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    Yong Jin Seol • SK Securities Co., Ltd.

    Yong Jin Seol's questions to Shinhan Financial Group Co Ltd (SHG) leadership

    Yong Jin Seol's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q1 2025

    Question

    Yong Jin Seol asked for details on the strategic shift for Jeju Bank, from pursuing an internet-only bank license to collaborating with Douzone Bizon on an ERP banking initiative. He inquired about the mid-to-long-term business size targets and its overall direction within the group.

    Answer

    Group CSO SeogHeon Koh explained the pivot was to avoid the complexities and long timeline of forming an internet-only bank consortium. The new embedded banking model with Jeju Bank offers a faster path to target the SME and SOHO loan market, acting as a test bed for the group. He stated a short-term target of KRW 1.5 trillion to KRW 2 trillion in loans for the initiative, with potential to expand to corporate employees later.

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    Yong Jin Seol's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q1 2025

    Question

    Yong Jin Seol asked for details on the strategic shift for Jeju Bank, moving from pursuing an internet-only bank license to an ERP banking collaboration with Douzone Bizon. He inquired about the mid-to-long-term business size targets and its overall direction within the group.

    Answer

    Group CSO SeogHeon Koh explained the strategy changed due to the complexity and resource intensity of forming an internet-only bank consortium. The new direction with Douzone Bizon offers a faster path to enhance Jeju Bank's competitiveness by focusing on SME and SOHO loans. He stated the short-term loan target is around KRW 1.5 to 2 trillion, with the initiative serving as a test bed for embedded banking for the entire group.

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    Yong Jin Seol's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q4 2024

    Question

    Yong Jin Seol inquired about the reasons for the poor Q4 performance of Shinhan's non-bank subsidiaries, specifically citing the securities, capital, and asset trust businesses.

    Answer

    Group CFO Sang-Hyuk Jung explained that the performance was impacted by several factors. The asset trust business saw a loss of approximately KRW 150 billion due to conservative provisioning for litigation and completion guarantees. The capital business was affected by real estate provisions, higher funding costs, and weaker investment returns. The securities business booked one-off losses from an ETF LP incident and conservatively reflected losses from past alternative investments.

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    Yong Jin Seol's questions to Shinhan Financial Group Co Ltd (SHG) leadership • Q1 2024

    Question

    Yong Jin Seol from SK Securities asked for specifics on which business areas drove the year-over-year growth in profitability for the global business.

    Answer

    Sang-Hyuk Jung attributed the 35.4% YoY earnings increase in the global business to strong interest income growth and a significant reversal in provisions resulting from successful NPL asset recovery. He highlighted strong recurring income from overseas subsidiaries and provision reversals in key financial hubs like London, Hong Kong, and New York.

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    Yong Jin Seol's questions to Woori Financial Group Inc (WF) leadership

    Yong Jin Seol's questions to Woori Financial Group Inc (WF) leadership • Q1 2025

    Question

    Yong Jin Seol asked about Woori Financial Group's capital allocation policy, expressing concern about the balance between the bank and non-bank segments, particularly with the planned expansion of the securities business and its impact on Risk-Weighted Assets (RWA).

    Answer

    An executive from Woori Financial Group explained that the company is actively rebalancing assets to improve its capital ratio. This involves reducing low-margin assets at the bank while shifting capital towards the newly licensed securities arm to grow its market share. The executive emphasized that the overarching goal is to achieve the group's 12.5% CET1 ratio target.

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    Yong Jin Seol's questions to Woori Financial Group Inc (WF) leadership • Q1 2024

    Question

    Yong Jin Seol of SK Securities questioned the group's credit cost of approximately 40 basis points, asking if this represents a new normalized level and what the management's target for the full year is.

    Answer

    CRO Park Jang-Geun stated that the Q1 credit cost of 40 bps included no significant one-off factors, despite some large but well-collateralized delinquencies. He expressed confidence that the group can manage the full-year credit cost at or below the 40 bps level, as no future one-off negative events are anticipated.

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    Yong Jin Seol's questions to Woori Financial Group Inc (WF) leadership • Q1 2024

    Question

    Yong Jin Seol of SK Securities questioned if the Q1 credit cost of 40 basis points represents a new normalized level and asked for the full-year credit cost management target.

    Answer

    CRO Park Jang-Geun stated that Q1 had no one-off factors, though some large, collateral-backed delinquencies occurred that are not expected to be a drag on costs. He expressed confidence that the group can manage the full-year credit cost at or below the current 40 basis point level.

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    Yong Jin Seol's questions to KB Financial Group Inc (KB) leadership

    Yong Jin Seol's questions to KB Financial Group Inc (KB) leadership • Q3 2024

    Question

    Yong Jin Seol from SK Securities sought clarification on the timing for the second-half share buyback, asking for the specific baseline date used to determine the CET1 ratio exceeding the 13.5% threshold.

    Answer

    CFO Jae Kwan Kim clarified that the second-half share buyback decision is based on the CET1 ratio as of the end of the second quarter. He noted that under special circumstances, the third quarter's ratio could be used, but the primary target baseline is the Q2 figure.

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