Shinhan Financial Group has recorded the company’s highest-ever first-quarter net profit.
The growth of its interest income was driven by an increase in loans, despite a decline in the market interest rate and the elimination of a one-time expense related to compensation for losses from equity-linked securities (ELS) connected to the Hang Seng China Enterprises Index, which was reflected in the financial group’s business results in the first quarter of 2024.
Shinhan Financial Group announced on April 25 that its net profit, based on net profit attributable to equity holders of the parent, totaled 1,488.3 billion won in the first quarter of 2025.
This is 12.6 percent higher than the first quarter of last year (1.321 trillion won) and about 3.7 times higher than the fourth quarter of last year (406.1 billion won).
While Shinhan Financial Group’s net profit fell short of 1,594.6 billion won, the highest quarterly profit set in the third quarter of 2022, it is the highest-ever first-quarter net profit in the financial group’s history.
“Despite a drop in the market interest rate, we defended our net interest margin (NIM) by reducing procurement costs, while maintaining stable profits through loan asset growth led by corporate loans,” said a Shinhan Financial Group official.
The net interest margins (NIMs) for Shinhan Financial Group and Shinhan Bank stood at 1.91 percent and 1.55 percent in the first quarter, respectfully, up by 0.05 percentage points and 0.03 percentage points, from 1.86 percent and 1.52 percent in the fourth quarter of 2024.
However, both were 0.09 percentage points lower compared to 2.00 percent and 1.64 percent during the first quarter of 2024.
Shinhan Financial Group racked up 2,854.9 billion won in interest income in the first quarter, up 1.4 percent from a year ago, but down 1.9 percent from the previous quarter.
“On a year-on-year basis, Shinhan Financial Group’s interest income increased by 1.4 percent due to the growth of accumulated loan assets despite a decline in its NIM,” said a representative of Shinhan Financial Group.
“However, compared to the previous quarter, although Shinhan Financial Group’s NIM increased, its overall profit fell by 1.9 percent due to lower interest income from Shinhan Securities and Shinhan Capital.”
Shinhan Financial Group’s non-interest income including commissions (939.3 billion won) was 6.3 percent lower than those in the first quarter of 2024 but 3.8 times the size of those in the previous quarter.
While credit card and securities custody fee income and insurance-related income declined from one year ago, securities-related income recovered due to lower market interest rates over the past three months, according to Shinhan Financial Group’s analysis.
By affiliate, Shinhan Bank’s first-quarter net profit arrived at 1,128.3 billion won, 21.5 percent up from the same period of last year (92.86 billion won).
Net incomes of Shinhan Investment & Securities and Shinhan Life Insurance amounted to 107.9 billion won and 165.2 billion won by climbing by 42.5 percent and 7.1 percent, respectively from a year earlier. However, Shinhan Card’s net income hits 135.7 billion won, sliding by 26.7 percent.
Prior to the earnings announcement, Shinhan Financial Group held a Board of Directors meeting and resolved a dividend of 570 won per share for the first quarter to shareholders.
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