Seung-Gun Kang's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q4 2024
Question
Seung-Gun Kang of KB Securities asked about the strategy to manage RWA growth under 5% and which business segments would see reductions. He also requested a breakdown of RWA by subsidiary as of year-end 2024.
Answer
Group CFO Sang-Hyuk Jung provided the Q4 RWA balances for key subsidiaries: Card (KRW 40.8T), Securities (KRW 34.9T), and Capital (KRW 18.3T). He clarified the strategy is not to reduce assets but to shift to a selective growth path based on capital efficiency. He noted that lower interest rates might reduce demand for corporate bank loans. The group will use tighter internal penalties and ROCE-based metrics to control RWA growth and achieve its CET1 targets.