Shinhan Financial Group (055550) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Shinhan Financial Group is a financial holding company built around Shinhan Bank and rounded out by Shinhan Card, Shinhan Securities and Shinhan Life. It earns interest income from the rate gap between deposits and loans, plus card fees and profit from its securities and insurance arms. Net profit attributable to controlling interests in the first half of 2026 was ₩3.4427 trillion, up 13.3% from a year earlier, and on 23 July it decided to repurchase ₩700 billion of treasury shares and cancel the entire amount while setting the second-quarter dividend at ₩740 per share. The notable point recently is that shareholder returns which genuinely shrink the share count are a strength, while roughly 71% of group profit comes from the bank, so margin compression in a falling-rate period and the voluntary retirement and provisioning costs that cluster in the fourth quarter belong in the picture too.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Banks” (Financials), a type typically read first through P/B.
Banks earn by putting capital to work through deposits and loans, so what matters is how much equity (net assets) they hold and how efficiently they use it, more than headline profit. That makes price-to-book (P/B) the first lens — but it should be read alongside ROE, which shows how much profit the equity generates.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- ROE is 8.6% (controlling-interest basis). It is below the sector average.
Ownership & governance As of 2025-12-31
Largest shareholder National Pension Service 9.03% (corporate)
Controlling bloc incl. related parties 9.03%
With the controlling bloc holding 9%, ownership is dispersed, leaving room for control-related or activist dynamics.
Financial-group subsidiaries stake
| Shinhan Bank | subsidiary | 100% |
🔎 In-depth analysis Reading
Shinhan Financial Group is not a company that makes and markets goods; it is a holding company that owns a set of financial subsidiaries and gathers their profits. The root of the money is Shinhan Bank. A bank earns interest income from the gap between the rate it pays on deposits and the rate it receives on loans (the net interest spread). Of the group's ₩3.4427 trillion of first-half 2026 net profit attributable to controlling interests, Shinhan Bank accounted for ₩2.4585 trillion, roughly 71%, while Shinhan Card contributed ₩253.4 billion and Shinhan Life ₩290.6 billion. The remaining ₩440.2 billion is a mix of the other affiliates such as Shinhan Securities and Shinhan Capital plus adjustments at the holding-company level. That portion swelled more than twofold from ₩179.6 billion in the same period a year earlier, and it effectively drove this half's profit growth on its own. In other words, the company looks bank-centered from the outside, but the recent increase in profit is coming from outside the bank.
The latest close is ₩107,400 and the market capitalization is ₩50.4 trillion. The price sits above its 20-day moving average (₩104,270) and above its 60-day moving average (₩100,433). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 58.5, a neutral level. The one-month change is -1.1%, the three-month change is +10.4%, and the position relative to the 52-week high is -1.7%. Relative strength versus the KOSPI is 61 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 61% of all stocks. Over the past three months it outpaced the index by 29.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For a bank or financial holding company, capital rather than profit is the backbone of value, so pairing P/B (how many times book shareholders' equity the share price represents) with ROE (how much is earned in a year on shareholders' equity) is more accurate than leaning on P/E (how many times one year of profit the share price represents). The reported figures are a P/B of 0.88x, a P/E of 10.25x and an ROE of 8.58%. We reworked that P/B directly from the latest filings. After 5.2 million shares were cancelled on 15 July, total shares outstanding came to 469,450,239, and multiplying by the 3 August close gives a market capitalization of ₩48.2 trillion. Dividing that by ₩57.96 trillion of equity attributable to controlling interests at the end of 2025 yields 0.83x, effectively the same as the reported figure. That said, the ₩3.4427 trillion earned in the first half is piling into capital, so actual book value has thickened further, which leaves room to view the effective P/B today as below 0.88x. The ROE differs from the 9.11% for 2025 that the company disclosed in April, because the reported figure is a simple calculation using period-end capital while the company applies its own methodology. The dividend yield is 2.5%, the dividend per share is ₩2,590 and the payout ratio is 25.1%. A debt-to-equity ratio of 1,356% reflects a structure in which customer deposits are booked as liabilities, so it cannot be read as dangerous by manufacturing standards. For the same reason, enterprise-value metrics and free cash flow are not presented, since taking deposits and borrowing is itself the business in finance and those measures do not carry meaning. With profit earned every quarter and capital accumulating, there is also no cash-burn concern here.
