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Shinhan Financial Group Co., Ltd.NYSE:SHG Stock Report

Market Cap US$30.3b
Share Price
US$65.30
US$81.15
19.5% undervalued intrinsic discount
1Y47.1%
7D-8.1%
1D
Portfolio Value
​
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Shinhan Financial Group Co., Ltd.

NYSE:SHG Stock Report

Market Cap: US$30.3b

Shinhan Financial Group (SHG) Stock Overview

Provides financial products and services in South Korea, Vietnam, and Japan. More details

SHG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

Rewards

Trading at 42% below our estimate of its fair value

Earnings are forecast to grow 7.8% per year

Earnings have grown 3.8% per year over the past 5 years

Trading at good value compared to peers and industry

Risk Analysis

Unstable dividend track record


SHG Community Fair Values

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Shinhan Financial Group Co., Ltd. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Shinhan Financial Group
Historical stock prices
Current Share Price₩65.30
52 Week High₩73.40
52 Week Low₩43.83
Beta0.66
1 Month Change1.54%
3 Month Change5.77%
1 Year Change47.07%
3 Year Change143.57%
5 Year Change80.49%
Change since IPO315.92%

Recent News & Updates

Seeking Alpha • May 11

Shinhan: Targeting Superior Financial Profile And Higher Cash Distributions

Summary Shinhan Financial remains a buy-rated name based on my assessment of its financial prospects and stockholder returns. SHG's ROE is expected to rise from FY2025's 9% to 10%-12% in the next three years, driven by non-banking business improvement and stricter cost control. The bank distributed about half of its earnings to shareholders last year; this payout metric could improve to above 50% with a new policy. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • May 11

Shinhan: Targeting Superior Financial Profile And Higher Cash Distributions

Summary Shinhan Financial remains a buy-rated name based on my assessment of its financial prospects and stockholder returns. SHG's ROE is expected to rise from FY2025's 9% to 10%-12% in the next three years, driven by non-banking business improvement and stricter cost control. The bank distributed about half of its earnings to shareholders last year; this payout metric could improve to above 50% with a new policy. Read the full article on Seeking Alpha
Seeking Alpha • Apr 15

Shinhan Financial: Focus On Q1 Earnings And Peer Valuation Gap

Summary I continue to rate SHG as a buy after previewing its results and doing a peer comparison exercise. Shinhan is expected to deliver positive earnings growth again in the first quarter of this year, in contrast with its bottom-line contractions for both 4Q24 and 1Q24. The stock is trading at a huge discount to its peer KB Financial based on the P/NAV metric, which I view as unjustified. Read the full article on Seeking Alpha
Seeking Alpha • Jan 21

Shinhan Financial: 2025 Will Be A Good Year (Rating Upgrade)

Summary I am upgrading Shinhan Financial to a Buy, anticipating strong financial performance and increased capital returns in 2025. SHG's EPS is projected to rise by +8% in 2025, driven by a decrease in credit costs, above-expectations non-interest margin, and higher non-interest income contribution. Shinhan Financial's capital management yield for the current fiscal year is close to 10% based on my financial performance and shareholder return assumptions. Read the full article on Seeking Alpha
Seeking Alpha • Oct 30

Shinhan Financial: Earnings Miss, Long-Term ROE Target Are Key Considerations (Rating Downgrade)

Summary Shinhan's Q3 2024 net profit fell short of expectations, primarily due to a significant decrease in non-interest income resulting from derivative trading losses. On the other hand, there is the potential for SHG to trade at a more demanding P/B multiple in the long run, if its 2027 ROE goal of 10% is met. My rating for Shinhan Financial is downgraded to a Hold. I have taken into account SHG's Q3 results and its ROE target in making this decision. Read the full article on Seeking Alpha
Seeking Alpha • Jul 06

Shinhan Financial Has Valuation Re-Rating Potential (Rating Upgrade)

Summary Actions like targeting higher ROE, diversifying geographically, and increasing capital distribution could lead to a positive re-rating of Shinhan Financial's shares and valuations. SHG's year-to-date share price underperformance relative to its key peer was influenced by significant stake sales, but this is likely to be less of an issue going forward. My rating for Shinhan Financial is upgraded to a Buy, as I think that the stock has the potential to trade at higher valuation multiples. Read the full article on Seeking Alpha
Seeking Alpha • Oct 06

Shinhan Financial: Mixed Prospects, Fair Valuation

Summary Shinhan Financial's outlook is mixed, considering various factors like capital adequacy, capital return, digitalization, and competitive dynamics. The Company is now trading at 0.93 times price-to-earnings growth or PEG, which indicates that the stock is valued fairly by the market. My rating for SHG stays as a Hold, following an analysis of its prospects and valuations. Read the full article on Seeking Alpha
Seeking Alpha • Jul 28

