SHG Filings — Shinhan Financial Group Co., Ltd. - FilingSpy
SHG
Shinhan Financial Group Co., Ltd.
A South Korean financial holding company that oversees a family of businesses spanning banking, credit cards, securities, insurance, and asset management, serving retail and corporate customers through brands like Shinhan Bank and Shinhan Card. It traces its roots to 1982, when Korean businessmen living in Japan founded Shinhan Bank as the country's first private bank, and the group was formally organized as a holding company in 2001. The name "Shinhan" means "New Korea," a nod to the founders' hopes for their homeland.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Shinhan Financial Group's FY2025 profit rose 11.6% in won terms as lower deposit costs and higher brokerage fees offset a continued margin squeeze.
Profit rebounded after two years of decline. rose 11.6% to W5,085 billion as a 10% drop in deposit costs and a 34.6% increase in brokerage fees more than compensated for a 3-basis-point decline in . The recovery is underway, but credit quality in commercial real estate and the trajectory of Korean interest rates remain the central questions.
Key takeaways
rose 11.6% to W5,085 billion, reversing a two-year decline, as non-interest income growth and lower outweighed a modest drop in interest income from loans.
grew 2.6% to W11,694 billion: a 10% decline in deposit costs, following Bank of Korea rate cuts, more than offset a 4.2% decline in interest income from loans.
Net fees and commission income rose 7.6% to W2,921 billion, driven by a 34.6% increase in brokerage fees and a 28.8% increase in investment banking fees, partially offset by lower credit card fees.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
See “Item 4.B. Business Overview — Risk Management” for quantitative and qualitative disclosures about market risk. ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES ITEM 12.A. Debt Securities Not applicable. 236 Table of Contents ITEM 12.B. Warrants and Rights Not…
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See “Item 4.B. Business Overview — Risk Management” for quantitative and qualitative disclosures about market risk.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
ITEM 12.A. Debt Securities
Not applicable.
236
Table of Contents
ITEM 12.B. Warrants and Rights
Not applicable.
ITEM 12.C. Other Securities
Not applicable.
Shinhan Financial Group faces material risks from Korea's economic slowdown, intense competition, regulatory changes, and asset quality deterioration in SME and real estate lending.
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The was nearly flat at W2,003 billion, but the composition shifted: a 35.9% increase for corporate loans tied to a weakening commercial real estate market was offset by a 43.1% decline for retail loans.
The Banking 's rose 4.8% to W5,178 billion, while the Securities segment's operating income rose 73% to W488 billion; the Credit Card segment fell 15.5% to W742 billion on lower fee income.
Total assets grew 6.3% in won terms to W786,013 billion, funded by a 5.9% increase in deposits, and the improved to 13.35%.
What changed
The compression flagged in 2024 continued, declining a further 3 , as asset yields fell faster than funding costs despite the benefit of lower deposit rates.
The elevated credit loss provisions that management had expected for 2024 did not materialize at the same level; the total provision was nearly flat , though risk shifted from retail to corporate loans, particularly in commercial real estate.
The Credit Card 's struggle with higher funding costs, flagged in 2024, persisted and deepened: fell 15.5% after a 5.9% decline the prior year, now also pressured by lower fee income.
The legacy fund misselling claims (Lime, Discovery, German Heritage DLS), flagged across three consecutive annual filings, remain unresolved with no disclosed financial settlement in this filing.
What to watch
trajectory if the Bank of Korea cuts rates further, given the 3-basis-point compression in 2025 and the 10% drop in deposit costs that has already been realized.
Credit quality of the W7.0 trillion real estate project financing portfolio and the 35.9% increase in corporate loan provisions amid a weakening commercial real estate market.
The Credit Card 's ability to stabilize fee income and funding costs after a second consecutive year of declining .
Resolution and any financial impact of the legacy fund misselling claims, which remain outstanding after four years of disclosure.
Korea's economic weakness, high household/corporate debt, and political uncertainty following the 2024 martial law declaration and 2025 presidential election could significantly harm asset quality and earnings.
Intense competition from traditional banks, internet-only banks, and fintech firms is pressuring net interest margins and market share across banking, credit card, and other financial services.
Significant exposure to small- and medium-sized enterprises (31.9% of total loans) and real estate project financing (W7.0 trillion) poses heightened credit risk amid rising delinquency ratios.
Stricter and evolving capital adequacy requirements (e.g., Basel III, K-ICS, stress buffer capital) may necessitate additional capital raises or constrain business growth if ratios deteriorate.
Regulatory and legal risks are elevated, including potential liabilities from past financial product sales (e.g., Lime, Discovery funds), evolving AI regulations, and sanctions exposure from limited Iran/Russia-related activities.
A prolonged low-interest-rate environment could compress investment margins on insurance savings products and increase insurance contract liabilities under , adversely affecting profitability.
Shinhan Financial Group is a leading Korean financial holding company offering a comprehensive range of services including commercial banking, credit cards, securities, and insurance to approximately 21 million active customers.
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The company operates through key subsidiaries including Shinhan Bank, Shinhan Card, Shinhan Securities, and Shinhan Life Insurance, serving retail, corporate, and institutional clients.
Its principal banking activities are organized into retail banking, corporate banking (with a focus on small- and medium-sized enterprises), international business, and treasury/other services.
Shinhan Bank's retail loan portfolio is dominated by mortgage and home equity loans (62.4% of retail loans), while corporate loans are concentrated in the manufacturing (25.4%) and real estate (21.8%) sectors.
The company's 2026 strategy focuses on four key initiatives: establishing effective internal controls, creating differentiated customer value through digital and AI innovation, enhancing corporate citizenship, and enhancing corporate value.
Competition is intense across all segments, including from other major Korean banks, internet-only banks, and fintech companies, with regulatory changes and market saturation adding pressure on profitability.
As of December 31, 2025, the group's total gross loan portfolio was W469,768 billion, with a non-performing loan ratio of 0.57% and an on loans of 0.91% of total loans.
Shinhan Financial Group's FY2025 profit rose 11.6% to W5,085B on higher non-interest income and lower interest expense, despite a 3bps NIM decline.
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grew 2.6% to W11,694B as a 10% drop in deposit costs offset a 4.2% decline in interest income from loans, driven by Bank of Korea rate cuts.
Net fees and commission income rose 7.6% to W2,921B, led by a 34.6% surge in brokerage fees and a 28.8% increase in investment banking fees, partially offset by lower credit card fees.
Net other operating expense fell 0.9% to W7,592B, as a near-doubling of gains on financial instruments at and a 71.4% rise in FX gains were largely offset by a twelve-fold increase in net insurance finance expenses.
was nearly flat at W2,003B, with a 35.9% increase for corporate loans due to a weakening commercial real estate market, offset by a 43.1% decline for retail loans.
The Banking 's rose 4.8% to W5,178B, while the Securities segment surged 73% to W488B; the Credit Card segment fell 15.5% to W742B due to lower fee income.
Total assets grew 6.3% to W786,013B, funded by a 5.9% increase in deposits, and the Group's Common Equity Tier 1 ratio improved to 13.35%.