Profit has grown three years running. Operating profit went ₩6.10 trillion in 2023 → ₩6.46 trillion in 2024 → ₩7.02 trillion in 2025, while net profit attributable to controlling interests went ₩4.37 trillion → ₩4.45 trillion → ₩4.97 trillion. The pace picked up as well, with net profit growth accelerating from +1.9% in 2024 to +11.7% in 2025. The trend continues in 2026. Quarterly operating profit rose from ₩2.1545 trillion in the first quarter to ₩2.4763 trillion in the second, and first-half net profit attributable to controlling interests of ₩3.4427 trillion was 13.3% higher than the ₩3.0374 trillion a year earlier. Taking the second quarter alone, net profit attributable to controlling interests of ₩1.8201 trillion was up 12.2% from the prior quarter and 17.5% from a year earlier. The texture of that growth matters. Over the same period Shinhan Bank was up 8.5% and Shinhan Card up 2.8%, while Shinhan Life actually fell 15.6%. The group's double-digit growth came from profit at the remaining affiliates such as securities and capital swelling from ₩179.6 billion to ₩440.2 billion. This year's earnings bar was set by taking those confirmed first-half results and adding steady growth in loan assets, the passing of a peak in real-estate-related provisioning, and non-interest income centered on securities that remains healthy. That produces a forward P/E of 9.38x. The second-half profit implied by that multiple is similar to the second half of last year (₩1.9342 trillion), so given that the first half is already running 13.3% ahead, the calculation leaves plenty of cushion. For reference, the 36.1% surge in first-half 'revenue' comes from an item that simply adds interest, fee and investment income together; the business has not grown by that much.
The center of the recent story is shareholder returns. On 23 April the company filed a new corporate value enhancement plan on a voluntary basis. On top of the three targets set in July 2024 with a 2027 deadline — 10% ROE, a 50% total shareholder return ratio and a 50 million reduction in shares outstanding — it attached the name 'Shinhan Value-Up+++' and presented ROE of 10-12%, a total shareholder return ratio of 50% or more and a common equity tier 1 ratio (CET1) of 13% or more as its management range. The same filing reported 2025 results of 9.11% ROE (up 67 basis points year on year) and a 50.2% total shareholder return ratio. Execution stands out more than words. Cancellations of 10.84 million shares on 6 February and 5.2 million shares on 15 July brought total shares outstanding to 469,450,239. On 23 July it decided to acquire ₩700 billion (6,698,564 shares) of treasury shares in the market and then cancel the entire amount together with a single odd share already held. The acquisition period runs from 31 July to 22 October. On the same day it set the second-quarter dividend at ₩740 per share (₩347.3 billion in total), with a record date of 30 July and a payment date of 28 August. The company fixed its 2026 quarterly dividend record dates in advance to make dividends more predictable. On 30 July the wholly owned Shinhan Asset Trust decided to absorb Shinhan REITs Management; the company said this is an organizational tidy-up gathering the real-estate business in one place and will not have a large effect on consolidated results. Separately, on 28 July it responded to press reports that it was pursuing a stake in a non-life insurer by stating that 'nothing has been decided', and gave notice that it would file again on 27 October. No further major filings appeared through 3 August.
Start with what is worth observing. Shareholder returns are being executed in numbers, not slogans. Total shares outstanding fell 3.3% from 485,494,934 at the start of the year to 469,450,239, and once the planned cancellation is complete the count reaches about 462.75 million. That is a decline of roughly 4.7% in a year, so even with the same profit the per-share portion grows. It is also worth noting that the profit mix is inching away from the bank alone: most of the first-half increase came from non-bank units. The cautions are equally clear. Even so, about 71% of group profit still comes from the bank, and bank profit is sensitive to the direction of interest rates. When the policy rate falls, the deposit-loan spread compresses. Nor was everything outside the bank strong. The insurance arm's first-half profit fell 15.6% and the card business was nearly flat. Growth is concentrated in securities and capital, and profit in that area swings with market conditions. The fourth quarter carries a seasonal pattern in which voluntary retirement costs and conservative provisioning cluster, so the first-half pace should not simply be extended across the full year. On valuation, the forward P/E of 9.38x is slightly below KB Financial Group (9.0x) and above Hana Financial Group (8.2x), Woori Financial Group (7.3x) and JB Financial Group (6.7x). A dividend yield of 2.5% is also the lowest among its peers. Still, what is paid out less in dividends is returned through treasury share cancellation, so this is a name that looks less appealing on dividends alone and quite different once dividends and cancellations are taken together. Matters not yet settled, such as the reported non-life insurer acquisition, could affect where capital is deployed and the CET1 ratio, so the content of the October re-filing is worth checking.