Shinhan Financial: Focus On Earnings Miss And Shareholder Return

Summary Shinhan Financial's Q2 2023 net profit was slightly below the sell-side's expectations, as its bottom line was hit by higher credit costs and general & administrative expenses. However, investors liked the fact that SHG maintained its dividend payout and announced a new share buyback plan, and its stock price went up by +3.6% on the news. I keep my Hold rating for Shinhan Financial unchanged, after reviewing SHG's recent financial performance and shareholder return initiatives. Read the full article on Seeking Alpha
Seeking Alpha • Feb 08

Shinhan Financial GAAP EPS of $8.45

Shinhan Financial (NYSE:SHG): FY GAAP EPS of KRW8.45. Net income of KRW47.32B
Seeking Alpha • Dec 23

Shinhan Financial: All Eyes On 2023 Outlook

Summary Shinhan Financial is expected to generate positive core net profit growth in fiscal 2023, excluding the effects of a one-off gain on sale of properties. SHG's life insurance business should benefit from the adoption of IFRS 17 and higher interest rates in the coming year. I continue to award a Buy rating to Shinhan Financial, as I deem SHG's high single-digit FY 2023 dividend yield to be sufficiently attractive. Elevator Pitch My Buy investment rating for Shinhan Financial Group Co., Ltd.'s (SHG) [055550:KS] stays unchanged. In my prior article for SHG published on October 13, 2022, I previewed Shinhan Financial's Q3 2022 financial results, and highlighted my positive opinion regarding the company's new share repurchase plan. My attention turns to Shinhan Financial Group's 2023 outlook with this latest write-up. I expect SHG to deliver positive earnings growth and dividend hikes in the upcoming year, and this explains why I remain bullish about Shinhan Financial's prospects in the near term. Recent Quarterly Bottom Line Beat Consensus Forecast I previously noted in my mid-October update for Shinhan Financial that a lack of substantial provisions and an improvement in net interest margin should drive "a strong set of results" for SHG in the third quarter of 2022. I turned out to be correct with my earlier assessment. Shinhan Financial's net profit expanded by +43% YoY and +21% QoQ to KRW1,595 billion for Q3 2022, and this was +5% above the analysts' consensus net income estimate of KRW1,518 million based on S&P Capital IQ data. Expectations Of Positive Core Earnings Growth For 2023 The sell-side analysts' consensus financial projections sourced from S&P Capital IQ imply that Shihan Financial's headline net profit is expected to decrease by -0.4% from KRW5,033 billion in fiscal 2022 to KRW5,011 billion for FY 2023. But the market's consensus financial figures aren't adjusted for non-recurring and non-core items. Shinhan Financial recognized a pre-tax gain of KRW444 billion in the third quarter of this year relating to the divestment of a building by its brokerage arm, as disclosed in its Q3 2022 earnings presentation slides. This represents a one-off gain, which should be excluded from the evaluation of SHG's bottom line performance. In other words, analysts see Shinhan Financial achieving a mid-single digit core net income growth for FY 2023, adjusted for the gain derived from the sale of real estate. In the next section, I discuss about the key driver of SFG's bottom line expansion in the following year. Life Insurance Business Will Be Key Earnings Growth Driver In the first nine months of 2022, SHG's life insurance business, Shinhan Life Insurance, was the third most significant earnings contributor among SHG's non-banking businesses after its credit card business and securities business. Specifically, Shinhan Life Insurance accounted for close to a fifth of net income derived from Shinhan Financial's non-banking businesses in the 9M 2022 period as indicated in its third quarter results presentation. In my view, Shinhan Life Insurance should be the star for the company next year due to two key factors. One key factor is higher rates. Economists from DBS Group (OTCPK:DBSDF) (OTCPK:DBSDY) forecast that the benchmark interest rate for South Korea will rise by +50 basis points from the current 3.25% to 3.75% in the following year. Separately, Fitch Ratings highlighted in a December 7, 2022 research report that the expected increase in interest rates for 2023 will be a tailwind for South Korean insurance companies in the form of "higher investment returns" and "a lower burden on negative spreads." The other key factor is the new International Financial Reporting Standard or IFRS 17 regarding insurance contracts. Korean life insurance companies such as Shinhan Life Insurance are required to adopt IFRS17 with effect from 2023, and this change will provide a substantial boost to the reported earnings of Shinhan Financial's life insurance business. At the bank's most recent third quarter results briefing in late-October, SHG estimated that Shinhan Life Insurance's earnings could potentially witness "an increase of 30% on a recurring basis" as a result of the IFRS 17 implementation. High Dividend Yield Is A Key Investment Merit For SHG The sell-side estimates that Shinhan Financial will distribute a dividend per share of KRW2,595 for fiscal 2023 as per S&P Capital IQ data. This will be equivalent to a +5% dividend hike in 2023 and an appealing consensus forward dividend yield of 6.8%. There are two reasons why I think that SHG can meet or even exceed the market's expectations in terms of dividend growth for FY 2023. The first reason is that Shinhan Financial's capital allocation priorities haven't changed, with dividends remaining as a key component of the company's shareholder capital return initiatives. Shinhan Financial reiterated at its Q3 2022 earnings briefing that SHG's "dividend will continue to increase in a solid manner" as part of its plans to "enhance shareholder value."
Seeking Alpha • Oct 13

