Shane Matthews's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q1 2024
Question
Shane Matthews asked if the Q1 recurring credit cost of 30 basis points is a sustainable level for coming quarters or if further preemptive provisioning is anticipated.
Answer
Sang-Hyuk Jung clarified that while the Q1 recurring credit cost was 30 bps, some increase is expected due to potential asset quality deterioration. He noted the full-year 2023 recurring credit cost was 38 bps and the company's internal target for 2024 is to manage it at or below 45 bps. He affirmed the company will remain preemptive in setting aside provisions to bolster loss absorption capacity.