market volatility Solid core earnings growth achieved by active SME loan growth along with NIM stabilization Continuously stabilizing credit cost through prudent credit risk management (2018 3Q Net Income) (SHB Quarterly SME growth and NIM) Group-wide disciplined cost management bringing Cost-to-Income Ratio down to the lowest level in 6 years (2018 3Q Cost-to-Income Ratio, Accumulated) * Earnings before income tax (NPL as of Sep. 2018 & 2018 3Q Credit Costs, Accumulated)
2018 3Q Business Result Highlights 2 Interest Income (%, KRW bil.) SHB Loan Growth NIM SHB NII Growth (YoY) Total Loans(YTD) Corporate(YTD) Retail(YTD) 10.1 8.8 7.7 8.6 10.5 2.8-1.4 7,843 5.9-5.4 7,205 4.4 5.0 6,790 6,693 12.1 4.0 6,605 2,851 2,701 6,352 2,423 2,528 5,771 2,254 8.9 2,223 2,122 6.3 6.3 4,992 5.6 5.0 5.6 4,351 4,367 4,165 4,504 3,648 4,129 4.3 2.5 3.0 SHB + SHC 2.05 2.06 2.02 1.56 1.50 1.49 Cumulative Figs. SHB 2.07 2.05 1.56 1.53 2.11 2.10 2.06 2.06 1.63 1.61 1.58 1.56 Quarterly Figs. 2.10 1.62 2017.9 1Q17 2Q17 4Q17 1Q18 2Q18 NII Riding Upward Trajectory SFG s Interest income increased by 10.1% YoY and 2.4% QoQ attributed to resilient loan growth coupled with continuous margin improvement. Interest Income from domestic increased by 8.6% YoY whereas global hiked 33.0% YoY improving its contribution to the Group NII from 6.1% in 1H17 to 7.4% in 1H18. NII improvement is attributed to constant drive to focus on qualitative asset growth. Strong SME Loan Growth KRW loan balance as end of marked 205 tril. up by 5.0% YTD and 2.0% QoQ. Corporate : SOHO loans increased by 2.3% in 3Q, bringing up corporate loan growth to 2.5% QoQ. Retail : Personal loans including unsecured Personal loans and Jeonse loans increased by 2.9% in 3Q, shoring up retail loan growth to 1.5% QoQ. Deposit grew by 4.1% YTD reaching to 205 tril. Low costs deposits increased by 5.3% YTD. with year-round efforts to draw more low-cost funding. Margin Stabilization SHB s NIM decreased only by 1bp QoQ, despite the pressures on lending yields in tandem with falling interest rates during 3Q. NIM Stabilizing Factor : 1) lucrative SME loans remaining the focus of the growth, 2) funding rates climbing at a slower pace than lending rates due to a high base for low-cost deposits. SHB s NIM incl. Global is standing at 1.67%, evidencing its higher profitability in Overseas. Group NIM including credit card marked 2.10%, 1bp contraction QoQ.
2018 3Q Business Result Highlights 3 Non-Interest Income (%, KRW bil.) G&A Expenses (%, KRW bil.) Credit Cost (%, KRW bil.) 1,414 891 1,386-863 Fees & Commission 1) 1,278 752 1,469-943 1,793 1,032 1,621-861 1,577 1,170 1,566 Securities Related & F/X Trading/ Derivatives 1,341 826 1,711-1,159-1,195 1,105 743 1,279-917 1,161 646 1,475-960 3.5 4,203 2,498 320 1,385 Salary & Employee Benefits D & A 6.2 4,463 2,740 313 1,410 G&A Growth (YoY) 0.3 4,475 2,769 269 1,437 0.7 4,509 2,826 252 1,431 6.7 4,811 3,148 240 1,423 Other Expenses -0.2 3,224 2,043 181 1,000 2.4 3,303 2,071 184 1,048 0.59 1,184 Credit Cost Ratio 0.43 950 0.43 1,037 0.47 1,165 Provision for Credit Losses 2013~2017 Average 0.27 0.27 0.42 0.34 0.21 544 0.08 159 568 Note 1) Including Insurance Fees on Deposits, Contribution Expenses etc. Note 1) Excluding write-backs from Shinhan Card Strong Fee Income Disciplined Cost Management Continuously Stabilizing Credit Cost Fee income increased by 15.3% YoY, attributed to increase in fees from brokerage and sales of financial products despite sluggish credit card fees from dropping merchant fee rate. Non-interest income increased only by 5.1% YoY, despite strong fee income mainly due to absence of non-recurring sales gains from securities disposal in 1H17. Whereas dropped by 48% QoQ, attributed to decrease in evaluation gains from FVPL financial instruments. Cost-to-Income ratio fell down to the lowest level in 6 years marking 44.0% in, through disciplined cost control. SG&A excluding employee related expenses well-tamed with negative growth for three consecutive years through groupwide tightened cost control. However YoY has slightly inched up due to increase in temporary expenses. Group credit costs marked 27bp in, 15bp lower than 5-year average. SHB s provision has decreased by 26.8% YoY, attributed to stable asset quality and elimination of one-off provision burdens related to restructuring companies. SHC s provision hiked temporarily by 29.6% QoQ, due to only a two business day effect after the Chuseok holiday in September. Whereas YoY increase is due to reversal of allowances in 1Q17 caused by the adoption of IRB approach.
2018 3Q Business Result Highlights 4 Asset Quality Capital Adequacy ROE & ROA NPL Ratio 1.26 1.15 0.87 1.16 0.74 0.76 1.03 0.80 0.65 0.68 Delinquency Ratio 1.80 1.89 0.72 0.63 SFG 0.64 0.62 0.57 0.55 SHB SHB 0.64 0.59 0.55 0.57 0.51 0.47 Shinhan Card BIS Tier 1 15.0 13.2 SFG 14.8 13.3 15.3 13.8 15.7 13.1 SHB 15.6 13.2 16.4 13.6 7.2 7.5 8.0 ROE 9.2 8.3 0.73 ROA 9.2 9.1 0.71 10.7 0.81 0.39 0.31 1.44 0.33 1.43 0.28 1.40 0.33 1.40 0.31 1.30 0.26 1.27 0.23 1.37 0.30 1.32 0.27 1.44 0.26 CET 1 12.7 12.9 13.0 12.8 12.8 13.3 0.66 0.68 0.69 0.66 0.70 2013 2014 2015 2016 2017.3 2017.6 2017.9 2018.3 2018.6 2016 2017 (e) 2016 2017 (e) Note) Based on Basel 3 Note 1) excluding deferred tax asset effect (2016), write-backs from Shinhan Card (2017), ERP Cost (2016 & 2017) Benign Asset Quality Concern Strong Capital Base ROE and ROA Improvement NPL ratio for the Group and SHB recorded 0.55% and 0.47%, improved by 4bp QoQ respectively. NPL coverage ratio for the Group and SHB each marked 170% and 143%, increasing by 5%p and 2%p QoQ respectively. SHB s delinquency ratio improved by 1bp to 0.26%. Whereas SHC s delinquency ratio increased by 12bp to 1.44% attributed to shorter business days after payment date due to the Chuseok holiday in September. Based on BASEL3, Group s Common Equity Tier1 and BIS ratio each estimated 13.0% and 15.3% driven by growth in earnings with suitable level of risk weighted asset growth. Based on BASEL3, SHB s Common Equity Tier1 and BIS ratio each estimated 13.3% and 16.4%. Group ROE recorded 10.7%, 1.5%p hike YTD driven by solid earning growth. Group ROA recorded 0.81%, 0.10%p improvement YTD attributed to strong operating performance both from bank and non-bank subsidiaries with healthy trend in NIM and credit cost.