Shinhan Financial: Recent Dividend And Buyback Announcements Are Encouraging

Summary I have a very favorable view of Shinhan Financial's recent shareholder capital return disclosures relating to quarterly dividends and new share buyback program. The financial outlook for Shinhan Financial in Q3 2022 is positive, with expectations of faster top line and bottom line growth. I maintain my Buy rating for Shinhan Financial's shares, after assessing its recent shareholder return initiatives and its near-term prospects. Elevator Pitch I continue to rate Shinhan Financial Group Co., Ltd.'s (SHG) [055550:KS] stock as a Buy. I reviewed Shinhan Financial's Q4 2022 financial results in my earlier February 25, 2022 update for the company. I discuss about Shinhan Financial's recent announcements regarding shareholder capital return and its near-term prospects in this latest article. I find it encouraging that Shinhan Financial has recently initiated a new share repurchase program, while remaining committed to quarterly dividends. The company is also expected to turn in a good set of results for the upcoming quarter. As such, I believe that Shinhan Financial should still warrant a Buy investment rating. Dividends On October 6, 2022, Shinhan Financial issued a new 6-K filing highlighting that the company's "made a resolution to pay quarterly cash dividends." Specifically, Shinhan Financial will be paying out a quarterly dividend per share of KRW400 towards the end of this month. This announcement will come as a relief for Shinhan Financial's income-focused shareholders and investors. SHG had only just made a switch from annual dividends to quarterly dividends in the third quarter of last year, and there were concerns whether Shinhan Financial will stick to its new practice of paying quarterly dividends in the current weak economic environment. As it turned out, Shinhan Financial has sent a strong signal that it remains committed into its new shareholder capital return policy of distributing dividends on a quarterly basis. More importantly, Shinhan Financial didn't cut its quarterly dividend payout, as its most recent dividend of KRW400 per share is the same as what the company distributed in the preceding quarter. Looking forward, the sell-side analysts' consensus financial estimates as per S&P Capital IQ data point to Shinhan Financial offering appealing consensus forward fiscal 2022, 2023 and 2024 dividend yields of 7.1%, 7.4%, and 7.9%, respectively. Shinhan Financial's decision to continue with quarterly dividend payments and maintain the same payout as the previous quarter gives investors confidence that the company will keep its current dividend policy unchanged. Share Repurchase And Cancellation Shinhan Financial also disclosed its plans relating to share buybacks and treasury share cancellation on the same day the company announced its latest quarterly dividend. In another October 6, 2022 6-K filing, Shinhan Financial revealed that the company will spend around KRW150 billion buying back approximately 0.8% of its shares outstanding between the date of the announcement and early-January 2023. It certainly makes a lot of sense for Shinhan Financial to embark on a share repurchase program now, considering where its shares are trading at now. The market is currently valuing Shinhan Financial at a consensus forward next twelve months' normalized P/E multiple of 3.5 times and a historical trailing P/TBV (Price-to-Tangible Book Value) multiple of 0.45 times. The stock's long-term historical mean valuation multiples are much higher in comparison. Shinhan Financial's 10-year average forward P/E metric is 7.3 times, while its 10-year mean P/TBV ratio is 0.72 times. Taking into account Shinhan Financial's undemanding valuations relative to history, the company's current buybacks should be value-accretive. Moreover, Shinhan Financial announced on October 6, 2022 that it will cancel all of the company's shares bought back from the new share repurchase program. For Korean companies in general, share buybacks don't necessarily translate into a reduction in share count, as most of these Korean companies will choose to retain these treasury shares for future share-based compensation. As such, Shinhan Financial's decision to cancel 100% of the shares repurchased as part of the new share buyback exercise should be seen in a positive light. In conclusion, Shinhan Financial's recent dividend and share repurchase announcements suggest that the company has a strong intention to distribute excess capital and cash flow back to its shareholders. Positive Q3 2022 Outlook In addition to the encouraging shareholder capital return announcements, Shinhan Financial's positive outlook in the near term should provide support for its share price. The company is likely to report its Q3 2022 financial results in late-October, according to the timing of its past quarterly earnings disclosures. Based on the sell-side's consensus financial projections sourced from S&P Capital IQ, Shinhan Financial is expected to witness an acceleration of its top line and bottom line growth for the third quarter of 2022. Analysts see Shinhan Financial delivering a YoY top line growth of +14.7% in Q3 2022, as compared to its Q2 2022 revenue increase of +8.6%. Separately, the market consensus suggests that Shinhan Financial's YoY normalized EPS growth will accelerate from +5.0% in Q2 2022 to +48.2% for Q3 2022 on a YoY basis.
Seeking Alpha • Jul 22

