You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and notes thereto included in this annual report. The following discussion is based on our consolidated financial statements, which have been prepared in accordance with IFRS. ITEM 5.A. Operating Results Overview We are one of the leading financial institutions in Korea in terms of total assets, revenues, profitability and capital adequacy, among others. Incorporated on September 1, 2001, we are the first privately-held financial 154 Table of Contents holding company to be established in Korea. Since inception, we have developed and introduced a wide range of financial products and services in Korea. We seek to deliver comprehensive financial solutions to our customers through a convenient one-portal online network and mobile application. Most of our assets are located in, and we generate most of our income from, Korea. Accordingly, our business and profitability are largely dependent on the general economic and social conditions in Korea, including interest rates, inflation, exports, personal expenditures and consumption, unemployment, demand for business products and services, debt service burden of households and businesses, the general availability of credit, the asset value of real estate and securities and other factors affecting the financial well-being of our corporate and retail customers. The Korean economy is closely integrated with, and is significantly affected by, developments in the global economy and financial markets. In recent years, the global economy and financial markets experienced adverse conditions and volatility, which also had an adverse impact on the Korean economy and in turn on our business and profitability. See “Item 3.D. Risk Factors — Risks Relating to Our Overall Business — Difficult conditions and turbulence in the Korean and global economy and financial markets may adversely affect our business, asset quality, capital adequacy and earnings.” The following provides a discussion of the major trends surrounding the general economy and the financial services sector in Korea in 2025 and our current outlook for 2026 as they relate to our core businesses. The following discussion represents the subjective view of our management and may significantly differ from the actual results for 2026. Trends in the Korean Economy The Korean economy is closely tied to, and is affected by developments in, the global economy. The overall prospects for the Korean and global economy in 2026 and beyond remain uncertain. In recent years, the global financial markets have experienced significant volatility as a result of, among other things: • a deterioration in economic and trade relations between the United States and its trading partners, including as a result of the imposition of significant tariffs by the United States on its trading partners, which has been followed by retaliatory tariffs in some cases; • escalations in trade protectionism globally and geopolitical tensions in East Asia and the Middle East (including those resulting from the military conflicts between Iran and other countries, including the United States and Israel); • hostilities, political or social tensions involving Russia (including the Russia-Ukraine war and the ensuing sanctions against Russia) and the resulting adverse effects on the global supply of oil and other natural resources and the global financial markets; • interest rate fluctuations as well as perceived or actual changes in policy rates, or other monetary and fiscal policies set forth, by the U.S. Federal Reserve and other central banks; • increased uncertainties in the global financial markets and industry; • a rise in inflation rates and volatility in stock markets and exchange rates worldwide; • the slowdown of economic growth in China and other major emerging market economies; • the occurrence of severe health epidemics, such as the COVID-19 pandemic; and • financial and social difficulties affecting many countries worldwide, in particular in Latin America and Europe. In light of the high level of interdependence of the global economy, unfavorable changes in the global financial markets, including as a result of any of the foregoing developments, could have a material adverse 155 Table of Contents effect on the Korean economy and financial markets, and in turn on our business, financial condition and results of operations. Future events involving limited liquidity, defaults, non-performance or other adverse developments that affect the financial services industry generally or financial institutions, transactional counterparties or other companies in the financial services industry, or concerns or rumors about any events of these kinds or other similar risks, may lead to market-wide liquidity problems or increase our risk in various dealings with our counterparties, among others. See “Item 3.D. Risk Factors — Risks Relating to Our Overall Business — Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, could adversely affect our results of operations and financial condition.” Based on preliminary data, Korea’s GDP growth in 2025 was 1.0% (at chained 2020 year prices) compared with 2.0% in 2024, primarily due to subdued domestic demand despite strong export performance. Private consumption improved gradually in the second half of 2025, supported by government stimulus measures and improved equity market conditions, although such improvement remained constrained by elevated household debt levels and structural demographic factors. Gross fixed capital formation declined during 2025, with construction investment contracting sharply amid a prolonged downturn in the real estate market and a buildup of unsold housing inventory outside the Seoul metropolitan area. Equipment investment and investment in intellectual property products increased modestly during the year. Exports remained the primary driver of economic growth, supported in part by strong demand for AI-related semiconductor products. Consumer price inflation remained stable at around 2% during 2025. The Bank of Korea maintained an accommodative monetary policy stance during the first half of 2025 but adopted a more cautious approach toward additional policy rate cuts in the second half amid concerns regarding household debt levels, housing market stability and exchange rate volatility. Government bond yields were relatively stable in the first half of 2025 before rising in the second half. The value of the Won relative to major foreign currencies in general and the U.S. dollar in particular has depreciated significantly in recent years and has been subject to significant volatility. As a result of volatile conditions in the Korean and global economies and financial markets, as well as factors such as fluctuations in oil and commodity prices, high inflation rates, increased uncertainties resulting from geopolitical tensions, interest and exchange rate fluctuations, higher unemployment, lower consumer confidence, stock market volatility, changes in fiscal and monetary policies and continued tensions with North Korea, the economic outlook for the financial services sector in Korea in 2026 and for the foreseeable future remains highly uncertain. Recent Developments and Outlook for the Korean Financial Sector Commercial Banking The year 2025 was characterized by heightened uncertainty in the global economy, driven primarily by increasing protectionist policies in the United States and ongoing geopolitical risks. Domestically, the financial environment also experienced significant volatility, particularly following the launch of a new administration, as shifts in policy direction and a sharp rise in equity markets accelerated the reallocation of financial assets toward capital markets. We expect that global economic uncertainty and financial market volatility will persist in 2026, which may also place ongoing pressure on the commercial banking industry. In addition, rapid technological advancements, particularly those associated with AI, are reshaping the definition of financial services and are expected to further accelerate the pace of change in the financial industry. Credit Cards In 2025, the operating environment for the credit card industry remained uncertain due to various domestic and global factors, including political developments in the United States and Korea, elevated exchange rate levels 156 Table of Contents and a decline in households’ real purchasing power. In 2026, the Korean digital payment industry (including the credit card industry) is expected to remain challenging due to high levels of household debt, delayed improvements in funding costs and structural demographic trends, including declining birth rates and an aging population, which may contribute to weaker consumption growth and an uncertain operating environment for credit card companies in Korea. Securities In 2025, the Korean securities industry benefited from a favorable operating environment, resulting in improved earnings. Amid political shifts in the United States and Korea and rapid advances in AI technologies affecting financial markets broadly, the KOSPI index trended upward, leading to increased trading volumes in both domestic and global equity markets. In 2026, it is expected that structural constraints, including global geopolitical risks, elevated exchange rate levels, demographic changes and household debt burdens will persist, which may lead to significant volatility in the securities market, highlighting the importance of managing credit risk and capital burdens while capturing short-term earnings opportunities. Life Insurance In 2025, the Korean life insurance industry faced a challenging operating environment. Although the rate of inflation stabilized as interest rate cuts continued, the Korean real economy showed limited signs of recovery due to the accumulated levels of household debt and a delayed recovery in consumer spending, highlighting the importance of capital management strategies against interest rate and foreign exchange volatility. In 2026, structural demographic challenges and intensifying competition are expected to necessitate a strengthened capacity to provide differentiated products and services, while revised actuarial assumptions and the K-ICS ratio systems are expected to drive qualitative growth, customer satisfaction and internal control competencies. Credit In 2025, the Korean stock market recorded significant gains and the real economy showed signs of recovery, supported by Government-led efforts to revitalize the financial markets. However, the prolonged downturn in the real estate market continued to present unfavorable business conditions and heightened operating uncertainty. In 2026, the operating environment is expected to remain challenging due to political and geopolitical uncertainties, foreign exchange rate volatility, and inflationary pressures. Nevertheless, efforts by the Government to expand investment in advanced and venture companies and promote productive finance for sustainable growth are expected to support a more favorable investment environment for the credit finance industry. Asset Management In 2025, the Korean asset management industry exprienced an upward trend driven by improving market conditions domestically and overseas, which was partly attributable to government policy initiatives aimed at supporting the financial markets, although the downturn in the real estate market in Korea continued for a multi-year period, and overall market conditions remained subdued. The rise in the KOSPI index, however, led to increased equity fund inflows and a corresponding rise in fee income. In 2026, the asset management industry is expected to show stagnant growth as global regulatory shifts, including U.S. tariff policies, and geopolitical tensions, particularly in the Middle East, increase market uncertainty for the foreseeable future. Interest Rates Interest rate movements, in terms of magnitude and timing as well as their relative impact on our assets and liabilities, have a significant impact on our net interest margins and profitability, particularly with respect to our financial products that are sensitive to such movements. See “Item 3.D. Risk Factors — Risks Relating to Our Overall Business — Changes in interest rates, foreign exchange rates, bond and equity prices, and other market factors have affected and will continue to affect our business, results of operations and financial condition.” 157 Table of Contents The interest rate charged to customers by our banking subsidiaries is based, in part, on the “cost of funds index,” or COFIX, which is published by the Korean Federation of Banks. See “Item 4.B. Business Overview — Our Principal Activities — Retail Banking Services — Pricing.” The following table shows certain benchmark Won-denominated borrowing interest rates as of the dates indicated. Corporate Bond Rates(1) Treasury Bond Rates(2) Certificate of Deposit Rates(3) COFIX Balance- Based(4) New COFIX Balance-Based(5) COFIX New Borrowing-Based(6) June 30, 2021 1.81 1.45 0.68 1.02 0.81 0.82 December 31, 2021 2.41 1.80 1.29 1.19 0.94 1.55 June 30, 2022 4.36 3.55 2.04 1.68 1.31 1.98 December 30, 2022 5.20 3.73 3.98 3.19 2.65 4.34 June 30, 2023 4.46 3.66 3.75 3.76 3.14 3.56 December 29, 2023 3.89 3.15 3.83 3.89 3.35 4.00 June 28, 2024 3.64 3.18 3.60 3.74 3.20 3.56 December 31, 2024 3.28 2.60 3.39 3.53 3.07 3.35 June 30, 2025 2.95 2.46 2.56 3.14 2.71 2.63 December 31, 2025 3.46 2.95 2.81 2.83 2.48 2.81 Source: Korea Financial Investment Association Notes: (1) Measured by the yield on three-year AA- rated corporate bonds. (2) Measured by the yield on three-year treasury bonds. (3) Measured by the yield on certificates of deposit (with maturity of 91 days). (4) Measured based on the weighted average of the borrowing rates for the monthly ending balances of the funding made by commercial banks that are subject to the COFIX reporting. (5) New COFIX on Outstanding Balance (the “New COFIX”) is a benchmark COFIX introduced in July 2019. The New COFIX also takes into account other deposits such as inter-bank time deposits and non-resident deposits and other funding sources, such as subordinated bonds and convertible bonds, in calculating the weighted average of the borrowing rates for the monthly ending balances of the funding made by commercial banks that are subject to the COFIX reporting. (6) Measured based on the weighted average of the borrowing rates for new funding for each month made by commercial banks that are subject to the COFIX reporting. 