Shinhan Q2: Strong fee income offsets rising credit costs

Transcript intelligence

What changed

Relative to the prior-quarter analysis, the Q2 account emphasizes stronger securities and FX-related noninterest income and an improved CET1 ratio, while credit costs remain a central concern. Management described an H2 credit-cost outlook in the mid-to-high 40-basis-point range and continued its buyback program.

Guidance delta

Guidance was characterized as maintained. Management’s H2 credit-cost outlook is mid-to-high 40 basis points; it also said it plans to increase corporate loan growth in H2 while monitoring margins.

Key takeaways

• Net income rose 4.1% quarter over quarter, with CET1 improving to 13.59%, according to the transcript analysis.
• Noninterest income increased 34.7% quarter over quarter, led by securities and FX derivative gains.
• Higher credit costs and delayed economic recovery remain important offsets; the H2 credit-cost outlook is mid-to-high 40 basis points.
• The share buyback program continues, with KRW800 billion planned across the year, including KRW600 billion in H2 and KRW200 billion in early 2026.

Management priorities

• Continue the share buyback and cancellation program.
• Pursue H2 corporate loan growth while monitoring margins and credit costs.
• Advance digital, sustainability, and co-prosperity finance initiatives.
• Develop SME products through the Jeju Bank partnership and monitor stablecoin regulation.