Project 2020 Initiatives : Year of Tangible Results 1 Balanced Growth Bank Interest Income Domestic Organic Analog (Off-line) Entity Centric Business Strategy Corporateoriented NI from Banks (YoY) +13% Interest Income (YoY) +10% NI from Domestic 2) (YoY) +7% Group NI 2) (YoY) +9% Cost-to Income Ratio 44.0% Customized Strategy for each of the subsidiaries Mid-term Business Strategy 2020 SMART Project Creative Culture, The Shinhan Leader Non-Banks Non-Interest Income Overseas Inorganic Digital (On-line) One Shinhan Corporate Culture Communityoriented NI from Non-Banks 3) (YoY) +14% Non Banks NI Contribution 31% Fee Income (YoY) +15% Non-Interest Income Proportion 25% 4) NI from Global Business (SHB, YoY) +24% Global NI Contribution 13% New Business Lines + M&As REITs, ANZ Vietnam, PVFC, Archipelago Asset Mgmt. Operating Income through Digital Platform 713bil. Matrix Business Lines, Cross-Selling Ratio 39.9% ESG Recognition A + Grade from CGS Compassionate Finance Society of Hope Project 2 Global 3 Digital 4 Expansion Transformation Uphold Corp. Culture 1) Financial Figures are as of Sep. 30, 2018 2) Excluding write-backs from SHC 3) Excluding non-recurring write-backs and sales gains from securities disposal from SHC 4) Excluding Interest expenses related to Provision for policy reserves of Shinhan Life
. Income 1. SFG Income 2. SFG Non-Interest Income 3. SFG G&A Expenses 4. Subsidiaries Income (1) 5. Subsidiaries Income (2) 6. SHB Income / NIM 7. SHB Non-Interest Income 8. Shinhan Card Income
SFG Income 2.01 1,715 649 SFG Interest Income & NIM (Quarterly) 2.04 2.02 1,772 1,826 674 689 2.05 2.02 1,893 1,869 689 699 2.07 2.06 1,915 1,987 703 720 2.06 2,072 728 (%, KRW bil.) 2.10 2.11 2,058 2,122 723 743 2.10 2,172 757 Operating Income (a=b+c) Interest Income (b) Non-Interest Income (c) 7,513.0 6,352.0 1,161.0 6,875.9 5,770.7 1,105.1 YoY% 2Q18 QoQ% 9.3 10.1 5.1 2,436.6 2,171.8 264.8 2,634.2 2,121.9 512.3-7.5 2.4-48.3 1,066 1,098 1,137 1,204 1,170 1,212 1,267 1,344 1,335 1,379 1,415 G&A Expenses (d) 3,302.6 3,223.7 2.4 1,089.2 1,126.4-3.3 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 4Q17 1Q18 2Q18 Pre-Provision Oper. Income (e=a-d) 4,210.4 3,652.1 15.3 1,347.4 1,507.8-10.6 SFG NIM (Excluding Merchant Fee) SHB SFG Earnings before Income Tax Non-Operating Income (f) 26.6 82.5-67.8 33.7-25.3 2,677 45 1,414 2,868 213 1,278 3,141 167 1,793 3,170 62 1,577 3,796 1,341 3,576 83 1,105 3,669 27 1,161 Pre-Provision Income (g=e+f) Provision for Credit Losses (h) 4,237.0 568.0 3,734.7 158.9 13.5 257.4 1,381.1 214.8 1,482.5 173.8-6.8 23.6 6,605 6,790 6,693 7,205 7,843 5,771 6,352 Earnings before Income Tax (i=g-h) 3,669.1 3,575.7 2.6 1,166.3 1,308.8-10.9-4,203-1,184 Interest Income -4,463-950 Non-Interest Income -4,475-1,037-4,509-1,165 Non-Operating Income -4,811-544 -32 G&A Expenses -3,224-159 -3,303-568 Provision for Credit Losses Income Tax 994.5 Consolidated Net Income 1) 2,643.4 Note 1) Net Income in Controlling Interest 838.1 2,706.4 18.7-2.3 308.8 847.8 360.7 938.0-14.4-9.6
SFG Non-Interest Income SFG Non-Interest Income 1,793 1,577 1,414 1,278 891 752 1,032 1,170 1,386 1,469 1,621 1,566 1,341 826 1,711 1,161 1,105 646 743 1,475 1,279 Non-Interest Income Fees & Commission Securities Related & FX Trading/Derivatives (Gains on FVPL Financial Instruments) 1,161.0 1,475.3 645.6 267.0 1,105.1 1,279.3 743.3 - YoY% 2Q18 QoQ% 5.1 15.3-13.1 264.8 479.4 137.7-87.6 512.3 512.3 301.4 233.3-48.3-6.4-54.3-863 -943 Fees & Commission -861-1,159 Securities Related & F/X Trading/ Derivatives Note 1) Including Insurance Fees on Deposits, Contribution Expenses etc. 1,386 380 199 205 50 552 SFG Fees & Commission 1,469 475 202 193 60 538 1,621 503 283 200 86 549 1,566 444 221 165 116 620-1,195 1,711 381 232 198 190 711-917 1,279 297 165 148 134 536 1) -960 1,475 285 217 146 180 647 (Gains on Derivatives & F/X) (Contribution Expenses) (Insurance Fees on Deposits) (Provision for Policy Reserves) 1) 282.6-959.9-208.3-264.0-719.6 - -917.4-187.4-250.2-689.2 207.7-352.3-71.5-88.5-241.6 41.6-301.5-70.0-88.1-238.5 399.1 Note 1) Interest expenses related to Provision for policy reserves of Shinhan Life YoY% 2Q18 QoQ% Fees & Commission 1,475.3 1,279.3 15.3 479.4 512.3-6.4 Credit Card Fee Income 284.9 296.9-4.0 105.5 102.9 2.5 Brokerage Commissions 216.9 165.3 31.2 52.3 79.3-34.0 Fund/Bancassurance Fees 145.9 147.7-1.2 43.0 52.6-18.3 Trust Fee Income 180.4 133.8 34.9 51.8 68.4-24.3 647.1 535.5 20.8 226.8 209.0 8.5 Credit Card Brokerage Fund/ Bancassurance Trust