158 Table of Contents Average Balance Sheet and Volume and Rate Analysis Average Balances and Related Interest The following table shows our average balances and interest rates, as well as the net interest spread, net interest margin and average asset liability ratio, for the years ended December 31, 2023, 2024 and 2025. For the Years Ended December 31, 2023 2024 2025 Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate (In billions of Won, except percentages) Assets: Interest-earning assets Due from banks(2) Domestic W 8,297 W 337 4.06 % W 8,172 W 327 4.00 % W 9,303 W 343 3.70 % Foreign 5,056 254 5.02 6,664 453 6.81 7,692 439 5.70 Total 13,353 591 4.42 14,836 780 5.26 16,995 782 4.60 Loans(3) Domestic Retail loans 142,295 6,990 4.91 147,603 6,995 4.74 155,185 7,294 4.70 Corporate loans 195,180 9,886 5.07 213,723 10,430 4.88 221,911 8,881 4.00 Securities purchased with agreements to resell 2,634 66 2.51 4,502 76 1.68 4,073 68 1.68 Other corporate loans 192,546 9,820 5.10 209,221 10,354 4.95 217,838 8,813 4.05 Public and other loans 4,245 219 5.17 4,986 255 5.11 5,078 217 4.27 Loans to banks 4,322 245 5.67 1,957 137 6.98 2,471 152 6.17 Credit card loans 27,673 2,127 7.69 27,688 2,219 8.02 28,260 2,298 8.13 Foreign Retail loans 11,844 757 6.39 12,926 790 6.11 14,423 830 5.75 Corporate loans 26,161 1,407 5.38 28,188 1,518 5.38 32,073 1,600 4.99 Securities purchased with agreements to resell 32 1 2.39 11 1 11.49 57 2 3.96 Other corporate loans 26,129 1,406 5.38 28,177 1,517 5.38 32,016 1,598 4.99 Loans to banks 2,581 132 5.12 2,362 131 5.53 1,791 95 5.29 Credit card loans 294 35 12.04 295 36 12.46 267 34 12.80 Total loans 414,595 21,798 5.26 439,728 22,511 5.12 461,459 21,401 4.64 Securities(4) Domestic 173,269 4,481 2.59 184,557 5,224 2.83 189,270 5,074 2.68 Foreign 6,103 335 5.48 7,005 315 4.50 8,246 357 4.34 Total 179,372 4,816 2.68 191,562 5,539 2.89 197,516 5,431 2.75 Reinsurance contract assets Domestic 2 — 5.38 18 2 12.19 390 14 3.55 Foreign — — — — — — — — — Total 2 — 5.38 18 2 12.19 390 14 3.55 Other interest-earning assets Domestic — 133 — — 153 — — 133 — Foreign — 1 — — 7 — — 9 — Total — 134 — — 160 — — 142 — Total interest-earning assets W 607,322 W 27,339 4.50 % W 646,144 W 28,992 4.49 % W 676,360 W 27,770 4.10 % 159 Table of Contents For the Years Ended December 31, 2023 2024 2025 Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate (In billions of Won, except percentages) Non-interest-earning assets Cash and due from banks W 18,054 W 21,745 W 22,416 Derivative assets 5,679 6,063 7,112 Property and equipment and intangible assets 10,170 10,170 10,041 Other non-interest-earning assets 38,808 40,094 44,983 Total non-interest-earning assets W 72,711 W 78,072 W 84,552 Total assets W 680,033 W 27,339 W 724,216 W 28,992 W 760,912 W 27,770 Liabilities: Interest-bearing liabilities Deposits Domestic Demand deposits W 54,072 W 582 1.08 % W 54,926 W 603 1.10 % W 56,828 W 580 1.02 % Savings deposits 96,305 801 0.83 97,744 798 0.82 104,039 705 0.68 Time deposits 184,472 7,194 3.90 200,499 7,419 3.70 212,439 6,518 3.07 Other deposits 8,896 348 3.92 7,961 311 3.91 7,822 225 2.88 Foreign Demand deposits 8,372 44 0.53 8,295 57 0.68 8,945 64 0.72 Savings deposits 877 27 3.10 875 27 3.14 1,000 27 2.70 Time deposits 20,271 640 3.16 25,087 841 3.35 28,124 901 3.20 Other deposits 4,347 155 3.57 3,873 165 4.25 4,548 182 4.01 Total interest-bearing deposits 377,612 9,791 2.59 399,260 10,221 2.56 423,745 9,202 2.17 Financial liabilities designated at FVTPL Domestic 182 10 5.38 254 13 5.23 285 15 5.18 Foreign — — — — — — — — — Total 182 10 5.38 254 13 5.23 285 15 5.18 Borrowings Domestic Securities sold with agreements to repurchases 12,437 444 3.57 15,773 512 3.24 13,032 363 2.79 Other borrowings 30,675 922 3.01 29,865 849 2.84 30,116 717 2.38 Foreign Securities sold with agreements to repurchases 36 3 6.72 3 — 4.07 37 2 4.69 Other borrowings 10,169 527 5.19 9,933 501 5.05 9,919 453 4.57 Total interest-bearing borrowings 53,317 1,896 3.56 55,574 1,862 3.35 53,104 1,535 2.89 Debt securities issued Domestic 75,749 2,722 3.59 86,980 3,388 3.89 91,159 3,316 3.64 Foreign 250 13 5.30 425 21 4.91 367 17 4.71 Total 75,999 2,735 3.60 87,405 3,409 3.90 91,526 3,333 3.64 Insurance contract liabilities Domestic 46,307 1,705 3.68 49,708 1,685 3.39 51,881 1,667 3.21 Foreign 3 — — 6 — 1.14 — — — Total 46,310 1,705 3.68 49,714 1,685 3.39 51,881 1,667 3.21 160 Table of Contents For the Years Ended December 31, 2023 2024 2025 Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate Average Balance(1) Interest Income/ Expense Yield / Rate (In billions of Won, except percentages) Other interest-bearing liabilities Domestic 5,911 373 6.31 7,538 389 5.16 8,746 315 3.60 Foreign 153 11 7.25 189 11 5.85 256 9 3.76 Total 6,064 384 6.33 7,727 400 5.18 9,002 324 3.61 Total interest-bearing liabilities W 559,484 W 16,521 2.95 % W 599,934 W 17,590 2.93 % W 629,543 W 16,076 2.55 % Non-interest-bearing liabilities Non-interest-bearing deposits W 4,557 W 4,250 W 4,572 Derivatives liabilities 6,494 6,112 6,760 Other non-interest-bearing liabilities 53,809 56,208 60,019 Total non-interest-bearing liabilities W 64,860 W 66,570 W 71,351 Total liabilities W 624,344 W 16,521 W 666,504 W 17,590 W 700,894 W 16,076 Total equity attributable to equity holder of the Group 52,892 55,059 57,334 Non-controlling interests 2,797 2,653 2,684 Total liabilities and equity W 680,033 W 16,521 W 724,216 W 17,590 W 760,912 W 16,076 Net interest spread(5) 1.55 % 1.56 % 1.55 % Net interest margin(6) 1.78 % 1.76 % 1.73 % Average asset liability ratio(7) 108.55 % 107.70 % 107.44 % Notes: (1) Average balances are based on (a) monthly balances for Shinhan Bank and (b) quarterly balances for other subsidiaries. (2) Due from banks as of December 31, 2023, 2024 and 2025 consist of cash and due from banks at amortized cost and deposits at fair value through profit or loss. (3) Non-accruing loans are included in the respective average loan balances. Income on such non-accruing loans is no longer recognized from the date the loan is placed under nonaccrual status. We reclassify loans as accruing when interest (including default interest) and principal payments are current. Loans as of December 31, 2023, 2024 and 2025 consist of loans at amortized cost and loans at fair value through profit or loss. (4) Average balance and yield on securities are based on book value. Securities as of December 31, 2023, 2024 and 2025 consist of securities at fair value through profit or loss, securities at fair value through other comprehensive income, and securities at amortized cost. (5) Represents the difference between the average rate of interest earned on interest-earning assets and the average rate of interest paid on interest-bearing liabilities. (6) Represents the ratio of net interest income to average interest-earning assets. (7) Represents the ratio of average interest-earning assets to average interest-bearing liabilities. 161 Table of Contents Analysis of Changes in Net Interest Income — Volume and Rate Analysis The following table provides an analysis of changes in interest income, interest expense and net interest income between changes in volume and changes in rates for (i) 2025 compared to 2024 and (ii) 2024 compared to 2023. Volume and rate variances have been calculated on the movement in average balances and the change in the interest rates on average interest-earning assets and average interest-bearing liabilities in proportion to absolute volume and rate change. The variance caused by the change in both volume and rate has been allocated in proportion to the absolute volume and rate change. From 2024 to 2025 Interest Increase (Decrease) Due to Change in Volume Rate Change (In billions of Won) Increase (decrease) in interest income Due from banks Domestic W 43 W (27 ) W 16 Foreign 64 (78 ) (14 ) Total 107 (105 ) 2 Loans: Domestic Retail loans 357 (58 ) 299 Corporate loans 387 (1,936 ) (1,549 ) Public and other loans 5 (43 ) (38 ) Loans to banks 33 (18 ) 15 Credit card loans 46 33 79 Foreign Retail loans 88 (48 ) 40 Corporate loans 199 (117 ) 82 Loans to banks (30 ) (6 ) (36 ) Credit card loans (4 ) 2 (2 ) Total loans 1,081 (2,191 ) (1,110 ) Securities Domestic 131 (281 ) (150 ) Foreign 54 (12 ) 42 Total 185 (293 ) (108 ) Reinsurance contract assets Domestic 15 (3 ) 12 Foreign — — — Total 15 (3 ) 12 Other interest-earning assets Domestic — (20 ) (20 ) Foreign — 2 2 Total — (18 ) (18 ) Total interest income W 1,388 W (2,610 ) W (1,222 ) 162 Table of Contents From 2024 to 2025 Interest Increase (Decrease) Due to Change in Volume Rate Change (In billions of Won) Increase (decrease) in interest expense Deposits: Domestic Demand deposits W 20 W (43 ) W (23 ) Savings deposits 49 (142 ) (93 ) Time deposits 422 (1,323 ) (901 ) Other deposits (5 ) (81 ) (86 ) Foreign Demand deposits 5 2 7 Savings deposits 4 (4 ) — Time deposits 98 (38 ) 60 Other deposits 27 (10 ) 17 Total interest-bearing deposits 620 (1,639 ) (1,019 ) Financial liabilities designated at FVTPL Domestic 2 — 2 Foreign — — — Total 2 — 2 Borrowings Domestic (71 ) (210 ) (281 ) Foreign 1 (47 ) (46 ) Total (70 ) (257 ) (327 ) Debt securities issued Domestic 158 (230 ) (72 ) Foreign (3 ) (1 ) (4 ) Total 155 (231 ) (76 ) Insurance contract liabilities Domestic 72 (90 ) (18 ) Foreign — — — Total 72 (90 ) (18 ) Other interest-bearing liabilities Domestic 56 (130 ) (74 ) Foreign 3 (5 ) (2 ) Total 59 (135 ) (76 ) Total interest expense 838 (2,352 ) (1,514 ) Net increase (decrease) in net interest income W 550 W (258 ) W 292 163 Table of Contents From 2023 to 2024 Interest Increase (Decrease) Due to Change in Volume Rate Change (In billions of Won) Increase (decrease) in interest income Due from banks Domestic W (5 ) W (5 ) W (10 ) Foreign 94 105 199 Total 89 100 189 Loans: Domestic Retail loans 256 (251 ) 5 Corporate loans 914 (370 ) 544 Public and other loans 38 (2 ) 36 Loans to banks (155 ) 47 (108 ) Credit card loans 1 91 92 Foreign Retail loans 67 (34 ) 33 Corporate loans 109 2 111 Loans to banks (12 ) 11 (1 ) Credit card loans — 1 1 Total loans 1,218 (505 ) 713 Securities Domestic 303 440 743 Foreign 46 (66 ) (20 ) Total 349 374 723 Reinsurance contract assets Domestic 2 — 2 Foreign — — — Total 2 — 2 Other interest-earning assets Domestic — 20 20 Foreign — 6 6 Total — 26 26 Total interest income W 1,658 W (5 ) W 1,653 Increase (decrease) in interest expense Deposits: Domestic Demand deposits W 9 W 12 W 21 Savings deposits 12 (15 ) (3 ) Time deposits 605 (380 ) 225 Other deposits (37 ) — (37 ) Foreign Demand deposits — 13 13 Savings deposits — — — Time deposits 159 42 201 Other deposits (18 ) 28 10 Total interest-bearing deposits 730 (300 ) 430 164 Table of Contents From 2023 to 2024 Interest Increase (Decrease) Due to Change in Volume Rate Change (In billions of Won) Financial liabilities designated at FVTPL Domestic 3 — 3 Foreign — — — Total 3 — 3 Borrowings Domestic 78 (83 ) (5 ) Foreign (14 ) (14 ) (28 ) Total 64 (97 ) (33 ) Debt securities issued Domestic 426 240 666 Foreign 9 (1 ) 8 Total 435 239 674 Insurance contract liabilities Domestic 120 (141 ) (21 ) Foreign — — — Total 120 (141 ) (21 ) Reinsurance contract liabilities Domestic — — — Foreign — — — Total — — — Other interest-bearing liabilities Domestic 92 (75 ) 17 Foreign 2 (3 ) (1 ) Total 94 (78 ) 16 Total interest expense 1,446 (377 ) 1,069 Net increase (decrease) in net interest income W 212 W 372 W 584 Profitability Ratios and Other Data For the Years Ended December 31, 2023 2024 2025 (Percentages) Profit attributable to the Group as a percentage of: Average total assets(1) 0.66 % 0.63 % 0.67 % Average total Group equity(1) 8.47 8.28 8.87 Dividend payout ratio(2) 28.49 27.75 28.39 Net interest spread(3) 1.55 1.56 1.55 Net interest margin(4) 1.78 1.76 1.73 Efficiency ratio(5) 86.73 89.35 85.83 Cost-to-income ratio(6) 41.38 41.68 41.47 Cost-to-average assets ratio(1)(7) 5.73 6.98 5.52 Equity to average asset ratio(1)(8) 8.19 7.97 7.89 165 Table of Contents Notes: (1) Average total assets (including average interest-earning assets), liabilities (including average interest-bearing liabilities) and equity are based on (a) monthly balances for Shinhan Bank and (b) quarterly balances for other subsidiaries. (2) Represents the ratio of total dividends declared on common and preferred stock and hybrid bonds as a percentage of profit attributable to the Group. (3) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (4) Represents the ratio of net interest income to average interest-earning assets. (5) Represents the ratio of non-interest expense to the sum of net interest income and non-interest income. Efficiency ratio is used as a measure of efficiency for banks and financial institutions. Efficiency ratio may be reconciled to comparable line items in our income statements for the periods indicated below: For the Years Ended December 31, 2023 2024 2025 (In billions of Won, except percentages) Non-interest expense (A) W 38,984 W 50,568 W 41,986 Divided by: The sum of net interest income and non-interest income (B) 44,949 56,597 48,915 Net interest income 10,818 11,402 11,694 Non-interest income 34,131 45,195 37,221 Efficiency ratio ((A) as a percentage of (B)) 86.73 % 89.35 % 85.83 % (6) Represents the ratio of general and administrative expenses to operating income before general and administrative expenses and provision for credit loss allowance and other provisions. (7) Represents the ratio of non-interest expense to average total assets. (8) Represents the ratio of average equity to average total assets. Results of Operations 2025 Compared to 2024 The following table sets forth, for the periods indicated, the principal components of our operating income. For the Years Ended December 31, 2024 2025 % Change (In billions of Won, except percentages) Net interest income W 11,402 W 11,694 2.6 % Net fees and commission income 2,715 2,921 7.6 Net other operating expense (7,658 ) (7,592 ) (0.9 ) Operating income W 6,459 W 7,023 8.7 % 166 Table of Contents Net Interest Income The following table shows, for the periods indicated, the principal components of our net interest income. For the Years Ended December 31 2024 2025 % Change (In billions of Won, except percentages) Interest income: Cash and due from banks at amortized cost W 780 W 781 0.1 % Deposits at fair value through profit or loss — 1 N/M Securities at fair value through profit or loss 1,693 1,499 (11.5 ) Securities at fair value through other comprehensive income 2,744 2,888 5.2 Securities at amortized cost 1,102 1,044 (5.3 ) Loans at amortized cost 22,411 21,312 (4.9 ) Loans at fair value through profit or loss 100 89 (11.0 ) Insurance finance interest income 219 232 5.9 Others 160 142 (11.3 ) Total interest income W 29,209 W 27,988 (4.2 )% Interest expense: Deposits W 10,221 W 9,202 (10.0 )% Financial liabilities designated at FVTPL 13 15 15.4 Borrowings 1,862 1,535 (17.6 ) Debt securities issued 3,409 3,333 (2.2 ) Insurance finance interest expense 1,902 1,885 (0.9 ) Others 400 324 (19.0 ) Total interest expense W 17,807 W 16,294 (8.5 )% Net interest income W 11,402 W 11,694 2.6 % Net interest margin(1) 1.76 % 1.73 % N/M = not meaningful. Note: (1) Represents the ratio of net interest income to average interest-earning assets. See “— Average Balance Sheet and Volume and Rate Analysis — Average Balances and Related Interest.” Interest income. Interest income decreased by 4.2% to W27,988 billion in 2025 from W29,209 billion in 2024, primarily due to a 4.9% decrease in interest income on loans to W21,401 billion in 2025 from W22,511 billion in 2024. Interest income on loans decreased primarily due to a 48 basis point decrease in the average yield on loans to 4.64% in 2025 from 5.12% in 2024, driven by the two base interest rate reductions by the Bank of Korea in 2025, which was partially offset by a 4.9% increase in the average balance of loans to W461,459 billion in 2025 from W439,728 billion in 2024. More specifically, the change in interest income on loans was primarily due to the following: • a 12.3% decrease in interest income on corporate loans to W10,481 billion in 2025 from W11,948 billion in 2024, primarily due to an 81 basis point decrease in the average yield on corporate loans to 4.13% in 2025 from 4.94% in 2024, which was partially offset by a 5.0% increase in the average balance of corporate loans to W253,984 billion in 2025 from W241,911 billion in 2024. The average yield on corporate loans decreased primarily as a result of the general decrease in market interest rates in Korea, largely driven by the two base interest rate reductions by the Bank of Korea in 2025, as discussed above. The average balance of corporate loans increased principally due to expanded capital expenditures and increased working capital demand from corporate borrowers; and 167 Table of Contents • a 4.4% increase in interest income on retail loans to W8,124 billion in 2025 from W7,785 billion in 2024, primarily due to a 5.7% increase in the average balance of retail loans to W169,608 billion in 2025 from W160,529 billion in 2024, which was partially offset by a 6 basis point decrease in the average yield on retail loans to 4.79% in 2025 from 4.85% in 2024. The average balance of retail loans increased primarily as a result of growth in mortgage loans following a recovery in residential real estate transaction volumes in the first half of 2025. The average yield on retail loans decreased primarily as a result of the general decrease in market interest rates in Korea, largely driven by the two base interest rate reductions by the Bank of Korea in 2025, as discussed above. The base interest rate set by the Bank of Korea affects the market interest rate for certificates of deposit, which in turn largely determines our lending rates for a substantial majority of our retail loans. Interest expense. Interest expense decreased by 8.5% to W16,294 billion in 2025 from W17,807 billion in 2024, due primarily to a 10.0% decrease in interest expense on deposits to W9,202 billion in 2025 from W10,221 billion in 2024 and, to a lesser extent, a 17.6% decrease in interest expense on borrowings to W1,535 billion in 2025 from W1,862 billion in 2024. Interest expense on deposits decreased primarily due to a 39 basis point decrease in the average cost of deposits to 2.17% in 2025 from 2.56% in 2024, which was partially offset by a 6.1% increase in the average balance of deposits to W423,745 billion in 2025 from W399,260 billion in 2024. The decrease in the average cost of deposits resulted mainly from a 58 basis point decrease in the average cost of time deposits to 3.08% in 2025 from 3.66% in 2024, which was largely the result of lower average market interest rates for 2025 compared to 2024, as described above. The increase in the average balance of deposits was primarily due to a 6.6% increase in the average balance of time deposits to W240,563 billion in 2025 from W225,586 billion in 2024 and a 6.5% increase in the average balance of savings deposits to W105,039 billion in 2025 from W98,619 billion in 2024, which were both largely the result