Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 284

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 284
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 sub-segment,as well as an increase in fees earned on the sale of funds and bancassurance products. Net fees and commission income for capital market sub-segmentincreased primarily due to the growth in the GIB group’s investment banking fee income driven by an increase in investment banking deals. Net other expense decreased by 7.0% from W5,286 billion in 2023 to W4,917 billion in 2024 primarily due to an increase in net other income for capital market sub-segment,which was partially offset by an increase in net other expense for channel sub-segment.Net other income for capital market sub-segmentincreased primarily due to an overall increase in other income driven by increases in gains on securities, dividend income, foreign 210

currencies transaction gains, and gains on derivatives. Net other expense for channel sub-segmentincreased primarily due to an increase in other operating expense, particularly contributions to local governments and other similar institutions. Comparison of 2023 to 2022 Operating income for banking services decreased by 1.2% from W4,060 billion in 2022 to W4,010 billion in 2023. Net interest income increased by 2.3% from W8,359 billion in 2022 to W8,548 billion in 2023 primarily due to increases in net interest income for corporate banking, international banking and other banking services, which was partially offset by a decrease in net interest income for retail banking. More specifically:

| • |     | Net interest income for retail banking decreased by 3.2% from W4,727 billion in 2022 to W4,577 billion in 2023 primarily due to a decrease in the average volume of retail loans to W154,031 billion in 2023 from W157,442 billion in 2022 despite an increase in Shinhan Bank’s net interest margin. The average volume of retail loans decreased largely due to a decrease in household loans and collective loans. |

| • |     | Net interest income for corporate banking increased by 1.6% from W3,421 billion in 2022 to W3,476 billion in 2023 primarily due to a 4.2% increase in the average balance of corporate loans to W221,341 billion in 2023 from W211,892 billion in 2022, as well as an increase in the average lending rate for corporate loans to 5.10% in 2023 from 3.68