Shinhan Financial Group is a financial holding company built around Shinhan Bank, with subsidiaries including Shinhan Card, Shinhan Securities, Shinhan Life and Shinhan Capital. The bank's deposit-loan margin (interest income) is a major pillar of group profit, while non-bank subsidiaries such as cards, securities and insurance add non-interest income. In the first quarter of 2026 it posted net profit of ₩1.6491 trillion, a record quarterly high, and profitability improved as interest income and non-interest income grew together. What stands out lately is that the company has formalized a value-up plan to raise its total shareholder-return ratio — combining dividends and share buybacks — above 50%; this is a strong catalyst when steady earnings and ample capital back it up, though it should be weighed against the risk that falling interest rates or rising credit costs could slow the pace of profit improvement.
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.
- The forward P/E sits above the sector median, reflecting elevated expectations.
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
- Shinhan Financial Group does not sell products directly; it is a financial holding company that controls and manages financial subsidiaries and collects their profits as dividends.
- The center of group profit is Shinhan Bank, whose largest revenue source is interest income from the rate gap between deposits and loans (the deposit-loan margin).
- To this, non-bank subsidiaries add non-interest income — Shinhan Card (card fees and interest), Shinhan Securities (securities dealing and asset management), Shinhan Life (insurance) and Shinhan Capital.
- In other words, its defining feature is that it is a diversified financial group where banking, cards, securities and insurance generate profit together, rather than a structure concentrated in a single bank.
- The latest close is ₩105,000 and market capitalization is ₩49.8 trillion.
- The price sits above its 20-day moving average (₩101,020) and above its 60-day line (₩98,812).
- Trading above both the short- and mid-term averages, the trend is on the favorable side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0–100 scale) is 56.9, a neutral level.
- The price is up 6.9% over one month, up 14.9% over three months, and sits 3.3% below its 52-week high.
- Relative strength against the KOSPI is 52 (on a 1–99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it near the top 48% of all stocks by strength.
- Over the past three months it lagged the index by 12.6%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 10.02x and the P/B (price relative to the company's net assets) is 0.86x.
- That means it trades below net assets, in the low-P/B territory typical of bank stocks.
- ROE (how much the company earns in a year on its equity) is 8.6%, roughly in line with the peer average.
- On a first-quarter 2026 annualized basis, however, the company's figures show profitability rising into double digits, so annual profitability is on an improving path.
- For a bank or financial holding company, deposits and borrowings are structurally large, so the debt ratio and interest coverage ratio cannot be judged by the same yardstick as ordinary manufacturers.
- Capital soundness metrics are what matter instead: per company disclosure, the BIS ratio is in the 15% range and the common equity tier-1 (CET1) ratio exceeds 13%, so capital is ample.
- The dividend yield is 2.4%, and the 2025 payout ratio was about 25%.
- Profit is rising gradually but steadily.
- Net profit grew from ₩4.37 trillion in 2023 to ₩4.45 trillion in 2024 and ₩4.97 trillion in 2025, with 2025 growth of +11.7% steeper than the prior year's (+1.9%).
- Operating profit also rose for a third straight year at an accelerating pace.
- First-quarter 2026 net profit of ₩1.6491 trillion was up about 8.7% year on year, a record quarterly high.
- The quality of growth improved too, as non-interest income — not just interest income — grew at a double-digit pace, diversifying the earnings mix.
- Reflecting this trend, 2026 full-year net profit has room to rise into the low-to-mid ₩5 trillion range.
- In that case the current price is about 9.4x this year's expected earnings, lower than the 10.2x on last year's earnings.
- Recent disclosures can be summed up as 'shareholder returns' and 'capital management.' Alongside its first-quarter 2026 results, the company formalized a value-up plan to lift the total shareholder-return ratio above 50%.
- A first-quarter dividend of ₩740 per share was resolved, and a ₩700 billion share buyback for the first half is under way.
- Progress on the trust agreement for the buyback is also confirmed in disclosures.
- Meanwhile, a series of disclosures on subsidiaries' issuance of write-down contingent capital securities (capital-eligible debt) show the group managing its capital ratios while securing room to grow.
- Frequent disclosures of investor briefings also show the company is active in communicating with the market.
- Shinhan Financial Group's strengths are steadily rising earnings and a clear policy of returning them to shareholders.
