Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 288

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 288
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           | 11.5 | % |

Comparison of 2024 to 2023 Operating income for securities services increased by 11.5% from W253 billion in 2023 to W282 billion in 2024. Net interest income increased by 29.1% from W444 billion in 2023 to W573 billion in 2024, primarily due to an increase in interest income on securities at fair value through profit or loss, partially offset by decreases in 213

interest income on loans at amortized cost, loans at fair value through profit or loss and cash and due from banks at amortized cost. Interest income on securities at fair value through profit or loss increased primarily due to the strategic acquisition of additional bonds in response to the continued decline in interest rates, resulting in higher average balances and interest income. Interest income on loans at amortized cost and loans at fair value through profit or loss decreased mainly due to a decrease in new transactions and an increase in the number of sell-downs, driven by worsening conditions in the capital and real estate markets, along with lower interest rates. Interest income on cash and due from banks at amortized cost decreased mainly due to a decrease in interest income on time deposits denominated in Korean Won, resulting from the decline in market interest rates.

Net fees and commission income increased by 7.2% from W500 billion in 2023 to W536 billion in 2024 primarily due to an increase in custody fee income on foreign securities, driven by the expansion of overseas securities custody business and the increase in service fees, as well as higher brokerage fee income resulting from an increase in the number of securities transactions in 2024 compared to 2023. These increases were partially offset by a decrease in commission income from Korean Won transactions and investment banking fees, driven by a decline in the number of advisory services and financial services provided.

Net other expense increased by 19.7% from W691 billion in 2023 to W827 billion in 2024 primarily due to an increase in net loss on foreign currency transactions and translation, as well as an increase in provisions for other liabilities, which was partially offset by a decrease in net loss on financial instruments designated at fair value through profit or loss. Net loss on foreign currency transactions and translation increased primarily due to the depreciation of Korean Won against foreign currencies in 2024. Provisions for other liabilities increased primarily as we recognized additional provisions for legal claims resulting from lawsuits related to the alleged improper sales of Lime Asset products. Net loss on