SFG G&A Expenses SFG G&A Expenses SFG G&A Expenses YoY% 2Q18 QoQ% 4,203 2,498 4,463 2,740 4,475 2,769 4,509 2,826 4,811 3,148 3,224 3,303 G&A Expenses Salary & Employee Benefits (Early Retirement Program Expenses) 3,302.6 2,070.5 1.3 3,223.7 2,042.6 2.1 2.4 1.4-38.3 1,089.2 683.4-1,126.4 689.9 - -3.3-0.9 2,043 2,071 D & A 183.9 181.2 1.5 62.2 61.4 1.3 320 1,385 313 1,410 269 1,437 252 1,431 240 1,423 181 1,000 184 1,048 Other Expenses (Advertising Expenses) 1,048.2 184.1 999.9 171.4 4.8 7.4 343.6 62.1 375.2 69.6-8.4-10.7 (Taxes and Dues) 133.8 128.8 3.9 39.0 53.7-27.4 Salary & Employee Benefits D & A Other Expenses SHB G&A Expenses Cost-Income Ratio % YoY% 2Q18 QoQ% 52.3 56.4 54.5 52.2 53.9 G&A Expenses Salary & Employee Benefits 2,092.2 1,253.8 2,035.0 1,242.8 2.8 0.9 697.1 414.4 719.3 416.5-3.1-0.5 52.4 55.3 52.7 51.3 52.4 46.9 46.3 44.0 (Early Retirement Program Expenses) D & A 0.2 122.3 0.2 120.1-0.1 1.9-41.4-41.0 0.8 43.2 Other Expenses 716.0 672.2 6.5 241.2 261.8-7.9 (Advertising Expenses) 45.9 30.9 48.6 15.7 21.9-28.4 SFG SHB (Taxes and Dues) 64.2 60.1 6.7 18.0 30.4-40.8 Note 1) Excluding ERP Cost
Subsidiaries Income 1 Non-Bank Subsidiaries Net Income Contribution by Subsidiaries 1) 4% 7% 4% 29% Bank 56% Non-Bank Subsidiaries 14% 8% 5% 4% Bank 69% Bank (a) Shinhan Bank Jeju Bank Non-Bank (b) Net Income [A] 1,939.4 1,916.5 22.9 885.9 Ownership Net Income (A x Ownership) [B] [C=AB] 100.0% 68.9% 1,932.2 1,916.5 15.8 880.6 Adjustment [D] -39.9-38.3-1.7 34.2 Net Income (Consolidated) [E=C+D] 1,892.3 1,878.2 14.1 914.9 Shinhan Card 395.5 100.0% 395.5 5.9 401.4 Shinhan Card Shinhan Life Insurance Shinhan Investment Corp. Shinhan Capital & Shinhan Investment Corp. Shinhan Life Insurance 230.0 129.2 100.0% 100.0% 230.0 129.2 1.6 17.5 231.7 146.7 Note 1) After reflecting ownership by SFG Shinhan BNPP AM 15.0 65.0% 9.7 0.1 9.8 Net Income Contribution by Non-Bank Subsidiaries 1) Shinhan Capital 87.6 100.0% 87.6 7.3 94.9 38.2% 38.7% 42.0% 34.8% 44.2% 39.9% 31.3% Shinhan Savings Bank Shinhan Data System Shinhan AITAS 13.5 1.2 6.3 100.0% 100.0% 99.8% 13.5 1.2 6.3 1.1-0.7 1.3 14.5 0.5 7.5 1,046 1,371 1,138 924 1,087 858 1,958 1,387 1,465 1,503 1,728 1,712 Bank Non-Bank NI contribution Note 1) After reflecting ownership by SFG 881 1,932 Shinhan Credit Information Shinhan Alternative Investment Shinhan REITs Management SFG (c) 2.0 2.8 2.8 100.0% 100.0% 100.0% 2.0 2.8 2.8 Total (d=a+b+c) 1) 2,825.2 2,812.9 0.1 0.1 - -163.8-169.5 2) 2.1 2.9 2.8-163.8 2,643.4 Note 1) Net Income in Controlling Interest 2) SFG (Separate): Brand Fee Income KRW 37.3bil., Interest Expense KRW -139.8bil., G&A etc. KRW -58.3bil.
Subsidiaries Income 2 Non-Bank Net Income (Reflecting SFG Ownership, KRW bil.) YoY% 2Q18 QoQ% 858 75 75 658 924 81 118 635 1,087 100 215 695 1,046 151 115 716 1,371 121 212 914 1,138 103 157 781 881 129 230 396 Bank (a) Shinhan Bank Jeju Bank Non-Bank (b) Shinhan Card Shinhan Investment Corp. 1,932.2 1,916.5 15.8 880.6 395.5 230.0 1,711.6 1,695.9 15.7 1,138.1 780.6 157.2 12.9 13.0 0.5-22.6-49.3 46.3 650.3 644.7 5.6 260.8 113.6 47.3 677.6 671.3 6.4 315.2 142.8 85.8-4.0-4.0-11.6-17.3-20.4-44.9 0.66 ROA Shinhan Card Shinhan Life Insurance 0.68 0.69 Shinhan Investment Corp. 0.73 0.71 0.81 Shinhan Life Insurance Shinhan BNPP AM Shinhan Capital Shinhan Savings Bank 129.2 9.7 87.6 13.5 103.4 10.3 66.9 13.0 25.0-5.4 31.0 3.7 59.1 3.1 23.8 5.4 36.2 2.9 38.0 4.0 63.4 7.2-37.5 33.8 0.59 0.60 0.49 0.64 0.55 0.74 Shinhan Data System 1.2 1.3-10.8 1.0 0.7 37.9 3.00 0.41 2.79 0.51 3.32 0.82 2.94 0.44 3.63 0.77 1.94 1.05 Shinhan AITAS Shinhan Credit Information Shinhan Alternative Investment 6.3 2.0 2.8 5.4 0.2-0.1 17.3 734.4 2.6 0.6 1.7 2.3 0.7 1.0 14.9-17.1 67.0 0.42 0.39 0.43 0.58 0.42 0.57 Shinhan REITs Management Total (a+b) 2.8 2,812.9-2,849.7-1.3 2.5 911.1 0.7 992.9 252.2-8.2 SFG Shinhan Bank Shinhan Card Shinhan Investment Corp. Shinhan Life Insurance Consolidate Net Income 1) 2,643.4 Note 1) Net Income in Controlling Interest 2,706.4-2.3 847.8 938.0-9.6
