Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 183

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 183
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s for interest-earning assets in Shinhan Bank’s non-tradingaccounts are, on average, shorter than those of the interest-bearing liabilities in these accounts. Shinhan Bank’s net interest income tends to decrease during times of a decrease in the market interest rates while the opposite is generally true during times of an increase in the market interest rates. 128

Interest Rate VaRs for Non-tradingAssets and Liabilities Shinhan Bank measures VaRs for interest rate risk from non-tradingactivities on a monthly basis. The following table shows, as of and for the year ended December 31, 2024, the VaRs of interest rate mismatch risk for other assets and liabilities, which arises from mismatches between the re-pricingdates for Shinhan Bank’s non-tradinginterest-earning assets (including available-for-saleinvestment securities) and those for its interest-bearing liabilities. Under the regulations of the Financial Services Commission, Shinhan Bank includes in calculation of these VaRs interest-earning assets and interest-bearing liabilities in its bank accounts and its merchant banking accounts.

|                                                 |     | VaR for the Year 2024(1) |       |     |         |     |     |         |       |     |             |       |
|                                                 |     | Average                  |       |     | Minimum |     |     | Maximum |       |     | As of       
 December 31 |       |
|                                                 |     | -In billions of Won      |       |     |         |     |     |         |       |     |             |       |
| Interest rate mismatch — non-trading assets and 
 liabilities                                     |     |                          | 1,331 |     |         | 611 |     |         | 1,770 |     |             | 1,286 |

Note:

| (1) | One-year VaR results computed based on the interest rate risk in the banking book standardized approach presented by the Bank for International Settlements. See “— Interest Rate Risk Management.” |

Interest Rate Risk for Other Subsidiaries Shinhan Card monitors and manages its interest rate risk for all its interest-bearing assets and liabilities (including off-balancesheet items) in terms of the impact on its earnings and net asset value from changes in interest rates. Shinhan Card primarily uses interest rate VaR and EaR analyses to measure its interest rate risk. The interest rate VaR analysis used by Shinhan Card principally focuses on the maximum impact on its net asset value from adverse movements in interest rates and consists of (