of a temporary increase in deposits from large corporate customers, reflecting higher deposit rates across the banking sector in the third quarter of 2025 in response to policy-driven funding demand. Interest expense on borrowings decreased primarily as a result of a 46 basis point decrease in the average cost of borrowings to 2.89% in 2025 from 3.35% in 2024 and, to a lesser extent, a 4.4% decrease in the average balance of borrowings to W53,104 billion in 2025 from W55,574 billion in 2024. The decrease in the average cost of borrowings resulted mainly from lower interest rates applied to borrowings following the reductions in the base interest rate during 2025, as described above. The decrease in the average balance of borrowings was mainly driven by a decline in commercial paper issuances and reduced funding through repurchase agreements, as alternative funding sources, including corporate bond issuances, became more prevalent. Net interest margin. Net interest margin represents the ratio of net interest income to the average balance of interest-earning assets. Net interest margin decreased by 3 basis points to 1.73% in 2025 from 1.76% in 2024, as a 4.7% increase in the average balance of interest-earning assets to W676,360 billion in 2025 from W646,144 billion in 2024, which was mainly driven by increases in the average balances of corporate and retail loans as discussed above, outpaced a 2.6% increase in net interest income to W11,694 billion in 2025 from W11,402 billion in 2024. Net interest spread. Net interest spread, which represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities, decreased by 1 basis point to 1.55% in 2025 from 1.56% in 2024, as a 39 basis point decrease in the average yield on interest-earning assets to 4.10% in 2025 from 4.49% in 2024 outpaced a 38 basis point decrease in the average cost of interest-bearing liabilities to 2.55% in 2025 from 2.93% in 2024. The average yield on interest-earning assets and the average cost of interest-bearing liabilities both decreased mainly as a result of the impact of the two base interest rate reductions by the Bank of Korea in 2025. However, such reductions in the base interest rate affected the average yield on interest-earning assets and the average cost of interest-bearing liabilities in different ways due to differences in average repricing frequency and relative maturity profiles. The increase in the average balance of interest-earning assets 168 Table of Contents discussed above was mostly matched by a 4.9% increase in the average balance of interest-bearing liabilities to W629,543 billion in 2025 from W599,934 billion in 2024, which was largely due to an increase in the volume of deposits for the reasons discussed above. Net Fees and Commission Income (Expense) The following table shows, for the periods indicated, the principal components of our net fees and commission income. For the Years Ended December 31, 2024 2025 % Change (In billions of Won, except percentages) Fees and commission income: Credit placement fees W 73 W 64 (12.3 )% Commission received as electronic charge receipt 148 151 2.0 Brokerage fees 393 529 34.6 Commission received as agency 154 177 14.9 Investment banking fees 229 295 28.8 Commission received in foreign exchange activities 361 452 25.2 Trust management fees 250 258 3.2 Credit card fees 1,311 1,187 (9.5 ) Operating lease fees 652 651 (0.2 ) Others 724 800 10.5 Total fees and commission income W 4,295 W 4,564 6.3 % Fees and commission expense: Credit-related fees W 50 W 45 (10.0 )% Credit card fees 966 1,018 5.4 Others 564 580 2.8 Total fees and commission expense W 1,580 W 1,643 4.0 % Net fees and commission income W 2,715 W 2,921 7.6 % Net fees and commission income increased by 7.6% to W2,921 billion in 2025 from W2,715 billion in 2024, primarily due to increases in brokerage fees received, commission received in foreign exchange activities, other fees and commissions received and investment banking fees received, the effects of which were partially offset by a decrease in credit card fees received and an increase in credit card fees paid. Brokerage fees received increased by 34.6% to W529 billion in 2025 from W393 billion in 2024, primarily as a result of higher securities custody fees received related to domestic equity transactions, reflecting increased trading volumes in the Korean stock markets during 2025. Commission received in foreign exchange activities increased by 25.2% to W452 billion in 2025 from W361 billion in 2024, primarily due to an increase in foreign securities brokerage commissions received as overseas equity trading volumes increased. Other fees and commissions received increased by 10.5% to W800 billion in 2025 from W724 billion in 2024, which was mainly due to increased securities lending fees, liquidity support commitment fees and underwriting commitment fees, driven by higher stock trading volumes and overall market activity. Investment banking fees received increased by 28.8% to W295 billion in 2025 from W229 billion in 2024, which was mainly due to an increase in underwriting and advisory fees driven by an expansion of investment banking transactions, particularly in the IB segment. 169 Table of Contents Credit card fees received decreased by 9.5% to W1,187 billion in 2025 from W1,311 billion in 2024 as a result of the absence of incentive payments received from overseas card networks in 2025 that had been recognized in 2024, as well as increases in certain contra-revenue items, including My Shinhan Point expenses and card promotion expenses recognized as deductions from fees income. Credit card fees paid increased by 5.4% to W1,018 billion in 2025 from W966 billion in 2024, which was mainly due to higher fees paid relating to overseas credit card transactions as overseas card usage increased, as well as an increase in certain credit card-related charges paid as we allocated more resources toward our collection efforts. Net Other Operating Income (Expense) The following table shows, for the periods indicated, the principal components of our net other operating expense. For the Years Ended December 31, 2024 2025 % Change (In billions of Won, except percentages) Net insurance income W 983 W 1,056 7.4 % Net insurance finance expenses (99 ) (1,191 ) 1,103.0 Dividend income 239 210 (12.1 ) Net gain on financial instruments at fair value through profit or loss 1,211 2,409 98.9 Net loss on financial instruments designated at fair value through profit or loss (344 ) (414 ) 20.3 Net foreign currency transaction gain 511 876 71.4 Net gain on disposal of securities at fair value through other comprehensive income 60 194 223.3 Net loss on disposal of securities at amortized cost (23 ) (0 ) (100.0 ) Provision for credit loss allowance (2,013 ) (2,003 ) (0.5 ) General and administrative expenses (6,116 ) (6,403 ) 4.7 Other operating expenses, net (2,067 ) (2,326 ) 12.5 Net other operating expenses W (7,658 ) W (7,592 ) (0.9 )% Net other operating expense decreased by 0.9% to W7,592 billion in 2025 from W7,658 billion in 2024, primarily as a result of increases in net gain on financial instruments at fair value through profit or loss and net foreign currency transaction gain, which were mostly offset by increases in net insurance finance expenses and general and administrative expenses. Net gain on financial instruments at fair value through profit or loss increased by 98.9% to W2,409 billion in 2025 from W1,211 billion in 2024, primarily due to changes in equity market conditions affecting equity-linked derivatives. Net foreign currency transaction gain increased by 71.4% to W876 billion in 2025 from W511 billion in 2024, primarily due to an increase in gains from customer dealing activities following heightened exchange rate volatility in 2025 compared to 2024. Net insurance finance expenses increased twelve-fold to W1,191 billion in 2025 from W99 billion in 2024, primarily due to an increase in interest expenses on variable insurance liabilities, which are positively correlated with investment returns on underlying assets and, as a result, increased significantly following the rise in the KOSPI index that led to the generation of higher levels of investment gains in 2025 compared to 2024. General and administrative expenses increased by 4.7% to W6,403 billion in 2025 from W6,116 billion in 2024, primarily due to (i) higher employee compensation expenses related to share-based compensation arrangements following an increase in our year-end share price, (ii) increased employee welfare expenses reflecting insurance contributions for voluntary retirees and an increase in the national pension contribution cap, and (iii) higher severance and voluntary retirement payments due to a larger number of voluntary retirees in 2025 compared to 2024. 170 Table of Contents Provisions for (Reversals of) Credit Loss Allowance on Financial Assets The following table sets forth for the periods indicated the provision for credit loss allowance by type of financial assets. For the Years Ended December 31, 2024 2025 % Change (In billions of Won, except percentages) Loans: Retail W 439 W 250 (43.1 )% Corporate 661 898 35.9 Credit card 750 870 16.0 Others 12 (4 ) N/M Subtotal 1,862 2,014 8.2 Securities(1) (5 ) 25 N/M Others 156 (36 ) N/M Total provision for credit loss allowance on financial assets W 2,013 W 2,003 (0.5 )% N/M = not meaningful Note: (1) Consist of securities at amortized cost and securities at fair value through other comprehensive income. Provisions for credit loss allowance on financial assets decreased by 0.5% to W2,003 billion in 2025 from W2,013 billion in 2024, primarily due to a shift to a reversal of provisions of W36 billion in 2025 from provisions of W156 billion in 2024 for credit loss allowances on other financial assets and a 43.1% decrease in provision for credit loss allowance on retail loans to W250 billion in 2025 from W439 billion in 2024. These changes were partially offset by a 35.9% increase in provisions for credit loss allowance on corporate loans to W898 billion in 2025 from W661 billion in 2024. Provisions for credit loss allowance on other financial assets turned into a reversal of credit loss allowance on other financial assets in 2025, primarily due to reduced risks in real estate development trust projects with completion obligations. The decrease in provisions for credit loss allowance on retail loans primarily reflected the impact of changes in the Korean domestic monetary policy environment, including benchmark interest rate cuts and the stabilization of macroeconomic variables, which were incorporated into the estimation of expected credit losses. The increase in provisions for credit loss allowance on corporate loans, however, was mainly due to higher LGD assumptions amid a weakening commercial real estate market in 2025 compared to 2024. Income Tax Expense Income tax expense increased by 25.4% to W1,844 billion in 2025 from W1,471 billion in 2024, primarily due to an increase in profit before income taxes to W6,929 billion in 2025 from W6,029 billion in 2024. Our effective rate of income tax increased to 26.6% in 2025 from 24.4% in 2024, primarily due to changes in non-deductible expenses, non-taxable income and other adjustments, including tax rate differentials, compared to the prior year. Profit for the Year As a result of the foregoing, our profit for the year increased by 11.6% to W5,085 billion in 2025 from W4,558 billion in 2024. 171 Table of Contents 2024 Compared to 2023 The following table sets forth, for the periods indicated, the principal components of our operating income. For the Years Ended December 31, 2023 2024 % Change (In billions of Won, except percentages) Net interest income W 10,818 W 11,402 5.4 % Net fees and commission income 2,647 2,715 2.6 Net other operating expense (7,364 ) (7,658 ) 4.0 Operating income W 6,101 W 6,459 5.9 % Net Interest Income The following table shows, for the periods indicated, the principal components of our net interest income. For the Years Ended December 31 2023 2024 % Change (In billions of Won, except percentages) Interest income: Cash and due from bank at amortized cost W 591 W 780 32.0 % Deposits at fair value through profit or loss — — N/M Securities at fair value through profit or loss 1,396 1,693 21.3 Securities at fair value through other comprehensive income 2,357 2,744 16.4 Securities at amortized cost 1,062 1,102 3.8 Loans at amortized cost 21,677 22,411 3.4 Loans at fair value through profit or loss 121 100 (17.4 ) Insurance finance interest income 240 219 (8.8 ) Others 135 160 18.5 Total interest income W 27,579 W 29,209 5.9 % Interest expense: Deposits W 9,791 W 10,221 4.4 % Financial liabilities designated at FVTPL 10 13 30.0 Borrowings 1,896 1,862 (1.8 ) Debt securities issued 2,735 3,409 24.6 Insurance finance interest expense 1,945 1,902 (2.2 ) Others 384 400 4.2 Total interest expense W 16,761 W 17,807 6.2 % Net interest income W 10,818 W 11,402 5.4 % Net interest margin(1) 1.78 % 1.76 % N/M = not meaningful Note: (1) Represents the ratio of net interest income to average interest-earning assets. See “— Average Balance Sheet and Volume and Rate Analysis — Average Balances and Related Interest.” Interest income. Interest income increased by 5.9% to W29,209 billion in 2024 from W27,579 billion in 2023, primarily due to a 3.3% increase in interest income on loans to W22,511 billion in 2024 from W21,798 billion in 2023, and, to a lesser extent, a 16.4% increase in interest income on securities at fair value 172 Table of Contents through other comprehensive income to W2,744 billion in 2024 from W2,357 billion in 2023. Interest income on loans increased primarily due to an increase in average balance of loans by 6.1% to W439,728 billion in 2024 from W414,595 billion in 2023, which was partially offset by a decrease in the average lending rate of loans to 5.12% in 2024 from 5.26% in 2023, driven by the two base interest rate reductions by the Bank of Korea in 2024. More specifically, the increase in interest income was primarily due to the following: • a 5.8% increase in interest on corporate loans to W11,948 billion in 2024 from W11,293 billion in 2023, primarily due to a 9.3% increase in the average balance of corporate loans to W241,911 billion in 2024 from W221,341 billion in 2023, which was partially offset by a decrease in the average lending rate for corporate loans to 4.94% in 2024 from 5.10% in 2023. The average balance of corporate loans increased principally due to an increase in demand for funds, including working capital. The average lending rate for corporate loans decreased primarily as a result of the general decrease in market interest rates largely driven by the two base interest rate reductions by the Bank of Korea in 2024 as discussed above. • a 0.5% increase in interest on retail loans to W7,785 billion in 2024 from W7,747 billion in 2023, primarily due to a 4.1% increase in the average balance of retail loans to W160,529 billion in 2024 from W154,139 billion in 2023, which was partially offset by a decrease in the average lending rate for retail loans to 4.85% in 2024 from 5.03% in 2023. The average balance of retail loans increased primarily as a result of a decline in market interest rates and an increase in real estate prices, particularly in the Seoul metropolitan area, which resulted in an increase in mortgage loans. The average lending rate for retail loans decreased primarily as a result of the general decrease in market interest rates, largely driven by decreases in the base interest rate set by the Bank of Korea in 2024, as discussed above. The base interest rate set by the Bank of Korea affects the market interest rate for certificates of deposit, which in turn largely determines our lending rates for a substantial majority of our retail loans • Interest income on securities at fair value through other comprehensive income increased primarily due to an increase in the average yield of securities at fair value through other comprehensive income by 34 basis points to 3.10% in 2024 from 2.76% in 2023, driven by purchases of securities at fair value through other comprehensive income made during the period of rising interest rates, prior to the decline in market interest rates and the two base interest rate cuts in the second half of 2024 (the 3-year government bond yield closed at 3.15% at the end of 2023, but surged to 3.55% during 2024). Interest expense. Interest expense increased by 6.2% from W16,761 billion in 2023 to W17,807 billion in 2024, due primarily to a 24.6% increase in interest expense on debt securities issued to W3,409 billion in 2024 from W2,735 billion in 2023 and a 4.4% increase in interest expenses on deposits to W10,221 billion in 2024 from W9,791 billion in 2023. Interest expense on debt securities issued