Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 277

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 277
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     |                                         |  1,901 |   |     |      |  2,735 |   |     |          |  43.9 |   |
| Insurance finance interest expense                          |     |                                         |  1,792 |   |     |      |  1,945 |   |     |          |   8.5 |   |
| Others                                                      |     |                                         |    219 |   |     |      |    384 |   |     |          |  75.3 |   |
| Total interest expense                                      |     |                                       W |  9,495 |   |     |    W | 16,761 |   |     |          |  76.5 | % |
| Net interest income                                         |     |                                       W | 10,597 |   |     |    W | 10,818 |   |     |          |   2.1 | % |
| Net interest margin(1)                                      |     |                                         |   1.78 | % |     |      |   1.78 | % |     |          |       |   |

Note:

| (1) | Represents the ratio of net interest income to average interest-earning assets. See “— Average Balance Sheet and Volume and Rate Analysis — Average Balances and Related Interest.” |

Interest income.Interest income increased by 37.3% to W27,579 billion in 2023 from W20,092 billion in 2022, primarily due to a 34.9% increase in interest income on loans at amortized cost to W21,677 billion in 2023 from W16,065 billion in 2022, largely as a result of an increase in the weighted average base interest rate to 3.49% in 2023 from 2.03% in 2022 resulting from increases in the base interest rate set by the Bank of Korea, as well as an increase in the average balance of loans. The average lending rate on loans increased to 5.26% in 2023 from 3.97% in 2022, principally due to an increase in average lending rates for corporate loans resulting from the higher average market interest rate for 2023 compared to 2022 as discussed above. The average balance of loans increased by 2.1% to W414,595 billion in 2023 from W405,925 billion in 2022, principally due