Shinhan Financial Group 2Q earnings beat with strong fee income and lower credit costs; 3M share buyback announced; OW

研报英文原文证据摘录

Shinhan Financial Group 2Q earnings beat with strong fee income and lower credit costs; 3M share buyback announced; OW

J P M O R G A N Asia Pacific Equity Research

23 July 2026

Shinhan Financial Group Overweight

055550.KS, 055550 KS

2Q earnings beat with strong fee income and lower Price (23 Jul 26):W103,500

credit costs; 3M share buyback announced; OW Price Target (Jun-27):W145,000

2Q26 net profit came in ~10% above JPMe and Street expectations, driven by (1) Diversified Banks

ACsteady NII growth, (2) fee income strength, (3) well-contained credit costs, and (4) Jihyun Cho

a one-off write-back on ELS-related penalties. Alongside the beat, CET1 ratio (82-2) 758-5480

improved further to 13.43% (+13bp q/q), enough to support its progressive jihyun.cho@jpmorgan.com

shareholder return policy. Therefore, Shinhan announced a W740 DPS Tae Wook Kim

(~W347bn) as expected and a W700bn three-month buyback/cancellation (82-2) 758-5719

program, while flagging an additional buyback to come in October, subject to taewook.kim@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

earnings and CET1 ratio. Management also left room for a year-end dividend uplift Branch

if stronger-than-expected earnings create incremental capacity for the shareholder

return budget (JPMe 53% TSR vs. 50% in 2025). We remain constructive on

Shinhan’s upward ROE trajectory to 10.5% in 3 years (from 8.7% in 2025) on 1) Key Changes (FYE Dec)

a steady increase in NII, 2) strong fee income momentum, and 3) lower credit costs. Prev Cur Δ

Adj. EPS - 26E (W) 12,239 12,469 1.9%

At a current 0.8x P/B, we expect higher ROE to drive a re-rating rally toward 1.1x

P/B fair value. We retain OW. Quarterly Forecasts (FYE Dec)

• 2Q26 earnings in detail. Net profit was W1.8tn (+17% y/y, +12% q/q), Adj.