Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 295

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 295
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 interest income of Shinhan Financial Group on a standalone basis. The decrease in net interest 218

income of Shinhan Financial Group on a standalone basis was mainly attributable to an increase in interest expenses on debt securities, which was partially offset by an increase in interest income on loans at amortized cost.

Net fees and commission income decreased by 13.8% from W391 billion in 2023 to W337 billion in 2024 primarily due to a decrease in net fees and commission income of Shinhan Asset Trust. Net fees and commission income of Shinhan Asset Trust decreased primarily due to a decrease in trust management fees and other fee income, resulting from ongoing difficulties in the project financing industry that have persisted since 2023.

Net other expense increased by 52.0% from W175 billion in 2023 to W266 billion in 2024 primarily due to an increase in net other expenses from Shinhan Asset Trust. The increase in net other expense of Shinhan Asset Trust was primarily attributable to an increase in the number of maturing project financing properties and an increase in provision for credit loss allowance and provisions for other liabilities recognized due to difficulties experienced by such project financing projects.

Comparison of 2023 to 2022

Operating income for others increased by 97.1% from W173 billion in 2022 to W341 billion in 2023.

Net interest income decreased by 18.3% from W153 billion in 2022 to W125 billion in 2023 primarily due to a decrease in net interest income of Shinhan Savings Bank and, to a lesser extent, a decrease in net interest income of consolidated structured entities. Net interest income of Shinhan Savings Bank decreased mainly due to a decrease in interest income on loans at amortized cost as a result of a decrease in the average balance of retail loans of Shinhan Savings Bank. The decrease in net interest income of consolidated structured entities was principally due to a decrease in interest income on loans measured at amortized cost.

Net fees and commission income decreased by 2.0% from W399 billion in 2022 to W391 billion in 2023 primarily due to a decrease in net fees and commission income of Shinhan Asset Trust and, to a lesser extent, our holding company’s sale of Shinhan Credit Information to Shinhan Card. Net fees and commission income of Shinhan Asset Trust decreased primarily due to a decrease in new trust contract orders amidst increased concerns of real estate project financing delinquencies and overall slowdown in the real estate market, which