increased primarily as a result of a 15.0% increase in the average balance of debt securities issued to W87,405 billion in 2024 from W75,999 billion in 2023, mainly driven by an increase in bond issuance to diversify our funding portfolio and to secure financing to meet the increase in long-term mortgage loans. Interest expense on deposits increased primarily due to a 5.7% increase in the average balance of deposits to W399,260 billion in 2024 from W377,612 billion in 2023, which was partially offset by a decrease in the average interest rate payable on deposits to 2.56% in 2024 from 2.59% in 2023. The increase in the average balance of deposits was primarily due to a 10.2% increase in the average balance of time deposits to W225,586 billion in 2024 from W204,743 billion in 2023, which was largely a result of a significant amount of matured funds from the Government policy products, such as the Youth Hope Installment Savings, being partially converted into time deposits during 2024. The decrease in the average interest rate payable on deposits resulted mainly from a decrease in the average interest rate payable on time deposits by 17 basis points to 3.66% 173 Table of Contents in 2024 from 3.83% in 2023, which was largely a result of lower average market interest rates for 2024 compared to 2023 as described above. Net interest margin. Net interest margin represents the ratio of net interest income to the average balance of interest-earning assets. Net interest margin decreased by 2 basis points from 1.78% in 2023 and to 1.76% in 2024, largely due to an increase in the average volume of interest-earning assets mainly driven by the increase in the average balance of corporate loans as discussed above, outpacing the increase in net interest income. Net interest spread. Net interest spread, which represents the difference between the average rate of interest earned on interest-earning assets and the average rate of interest paid on interest-bearing liabilities, increased by 1 basis point from 1.55% in 2023 to 1.56% in 2024, as the 1 basis point decrease in the average rate of interest receivable on interest-earning assets to 4.49% in 2024 from 4.50% in 2023 was outpaced by the 2 basis point decrease in the average rate of interest payable on interest-bearing liabilities to 2.93% in 2024 from 2.95% in 2023. Both the average rate of interest receivable on interest-earning assets and the average rate of interest payable on interest-bearing liabilities decreased resulting mainly from the impact of the two base interest rate reductions by the Bank of Korea in 2024. The average volume of interest-earning assets increased by 6.4% to W646,144 billion in 2024 from W607,322 billion in 2023 largely as a result of an increase in the volume of corporate loans and retail loans. The average volume of interest-bearing liabilities increased by 7.2% to W599,934 billion in 2024 from W559,484 billion in 2023 largely as a result of an increase in the volume of time deposits and debt securities issued for the reasons discussed above. Net Fees and Commission Income (Expense) The following table shows, for the periods indicated, the principal components of our net fees and commission income. For the Years Ended December 31, 2023 2024 % Change (In billions of Won, except percentages) Fees and commission income: Credit placement fees W 76 W 73 (3.9 )% Commission received as electronic charge receipt 146 148 1.4 Brokerage fees 369 393 6.5 Commission received as agency 134 154 14.9 Investment banking fees 165 229 38.8 Commission received in foreign exchange activities 296 361 22.0 Trust management fees 300 250 (16.7 ) Credit card fees 1,378 1,311 (4.9 ) Operating lease fees 600 652 8.7 Others 711 724 1.8 Total fees and commission income W 4,175 W 4,295 2.9 % Fees and commission expense: Credit-related fees W 46 W 50 8.7 % Credit card fees 930 966 3.9 Others 552 564 2.2 Total fees and commission expense W 1,528 W 1,580 3.4 % Net fees and commission income W 2,647 W 2,715 2.6 % Net fees and commission income increased by 2.6% from W2,647 billion in 2023 to W2,715 billion in 2024, primarily due to increases in commission received in foreign exchange activities and investment banking fees, which were partially offset by a decrease in credit card fees income. 174 Table of Contents Commission received in foreign exchange activities increased by 22.0% from W296 billion in 2023 to W361 billion in 2024, primarily as a result of an increase in custody fee income on foreign securities, which was driven by the expansion of overseas securities custody business and the resulting increase in service fees. Investment banking fees increased by 38.8% from W165 billion in 2023 to W229 billion in 2024 as a result of growth in the Global & Group Investment Banking (GIB) group driven by banking deals. Credit card fees income decreased by 4.9% from W1,378 billion in 2023 to W1,311 billion in 2024, primarily due to a decrease in demand for credit card usage related to shopping and mobile payment services. Net Other Operating Income (Expense) The following table shows, for the periods indicated, the principal components of our net other operating expense. For the Years Ended December 31, 2023 2024 % Change (In billions of Won, except percentages) Net insurance income W 1,114 W 983 (11.8 )% Net insurance finance expenses (516 ) (99 ) (80.8 ) Dividend income 181 239 32.0 Net gain on financial instruments at fair value through profit or loss 2,494 1,211 (51.4 ) Net loss on financial instruments designated at fair value through profit or loss (438 ) (344 ) (21.5 ) Net foreign currency transaction gain 257 511 98.8 Net gain (loss) on disposal of securities at fair value through other comprehensive income (130 ) 60 N/M Net loss on disposal of securities at amortized cost — (23 ) N/M Provision for credit loss allowance (2,245 ) (2,013 ) (10.3 ) General and administrative expenses (5,895 ) (6,116 ) 3.7 Other operating expenses, net (2,186 ) (2,067 ) (5.4 ) Net other operating expenses W (7,364 ) W (7,658 ) 4.0 % N/M = not meaningful Net other operating expense increased by 4.0% from W7,364 billion in 2023 to W7,658 billion in 2024, primarily as a result of a 51.4% decrease in net gain on financial instruments at fair value through profit or loss, which was partially offset by an 80.8% decrease in net insurance finance expenses, a 98.8% increase in net foreign currency transaction gain, and a 10.3% decrease in provision for credit loss allowance. Net gain on financial instruments at fair value through profit or loss decreased from W2,494 billion in 2023 to W1,211 billion in 2024 primarily due to a decrease in net valuation and transaction gains on financial instruments at fair value through profit or loss, resulting from the decline in the stock market index compared to the prior year as well as the depreciation of the Korean Won against foreign currencies during 2024 compared to 2023, resulting in a decrease in gain or loss from valuation and transaction of derivatives. Net insurance finance expenses decreased from W516 billion in 2023 to W99 billion in 2024 primarily due to a decrease in interest expenses on variable insurance liabilities, resulting from investment losses driven by the decline in the KOSPI index. Net foreign currency transaction gain increased from W257 billion in 2023 to W511 billion in 2024 primarily due to the depreciation of the Korean Won against major foreign currencies during 2024 compared to 2023, leading to an increase in net transaction and valuation gains on foreign currency assets and liabilities. Provision for credit loss allowance decreased from W2,245 billion in 2023 to W2,013 billion in 2024 primarily due to the effect of additional provisions arising from changes in risk components and other non-recurring factors during 2023 such as COVID-19 financial support. 175 Table of Contents Provision for Credit Loss Allowance on Financial Assets The following table sets forth for the periods indicated the provision for credit loss allowance by type of financial assets. For the Years Ended December 31, 2023 2024 % Change (In billions of Won, except percentages) Loans: Retail W 482 W 439 (8.9 )% Corporate 906 661 (27.0 ) Credit card 724 750 3.6 Others 2 12 500.0 Subtotal 2,114 1,862 (11.9 ) Securities(1) 3 (5 ) N/M Others 128 156 21.9 Total provision for credit loss allowance on financial assets W 2,245 W 2,013 (10.3 )% N/M = not meaningful Note: (1) Consist of securities at amortized cost and securities at fair value through other comprehensive income. Provision for credit loss allowance on financial assets decreased by 10.3% from W2,245 billion in 2023 to W2,013 billion in 2024 principally due to an 11.9% decrease in provision for credit loss allowance on loans from W2,114 billion in 2023 to W1,862 billion in 2024. The provision for credit loss allowance on loans decreased primarily due to a decrease in provision for credit loss allowance on corporate loans, which was partially offset by an increase in provision for credit loss allowance on credit card loans. Provision for credit loss allowance on corporate loans decreased in 2024 primarily due to the effect of additional provisions arising from changes in risk components and other non-recurring factors during 2023 as discussed above. Additional provision for credit loss allowance on corporate loans in 2023 was set aside in anticipation of the discontinuation of COVID-19 financial support programs and in light of real estate project financing risks. Provision for credit loss allowance for credit card loans increased in 2024 primarily due to an increase in delinquent credit card loans. Income Tax Expense Income tax expense decreased by 1.1% from W1,487 billion in 2023 to W1,471 billion in 2024 primarily as a result of an increase in adjustments of non-taxable income by 328.7% to W44,370 billion in 2024 from W10,350 billion in 2023 while profit before income taxes increased by 1.1% to W6,029 billion in 2024 from W5,965 billion in 2023. Our effective rate of income tax decreased to 24.4% in 2024 from 24.9% in 2023. Profit for the Year As a result of the foregoing, our profit for the year increased by 1.8% from W4,478 billion in 2023 to W4,558 billion in 2024. Results by Principal Business Segment As of December 31, 2025, we were organized into the following six major business segments: • commercial banking services, which are principally provided by Shinhan Bank; • credit card services, which are principally provided by Shinhan Card; 176 Table of Contents • securities services, which are provided by Shinhan Securities; • insurance services, which are principally provided by Shinhan Life Insurance; • credit services, which are provided by Shinhan Capital; and • other services that do not belong to the above business segments. We report our segment information in accordance with the provisions of IFRS 8 (Operating Segments). We categorize our operating segments according to a business-based approach. See Note 8 to the consolidated financial statements included in this annual report for further details on segment information, including the related components of income and expense. Operating Income by Principal Business Segment The table below provides the income statement data for our principal business segments for the periods indicated. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Banking W 4,010 W 4,940 W 5,178 23.2 % 4.8 % Credit card 933 878 742 (5.9 ) (15.5 ) Securities 253 282 488 11.5 73.0 Insurance 651 708 759 8.8 7.2 Credit 343 122 41 (64.4 ) (66.4 ) Others 341 164 274 (51.9 ) 67.1 Consolidation adjustment(1) (430 ) (635 ) (459 ) 47.7 (27.7 ) Total operating income W 6,101 W 6,459 W 7,023 5.9 % 8.7 % Note: (1) Consolidation adjustment consists of adjustments for inter-segment transactions. Banking Services The banking services segment provides commercial banking and related services through the following four sub-segments: (i) channel division, which includes banking and other services provided through the general branches and private wealth management (PWM) centers of Shinhan Bank and Jeju Bank to individuals, corporations (other than large corporations) and WM clients; (ii) capital market division, which includes corporate banking services offered through Shinhan Bank’s corporate banking branches to large corporations, securities investing and trading and derivatives trading; (iii) international group, which primarily consists of the operations of Shinhan Bank’s overseas subsidiaries and branches; and (iv) others, which primarily involves treasury operations related to our banking activities (such as internal asset and liability management and other non-deposit funding activities), as well as other back-office functions. 177 Table of Contents The table below provides the income statement data for our banking services segment for the periods indicated. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest income W 8,548 W 8,989 W 9,333 5.2 % 3.8 % Net fees and commission income 748 868 1,052 16.0 21.2 Net other expense (5,286 ) (4,917 ) (5,207 ) (7.0 ) 5.9 Operating income W 4,010 W 4,940 W 5,178 23.2 % 4.8 % Comparison of 2025 to 2024 Operating income for the banking services segment increased by 4.8% to W5,178 billion in 2025 from W4,940 billion in 2024. Net interest income increased by 3.8% to W9,333 billion in 2025 from W8,989 billion in 2024, primarily due to increases in net interest income in the others, international group, and capital market division sub-segments, which were partially offset by a decrease in net interest income for the channel division sub-segment. More specifically: • Net interest income for the others sub-segment increased significantly to W1,197 billion in 2025 from W11 billion in 2024, primarily due to higher net interest income generated from treasury operations, including internal asset and liability management activities, which are reported within the others segment. • Net interest income for the international group sub-segment increased by 5.4% to W1,343 billion in 2025 from W1,274 billion in 2024, primarily due to expanded overseas operations driven by localized growth strategies implemented across Shinhan Bank’s international network. • Net interest income for the capital market division sub-segment increased by 24.7% to W227 billion in 2025 from W182 billion in 2024, primarily reflecting higher yields on the Government bonds held by Shinhan Bank, which constitutes a significant portion of its bond portfolio, as market interest rates began to normalize beginning in the second half of 2025 as expectations for further rate reductions subsided. • Net interest income for the channel division sub-segment decreased by 12.7% to W6,566 billion in 2025 from W7,522 billion in 2024, mainly due to the continued impact of margin support for loans originated in 2024, when the Bank pursued volume growth through aggressive pricing policies, which did not recur to the same extent in 2025. In addition, although retail loan balances increased in 2025, growth was concentrated in lower-yield policy loans, which led to a reduction in overall loan margins and contributed to the decrease in net interest income. Net fees and commission income increased by 21.2% to W1,052 billion in 2025 from W868 billion in 2024, primarily due to an increase in net fees and commission income for the channel division and capital market division sub-segments. Net fees and commission income for the channel division sub-segment increased primarily due to an increase in fees received from retail products, including funds and bancassurance, driven by strengthened retail sales capabilities. The increase in fund and bancassurance fees was attributable to initiatives to revitalize participation in the domestic equity market and the diversification of the bancassurance product lineup. An increase in investment banking fees received also contributed to the increase in net fees and commission income, mainly resulting from a higher level of investment banking activities within Shinhan Bank’s investment banking division, a portion of which is allocated to and recognized by the channel division sub- 178 Table of Contents segment. Net fees and commission income for the capital market division sub-segment increased, which was primarily attributable to an increase in fees generated by the Corporate and Investment Banking (CIB) Group within the capital market division sub-segment, as investment banking fees continued to increase in 2025, supported by the expansion of large-scale investment banking transactions and infrastructure finance arrangements. Net other expense increased by 5.9% to W5,207 billion in 2025 from W4,917 billion in 2024, primarily due to increases in net other expenses for the others and international group sub-segments, which were partially offset by