SHB Income / NIM Net Income YoY% 2Q18 QoQ% 1,373 1,455 1,490 1,940 1,711 1,696 1,917 Operating Income (a=b+c) Interest Income (b) Non-Interest Income (c) 4,842.8 4,128.8 714.0 4,396.5 3,648.3 748.2 10.2 13.2-4.6 1,604.7 1,415.1 189.6 1,664.6 1,378.8 285.9-3.6 2.6-33.7 G&A Expenses (d) 2,092.2 2,035.0 2.8 697.1 719.3-3.1 Pre-Provision Oper.Income (e=a-d) 2,750.6 2,361.5 16.5 907.7 945.3-4.0 Non-Operating Income (f) 7.7 61.6-87.6 9.9-4.2 Pre-Provision Income (g=e+f) Provision for Credit Losses (h) 2,758.3 176.3 2,423.1 240.7 13.8-26.8 917.6 54.6 941.1 34.9-2.5 56.2 1.48 1,066 Interest Income/NIM(Quarterly) 1.50 1,098 1.49 1,137 1.56 1.53 1.49 1,204 1,170 1,212 1.56 1,267 1.58 1,344 1.61 1,335 (%, KRW bil.) 1.63 1,379 1.62 1,415 Earnings before Income Tax (i=g-h) Income Tax Net Income 1) 2,582.0 665.3 1,916.5 2,182.4 486.3 1,695.9 18.3 36.8 13.0 863.0 218.2 644.7 906.2 234.8 671.3-4.8-7.1-4.0 Note 1) Net Income in Controlling Interest 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 4Q17 1Q18 2Q18 NIS (a-b) (quarterly) 1.65 1.69 1.68 1.69 1.75 1.81 1.82 1.84 1.87 1.89 1.89 Loan interest rate (a) 3.10 3.08 2.99 2.97 3.00 3.03 3.04 3.10 3.19 3.27 3.32 Deposit interest rate (b) 1.45 1.40 1.31 1.28 1.26 1.22 1.22 1.26 1.32 1.38 1.43 NIM (quarterly) 1.48 1.50 1.49 1.49 1.53 1.56 1.56 1.58 1.61 1.63 1.62 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 4Q17 1Q18 2Q18 NIM (cumulative figures) 1.48 1.49 1.49 1.49 1.53 1.55 1.55 1.56 1.61 1.62 1.62 NIM Interest Income
SHB Non-Interest Income Non-Interest Income 1,033 946 800 805 560 514 609 757 791 426 748 714 462 434 Non-Interest Income Fees & Commission Securities Related & 714.0 778.7 748.2 736.6 YoY% 2Q17 QoQ% -4.6 189.6 285.9-33.7 5.7 249.2 270.6-7.9 749 803 854 884 991 737 779 FX Trading/Derivatives (Gains on FVPL Financial Instruments) 434.3 195.0 462.4 - -6.1 126.5 70.7 170.8 90.8-25.9-22.1-509 -513-517 -608-626 -451-499 (Gains on Derivatives & F/X) 207.5-499.0 - -450.7 48.7-186.1 74.4-155.4-34.6 Fees & Commission Securities Related & F/X Trading/ Derivatives Note 1) Including Insurance Fees on Deposits, Contribution Expenses etc. 1) (Contribution Expenses) (Insurance Fees on Deposits) -202.4-228.4-181.4-217.5-69.4-76.8-68.0-76.1 749 118 87 112 42 389 Fees & Commission 803 106 90 115 50 443 854 111 82 123 72 467 884 91 61 133 99 501 991 108 65 146 170 503 737 79 50 109 120 425 44 379 779 77 42 112 153 425 44 394 Fees & Commission Fund Fee Income Bancassurance Fee Income FX Fee Income Trust Fee Income 778.7 77.4 42.2 111.7 153.3 736.6 78.8 50.4 108.9 119.5 YoY% 2Q18 QoQ% 5.7-1.8-16.3 2.5 28.3 249.2 20.2 14.2 39.1 42.1 270.6 28.2 14.3 39.0 58.2-7.9-28.5-0.6 0.5-27.6 394.1 378.9 4.0 133.5 130.9 2.0 Fund Bancassurance FX Trust
Shinhan Card Income Operating Yield and PPOP Ratio YoY% 2Q18 QoQ% 22.8 22.1 22.3 20.5 19.2 19.0 17.9 Operating Revenue (a) Card Business 3,639.9 3,027.0 3,556.2 2,922.7 2.4 3.6 1,193.8 1,041.1 1,287.8 1,012.6-7.3 2.8 6.0 6.1 5.9 5.8 4.8 5.1 4.6 Installment Finance 81.1 76.2 6.4 28.4 27.1 4.9 14.0 2.8 13.5 2.4 14.2 2.2 13.0 1.8 12.8 1.6 12.3 1.6 11.7 1.6 Lease (Derivatives & FX) 87.9 443.9 123.8 47.3 510.0 178.0 85.7-13.0-30.4 34.9 89.3-3.1 28.3 219.8 115.8 23.6-59.4 Operating Yield G&A + Other Expense Ratio PPOP Ratio Interest Expense Ratio Interest Expense (b) 314.1 282.0 11.4 112.5 104.4 7.7 Note) Net of Derivatives & F/X G&A Expenses (c) 501.1 525.8-4.7 165.4 167.2-1.0 Recovery from Written-off Assets Commissions & Other Expenses (d) 1,919.3 1,844.0 4.1 606.7 702.2-13.6 3.1tril. 4.7% 6.3% 5.9% 5.7% 6.2% 6.2% 6.3% (Derivatives & FX) Pre-Provision Income (e=a-b-c-d) 97.1 905.3 152.6 904.5-36.3 0.1-11.9 309.2 106.9 314.0-1.5 Written -off Assets 249.2 219.7 201.8 191.6 190.5 142.8 147.4 Provision for Credit Losses (f) Earnings before Income Tax (g=e-f) Income Tax 368.3 537.0 143.2-111.3 1,015.7 238.1-47.1-39.9 156.6 152.6 39.5 120.8 193.1 50.6 29.6-21.0-21.9 Recovery Rate Recovery from written-off assets Net Income 1) 395.5 780.6-49.3 113.6 142.8-20.4 Note 1) Net Income in Controlling Interest
. Assets & Liabilities 1. SFG Asset Growth 2. SHB Loan / Deposit Growth 3. Shinhan Card Asset Growth
