Do Ha Kim • Hanwha Investment & Securities

Answer

Group CFO Sang Yung Chun expressed confidence in meeting the 13.1% CET1 target, stating it is comfortably deliverable based on internal simulations, asset growth, and efficiency efforts. He explained the higher target provides an additional buffer against macro volatility. He assured that even with current trends, the group can deliver on its business plan while maintaining asset soundness as a top priority and supplying funds where needed.

Ask Fintool Equity Research AI

Answer

Group CFO Sang Yung Chun expressed strong confidence in achieving the 13.1% CET1 target, explaining it was a comfortably deliverable goal based on internal simulations and efficiency efforts. He noted the higher target provides an additional buffer against macro volatility. Chun affirmed that even with current trends, the group can deliver on its business plan while managing asset soundness as a top priority and supplying funds where needed.

Ask Fintool Equity Research AI

Answer

The bank's CFO explained that the Q4 non-interest income drop was due to a KRW 100 billion increase in CVA provisioning and one-off impairment losses related to principal-protected trust accounting. Group CFO Sang-Hyuk Jung added that the group's FX sensitivity has increased to about 10 basis points per KRW 100 change due to growing global business and that the KRW 5.8 trillion RWA increase in Q4 was almost entirely due to the depreciation of the Korean won.

Ask Fintool Equity Research AI

Answer

An executive from Shinhan Financial Group stated that the company is shifting its focus from quantitative to qualitative growth, emphasizing capital efficiency. The target for RWA growth is approximately 5%, with loan asset growth expected to be in line with this figure. The group is targeting a Return on Capital Employed (ROCE) of about 13%, which they consider a more intuitive metric than RORWA.

Ask Fintool Equity Research AI

Answer

CFO Sang-Hyuk Jung identified two one-offs: ELS-related costs and KRW 140 billion in preemptive provisioning for real estate PF and overseas commercial real estate. For Shinhan Asset Trust, he specified an outstanding balance of KRW 310 billion with KRW 87.1 billion in provisions, noting that further provisioning may occur in Q2 but the overall group impact should not be sizable.

Ask Fintool Equity Research AI

Answer

CRO Park Jang-Geun addressed the credit cost, attributing the higher level to one-off provisions and projecting a full-year 2025 CCR in the 'early mid-end of 40 bps,' with expected improvement in the second half from asset rebalancing. Another executive stated that a KRW 10 change in the exchange rate has approximately a 1.6 bps impact on the CET1 ratio.

Ask Fintool Equity Research AI

Answer

Bank CFO Jong-Min Lee responded that while overall NIM growth may be limited, an expected increase in core deposits should help defend the margin. Group CFO Sang-Rok Na reassured that CET1 ratio concerns were unfounded, citing disciplined RWA growth management within a 4.5% annual target and a selective approach to corporate lending to ensure a 'soft landing' and protect the capital ratio.

Ask Fintool Equity Research AI

Answer

CFO Jae Kwan Kim confirmed that internal RoRWA targets will be set starting next year and linked to executive and employee compensation, though the specific targets are not public. He clarified that until the Price-to-Book Ratio (PBR) reaches 1.0x, the group will prioritize expanding share buybacks and cancellations, which is expected to accelerate the growth rate of DPS, while cash dividends will still increase gradually based on market conditions.

Ask Fintool Equity Research AI

Answer

An executive confirmed that the impact on the Risk-Weighted Assets (RWA) increase related to the ELS provisions was approximately KRW 6.8 trillion.

Ask Fintool Equity Research AI