an increase in net other income for the capital market division sub-segment. Net other expense for the others sub-segment increased primarily due to higher advertising expenses and development costs incurred at the company-wide level for Shinhan Bank. Net other expense for the international group sub-segment increased primarily as a result of non-recurring gains recognized on the disposal of loan receivables in 2024, which did not recur in 2025. Net other income for the capital market division sub-segment increased, primarily due to higher gains on investment securities and foreign exchange- and derivatives-related gains. Comparison of 2024 to 2023 Operating income for the banking services segment increased by 23.2% from W4,010 billion in 2023 to W4,940 billion in 2024. Net interest income increased by 5.2% from W8,548 billion in 2023 to W8,989 billion in 2024 primarily due to increases in net interest income for others and international group sub-segments, which were partially offset by a decrease in net interest income for channel division and capital market division sub-segments. More specifically: • Net interest income for others sub-segment increased to W11 billion in 2024 shifting from net interest loss of W494 billion in 2023 primarily due to an increase in interest income received from the channel division, capital market division and international group sub-segments which Shinhan Bank recognizes through its others sub-segment. • Net interest income for international group sub-segment increased by 7.7% from W1,183 billion in 2023 to W1,274 billion in 2024 primarily due to an increase in interest income resulting from growth across Shinhan Bank’s international markets, particularly Vietnam and Japan, amid the Vietnamese government’s policies to promote loans and the increase in interest rates in Japan, respectively. • Net interest income for capital market division sub-segment decreased by 21.6% from W232 billion in 2023 to W182 billion in 2024 primarily due to the continued decline in government bond yields throughout 2024, which resulted from the two base interest rate reductions by the Bank of Korea during the year 2024 and expectations for further rate reductions. • Net interest income for channel division sub-segment decreased by 1.4% from W7,627 billion in 2023 to W7,522 billion in 2024 primarily due to aggressive pricing policies taken by Shinhan Bank, as well as the impact of the two base interest rate reductions by the Bank of Korea in 2024, which led to a decline in Shinhan Bank’s loan-to-deposit margin. Net fees and commission income increased by 16.0% from W748 billion in 2023 to W868 billion in 2024 primarily due to an increase in net fees and commissions income for channel division and capital market division sub-segments. Net fees and commission income for channel division sub-segment increased primarily due to an increase in investment banking fees resulting from an increase in investment banking deals in collaboration with the IB division within the capital market division sub-segment, as well as an increase in fees earned on the sale of funds and bancassurance products. Net fees and commission income for capital market division sub-segment increased primarily due to the growth in the GIB group’s investment banking fee income driven by an increase in investment banking deals. 179 Table of Contents Net other expense decreased by 7.0% from W5,286 billion in 2023 to W4,917 billion in 2024 primarily due to an increase in net other income for capital market division sub-segment, which was partially offset by an increase in net other expense for channel division sub-segment. Net other income for capital market division sub-segment increased primarily due to an overall increase in other income driven by increases in gains on securities, dividend income, foreign currencies transaction gains, and gains on derivatives. Net other expense for channel division sub-segment increased primarily due to an increase in other operating expense, particularly contributions to local governments and other similar institutions. Credit Card Services The credit card services segment consists of the credit card business of Shinhan Card, including its installment finance and automobile leasing businesses. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest income W 1,895 W 1,931 W 1,947 1.9 % 0.8 % Net fees and commission income 969 935 764 (3.5 ) (18.3 ) Net other expense (1,931 ) (1,988 ) (1,969 ) 3.0 (1.0 ) Operating income W 933 W 878 W 742 (5.9 )% (15.5 )% Comparison of 2025 to 2024 Operating income for the credit card services segment decreased by 15.5% to W742 billion in 2025 from W878 billion in 2024. Net interest income increased by 0.8% to W1,947 billion in 2025 from W1,931 billion in 2024, primarily due to an increase in interest income on loans at amortized cost, including credit card loans and installment finance loans, which was partially offset by a decrease in interest income on Korean Won-denominated loans and an increase in interest expenses on debt securities. Interest income on loans at amortized cost increased primarily due to higher interest income on credit card loans and installment finance loans, mainly driven by an increase in the average balance of installment credit sales and general card loans within credit card receivables, as well as an increase in the average balance of foreign currency installment finance loans. Such increases were mainly attributable to portfolio improvements focused on higher-yield credit card products and pricing adjustments in the auto finance business. The increase in interest income on credit card loans and installment finance loans was partially offset by a decrease in interest income on Korean Won-denominated loans, primarily due to a decrease in interest income on certain facility loans and household group loans, as lending activities decreased amid a slowdown in the real estate market, resulting in lower average balances of such loans. Interest expenses on debt securities increased mainly due to higher interest expenses on Korean Won-denominated debt securities, reflecting increased issuance of such debt securities to fund operating activities, including cash advance services and settlement payments to merchants, as well as higher funding costs. Net fees and commission income decreased by 18.3% to W764 billion in 2025 from W935 billion in 2024, primarily as a result of a decrease in fees income on credit cards and an increase in fee expenses on credit cards. Fees income on credit cards decreased primarily due to the absence of incentive payments received from overseas card networks in 2025 that had been recognized in 2024, as well as the impact of increases in certain contra-revenue items, including My Shinhan Point expenses and card promotion expenses recognized as deductions from fees income. Fee expenses on credit cards increased mainly due to higher fees paid relating to overseas credit card transactions in line with an increase in overseas card usage, as well as an increase in certain credit card-related charges paid as we allocated more resources toward our collection efforts. 180 Table of Contents Net other expense decreased by 1.0% to W1,969 billion in 2025 from W1,988 billion in 2024, primarily due to a shift from net losses to net gains on foreign currency transactions and translation, which was partially offset by a shift from net other operating income to net other operating losses. Net gains on foreign currency transactions and translation were mainly attributable to a decrease in foreign currency translation losses and an increase in foreign currency translation gains. These changes mainly reflected the appreciation of the Korean Won against major foreign currencies in 2025 compared to the prior year, which reduced translation losses on foreign currency-denominated borrowings and asset-backed securities. Net other operating expense decreased mainly due to a decrease in valuation gains on currency swaps and an increase in valuation losses on such swaps, reflecting fluctuations in exchange rates during 2025. Comparison of 2024 to 2023 Operating income for the credit card services segment decreased by 5.9% from W933 billion in 2023 to W878 billion in 2024. Net interest income increased by 1.9% from W1,895 billion in 2023 to W1,931 billion in 2024 primarily due to an increase in interest income on loans at amortized cost, including credit card loans and installment finance loans, which was partially offset by an increase in interest expenses on debt securities. The increase in interest income on loans at amortized cost was primarily due to higher interest rates applied to installment credit sales compared to 2023, as well as efforts to expand the credit card business of Shinhan Card, which resulted in an increase in the average balance of loans at amortized cost and related interest income for credit card loans and foreign currency installment finance loans. Interest expenses on debt securities increased mainly due to issuance of debt securities. Net fees and commission income decreased by 3.5% from W969 billion in 2023 to W935 billion in 2024 primarily as a result of a decrease in net fees income on credit cards, which was partially offset by an increase in fees and commission income from lease operations. Fees income on credit cards decreased primarily due to the effect of non-recurring fee income recognized during 2023 as a result of promotional agreements with MasterCard and Visa as well as a decrease in demand for credit card usage related to shopping and mobile payment services, while fee expenses on credit cards increased as a result of higher overseas credit card spending and the depreciation of the Korean Won against foreign currencies during 2024. Fees and commission income from lease operations increased primarily due to an increase in the average balance of operating lease assets denominated in Korean Won, resulting from the business expansion strategy for operating leases. Net other expense increased by 3.0% from W1,931 billion in 2023 to W1,988 billion in 2024, primarily due to an increase in net losses on foreign currency translation and an increase in provision for credit loss allowance, which were partially offset by an increase in net gains from hedging activities. Net losses on foreign currency translation increased due to the depreciation of the Korean Won against foreign currencies during 2024, resulting in increased translation losses on liabilities denominated in foreign currencies. Provision for credit loss allowance increased as a result of the rise in delinquent credit card receivables. Net gains from hedging activities increased primarily due to the strengthening of the U.S. Dollar against Korean Won, along with a rise in the volume of derivative transactions. 181 Table of Contents Securities Services The securities services segment primarily includes securities brokerage and dealing services on behalf of customers, which is conducted by Shinhan Securities, our principal securities brokerage subsidiary. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest income W 444 W 573 W 572 29.1 % (0.2 )% Net fees and commission income 500 536 690 7.2 28.7 Net other expense (691 ) (827 ) (774 ) 19.7 (6.4 ) Operating income W 253 W 282 W 488 11.5 % 73.0 % Comparison of 2025 to 2024 Operating income for the securities services segment increased by 73.0% to W488 billion in 2025 from W282 billion in 2024. Net interest income decreased by 0.2% to W572 billion in 2025 from W573 billion in 2024, primarily due to a decrease in interest income on securities at fair value through profit or loss and loans at amortized cost, which was partially offset by a decrease in interest expenses on borrowings. Interest income on securities at fair value through profit or loss decreased primarily due to lower interest income on government bonds, Korean Won-denominated financial institution bonds and commercial paper. Interest income on government bonds and Korean Won-denominated financial institution bonds decreased primarily due to a decrease in average balances, reflecting portfolio adjustments, and was further affected by lower nominal coupon rates on newly issued bonds. For commercial paper, the decrease was primarily driven by a decline in average balances, reflecting changes in market conditions. Interest income on loans at amortized cost decreased mainly due to a decline in interest income on certain corporate facility loans. Such decrease was primarily attributable to lower average balances resulting from repayments of existing loans, write-offs, and reduced new lending activities. In addition, interest income decreased due to delays in our collection of interest for certain real estate project financing investments. Interest expenses on borrowings decreased mainly due to lower interest expenses on other borrowings and Korean Won-denominated repurchase agreements. Such decreases primarily reflected a decline in the issuance of commercial paper and reduced funding through repurchase agreements, as alternative funding sources, including corporate bond issuances, became more prevalent. Interest expenses on repurchase agreements also decreased due to lower interest rates applied to such agreements following reductions in the base interest rate during 2025. Net fees and commission income increased by 28.7% to W690 billion in 2025 from W536 billion in 2024, primarily due to increases in brokerage-related and other fee income and custody fees on foreign securities, which were partially offset by higher trading and brokerage-related expenses and securities borrowing fees. Brokerage-related fee income increased mainly as a result of higher securities custody fees related to domestic equity transactions, reflecting increased trading volumes in the Korean stock markets during 2025. Other fee income also increased mainly due to higher stock lending fees, as well as increases in liquidity support commitment fees and purchase commitment fees. Custody fees on foreign securities increased, reflecting increased overseas equity trading activities during 2025. Trading and brokerage-related expenses increased primarily as a result of higher exchange membership fees and settlement fees associated with increased domestic equity trading volumes. Securities borrowing fees also increased mainly due to higher stock lending transaction volumes. Net other expense decreased by 6.4% to W774 billion in 2025 from W827 billion in 2024, primarily due to a change from net losses to net gains on foreign currency transactions and translation, as well as a decrease in net other operating losses, which were partially offset by a decrease in gains on financial instruments at fair value 182 Table of Contents through profit or loss and an increase in losses on financial instruments designated at fair value through profit or loss. Net gains (losses) on foreign currency transactions and translations changed from net losses in 2024 to net gains in 2025, primarily due to higher valuation and transaction gains on foreign currency-denominated assets and liabilities. These changes mainly reflected movements in the U.S. dollar exchange rate during 2025 compared to the prior year, which resulted in higher gains on foreign currency-denominated repurchase agreement positions, foreign currency borrowings and spot foreign exchange transactions, the effects of which were partially offset by losses on certain foreign currency-denominated asset positions. Net other operating losses decreased mainly due to a reduction in provisions for other liabilities, primarily reflecting a base effect from provisions recognized in 2024 related to claims associated with financial product compensation. Such changes were partially offset by decreases in gains on financial instruments at fair value through profit or loss and increases in losses on financial instruments designated at fair value through profit or loss. Gains on financial instruments at fair value through profit or loss decreased mainly due to changes in equity market environment affecting equity-linked derivatives, while losses on financial instruments designated at fair value through profit or loss increased primarily due to lower trading gains on equity-linked securities. Comparison of 2024 to 2023 Operating income for the securities services segment increased by 11.5% from W253 billion in 2023 to W282 billion in 2024. Net interest income increased by 29.1% from W444 billion in 2023 to W573 billion in 2024, primarily due to an increase in interest income on securities at fair value through profit or loss, partially offset by decreases in interest income on loans at amortized cost, loans at fair value through profit or loss and cash and due from banks at amortized cost. Interest income on securities at fair value through profit or loss increased primarily due to the strategic acquisition of additional bonds in response to the continued decline in interest rates, resulting in higher average balances and interest income. Interest income on loans at amortized cost and loans at fair value through profit or loss decreased mainly due to a decrease in new transactions and an increase in the number of sell-downs, driven by worsening conditions in the capital and real estate markets, along with lower interest rates. Interest income on cash and due from banks at amortized cost decreased mainly due to a decrease in interest income on time deposits denominated in Korean Won, resulting from the decline in market interest rates. Net fees and commission income increased by 7.2% from W500 billion in 2023 to W536 billion in 2024 primarily due to an increase in custody fee income on foreign securities, driven by the expansion of overseas securities custody business and the increase in service fees, as well as higher brokerage fee income resulting from an increase in the number of securities transactions in 2024 compared to 2023. These increases were partially offset by a decrease in commission income from Korean Won transactions and investment banking fees, driven by a decline in the number of advisory services and financial services provided. Net other expense increased by 19.7% from W691 billion in 2023 to W827 billion in 2024 primarily due to an increase in net loss on foreign currency transactions and translation, as well as an increase in provisions for other liabilities, which was partially offset by a decrease in net loss on financial instruments designated at fair value through profit or loss. Net loss on foreign currency transactions and translation increased primarily due to the depreciation of Korean Won against foreign currencies in 2024. Provisions for other liabilities increased primarily as we recognized additional provisions for legal claims resulting from lawsuits related to the alleged improper sales of Lime Asset products. Net loss on financial instruments designated at fair value through profit or loss decreased mainly due to a decrease in issuance and redemptions, driven by a relatively lower growth rate of the domestic stock market compared to the prior year, which resulted in a decrease in valuation and disposal losses. 