The following is a summary of the Shinhan Financial Group Co., Ltd. (SHG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Shinhan Financial Group reported a net income of KRW1.3215 trillion in Q1 2024, driven largely by top-line growth.
Interest income and noninterest income saw growth, with interest income increasing by 9.4% Year-on-Year.
The company maintained a good cost efficiency, keeping G&A increase at 1.2%, despite recognizing large non-operating expenses.
A reduced credit cost ratio of 38 basis points was reported, showing a Y-o-Y decrease by 10 basis points.
Business Progress:
Shinhan Financial Group aims to sustain profitability and secure capital adequacy through proactive loan asset growth strategy and efficient margin management.
With ongoing plans to invest in cloud infrastructure, the company expects to keep a sufficient capital buffer while maintaining stable financial performance.
There's a clear focus towards enhancing shareholder value via quarterly payouts, share buybacks, and cancellations.
Despite a decrease in profits in Q1 2024, the company plans to focus on stability, particularly in their prop trading business due to ongoing uncertainties.
Shinhan Financial set a CET1 ratio target of 13%, beyond which, they will take additional steps towards shareholder returns. A slight increase in credit cost is anticipated due to potential quality deterioration.
More details: Shinhan Financial Group Co Ltd IR
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