[FETV=박신진 기자] Shinhan Financial Group announced on the 5th that it achieved net income of 3,4146 billion won last year. This is a 0.3% increase from the previous year.
An official from Shinhan Financial explained, “Even in the uncertain internal and external business environment, net income has been increasing for 7 consecutive years.”
Net income for the fourth quarter recorded 4644 billion won, a 59.4% decrease from the previous quarter. This is the result of preemptive risk management such as the loss of investment products such as Lime and a provision for bad debts of KRW 439.8 billion from Corona 19. The transfer amount of provision for bad debt increased 46.3% from the previous year.
Group interest income was 8,155.5 billion won, an increase of 1.9% year-on-year, showing a fourth consecutive quarter of growth. Non-interest income increased by 7.9% for a year to 3,3780 billion won. Group SG&A expenses slightly increased by 1.5% YoY due to increased employee-related expenses, but this reflects the one-off factor due to the increase in the expected retirement costs for banks and Kumtu in 4Q.
Shinhan Bank’s net income was 2,778 billion won, down 10.8% from the previous year. Won-denominated loans continued to grow evenly in household and corporate loans, increasing 10.6% per year. By sector, household loans increased by 9.0% and corporate loans by 12.3%, and in particular, SME loans increased by 14.1% per year, leading the overall asset growth. In the fourth quarter, the bank’s net interest margin (NIM) recorded 1.34%, down 2bp QoQ.
In the global division, the group’s core business area, net income decreased by 14% compared to the previous year due to the effect of provisions related to Corona 19 preemptively accumulated in the second quarter. However, as a result of focusing on strengthening profitability based on the group’s global matrix organization in Vietnam, the core market, operating profit in the global division increased by KRW 95.4 billion from the previous year. The GIB (Global Group Investment Bank) and GMS (Group Unique Asset Management) divisions in the capital market grew 33% and 125% YoY, respectively, based on operating profit.
Meanwhile, Shinhan Financial Group has not yet determined the size of its dividend. It is a position that the dividend will be determined and disclosed early next month.