183 Table of Contents Insurance Services The insurance services segment consists of life insurance services provided by Shinhan Life Insurance, and general insurance services provided by Shinhan EZ General Insurance. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest expense W (199 ) W (135 ) W (147 ) (32.2 )% 8.9 % Net fees and commission expense (3 ) (4 ) (9 ) 33.3 125.0 Net other income 853 847 915 (0.7 ) 8.0 Operating income W 651 W 708 W 759 8.8 % 7.2 % Comparison of 2025 to 2024 Operating income for the insurance services segment increased by 7.2% to W759 billion in 2025 from W708 billion in 2024. Net interest expense increased by 8.9% to W147 billion in 2025 from W135 billion in 2024, primarily due to a decrease in interest income on loans measured at amortized cost, which was partially offset by an increase in interest income on securities at fair value through other comprehensive income and a decrease in other interest expenses. Interest income on loans measured at amortized cost decreased primarily due to a decrease in interest income on Korean Won-denominated loans, mainly driven by a decrease in the average balance of corporate working capital loans resulting from a decline in new investments and an increase in loan maturities. Interest income on securities at fair value through other comprehensive income increased primarily due to an increase in interest income on Government bonds, which was driven by an increase in the average balances as government bond holdings increased while corporate bond holdings decreased for regulatory capital management purposes, including maintaining the K-ICS ratio, and asset duration management. This increase was partially offset by a decrease in interest income on corporate bonds, which resulted from a decrease in the average balance of corporate bonds as part of the same asset allocation strategy. Other interest expenses decreased primarily due to a decrease in interest on investment contract liabilities, which was mainly attributable to an increase in premium income from retirement pension products, which is recorded as a deduction from such interest expenses. Net fees and commission expense increased by 125.0% to W9 billion in 2025 from W4 billion in 2024, primarily due to a decrease in investment banking fees income and a general increase in fees and commission expenses. Investment banking fees income decreased primarily due to the absence of financial advisory fees in connection with a project financing loan transaction that was recognized in 2024. Net other income increased by 8.0% to W915 billion in 2025 from W847 billion in 2024, primarily due to an increase in net gain on financial instruments at fair value through profit or loss and an increase in gains related to hedging activities, which were partially offset by an increase in net insurance finance expense and a decrease in net gain on foreign currency transactions and translation. The increase in net gain on financial instruments at fair value through profit or loss was driven by a decrease in valuation losses on beneficiary certificates following significant valuation losses recognized in the prior year amid a weakness in overseas real estate markets, as well as gains on disposals of equity index ETFs reflecting favorable conditions in the Korean domestic equity market in 2025. The increase in gains related to hedging activities was mainly attributable to increases in gains on currency forward transactions and valuation gains on currency swaps, as well as a decrease in valuation losses on currency forwards, primarily reflecting the appreciation of the Korean Won against major foreign currencies in 2025 compared to the depreciation recorded in 2024. Net insurance finance expense increased primarily due to higher insurance finance expenses related to insurance contract liabilities for variable contracts, which are inversely correlated with returns on the underlying investment assets. As returns on the underlying investment 184 Table of Contents assets increased, reflecting the significant rise in the KOSPI index in 2025 compared to 2024, the corresponding increase in insurance contract liabilities led to higher insurance finance expenses. The decrease in net gain on foreign currency transactions and translation was mainly attributable to a decrease in net gains from the valuation and transactions of foreign currency-denominated assets and liabilities, primarily reflecting the appreciation of the Korean Won against the U.S. dollar in 2025 compared to the depreciation recorded in 2024. Comparison of 2024 to 2023 Operating income for the insurance services segment increased by 8.8% from W651 billion in 2023 to W708 billion in 2024. Net interest expense decreased by 32.2% from W199 billion in 2023 to W135 billion in 2024 primarily due to a decrease in interest expenses on other liabilities and an increase in interest income on securities at fair value through other comprehensive income, which were partially offset by a decrease in interest income on securities at fair value through profit or loss. Interest expenses on other liabilities decreased primarily due to a decrease in interest expense on investment contract liabilities, which was driven by a decrease in the average balance of investment contract liabilities resulting from lower interest rates applied to retirement products. Interest income on securities at fair value through other comprehensive income increased due to an increase in interest income on government bonds, which was driven by an increase in the number of interest days (leap year) and an increase in the average balance of government bonds resulting from an increase in long-term government bond purchases to extend the average maturity profile of our government bond assets. Interest income on securities at fair value through profit or loss decreased primarily due to a decrease in interest income on government bonds, resulting from a decrease in the average balance of government bonds as underlying assets of variable insurance decreased following an increase in claims paid. Net fees and commission expense increased by 33.3% from W3 billion in 2023 to W4 billion in 2024 primarily due to an increase in brokerage fees expense in Korean Won, which was mainly driven by an increase in management fees through an alternative investment consignment arrangement entered into with Shinhan Asset Management in April 2024. Net other income decreased by 0.7% from W853 billion in 2023 to W847 billion in 2024 primarily due to a decrease in net gain on financial instruments at fair value through profit or loss and an increase in other operating expenses, which were partially offset by an increase in net gain on foreign currency transactions and translation as well as a decrease in net insurance finance expense. The decrease in net gain on financial instruments at fair value through profit or loss was driven by a decrease in net valuation and transaction gains resulting from the decline in the stock market index in 2024 compared to 2023, as well as an increase in net transaction losses on currency-related derivatives due to the depreciation of the Korean Won against foreign currencies during 2024. The increase in other operating expenses was mainly due to an increase in net valuation loss related to hedging activities, primarily driven by the depreciation of the Korean Won against foreign currencies during 2024. The increase in net gain on foreign currency transactions and translation was primarily due to the depreciation of the Korean Won against foreign currencies during 2024. The decrease in net insurance finance expense was primarily due to a decrease in interest expenses on variable insurance liabilities, which are linked to the performance of underlying investment assets that incurred losses as a result of the decline in the KOSPI index. 185 Table of Contents Credit Services The credit services segment consists of the specialized credit business of Shinhan Capital, including facilities leasing, installment finance, and new technology finance businesses. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest income W 249 W 144 W 102 (42.2 )% (29.2 )% Net fees and commission income 17 17 23 — 35.3 Net other income (expense) 77 (39 ) (84 ) N/M 115.4 Operating income W 343 W 122 W 41 (64.4 )% (66.4 )% N/M = not meaningful Comparison of 2025 to 2024 Operating income for the specialized credit business decreased by 66.4% to W41 billion in 2025 from W122 billion in 2024. Net interest income decreased by 29.2% to W102 billion in 2025 from W144 billion in 2024, primarily due to a decrease in interest income on loans at amortized cost, which was partially offset by a decrease in interest expenses on borrowings. Interest income on loans at amortized cost decreased mainly due to lower interest income on Korean Won-denominated loans. This decrease was primarily attributable to a decline in the average balance of loans, as we shifted our focus toward managing the profitability and credit quality of existing loans rather than expanding new loan originations amid unfavorable conditions in the real estate and financial markets since 2024. Interest income was also affected by an increase in impaired loans resulting from heightened credit risk and a partial shift in the loan portfolio toward lower-yield but more stable assets. Interest expenses on borrowings decreased mainly due to a decline in the average balance of borrowings following repayments exceeding new borrowings during 2025. In addition, interest expenses decreased as funding costs declined compared to the prior year, reflecting changes in funding strategies, including efforts to diversify our funding sources. Net fees and commission income increased by 35.3% to W23 billion in 2025 from W17 billion in 2024, primarily due to higher investment banking fees, particularly arranger and advisory fees. The increase in such fees reflected our efforts to increase our non-interest income by actively sourcing and arranging deals through partnerships with small- and mid-sized financial institutions amid unfavorable market conditions. Fee expenses did not change significantly compared to the prior year. Net other expense increased by 115.4% to W84 billion in 2025 from W39 billion in 2024, primarily due to an increase in impairment losses on financial assets and a change from net other operating income in 2024 to net other operating expenses in 2025, which were partially offset by an increase in net gains on foreign currency transactions and translation and an increase in gains on financial instruments at fair value through profit or loss. Impairment losses on financial assets increased mainly due to higher credit loss provisions as credit risks associated with loan receivables increased amid deteriorating conditions in the real estate market and the broader economic environment in 2025. This resulted in a rise in impaired loans and lower recoverable amounts of certain loan receivables. Net other operating results also deteriorated mainly due to valuation changes on currency swaps used to hedge foreign exchange exposure to foreign currency borrowings and debt securities. These changes primarily reflected the decline in the USD/KRW exchange rate compared to the end of 2024, which resulted in lower valuation gains and higher valuation losses on such currency swaps in 2025. Such increases in net other expenses were partially offset by net gains on foreign currency transactions and translation, 186 Table of Contents reflecting the appreciation of the Korean Won against the U.S. dollar during 2025 compared to the prior year, which resulted in higher translation gains on foreign currency-denominated borrowings and debt securities. In addition, gains on financial instruments at fair value through profit or loss increased mainly due to a decrease in valuation losses on beneficiary certificates and puttable equity instruments as the value of underlying assets, including venture investments, investments related to initial public offerings, and domestic and foreign alternative investments, increased, mainly reflecting higher equity prices in 2025. Comparison of 2024 to 2023 Operating income for the specialized credit business decreased by 64.4 % from W343 billion in 2023 to W122 billion in 2024. Net interest income decreased by 42.2 % from W249 billion in 2023 to W144 billion in 2024 primarily due to a decrease in interest income on loans at amortized cost, as well as increases in interest expenses on debt securities and borrowings. Interest income on loans at amortized cost decreased mainly due to a reduction in loan origination, along with an increase in repayments and disposals, and the impairment of certain loans in 2024. Interest expense on debt securities increased primarily due to the higher average interest rate resulting from the refinancing of corporate bonds that were issued prior to 2022 at lower interest rates with new corporate bonds issued at higher interest rates. Interest expense on borrowings increased as a result of an increase in the average balance of borrowings denominated in Korean Won as part of measures to diversify funding sources. Net fees and commission income remained stable with no significant fluctuations in 2024 compared to 2023. Commission received as agency increased due to an increase in management fee income, which was mostly offset by a decrease in investment banking fees, resulting from a decrease in financial intermediary services, particularly in the corporate and investment banking sector. Net other expense of W39 billion was recognized in 2024, compared to net other income of W77 billion in 2023, primarily due to a decrease in net gain on financial instruments at fair value through profit or loss, which was partially offset by an increase in other operating income. The decrease in net gain on financial instruments at fair value through profit or loss was primarily due to net loss recognized in relation to the valuation and disposal of investments, including venture capital investments, domestic and foreign alternative investments, and initial public offerings. The increase in other operating income was mainly driven by the valuation gains on currency swaps to mitigate exchange rate risks associated with borrowings denominated in foreign currencies, resulting from the depreciation of the Korean Won against foreign currencies in 2024. Others The others segment primarily consists of all