Shinhan Financial Net income of KRW2.72T, revenue of KRW6.97T

Shinhan Financial press release (NYSE:SHG): 1H net income of KRW2.72T. Revenue of KRW6.97T (+9.4% Y/Y).
Seeking Alpha • Feb 25

Shinhan Financial: Look Beyond Q4 Earnings Miss

Shinhan Financial's fourth-quarter bottom line failed to meet market expectations, but this was largely due to one-offs and there were other bright spots in the recent quarter. Earnings growth and an increase in the dividend payout should help to bring about valuation multiple expansion for the company's shares. Shinhan Financial is still a Buy considering its depressed valuations.
Seeking Alpha • Dec 03

Shinhan Financial: Rate Hikes And Higher Dividends Are Key Catalysts

Shinhan Financial's third quarter earnings met market expectations, and there were positives associated with the company's business diversification and cost management efforts. Further rate hikes and higher dividends are the catalysts that Shinhan Financial needs for a positive re-rating of its shares. Shinhan Financial is trading at a 60% discount to its net asset value and boasts a mid-single-digit forward fiscal 2022 P/E.
Seeking Alpha • Sep 20

Shinhan Financial: Non-Banking Businesses And Capital Return Draw Attention

Non-banking businesses account for almost half of Shinhan Financial's total earnings in 1H 2021, and this has led to higher earnings growth and an increase in ROE for the company. An improvement in capital returned to shareholders in the form of a higher dividend payout ratio and share repurchases will be key re-rating catalysts for the stock. Shinhan is valued by the market a trailing P/B multiple of 0.45 times and 4.7 times consensus forward fiscal 2022 normalized P/E.
Seeking Alpha • Jul 05

Shinhan Financial: Positive On Quarterly Dividends And Potential Rate Hike

Shinhan Financial's move towards quarterly dividends this year is supported by the Korean regulators' recent decision to remove the dividend cap for Korean financial companies starting from July 2021. There are indications from The Bank Of Korea that an interest hike is possible this year, which is positive for Shinhan Financial's future net interest margin and net interest income. The market currently values Shinhan Financial at 0.47 times P/B and 5.1 times consensus forward FY 2022 P/E, and the stock boasts a forward FY 2022 dividend yield of 5.4%.

Shareholder Returns

SHGUS BanksUS Market
7D-8.1%1.0%-2.3%
1Y47.1%24.1%21.2%

Return vs Industry: SHG exceeded the US Banks industry which returned 24.6% over the past year.

Return vs Market: SHG exceeded the US Market which returned 23.3% over the past year.

Price Volatility

Is SHG's price volatile compared to industry and market?
SHG volatility
SHG Average Weekly Movement4.8%
Banks Industry Average Movement3.3%
Market Average Movement7.2%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.1%

Stable Share Price: SHG has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: SHG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1982n/aOk-Dong Jinwww.shinhangroup.com

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea, Vietnam, and Japan. The company operates in six segments: Banking, Credit card, Securities, Insurance, Credit, and Others. It offers credit, lending and receiving deposits; credit cards, short-term and long-term card loan services, installment financing, and leases; securities trading, consignment trading, and underwriting; life and non-life insurance business; facility rental and new technology business financing; and real estate trust, investment advisory services, venture business investment, and other businesses.

Shinhan Financial Group Co., Ltd. Fundamentals Summary

How do Shinhan Financial Group's earnings and revenue compare to its market cap?
SHG fundamental statistics
Market capUS$30.26b
Earnings (TTM)US$3.20b
Revenue (TTM)US$10.43b
9.5x
P/E Ratio
0.8x
P/B Ratio

Is SHG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SHG income statement (TTM)
Revenue₩15.98t
Cost of Revenue₩0
Gross Profit₩15.98t
Other Expenses₩11.07t
Earnings₩4.91t

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)10.34k
Gross Margin100.00%
Net Profit Margin30.70%
Debt/Equity Ratio264.1%

How did SHG perform over the long term?

See historical performance and comparison

Dividends

3.6%
Current Dividend Yield
27%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/23 20:06
End of Day Share Price 2026/06/23 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Shinhan Financial Group Co., Ltd. is covered by 33 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sunmok HaBarclays
Jisun LeeBofA Global Research
Daehyun KimCGS International