SFG Asset Growth Asset Contribution by Subsidiary (KRW bil.) YTD% 2018.6 QoQ% Life Insurance & etc. 8% Asset Management 8% Bank (a) Shinhan Bank 416,912.5 411,182.4 380,209.9 374,647.0 9.7 9.8 407,821.1 402,221.4 2.2 2.2 Investment 9% Jeju Bank 5,730.1 5,562.9 3.0 5,599.7 2.3 Credit Card 5% Bank 70% Non-Bank (b) 170,822.3 153,584.1 11.1 161,398.5 5.8 Shinhan Card 29,512.4 26,367.6 11.9 27,493.9 7.3 Shinhan Investment Corp. 53,190.8 46,721.0 13.8 49,791.9 6.8 SFG Total Assets (KRW tril.) Shinhan Life Insurance 31,003.2 29,719.4 4.3 30,564.1 1.4 591 Shinhan BNPP AM 45,177.8 41,134.5 9.8 42,658.7 5.9 371 29 34 30 22 257 407 31 36 39 22 279 450 33 38 38 23 318 490 38 39 43 24 345 536 41 41 47 26 380 47 45 53 30 417 Shinhan Capital Shinhan Savings Bank Shinhan Data System Shinhan AITAS Shinhan Credit Information Shinhan Alternative Investment Shinhan REITs Management 5,928.8 1,398.9 46.1 63.4 24.2 1,104.6 649.6 2,722.5 5,315.4 1,287.2 39.8 58.2 22.7 86.9 29.3 2,802.1 11.5 8.7 15.7 9.0 6.4 277.6 n.m. -2.8 5,807.2 1,310.2 37.0 59.6 23.2 585.6 625.0 2,442.1 2.1 6.8 24.6 6.3 4.4 88.6 3.9 11.5 Total 1) 591,398.5 535,710.3 10.4 572,541.3 3.3 Bank Shinhan Card Shinhan Investment Corp. Shinhan BNPP AM Consolidate Total Assets 457,709.0 426,305.7 7.4 453,282.0 Note 1) Trust A/C of Shinhan Bank, Shinhan Investment Corp. and AUM(Including discretionary assets) of Shinhan BNPP AM, Shinhan AI, Shinhan REITs are included. 1.0
SHB Loan / Deposit Growth Loan Composition Funding Composition YTD% 2018.6 QoQ% Corporate 49.7% SME 40.9% L. Corp. 8.8% SOHO 20.4% Registered 8.1% Unregistered 12.4% Mortgage 25.9% 24.4% Retail 50.3% Debentures 9.2% 3.7% Low Cost Deposits 40.0% Time Savings 47.2% Loan in KRW Retail Mortgage 1) Corporate SME SOHO Large Corporate etc. 205,188 103,160 53,192 49,967 102,028 83,973 41,898 18,056 195,497 98,877 52,808 46,069 96,620 78,556 38,610 18,064 5.0 4.3 0.7 8.5 5.6 6.9 8.5-0.0 201,294 101,720 53,097 48,623 99,574 82,219 41,005 17,355 2.0 1.5 0.2 2.9 2.5 2.2 2.3 3.9 KRW Loan Growth (KRW tril.) 10.5% 1) 8.8% 6.4% 5.9% 4.4% 5.0% 205 195 185 177 160 17.7% 62 Low Cost Deposits 19.9% 9.9% 82 74 (KRW tril.) 9.5% 5.3% 89 94 Loan in FX 7,516 7,658-1.9 8,151-8.3 Note 1) Including Unsecured Personal Loans, Secured Loans, Jeonse Loans etc. YTD% 2018.6 QoQ% Total Deposits in KRW Low Cost Deposits Demand Savings Time Savings 205,408 94,187 28,256 65,931 111,221 197,355 89,462 26,936 62,525 107,894 4.1 5.3 4.9 5.4 3.1 205,682 92,280 28,455 63,826 113,402-0.1 2.1-0.7 3.4-2.0 Time Deposits 102,605 99,491 3.1 105,084-2.5 Accumulative etc. 8,616 8,403 2.5 8,317 3.6 2014. 12 2015. 12 2014. 12 2015. 12 2016. 12 2017. 12 2018. 9 Growth Rate(YTD) Total Loans Growth Rate(YTD) Low Cost Deposits Certificate of Deposits Debentures in KRW 8,709 21,627 6,973 20,057 24.9 7.8 8,679 20,506 0.4 5.6 Note 1) Including Loans Securitized
Shinhan Card Asset Growth 135.8 6.6 18.2 19.8 90.2 (15.4) Transaction Volume 141.2 6.4 16.5 20.0 96.7 (19.4) 148.4 7.2 15.3 21.4 102.7 (23.3) 168.4 8.0 14.9 21.6 121.8 (25.7) 169.1 8.2 14.2 22.3 121.7 (28.2) 127.3 6.2 10.6 16.6 91.9 (20.8) (KRW tril.) 130.7 6.6 10.7 17.4 92.9 (22.5) Earning Assets Credit Purchase Cash Advances Card Loan (Re-aged Loan) Installment Finance Lease etc. YTD% 2018.6 QoQ% 26,708 13,695 1,896 6,267 235 2,557 2,293 24,553 12,620 1,921 5,944 250 2,270 1,798 8.8 8.5-1.3 5.4-5.8 12.6 27.5 26,116 13,107 1,897 6,463 253 2,446 2,202 2.3 4.5-0.0-3.0-7.0 4.5 4.2 Effective Cardholders (in thousands) 12,473 12,295 1.4 12,420 0.4 Lump-Sum Install. Purchase Cash Advance Card Loan Note) Figs. in parenthesis represent debit card transaction volume Total Transaction Volume Merchants (in thousands) 2,786 2,724 2.3 2,764 0.8 Funding Composition YTD% 2018.6 QoQ% 3% CP 8% Total Funding Debentures 18,494 13,411 15,840 11,814 16.8 13.5 17,831 12,912 3.7 3.9 ABS 16% ABS 2,918 2,121 37.6 2,505 16.4 Debenture 73% CP 1,465 1,130 29.6 1,565-6.4 701 775-9.6 848-17.4
. Asset Quality 1. SFG Asset Quality 2. SHB Asset Quality 3. Shinhan Card Asset Quality 4. Provision for Credit Losses / Write-offs
SFG Asset Quality Precautionary & below Ratio/NPL Ratio YTD% 2018.6 QoQ% 2.43 1.26 2.14 1.15 1.66 0.87 1.69 0.74 1.52 0.62 1.37 0.55 Total Loans 1) Normal Precautionary Substandard 281,369 277,501 2,318 533 263,976 259,957 2,384 551 6.6 6.7-2.8-3.3 276,024 272,075 2,324 546 1.9 2.0-0.3-2.4 Doubtful 481 518-7.1 500-3.7 Precautionary & below Ratio NPL Ratio Estimated Loss 537 567-5.3 579-7.4 NPL Coverage Ratio Substandard & Below 1,550 1,635-5.2 1,625-4.6 260 291 NPL Ratio 0.55% 0.62% -0.07%p 0.59% -0.04%p 163 92 168 94 191 106 220 121 134 170 Loan Loss Allowance 2) Reserve for credit losses 3) (New) NPL Coverage Ratio 4) 4,507 1,873 170% 4,246 2,059 134% 6.1-9.1 36%p 4,490 1,815 165% 0.4 3.2 5%p (Old) NPL Coverage Ratio 291% 260% 31%p 276% 15%p (New) NPL Coverage Ratio(excluding RCL) (Old) NPL Coverage Ratio Note 1) Sum of Shinhan Bank, Jeju Bank, Shinhan Card, Shinhan Investment Corp., Shinhan Life Insurance, Shinhan Capital and Shinhan Savings Bank 2) Sum of IFRS standard LLA and reserves for credit losses 3) Excluding reserve for contingent acceptances & guarantees and unused credit lines 4) Excluding reserve for credit losses in accordance with the revision of relevant regulation (Dec. 2016)