other activities of Shinhan Financial Group, as the holding company, and our other subsidiaries, including Shinhan Asset Management, Shinhan Savings Bank, Shinhan Asset Trust, Shinhan REITs Management and back-office functions maintained at the holding company. For the Years Ended December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Income statement data Net interest income W 125 W 93 W 77 (25.6 )% (17.2 )% Net fees and commission income 391 337 377 (13.8 ) 11.9 Net other expense (175 ) (266 ) (180 ) 52.0 (32.3 ) Operating income W 341 W 164 W 274 (51.9 )% 67.1 % 187 Table of Contents Comparison of 2025 to 2024 Operating income for the others segment increased by 67.1% to W274 billion in 2025 from W164 billion in 2024. Net interest income decreased by 17.2% to W77 billion in 2025 from W93 billion in 2024, primarily due to a decrease in net interest income of Shinhan Financial Group on a standalone basis, which in turn was mainly attributable to a decrease in interest income on loans at amortized cost and, to a lesser extent, an increase in interest expense on debt securities. Net fees and commission income increased by 11.9% to W377 billion in 2025 from W337 billion in 2024, primarily due to an increase in net fees and commission income of Shinhan Asset Management, which in turn was primarily due to higher trustee fee income, reflecting the rapid growth of the ETF market and the expansion of total assets under management. Net other expense decreased by 32.3% to W180 billion in 2025 from W266 billion in 2024, primarily due to a decrease in impairment losses on financial instruments and a reversal of provisions for other liabilities at Shinhan Asset Trust. The decrease in impairment losses on financial instruments was mainly due to the significant losses on assets with a high likelihood of default that had been recognized in 2024 during the downturn in the real estate market, which resulted in a relatively smaller amount of additional impairments recognized in 2025. The reversal of provisions for other liabilities was primarily attributable to the mitigation of risks associated with real estate development trust projects with completion obligations. Comparison of 2024 to 2023 Operating income for the others segment decreased by 51.9% from W341 billion in 2023 to W164 billion in 2024. Net interest income decreased by 25.6% from W125 billion in 2023 to W93 billion in 2024 primarily due to a decrease in net interest income of Shinhan Financial Group on a standalone basis. The decrease in net interest income of Shinhan Financial Group on a standalone basis was mainly attributable to an increase in interest expenses on debt securities, which was partially offset by an increase in interest income on loans at amortized cost. Net fees and commission income decreased by 13.8% from W391 billion in 2023 to W337 billion in 2024 primarily due to a decrease in net fees and commission income of Shinhan Asset Trust. Net fees and commission income of Shinhan Asset Trust decreased primarily due to a decrease in trust management fees and other fee income, resulting from ongoing difficulties in the project financing industry that have persisted since 2023. Net other expense increased by 52.0% from W175 billion in 2023 to W266 billion in 2024 primarily due to an increase in net other expenses from Shinhan Asset Trust. The increase in net other expense of Shinhan Asset Trust was primarily attributable to an increase in the number of maturing project financing properties and an increase in provision for credit loss allowance and provisions for other liabilities recognized due to difficulties experienced by such project financing projects. 188 Table of Contents Financial Condition Assets The following table sets forth, as of the dates indicated, the principal components of our assets. As of December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Cash and due from banks at amortized cost W 34,629 W 40,526 W 39,743 17.0 % (1.9 )% Financial assets at fair value through profit or loss 71,217 72,147 78,053 1.3 8.2 Derivative assets 4,711 10,279 7,154 118.2 (30.4 ) Securities at fair value through other comprehensive income 90,312 93,805 103,217 3.9 10.0 Securities at amortized cost 35,686 33,316 31,944 (6.6 ) (4.1 ) Loans at amortized cost 411,740 449,295 464,774 9.1 3.4 Property and equipment 3,972 4,157 4,153 4.7 (0.1 ) Intangible assets 6,218 6,120 5,893 (1.6 ) (3.7 ) Investments in associates 2,692 2,753 2,639 2.3 (4.1 ) Current tax assets 31 55 69 77.4 25.5 Deferred tax assets 154 206 210 33.8 1.9 Investment property 258 327 612 26.7 87.2 Net defined benefit assets 114 156 353 36.8 126.3 Insurance contract assets 11 6 1 (45.5 ) (83.3 ) Reinsurance contract assets 88 185 603 110.2 225.9 Other assets 29,926 26,401 46,524 (11.8 ) 76.2 Assets held for sale 36 30 71 (16.7 ) 136.7 Total assets W 691,795 W 739,764 W 786,013 6.9 % 6.3 % 2025 Compared to 2024 Our total assets increased by 6.3% to W786,013 billion as of December 31, 2025 from W739,764 billion as of December 31, 2024, principally due to increases in other assets, loans at amortized cost, and securities at fair value through other comprehensive income. Other assets increased by 76.2% to W46,524 billion as of December 31, 2025 from W26,401 billion as of December 31, 2024, primarily due to increases in accounts receivable and domestic exchange settlement receivables. Loans at amortized cost increased by 3.4% to W464,774 billion as of December 31, 2025 from W449,295 billion as of December 31, 2024, primarily due to increases in corpoarte loans and retail loans. Corporate loans increased mainly due to expanded capital expenditures and increased working capital demand from corporate borrowers, while retail loans increased primarily as a result of growth in mortgage loans following a recovery in real estate transaction volumes in the first half of 2025. Securities at fair value through other comprehensive income increased by 10.0% to W103,217 billion as of December 31, 2025 from W93,805 billion as of December 31, 2024, primarily due to increases in financial institution bonds and, to a lesser extent, government bonds, the effects of which were offset in part by a decrease in corporate bonds and others. 189 Table of Contents 2024 Compared to 2023 Our assets increased by 6.9% from W691,795 billion as of December 31, 2023 to W739,764 billion as of December 31, 2024, principally due to increases in loans at amortized cost, cash and due from banks at amortized cost, and derivative assets. Loans at amortized cost increased by 9.1% to W449,295 billion as of December 31, 2024 from W411,740 billion as of December 31, 2023, primarily due to an increase in corporate loans and, to a lesser extent, an increase in retail loans. Cash and due from banks at amortized cost increased by 17.0% to W40,526 billion as of December 31, 2024 from W34,629 billion as of December 31, 2023, primarily due to an increase in deposits denominated in foreign currency amid growth of our overseas businesses. Derivative assets increased by 118.2% to W10,279 billion as of December 31, 2024 from W4,711 billion as of December 31, 2023, primarily due to an increase in over-the-counter derivative assets related to foreign currency amid the depreciation of the Korean Won against foreign currencies in 2024. Liabilities and Equity The following table sets forth, as of the dates indicated, the principal components of our liabilities and equity. As of December 31, % Change 2023 2024 2025 2023/2024 2024/2025 (In billions of Won, except percentages) Deposits W 381,513 W 422,781 W 447,649 10.8 % 5.9 % Financial liabilities at fair value through profit or loss 1,869 955 2,312 (48.9 ) 142.1 Financial liabilities designated at fair value through profit or loss 7,797 8,220 6,378 5.4 (22.4 ) Derivative liabilities 5,038 10,059 7,021 99.7 (30.2 ) Borrowings 56,901 49,920 55,395 (12.3 ) 11.0 Debt securities issued 81,562 93,766 92,992 15.0 (0.8 ) Net defined benefit liabilities 68 39 18 (42.6 ) (53.8 ) Provisions 1,370 1,309 1,363 (4.5 ) 4.1 Current tax liabilities 92 203 763 120.7 275.9 Deferred tax liabilities 542 423 448 (22.1 ) 5.9 Insurance contracts liabilities 48,333 51,125 50,471 5.8 (1.3 ) Reinsurance contract liabilities 93 98 56 5.4 (42.9 ) Investment contract liabilities 1,573 1,165 1,536 (25.9 ) 31.8 Other liabilities 48,722 40,880 59,239 (16.1 ) 44.9 Total liabilities 635,473 680,943 725,641 7.2 6.6 Total equity attributable to equity holders of the Group 53,721 56,054 57,959 4.3 3.4 Non-controlling interests 2,601 2,767 2,413 6.4 (12.8 ) Total equity 56,322 58,821 60,372 4.4 2.6 Total liabilities and equity W 691,795 W 739,764 W 786,013 6.9 % 6.3 % 190 Table of Contents 2025 Compared to 2024 Our total liabilities increased by 6.6% to W725,641 billion as of December 31, 2025 from W680,943 billion as of December 31, 2024, primarily due to increases in deposits, other liabilties and, to a lesser extent, borrowings. Deposits increased by 5.9% to W447,649 billion as of December 31, 2025 from W422,781 billion as of December 31, 2024, primarily due to increases in Korean Won-denominated deposits and certificates of deposit. Other liabilities increased by 44.9% to W59,239 billion as of December 31, 2025 from W40,880 billion as of December 31, 2024, primarily due to increases in accounts payable, domestic exchange settlements pending and payables from trust accounts. Borrowings increased by 11.0% to W55,395 billion as of December 31, 2025 from W49,920 billion as of December 31, 2024, primarily due to increases in foreign currency bank borrowings and repurchase agreement liabilities. Total equity increased by 2.6% to W60,372 billion as of December 31, 2025 from W58,821 billion as of December 31, 2024, largely due to an increase in retained earnings, which was partially offset by an increase in valuation losses on securities at fair value through other comprehensive income. 2024 Compared to 2023 Our total liabilities increased by 7.2% from W635,473 billion as of December 31, 2023 to W680,943 billion as of December 31, 2024, primarily due to increases in deposits and debt securities issued, which was partially offset by other liabilities. Deposit increased by 10.8% to W422,781 billion as of December 31, 2024 from W381,513 billion as of December 31, 2023, primarily due to increases in time deposits in Korean Won and foreign currencies. Debt securities issued increased by 15.0% to W93,766 billion as of December 31, 2024 from W81,562 billion as of December 31, 2023, primarily due to an increase in debt securities issued in Korean Won and foreign currencies. Other liabilities decreased by 16.1% to W40,880 billion as of December 31, 2024 from W48,722 billion as of December 31, 2023, primarily due to a decrease in domestic exchanges payable. Total equity increased by 4.4% from W56,322 billion as of December 31, 2023 to W58,821 billion as of December 31, 2024, largely due to an increase in retained earnings from profit for the year and the issuance of additional hybrid bonds by the Group. ITEM 5.B. Liquidity and Capital Resources We are exposed to liquidity risk arising from the funding of our lending, trading and investment activities and in the management of trading positions. The goal of liquidity management is for us to be able, even under adverse conditions, to make all of our liability repayments on time and fund all investment opportunities. For an explanation of how we manage our liquidity risk, see “Item 4.B. Business Overview — Risk Management — Market Risk Management — Market Risk Management for Non-trading Activities — Liquidity Risk Management.” In our opinion, our working capital is sufficient for our present requirements. 191 Table of Contents The following table sets forth our debt and capital resources as of December 31, 2025. As of December 31, 2025 (In billions of Won) Deposits W 447,649 Long-term debt 96,720 Call money 1,437 Borrowings from the Bank of Korea 3,575 Other short-term borrowings 47,444 Asset securitizations — Stockholders’ equity(1) 19,072 Total W 615,897 Note: (1) Includes capital stock, share premium, and hybrid bonds issued. We obtain funding from a variety of sources, both domestic and foreign. Our principal source of funding is customer deposits obtained from our banking operations, although we also issue equity and debt securities from time to time. In addition, our subsidiaries acquire funding through call moneys, borrowings from the Bank of Korea, other short-term borrowings, corporate debentures, other long-term debt and asset-backed securitizations. Our primary funding strategy has been to achieve low-cost funding by increasing the average balances of low-cost retail customer deposits. Customer deposits accounted for 70.7% of our total funding as of December 31, 2023, 72.2% of our total funding as of December 31, 2024 and 72.7% of our total funding as of December 31, 2025. Historically, except in limited circumstances, a substantial portion of such customer deposits were rolled over upon maturity and accordingly provided a stable source of funding for our banking subsidiaries, largely due to the lack of alternative investment opportunities for individuals and households in Korea, especially in light of a low interest rate environment and volatile stock market conditions. However, in the face of attractive alternative investment opportunities such as during a bullish run of the stock market, customers may transfer a significant amount of bank deposits to alternative investment products in search of higher returns, which may result in temporary difficulties in finding sufficient funding on commercial terms favorable to us. In addition, in recent years, we have faced increasing pricing competition from our competitors with respect to our deposit products. If we do not continue to offer competitive interest rates to our deposit customers, we may lose their business, which has traditionally provided a stable and low-cost source of funding. Even if we are able to match our competitors’ pricing, doing so may result in an increase in our funding costs, which may have an adverse impact on our results of operations. While our banking subsidiaries generally have not faced, and currently are not facing, liquidity difficulties in any material respect, if we or our banking subsidiaries are unable to obtain the funding we need on terms commercially acceptable to us for an extended period of time for reasons of Won devaluation or otherwise, we may not be able to ensure our financial viability, meet regulatory requirements, implement our strategies or compete effectively. See “Item 3.D. Risk Factors — Risks Related to Our Overall Business — Changes in interest rates, foreign exchange rates, bond and equity prices, and other market factors have affected and will continue to affect our business, results of operations and financial condition.” As of December 31, 2023, 2024 and 2025, deposits made by litigants in connection with legal proceedings in Korean courts amounted to W6,421 billion, W6,975 billion and W7,057 billion, respectively, or 1.7%, 1.7% and 1.6%, of Shinhan Bank’s total deposits, respectively. Court deposits carry interest rates which are generally lower than market rates. 