- Interest income and non-interest income growing together have made the earnings mix sturdier, and ample capital ratios leave room to increase dividends and buybacks.
- The company's stated targets of a shareholder-return ratio above 50% and a double-digit ROE are the key catalyst for a re-valuation of bank stocks.
- A P/B of 0.88x, below net assets, also supports the downside.
- On the other side, the cautions come from the nature of banking: net profit is heavily swayed by the direction of interest rates, loan growth, and credit costs that rise when the economy slows.
- If rates fall quickly the deposit-loan margin is squeezed, and if bad loans in real estate and small-business lending increase, provisioning burdens can grow.
- In short, when interest rates and credit costs are stable the enlarged shareholder returns carry weight, but if these two variables worsen the pace of profit improvement can slow.
🔎 Valuation vs peers Fairly valued
Comparison against major domestic financial (bank) holding groups.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KB Financial Group | 10.42x | 1.03x | 9.88% |
| Hana Financial Group | 8.40x | 0.75x | 8.98% |
| Woori Financial Group | 7.06x | 0.61x | 8.67% |
| BNK Financial Group | 6.56x | 0.50x | 7.55% |
For a bank holding company, earnings fluctuate, so it is hard to judge over- or under-valuation from the P/E alone; one must also weigh price relative to net assets (P/B), how much it earns on capital (ROE), and its capacity for shareholder returns. Shinhan trades at a P/B of 0.88x, below net assets — lower than KB Financial Group (1.03x) and in a middle position, higher than Hana Financial Group (0.75) and Woori Financial Group (0.63). Its P/E of 10.2x is similar to KB's but higher than Hana and Woori, so on the diagnostic it shows as 'overvalued.' However, that is on last year's finalized earnings. With first-quarter net profit at a record high and this year's earnings rising, the figure falls to about 9.4x on this year's expected earnings. Taken together with the company's formalized shareholder-return ratio above 50%, the balanced reading is that the valuation is not markedly expensive versus peers but rather in a fair range that reflects improving earnings and returns.
Price history Close · MA20 · MA60
The latest close is ₩105,000 and the market capitalization is ₩49.8 trillion. The price sits above its 20-day moving average (₩101,020) and above its 60-day moving average (₩98,812). 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 56.9, a neutral level. The one-month change is +6.9%, the three-month change is +14.9%, and the position relative to the 52-week high is -3.3%. Relative strength versus the KOSPI is 52 (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 52% of all stocks. Over the past three months it lagged the index by 12.6%. 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 -12.56% / 6M -19.05% / 12M -29.56%
Key metrics vs sector median
Valuation
The P/E of 10.02x is above the sector median (7.06x). The P/B of 0.86x is in line with the sector median (0.75x).
Profitability & financials
Return on equity (ROE) is 8.6%, in line with the sector average (9.0%). The debt ratio is 1356.2%, 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 | $4.0B | $4.3B | $4.7B | +8.74% ↑ faster |
| Net profit | $2.9B | $2.9B | $3.3B | +11.72% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $4.0B | $4.3B | $4.7B |
| Net profit | — | — | $2.9B | $2.9B | $3.3B |
Operating profit rose 8.7% year over year. Profit is growing at an accelerating pace.
Latest quarterly results
No recent quarterly results confirmed from DART.
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsFiling of the Q1 2026 quarterly report. Consolidated net profit of ₩1.6491 trillion, a record quarterly high. Interest income and non-interest income both increased.The scale and growth of profit are confirmed, supporting expectations of full-year earnings improvement. Mid term, it grounds the capacity for shareholder returns. Source
- 2026-05-11DividendReport on progress of the trust agreement for share acquisition. Discloses execution of the buyback program planned for the first half.Confirms execution of a return policy that reduces share count and lifts per-share value. A support factor for the downside. Source
- 2026-06-08FilingDecision on a subsidiary's issuance of write-down contingent capital securities (amended filing). Issuing capital-eligible securities to manage capital ratios.Secures room for growth and returns while maintaining capital soundness. Shows a stance of managing capital ratios. Source
- 2026-05-28IRDisclosure of an investor briefing. Communicating results and capital and shareholder-return policy to the market.Explains the value-up plan and results directly, improving investor understanding. A near-term sentiment factor. Source
Figure cross-check computed ↔ external
Recent filings
- 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.
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