SHB Asset Quality NPL Coverage Ratio & NPL Ratio 242 205 173 149 154 114 97 83 75 75 277 143 Total Loans Normal Precautionary YTD% 2018.6 QoQ% 232,000 229,710 1,189 219,230 216,941 1,084 5.8 5.9 9.8 227,633 225,223 1,245 1.9 2.0-4.5 1.16 1.03 0.80 0.65 0.55 0.47 Substandard 456 462-1.3 461-1.1 Doubtful 321 363-11.6 333-3.6 (New) NPL Coverage Ratio (Old) NPL Coverage Ratio (excluding RCL) Delinquency Ratio NPL Ratio Estimated Loss 324 381-14.9 372-12.9 Total Delinquency Substandard & Below 1,101 1,206-8.7 1,165-5.6 0.39 0.31 0.33 0.28 0.23 0.26 NPL Ratio 0.47% 0.55% -0.08%p 0.51% -0.04%p SME(+SOHO) 0.55 SOHO 0.33 0.53 0.37 0.41 0.28 0.46 0.37 0.32 0.18 0.34 0.19 Loan Loss Allowance 1) Reserve for credit losses 2) (New) NPL Coverage Ratio 3) 3,053 1,482 143% 2,914 1,539 114% 4.8-3.7 29%p 3,096 1,448 141% -1.4 2.4 2%p Retail 0.24 0.23 0.19 0.19 0.22 0.25 (Old) NPL Coverage Ratio 277% 242% 36%p 266% 11%p Note) 1 month overdue Note 1) Sum of IFRS standard LLA and reserves for credit losses 2) Excluding reserve for contingent acceptances & guarantees and unused credit lines 3) Excluding reserve for credit losses in accordance with the revision of relevant regulation (Dec. 2016)
Shinhan Card Asset Quality NPL Ratio & NPL Coverage Ratio YTD% 2018.6 QoQ% 323 300 359 384 411 392 Total Loans Normal 27,885 26,785 25,250 24,067 10.4 11.3 26,587 25,555 4.9 4.8 1.53 1.67 1.24 1.16 1.04 1.06 Precautionary Substandard 805-919 - -12.4-739 - 8.9 - Doubtful 131 122 7.1 132-1.1 NPL Coverage Ratio NPL Ratio Estimated Loss 163 141 15.5 160 2.0 Delinquency Ratio Substandard & Below 294 264 11.6 293 0.6 NPL Ratio 1.06% 1.04% 0.02%p 1.10% -0.04%p 1.80 1.89 Loan Loss Allowance 1) 1,155 1,083 6.6 1,118 3.3 1.44 1.43 1.27 1.44 Reserve for credit losses 280 431-35.1 282-0.6 NPL Coverage Ratio 392% 411% -19%p 382% 10%p Note 1) Sum of IFRS standard LLA and reserves for credit losses (Excluding reserve for unused credit lines) Note) 1 month overdue from total credit
Provision for Credit Losses / Write-Offs 1,184 94 352 738 1.80 0.59 0.43 Provision for Credit Losses 950 74 419 456 Shinhan Bank Shinhan Card Credit Cost Ratio 2.04 0.43 0.25 SFG 1,037 113 333 592 1.56 0.43 0.29 Shinhan Bank Write-Offs & NPL Sales Write-Offs 1,165 99 377 688 1.66 0.47 0.33 NPL Sales 544 70 14 460 0.21 0.21 0.05 Shinhan Card 159 29 241-111 0.15 0.08-0.60 568 23 368 176 1.77 0.27 0.10 Note 1) Normalized credit cost excluding write-backs from SHC : Group 0.34%, SHC 1.50% Note 2) Normalized credit cost excluding write-backs from SHC : Group 0.27%, SHC 1.35% 2,263 881 1,381 1,565 537 1,029 1,846 674 1,173 1,671 473 1,199 1,427 489 937 1,011 331 680 1,188 420 768 Provision for Credit Losses Shinhan Bank 1) Retail Corporate Shinhan Card Total Note 1) SHB figures are separate basis Write-Offs & NPL Sales 775 355 162 193 420 54 367 FY18 152 145 6 368 520 FY18 413 1,188 1Q18 2Q18 86 49 38 91 177 149 69 47 22 81 13 68 120 270 37 32 5 121 158 1Q18 2Q18 1Q17 2Q17 4Q17 361 174 64 109 187 20 167 145 506 28 64-37 157 184 265 113 51 61 152 21 132 148 413 445 168 277 14 459 878 388 127 261 489 67 422 549 1,427 1Q17 2Q17 4Q17 59 30 28-264 -206 102 41 15 26 62 8 53 124 227 74 44 30 93 166 240 111 51 60 129 20 109 128 368 123 45 78 61 183 269 128 22 106 141 22 119 148 416 190 49 141 125 315 267 109 39 70 158 18 140 149 415
. Capital Adequacy & Key Financial Indices 1. Capital Adequacy 2. Key Financial Indices
Capital Adequacy Group BIS Ratio 15.0 14.8 13.4 13.4 13.0 13.3 13.2 11.3 11.4 11.2 12.9 12.7 10.8 10.0 10.4 BIS Ratio Tier 1 CET 1 Shinhan Bank BIS Ratio 16.3 15.4 15.7 15.6 14.8 13.9 13.3 13.1 13.2 12.5 15.3 13.8 13.0 (e) 16.4 13.6 Group BIS Ratio (e) YTD% 2018.6 QoQ% Risk-Weighted Assets Capital CET 1 Tier 1 BIS Ratio CET 1 Tier 1 223,497 34,196 29,072 30,928 15.3% 13.0% 13.8% 207,769 30,713 26,757 27,673 14.8% 12.9% 13.3% 7.6 11.3 8.7 11.8 0.5%p 0.1%p 0.5%p 217,751 32,370 28,390 29,288 14.9% 13.0% 13.5% 2.6 5.6 2.4 5.6 0.4%p 0.0%p 0.3%p Note) Based on Basel3 Shinhan Bank BIS Ratio 12.5 12.5 12.0 12.8 12.8 13.3 (e) Risk-Weighted Assets (e) YTD% 2018.6 QoQ% 170,400 162,875 4.6 167,483 1.7 BIS Ratio Tier 1 CET 1 Capital 27,970 25,391 10.2 27,091 3.2 Shinhan Card Capital Adequacy Ratio CET 1 22,695 20,891 8.6 22,168 2.4 30.4 29.7 28.9 Tier 1 23,194 21,561 7.6 22,667 2.3 26.2 24.5 21.7 BIS Ratio CET 1 16.4% 13.3% 15.6% 12.8% 0.8%p 0.5%p 16.2% 13.2% 0.2%p 0.1%p (e) Note) Figs. from Group/Bank based on Basel3, Figs. up to 2012.12, Group based on Basel1, Bank based on Basel2 Tier 1 Note) Based on Basel3 13.6% 13.2% 0.4%p 13.5% 0.1%p