192 Table of Contents In addition, we obtain funding through borrowings and the issuances of debt and equity securities, primarily through Shinhan Bank. Our borrowings consist mainly of borrowings from financial institutions, the Government and Government-affiliated funds. Call money, which is available in both Won and foreign currencies, is obtained from the call loan market, a short-term loan market for loans with maturities of 90 days or less. As for our long-term debt, it is principally in the form of corporate debt securities issued by Shinhan Bank. Since 1999, Shinhan Bank has actively issued and continues to issue long-term debt securities with maturities of over one year in the Korean fixed-income market. Shinhan Bank and we have maintained one of the highest credit ratings in the domestic fixed-income market since our inceptions in 1999 and 2001, respectively. As Shinhan Bank maintains one of the highest debt ratings in the fixed-income market in Korea, we believe that Shinhan Bank will be able to obtain replacement funding through the issuance of long-term debt securities. Shinhan Bank’s interest rates on long-term debt securities are, in general, 20 to 30 basis points higher than the interest rates offered on their deposits. However, since long-term debt is not subject to premiums paid for deposit insurance and the Bank of Korea reserves, we estimate that our funding costs on long-term debt securities are generally on par with our funding costs on deposits. In addition, we and Shinhan Bank may also issue long-term debt securities denominated in foreign currencies in overseas markets. We and Shinhan Bank each have a global medium term notes program under which foreign currency-denominated notes may be issued with aggregate program limits of US$5 billion and US$8 billion, respectively. As of December 31, 2023, 2024 and 2025, our long-term debt amounted to W78,624 billion, W94,839 billion and W96,720 billion, respectively. We also have funding requirements for our credit card activities. We obtain funding for our credit card activities from a variety of sources, primarily in Korea. The principal sources of funding for Shinhan Card are debentures, commercial papers (including call money) and borrowings from us and third-parties, which amounted to W25,515 billion, W1,777 billion, W1,383 billion and W1,241 billion, respectively, or 85.3%, 5.9%, 4.6%, and 4.2% of the funding for our credit card activities, as of December 31, 2025. Unlike other credit card companies, Shinhan Card has the benefit of obtaining funding at favorable rates through loans from us, which currently maintains the highest credit rating assigned by local rating agencies. Shinhan Card aims to further diversify its funding sources and more actively tap the domestic and international capital markets to ensure access to liquidity as needed. Credit ratings affect the cost and other terms upon which we and our subsidiaries are able to obtain funding. Domestic and international rating agencies regularly evaluate us and our subsidiaries, and their ratings of our and our subsidiaries’ long-term debt are based on a number of factors, including our financial strength as well as conditions affecting the financial services industry in general. There can be no assurance that we or our subsidiaries will maintain our current credit ratings if, among other reasons, the global or Korean economy were to face another downturn, there are any changes in our corporate governance or our businesses significantly deteriorate. Our failure to maintain current credit ratings and outlooks could increase the cost of our funding, limit our access to capital markets and other borrowings, and require us to post additional collateral in financial transactions, any of which could adversely affect our liquidity, net interest margins and profitability. Secondary funding sources also include call money, borrowings from the Bank of Korea and other short-term borrowings, which amounted to an aggregate of W43,976 billion, W37,663 billion and W52,456 billion, as of December 31, 2023, 2024 and 2025, respectively, each representing 8.1%, 6.4% and 8.5% of our total funding as of such dates, respectively. We may also from time to time obtain funding through the issuance of equity securities. For example, on September 29, 2020, partly in response to the prolonged COVID-19 pandemic and to increase our loss absorption capacity, we issued 39,130,000 common shares to two private equity funds, thereby increasing our paid-in capital by W195.7 billion. As a result of such offering, which was substantially fully subscribed and resulted in a capital increase of 7.5%, we raised W1,158 billion (before underwriting commissions and other offering expenses). 193 Table of Contents In addition, we obtain funding through issuance of hybrid bonds. In 2025, additional hybrid bonds in the amount of W798 billion were newly issued to improve our capital adequacy ratio by expanding our capital. As of December 31, 2025, the total amount of our hybrid bonds issued was W4,750 billion. In limited situations, we may also issue convertible and/or preferred shares. For example, in August 2003, in order to partly fund our acquisition of Chohung Bank, we raised a total of W2,552 billion through domestic private placements of redeemable preferred shares and redeemable convertible preferred shares to domestic financial institutions and governmental entities in Korea, all of which shares have since been redeemed or converted. In addition, in January 2007, partly to fund the acquisition of LG Card, we raised a total of W3,750 billion through domestic private placements of redeemable preferred shares and redeemable convertible preferred shares, all of which have been redeemed as of the date hereof. In April 2011, we issued redeemable preferred shares to fund redemption of such securities, and in April 2016, we redeemed the redeemable preferred shares issued in April 2011. In May 2019, we raised a total of W750 billion through domestic private placements of convertible preferred shares, all of which were fully converted into common shares in May 2023. For further details of our preferred shares, see “Item 10.B. Memorandum and Articles of Incorporation — Description of Preferred Stock.” Pursuant to laws and regulations in Korea, we may redeem our preferred stock to the extent of our retained earnings of the previous fiscal year, net of certain reserves. At this time, we expect that cash from our future operations would be adequate to provide us with sufficient capital resources to enable us to redeem our preferred stock on or prior to their scheduled maturities. In the event there is a short-term shortage of liquidity to make the required cash payments for redemption as a result of, among other things, failure to receive dividend payments from our operating subsidiaries on time or as a result of significant expenditures resulting from future acquisitions, we plan to raise cash liquidity through the issuance of long-term debt in the Korean fixed-income market in advance of the scheduled maturity on our preferred stock. To the extent we need to obtain additional liquidity, we plan to do so through the issuance of long-term corporate debentures or further preferred stock and/or the use of our other secondary funding sources. We generally may not acquire our own shares except in certain limited circumstances such as a capital reduction. However, pursuant to the Financial Investment Services and Capital Markets Act and regulations under the Financial Holding Companies Act, we may purchase our own shares on the KRX KOSPI Market of the Korea Exchange or through a tender offer, or retrieve our own shares from a trust company upon termination of a trust agreement subject to the restrictions that (1) the aggregate purchase price of such shares may not exceed the total amount available for distribution of dividends at the end of the preceding fiscal year less the amounts of dividends and reserves for such fiscal year, subtracted by the sum of (a) the purchase price of treasury stock acquired if any treasury stock has been purchased after the end of the preceding fiscal year pursuant to the Commercial Act or the Financial Investment Services and Capital Markets Act, (b) the amount subject to a trust contract, and (c) the amount of dividends approved at the ordinary general shareholders’ meeting after the end of the preceding fiscal year and the amount of retained earnings reserve required under the Commercial Act; plus if any treasury stock has been disposed of after the end of the preceding fiscal year, the acquisition cost of such treasury stock, and (2) the purchase of such shares shall meet the requisite ratio under the Financial Holding Companies Act and regulations thereunder. In addition, pursuant to the Financial Investment Services and Capital Markets Act, in certain limited circumstances, dissenting holders of shares have the right to require us to purchase their shares. In March 2026, the Korean Commercial Code was amended to, among others, mandate the cancellation of all treasury shares held by a company, including those held prior to the amendment, subject to certain limited exceptions. Contractual Obligations, Commitments and Guarantees In the ordinary course of our business, we have certain contractual cash obligations and commitments which extend for several years. As we are able to obtain liquidity and funding through various sources as described in “— Liquidity and Capital Resources” above, we do not believe that these contractual cash obligations and commitments will have a material effect on our liquidity or capital resources. 194 Table of Contents Contractual Cash Obligations The following table sets forth our contractual cash obligations as of December 31, 2025. As of December 31, 2025 Payments Due by Period(1) Less than 1 Month 1-3 Months 3-6 Months 6-12 Months 1-5 Years More than 5 Years Total (In billions of Won) Deposits W 231,521 W 54,103 W 54,526 W 84,041 W 30,678 W 2,275 W 457,144 Borrowings 16,798 6,964 6,222 8,478 11,924 6,074 56,460 Debt securities issued 6,231 8,486 9,203 15,053 56,412 3,889 99,274 Investment contract liabilities 189 11 91 159 1,086 — 1,536 Lease liability 39 47 68 123 420 93 790 Total W 254,778 W 69,611 W 70,110 W 107,854 W 100,520 W 12,331 W 615,204 Note: (1) Reflects all estimated contractual interest payments due on our interest-bearing deposits, borrowings, debt securities issued and lease liability, and the estimated contractual interest payments on borrowings and debt securities that are on a floating rate basis as of December 31, 2025 were computed as if the interest rate used on the last applicable date (for example, the interest payment date for such floating rate loans immediately preceding the determination date) were the interest rate applicable throughout the remainder of the term. Commitments and Guarantees In the normal course of our business, we and our subsidiaries make various commitments and guarantees to meet the financing and other business needs of our customers. Commitments and guarantees are usually in the form of, among others, commitments to extend credit, commercial letters of credit, standby letter of credit and performance guarantees. The contractual amount of these financial instruments represents the maximum possible loss amount if the counterparty draws down the commitment or we should fulfill our obligation under the guarantee and the counterparty fails to perform under the contract. See “Item 4.B. Business Overview — Description of Assets and Liabilities — Credit-Related Commitments and Guarantees.” The following table sets forth our commitments and guarantees as of December 31, 2025. These commitments, apart from certain guarantees and acceptances, are not included within our consolidated statements of financial position. As of December 31, 2025 Commitment Expiration by Period Less than 1 Year 1-5 Years More than 5 Years Total (In billions of Won) Commitments to extend credit(1) W 1,391 W 91,819 W 27,392 W 120,602 Commercial letters of credit(2) 151 3,227 1 3,379 Financial guarantees(3) 189 5,098 111 5,398 Performance guarantees(4) 181 12,703 1,443 14,327 Liquidity facilities to SPEs(5) 15 2,133 501 2,649 Acceptances(6) — 456 — 456 Endorsed bills(7) 10,564 10 — 10,574 Unused credit limits on credit cards 93,231 — — 93,231 Other 1,592 723 4,169 6,484 Total W 107,314 W 116,169 W 33,617 W 257,100 Notes: 195 Table of Contents (1) Commitments to extend credit represent unfunded portions of authorizations to extend credit in the form of loans. The commitments expire on fixed dates and a customer is required to comply with predetermined conditions to draw funds under the commitments. Commitments to extend credit, including credit lines, are in general subject to provisions that allow us to withdraw such commitments in the event there are material adverse changes affecting an obligor. (2) Commercial letters of credit are undertakings on behalf of customers authorizing third parties to draw drafts on us up to a stipulated amount under specific terms and conditions. These are generally short-term and collateralized by the underlying shipments of goods to which they relate. (3) Financial guarantees are contracts that require us to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial guarantee liabilities are recognized initially at their fair value, and the initial fair value is amortized over the life of the financial guarantee. The financial guarantee liability is subsequently carried at the higher of this amortized amount and the present value of any expected payment when a payment under the guarantee has become probable. Financial guarantees are included within other liabilities. (4) Performance guarantees are issued to guarantee customers’ tender bids on construction or similar projects or to guarantee completion of such projects in accordance with contractual terms. They are also issued to support a customer’s obligation to supply products, commodities, maintenance or other services to third parties. (5) Liquidity facilities to SPEs represent irrevocable commitments to provide contingent credit lines including commercial paper purchase agreements to special purpose entities for which we serve as the administrator. (6) Acceptances represent guarantees by us to pay a bill of exchange drawn on a customer. We expect most acceptances to be presented, but reimbursement by the customer is normally immediate. (7) Endorsed bills represent notes transferred to third parties by us. We are obligated to fulfill the duty of payment if the person primarily liable does not honor the bill on the due date. See also Note 48 of the notes to our consolidated financial statements included in this annual report. 196 Table of Contents Capital Adequacy The regulations of the Financial Services Commission require that capital ratios be computed based on our consolidated financial statements under IFRS and regulatory guidelines. The following table sets forth a summary of our capital and capital adequacy ratios as of December 31, 2023, 2024 and 2025 based on Basel III. As of December 31, 2023 2024 2025 (In millions of Won, except percentages) Tier I Capital: Tier I CE Capital W 41,388,070 W 44,562,500 W 47,115,338 Paid-in capital 2,969,641 2,969,641 2,969,641 Capital reserve 11,352,744 11,352,744 11,352,744 Retained earnings 36,387,314 39,020,580 41,796,129 Non-controlling interests in consolidated subsidiaries 50,419 54,262 93,066 Others (9,372,047 ) (8,834,727 ) (9,096,243 ) Additional Tier I Capital 5,118,817 5,824,082 5,890,967 Total Tier I Capital W 46,506,887 W 50,386,582 W 53,006,305 Tier II Capital: Allowances for credit losses 1,107,906 1,022,708 935,374 Subordinated debt 0 0 0 Others 2,577,731 2,494,079 2,318,918 Total Tier II capital W 3,685,637 W 3,516,787 W 3,254,292 Total Capital W 50,192,524 W 53,903,369 W 56,260,597 Risk-weighted assets Credit risk W 260,495,455 W 287,178,860 W 296,945,493 Market risk 22,718,333 20,611,482 19,642,713 Operational risk 30,966,910 34,584,922 36,319,432 Total risk-weighted assets W 314,180,698 W 342,375,264 W 352,907,638 Capital adequacy ratio 15.98 % 15.74 % 15.94 % Tier I capital adequacy ratio 14.80 % 14.72 % 15.02 % Common equity capital adequacy ratio 13.17 % 13.02 % 13.35 % As of December 31, 2023 2024 2025 (Percentages) Group BIS ratio(1) 15.98 15.74 15.94 Total capital adequacy ratio of Shinhan Bank 18.08 17.55 17.38 Adjusted equity capital ratio of Shinhan Card(2) 19.71 20.00 20.76 Solvency ratio for Shinhan Life Insurance(3) 250.85 205.74 205.98 Notes: (1) Under the guidelines of the Financial Services Commission applicable to financial holding companies, the minimum requisite capital ratio applicable to us is 12.5% (Bank for International Settlement ratio of 8%). This computation is based on our consolidated financial statements in accordance with IFRS. See “Item 4.B. Business Overview — Supervision and Regulation — Principal Regulations Applicable to Financial Holding Companies — Capital Adequacy.” (2) Represents the ratio of total adjusted shareholders’ equity to total adjusted assets and is computed in accordance with the guidelines issued by the Financial Services Commission for credit card companies. 197 Table of Contents Under these guidelines, a credit card company is required to maintain a minimum adjusted equity capital ratio of 8%. This computation is based on the consolidated financial statements of the credit card company prepared in accordance with IFRS. See “Item 4.B. Business Overview — Supervision and Regulation — Principal Regulations Applicable to Credit Card Companies — Capital Adequacy.” (3) Solvency ratio is the ratio of the solvency margin to the standard amount of solvency margin as defined and computed in accordance with the guidelines issued by the Financial Services Commission for life insurance companies. Under these guidelines, Shinhan Life Insurance is required to maintain a minimum solvency ratio of 100%. See “Item 4.B. Business Overview — Supervision and Regulation — Principal Regulations Applicable to Insurance Companies — Capital Adequacy.” ITEM 5.C. Research and Development, Patents and Licenses, etc. Not applicable. ITEM 5.D. Trend Information These matters are discussed under Items 4.B., 5.A. and 5.B. above where relevant. ITEM 5.E. Critical Accounting Estimates Not applicable. ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES