Sign in

    Sinyoung Park • Goldman Sachs

    Sinyoung Park's questions to Shinhan Financial Group Co Ltd (SHG) leadership

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

    Question

    Sinyoung Park of Goldman Sachs inquired about the detailed plans to increase earnings from non-banking subsidiaries and non-interest income in order to achieve the group's 10% Return on Equity (ROE) target.

    Answer

    An executive outlined a two-pillar strategy: improving profitability via a shift to qualitative, ROE-driven growth, and accelerating shareholder returns. A top priority is enhancing competitiveness in the capital markets, particularly after the incident at Shinhan Securities, while strengthening internal controls. The group also plans to focus on its global business and IB-related wealth management. More details will be provided in the next Value Up program update.

    Ask Fintool Equity Research AI

    Sinyoung Park's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q1 2024

    Question

    Sinyoung Park from Goldman Sachs inquired if the 60/40 capital allocation for growth and shareholder return is a long-term target and asked about the company's preference for share buybacks versus dividends.

    Answer

    An executive confirmed the 60/40 capital allocation policy remains in place. He stated that while the company's valuation is low (targeting at least 0.6x PBR), share cancellations are preferred over dividends. The long-term goal for the shareholder return ratio is 50%, with an initial target of 40%, and the guiding principle is to continuously increase the payout.

    Ask Fintool Equity Research AI