🔎 Valuation vs peers Fairly valued
The four major Korean bank holding groups (Shinhan, KB, Hana, Woori) — their structure of a bank at the core with card, securities and insurance affiliates alongside is effectively identical, so they can be compared directly on P/B, ROE and forward P/E. JB Financial Group, a regionally based group, is added as a contrast on valuation relative to profitability. The bank holding sector medians are a P/E of 7.84x, a P/B of 0.78x, an ROE of 9.0% and a forward P/E of 9.38x, but those medians include regionally based groups trading at low multiples, so comparing among the four majors is more accurate.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KB Financial Group | 10.43x | 1.02x | 10.19% |
| Hana Financial Group | 9.14x | 0.81x | 9.03% |
| Woori Financial Group | 7.87x | 0.64x | 8.18% |
| JB Financial Group | 7.49x | 0.89x | 12.10% |
For bank holding groups, capital is the backbone of value, so P/B and ROE are read together. Shinhan's P/B of 0.88x is below KB Financial Group (1.02x) and above Hana Financial Group (0.78x) and Woori Financial Group (0.68x). The forward P/E of 9.38x lines up the same way — just under KB (9.0x) and above Hana (8.2x) and Woori (7.3x). Within the four majors that is second from the top, a modest premium to peers. ROE of 8.58%, however, is the lowest of the four. With profitability not ahead of peers while the multiple sits in the upper middle, it is hard to call this a discount to peers. It is equally hard to call it an excessive premium. The reported P/E of 9.81x is calculated on confirmed 2025 results, so this year's improvement is entirely absent; reflecting the 13.3% rise already booked in first-half net profit attributable to controlling interests brings the multiple down to 8.9x. On top of that, shares outstanding are down 3.3% this year alone and a ₩700 billion cancellation is scheduled, so the denominator keeps shrinking. ROE was 9.11% for 2025 on the company's own basis and it has set a 10-12% management range, leaving room for the profitability gap with peers to narrow. For reference, JB Financial Group has the highest ROE at 12.0% yet a forward P/E of only 6.7x — which also says that Korean bank holding groups as a whole are in a stretch of low multiples relative to profitability. Taken together, this is a spot with neither a clear discount nor a clear premium to peers, so we view it as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩107,400 and the market capitalization is ₩50.4 trillion. The price sits above its 20-day moving average (₩104,270) and above its 60-day moving average (₩100,433). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 58.5, a neutral level. The one-month change is -1.1%, the three-month change is +10.4%, and the position relative to the 52-week high is -1.7%. Relative strength versus the KOSPI is 61 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 61% of all stocks. Over the past three months it outpaced the index by 29.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +29.18% / 6M +2.34% / 12M -19.43%
Key metrics Computed vs sector median
Valuation
The P/E of 10.25x is above the sector median (7.87x). The P/B of 0.85x is in line with the sector median (0.81x).
Profitability & financials
Return on equity (ROE) is 8.6%, in line with the sector average (9.0%). The debt ratio is 1278.8%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | — | — | — |
| Operating profit | $4.3B | $4.5B | $4.9B | +8.74% ↑ faster |
| Net profit | $3.1B | $3.1B | $3.5B | +11.72% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $4.3B | $4.5B | $4.9B |
| Net profit | — | — | $3.1B | $3.1B | $3.5B |
Operating profit rose 8.7% year over year. Profit is growing at an accelerating pace.
Latest quarterly results Source
No recent quarterly results confirmed from DART.
Technical indicators Computed
What stands out
- —
Points to watch
- The price is near its 52-week high, so chasing it warrants caution around volatility.