Key Financial Indices Dividend (KRW) SHB Loan Growth Rate 11.5% 1.83% 750 14.3% 1.80% 700 16.2% 1.37% 650 21.6% 2.01% 950 24.0% 2.95% 1,200 24.8% 3.06% 1,450 23.6% 2.85% 1,450 9.0 10.6 7.2 3.7 0.8 7.0 2.0 1.0 2.9 8.8 8.3 9.4 10.5 8.9 12.1 4.4 2.5 6.3 5.9 6.3 5.6 5.0 5.6 4.3 2011 2012 2013 2014 2015 2016 2017 2011.12 2012.12 Dividend Payout Ratio Dividend Yield Dividend per Share Total Loans Corporate Retail ROA / ROE BPS / EPS (KRW) 12.6 1.2 9.3 0.8 7.2 0.7 7.5 0.7 8.0 0.7 9.2 0.7 9.2 0.7 10.7 0.8 48,738 5,837 52,142 4,684 54,604 3,810 58,076 4,195 61,146 4,789 64,554 5,742 68,316 6,116 71.293 7,400 FY11 FY12 ROE ROA 2011.12 2012.12 BPS EPS Note 1) Excluding write-backs from Shinhan Card, ROE based on common stock Note) Based on common stock
. Appendix 1. SFG Subsidiaries 2. SHB SME Loans 3. SHB Retail Loans 4. SHB International Business
SFG Subsidiaries_Shinhan Investment Corp. 1 Net Income 215.5 211.9 230.0 Condensed I/S & Key Financial Indices YoY% 2Q18 QoQ% Operating Revenue 751.0 586.5 28.1 202.1 280.9-28.1 157.2 Fees & Commission 391.9 310.9 26.1 116.2 135.3-14.1 118.2 115.4 Proprietary Trading 261.1 171.9 51.9 50.9 115.3-55.8 75.4 98.0 103.6-5.4 35.0 30.4 15.2 Operating Expense 451.5 403.3 11.9 141.1 156.5-9.8 Operating Income 260.7 132.9 143.8 101.7 870.2 668.1 601.5 532.3 252.8 795.0 183.2 586.5 299.5 751.0 G&A Expenses Commission Expense Provision for Credit Losses Operating Income Net Income 371.0 79.8 0.7 299.5 230.0 338.8 60.8 3.6 183.2 157.2 9.5 31.1-81.9 63.5 46.3 115.0 28.0-2.0 61.1 47.3 128.7 25.7 2.0 124.5 85.8-10.7 9.0-50.9-44.9 Net Capital Ratio 609% 826% -217%p 609% 735% -126%p -430.6-468.7-609.5-524.2-542.2-403.3-451.5 ROE ROA 9.4% 1.1% 6.7% 0.8% 2.7%p 0.3%p 9.4% 1.1% 11.3% 1.3% -1.9%p -0.2%p Operating Income Operating Revenue Operating Expense Note) ROE, ROA are calculated on a cumulative basis
SFG Subsidiaries_Shinhan Investment Corp. 2 Fees & Commission 450.2 38.7 399.7 285.9 304.0 105.0 59.7 28.4 27.8 95.8 63.0 81.1 286.1 224.3 190.5 186.7 3% IB 16% Financial Product Fees 429.5 25% Brokerage Fees 56% 59.6 391.9 63.3 310.9 125.2 46.1 98.6 219.1 92.3 153.8 219.8 Fees & Commission Fees & Commission 391.9 Brokerage Fees 219.8 Financial Product Fees 98.6 IB 63.3 10.2 310.9 153.8 92.3 46.1 18.6 YoY% 2Q18 QoQ% 26.1 42.9 6.8 37.3-45.2 116.2 54.0 30.7 27.4 4.0 135.3 79.9 34.5 18.1 2.8-14.1-32.4-11.0 51.7 43.6 Brokerage Fees Financial Product Fees IB Financial Products 68.1 72.3 (KRW tril.) 81.0 17.5 56.1 16.9 2.9 17.2 43.1 2.9 16.1 3.1 21.5 30.3 16.0 3.8 16.1 18.2 12.1 11.8 2.9 39.1 1.3 11.7 31.8 36.5 9.5 24.1 7.6 10.3 Beneficiary Certificate Trust Account ELS 1) Financial Product Balance Note 1) Sum of Wrap, RP and Micro Debentures Balance of Financial Products (KRW tril.) YTD% 2018.6 QoQ% Financial Products 81.0 72.3 12.0 77.2 4.8 Beneficiary Certificate 39.1 36.5 7.1 39.2-0.3 Trust Account 21.5 16.0 34.4 17.7 21.0 ELS 2.9 2.9-2.7 2.8 0.8 17.5 16.9 3.8 17.4 0.4
SFG Subsidiaries_Shinhan Life Insurance 1 Premium Income 4,719 4,833 4,505 4,399 4,800 3,615 3,455 Premium Breakdown Prem. Received 3,465.2 New Premium 37.3 3,635.2 56.4 YoY% 2Q18 QoQ% -4.7 1,136.2 1,145.0-0.8-33.9 10.3 11.2-8.3 Monthly Premium 27.3 36.6-25.5 7.7 9.3-17.6 Non-Monthly Premium 10.0 19.8-49.4 2.6 1.9 36.7 Recurring Premium 3,428.0 3,578.9-4.2 1,125.9 1,133.8-0.7 Note) Excluding non-monthly premium and Retirement Pension Note) Excluding Retirement Pension Net Income 181.2 Profitability & Key Financial Indices YoY% 2Q18 QoQ% 65.2 83.2 79.0 105.3 88.2 76.2 Operating Income Separate Account profit & Loss 181.2 81.3 76.2 63.4 137.7 28.2 85.0 18.6 55.2 27.4 53.9-32.2 75.5 80.7 100.2 150.6 120.6 103.4 129.2 Net Income ROE 129.2 10.5% 103.4 8.0% 25.0 2.5%p 59.1 10.5% 36.2 8.5% 63.4 2.0%p ROA 0.6% 0.5% 0.1%p 0.6% 0.5% 0.1%p Operating Income Net Income Note) ROE, ROA are calculated on a cumulative basis.
SFG Subsidiaries_Shinhan Life Insurance 2 Operating Assets (KRW tril.) Operating Assets 15.7 2.1 0.1 4.2 18.0 3.0 0.1 4.9 20.5 2.8 0.1 5.4 23.3 5.1 0.1 5.4 25.2 5.9 0.1 5.6 26.6 6.9 0.1 6.0 Operating Assets Cash & Deposits Fixed Income YTD% 2018.6 QoQ% 26,618.4 362.7 13,280.8 25,156.9 1,170.6 12,344.2 5.8-69.0 7.6 26,185.0 199.6 12,691.5 1.7 81.7 4.6 8.4 8.6 10.5 11.3 12.3 13.3 Loans 5,964.2 5,643.3 5.7 6,022.3-1.0 0.9 Operating Assets 1.5 Cash & Deposits 1.8 Fixed Income 1.5 Loans 1.2 Equities 0.4 Equities 72.2 6,938.4 66.0 5,932.9 9.5 16.9 81.5 7,190.1-11.4-3.5 Equity & Capital Adequacy Ratio 253.1% 230.7% 204.2% 178.3% 175.4% 1.7 1.7 1.6 1.5 1.3 (%, KRW tril.) 197.4% 1.7 Equity & Capital Adequacy Ratio YTD% 2018.6 QoQ% Shareholders Equity 1,671.4 1,731.9-3.5 1,621.0 3.1 Capital & Retained Earnings 1,833.2 1,768.0 3.7 1,774.2 3.3 Accumulated Other Comprehensive Income -161.7-36.1 347.8-153.2 5.6 RBC Ratio 197.4% 175.4% 22.0%p 199.6% -2.2%p RBC Ratio Shareholders Equity
SFG Subsidiaries_Shinhan BNPP AM Net Income Condensed I/S & Key Financial Indices 40.1 31.5 35.4 28.2 31.9 23.7 18.8 25.7 20.0 19.4 Operating Revenue Operating Expense 59.3 39.9 56.8 36.8 YoY% 2Q18 QoQ% 4.5 20.0 19.4 2.7 8.4 14.1 13.2 6.3 14.3 19.7 15.8 15.0 (G&A Expenses) Operating Income 33.0 19.4 30.4 20.0 8.9-2.8 11.3 5.9 11.2 6.2 0.3-4.9 Operating Income Net Income Net Income ROE 15.0 13.2% 15.8 14.4% -5.4-1.2%p 4.8 13.2% 4.5 13.5% 7.2-0.3%p 33.5 6.7 2.3 5.8 10.0 8.7 Assets Under Management Equity Type 35.4 8.6 2.3 6.7 11.1 6.7 Bond Type 37.8 9.4 2.6 9.0 11.8 5.0 39.3 12.8 2.5 8.4 12.0 3.6 41.0 14.5 1.7 8.0 12.2 4.6 (KRW tril.) 45.0 16.3 1.9 8.8 13.6 4.4 MMF Derivatives Total AUM Note) ROE is calculated on a cumulative basis Assets Under Management (KRW tril.) YTD% 2018.6 QoQ% Total AUM 45.0 41.0 9.9 42.5 5.9 Equity Type 4.4 4.6-4.2 4.3 1.8 Bond Type 13.6 12.2 12.1 12.4 9.8 MMF 8.8 8.0 9.1 8.6 1.4 Derivatives 1.9 1.7 12.1 1.8 5.1 16.3 14.5 12.8 15.3 6.5
SHB SME Loans SME 55.1 18% 8% 18% 26% 3% 26% Loans 59.9 18% 8% 17% 26% 3% 27% 67.3 18% 8% 16% 26% 3% 30% 71.8 18% 7% 16% 25% 2% 31% 78.6 17% 7% 16% 26% 2% 32% Note 1) SOHO 50%, Registered 20%, Unregistered 30% (KRW tril.) 84.0 17% 7% 16% 26% 2% 31% Total Accommodations & Restaurants Wholesalers & Retailers Real Estate & Renting Construction Manufacturing Delinquency 0.55 0.36 1.21 0.37 Total 0.53 0.34 1.02 0.41 0.41 0.56 0.36 0.42 Wholesalers & Retailers 0.46 0.33 0.44 0.57 Real Estate & Renting 0.32 0.37 0.08 0.54 0.34 0.33 0.07 0.57 Manufacturing Collateral Deposits etc. 4% Guarantee 13% Collateralized 72% Real Estate 55% Unsecured 28% SOHO 27.7 16% 13% 18% 40% 1% 12% 30.5 15% 13% 18% 41% 1% 12% 34.2 16% 12% 17% 41% 1% 13% 35.5 16% 12% 16% 41% 1% 14% 38.6 15% 11% 17% 42% 1% 14% 41.9 15% 11% 16% 43% 1% 13% Total Accommodations & Restaurants Wholesalers & Retailers Real Estate & Renting Construction Manufacturing 0.33 0.17 0.46 0.38 0.31 Total 0.37 0.28 0.42 0.36 0.61 Accommodations & Restaurants 0.28 0.37 0.44 0.23 0.25 0.37 0.29 0.31 0.31 0.34 Wholesalers & Retailers 0.18 0.28 0.32 0.05 0.32 Real Estate & Renting 0.19 0.23 0.34 0.04 0.40 Manufacturing Deposits etc. 3% Guarantee 10% Unsecured 20% Real Estate 67% Collateralized 80%
SHB Retail Loans Loans 78.6 71.8 31.0 27.6 44.3 47.6 88.1 36.0 52.1 93.6 41.2 52.4 98.9 46.1 52.8 (KRW tril.) 103.2 50.0 53.2 Retail Personal Loans Note 1) Including unsecured personal loans, collective loans, home equity loans etc. 27.6 6.0 4.0 6.4 11.2 31.0 5.9 5.9 6.8 12.4 36.0 5.8 8.1 7.0 15.1 41.2 6.9 10.5 7.0 16.8 46.1 8.4 13.0 7.2 17.4 (KRW tril.) 50.0 9.3 15.1 7.5 18.1 Loan Composition Personal Jeonse Loans 15% 48% Secured Mortgage 7% 1 8% High credit Unsecured 18% 52% Retail Loans Mortgage Personal Loans High credit Unsecured Personal Loans Secured Loans Jeonse Loans 1) Note 1) Including unsecured personal loans, collective loans, home equity loans etc. Delinquency LTV Collateral 0.24 0.42 0.23 0.36 0.19 0.35 0.19 0.38 0.22 0.44 0.25 0.52 51.0 51.8 52.9 52.3 51.8 50.2 Unsecured 25% 0.16 0.17 0.11 0.09 0.11 0.12 Guarantee 24% Real Estate 50% Retail Loans Personal Loans Mortgage Deposits etc. 1% Collateralized 75%
SHB International Business Net Income Contribution by International Business 13.7% 11.6% 11.6% 8.4% 8.6% 9.3% 24% 7.0% 235.0 5.2% 196.8 172.5 179.7 139.4 125.6 111.0 95.7 12.8% 244.8 Net Income Composition Shinhan Bank America 1% Subsidiaries 74% Shinhan Asia 7% Shinhan Bank China 10% 7% Shinhan Bank Japan 18% Overseas Branch 26% Shinhan Vietnam 31% 2011 2012 2013 2014 2015 NI Contribution 2016 2017 Global Net Income Asset Contribution by International Business 8.2% 8.2% 8.6% Asset Composition 6.3% 14,550 2011 6.3% 14,951 2012 6.7% 16,001 2013 7.1% 18,029 2014 7.2% 20,611 2015 24,803 2016 26,432 2017 29,856 Subsidiaries 73% Shinhan Bank China 18% Shinhan Bank America 5% 12% Shinhan Bank Japan 24% Overseas Branch 27% Shinhan Vietnam 14% Asset Contribution Global Assets