Sign in

    Jihyun Cho • JPMorgan Chase & Co.

    Jihyun Cho's questions to Shinhan Financial Group Co Ltd (SHG) leadership

    Jihyun Cho's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q3 2024

    Question

    Jihyun Cho of JPMorgan Chase & Co. requested an update on the group's real estate Project Finance (PF) exposure, the potential for additional provisioning or reversals, and the overall timeline for resolution as market conditions evolve.

    Answer

    CRO Bang Dong-kwon explained that while the market anticipates recovery, government-led PF loan normalization will proceed rapidly. The group's PF exposure is KRW 9.4 trillion, and after a full viability review, significant provisions have been made. He stated that while risks remain, large-scale provisioning like in H1 is unlikely, though smaller, recurring provisions may occur. An executive added that the peak for completion guarantee projects is expected in H2 2024.

    Ask Fintool Equity Research AI

    Jihyun Cho's questions to KB Financial Group Inc (KB) leadership

    Jihyun Cho's questions to KB Financial Group Inc (KB) leadership • Q3 2024

    Question

    Jihyun Cho of JPMorgan asked about the credit cost projection, the potential for additional provisioning related to ongoing project financing (PF) restructuring, and the current status of the PF market, including any concerns with real estate trust products.

    Answer

    An executive explained that due to conservative and preemptive provisioning in the past, the group is now seeing some reversals and expects to maintain its credit cost ratio (CCR) at around 40 basis points next year. While new provisioning is required for real estate trusts, ample provisions were set aside in H1. The executive noted that problematic PF sites are being resolved, leading to a decrease in NPLs and some provision write-backs.

    Ask Fintool Equity Research AI

    Jihyun Cho's questions to KB Financial Group Inc (KB) leadership • Q1 2024

    Question

    Jihyun Cho of JPMorgan Securities posed several questions regarding Project Financing (PF) provisioning rates, any new provisions for overseas real estate, and whether the 40 bps Credit Cost Ratio (CCR) target was for Q3 or the full year.

    Answer

    An executive responded that the provisioning rate against PF exposure is about 5%, emphasizing that 95% of the portfolio is high-quality senior debt. They clarified that the 40 bps CCR guidance is intended to apply on both a quarterly and an annual basis. The question regarding overseas real estate provisions was not directly addressed in the transcript.

    Ask Fintool Equity Research AI