Recent news & events searched · sourced
- 2026-07-30FilingInter-subsidiary merger approved — the wholly owned Shinhan Asset Trust will absorb Shinhan REITs Management (no new shares issued, merger date 1 January 2027)An organizational tidy-up gathering the group's real-estate business line in one place. The company said the effect on its governance structure and consolidated financial structure is minimal. Source
- 2026-07-28UpdateClarification of press reports (undecided) — responding to reports that it is pursuing a stake in a non-life insurer, the company disclosed that it is 'reviewing various options to strengthen non-bank competitiveness, but nothing has been decided', with a re-filing scheduled for 27 OctoberA large acquisition would affect where capital is deployed and the CET1 ratio. For now the matter is undecided, so the outcome needs to be confirmed. Source
- 2026-07-23EarningsPreliminary consolidated second-quarter 2026 results — second-quarter operating profit of ₩2.4763 trillion and net profit attributable to controlling interests of ₩1.8201 trillion (+12.2% from the prior quarter, +17.5% year on year). First-half cumulative net profit attributable to controlling interests of ₩3.4427 trillion (+13.3%)After a first-quarter peak the second quarter rose instead, putting first-half profit ahead of pace. These are confirmed figures that lift the floor under this year's earnings bar. Source
- 2026-07-23FilingTreasury share acquisition approved — ₩700 billion covering 6,698,564 shares, acquisition period 31 July to 22 October 2026, for the purpose of shareholder returns and corporate value enhancementThis is a new acquisition and is premised on cancellation. The company said it would reconsider whether to make further acquisitions within the year once this one is complete. Source
- 2026-07-23FilingShare cancellation approved — the entire 6,698,565 shares (₩700 billion) combining the treasury shares to be acquired and an odd share already held; total shares outstanding at the time of the decision were 469,450,239A step that shrinks shares outstanding by about a further 1.4%. Paid-in capital does not fall; only per-share metrics rise. Source
- 2026-07-23DividendSecond-quarter 2026 cash dividend approved — ₩740 per share, ₩347.3 billion in total, record date 30 July, payment date 28 AugustThe execution of a policy that fixed quarterly dividend record dates early in the year to make dividends more predictable. Source
- 2026-07-15FilingCancellation of 5,204,122 shares (about ₩500 billion) following termination of a treasury share acquisition trust agreement — total shares outstanding fall from 474,654,361 to 469,450,239The second cancellation this year after 10.84 million shares on 6 February. Shares outstanding are down 3.3% from the start of the year. Source
- 2026-04-23IRVoluntary filing of a corporate value enhancement plan, 'Shinhan Value-Up+++' — presenting ROE of 10-12%, a total shareholder return ratio of 50% or more and CET1 of 13% or more as its management range, and reporting 2025 results of 9.11% ROE and a 50.2% total shareholder return ratioA roadmap that raises and resets the plan set in July 2024 with a 2027 deadline (10% ROE, a 50% total shareholder return ratio and a 50 million reduction in shares outstanding). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (the headline metric for the bank holding sub-sector) recalculated precisely | 0.84x (base) | 0.83x — 469,450,239 × 8 3 ₩102,700 = ₩48.21 trillion 2025 ₩57.96 trillion | Confirmed | link |
| Total shares outstanding | 469,450,239 (base) | 469,450,239 | Confirmed | link |
| First-quarter 2026 operating profit and net profit | operating profit 2₩154.5 billion, net profit 1₩649.1 billion | — 2 '' operating profit 2,154,453, net profit 1,649,148 | Confirmed | link |
| 2025 dividend payout ratio | 25.06% | 25.1% | Confirmed | link |
| 2025 ROE | 8.58% | 9.11% | Mismatch | link |
| Sweep for missing recent filings (full re-query for February to August 2026) | base 2026-06-08 | 2026-07-30 — 7 10·15·20·23·24·28·30 | Confirmed | link |
| Assumptions behind the 2026 full-year profit estimate (forward P/E of 8.9x) | PER 9.38x (self-estimate) | net profit 3₩442.7 billion | Unverified | link |
Recent filings Source
- 2026-06-08Amended filing
- 2026-06-01Amended filing
- 2026-05-28Disclosure
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-11Disclosure
- 2026-05-08Disclosure
- 2026-05-08Disclosure
- 2026-05-08Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.