Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 85

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 85
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 rates (based on a base rate determined for three-month, six-monthor twelve-month periods derived using an internal transfer price system, which reflects the market cost of funding, as adjusted to account for expenses related to lending and the profit margin of the relevant loan products) or fixed rates that reflect the market cost of funding, as adjusted to account for expenses related to lending and the profit margin. Fixed rate loans are offered only on a limited basis and at a premium to floating rate loans. For unsecured loans, which Shinhan Bank provides on a floating or fixed rate basis, interest rates thereon reflect a margin based on, among other things, the borrower’s credit score as determined during its loan approval process. For secured loans, the credit limit is based on the type of collateral, priority with respect to the collateral and the loan-to-valueratio. Shinhan Bank may adjust the pricing of these loans to reflect the borrower’s current and/or expected future contribution to Shinhan Bank’s profitability. The interest rate on Shinhan Bank’s loan products may become adjusted at the time the loan is extended. If a loan is repaid within three years following the date of the loan, the borrower is required to pay an early repayment fee, which is typically 0.7% to 1.4%, depending on types of loans and applicable interest rates, of the outstanding principal amount of and accrued and unpaid interest on the loan, multiplied by a fraction the numerator of which is the number of the remaining days on the loan until maturity and the denominator of which is the number of days comprising the term of the loan or three years, whichever is greater. 51

As of December 31, 2024, Shinhan Bank’s three-month, six-month and twelve-month base rates were 3.43%, 3.33% and 3.04%, respectively. As of December 31, 2024, Shinhan Bank’s fixed rates for mortgage and home equity loans with a maturity of five years ranged from 4.06% to 4.21%. Shinhan Bank’s fixed rates for other retail loans with a maturity of one year ranged from 3.60% to 14.00%, depending on the credit scores of its customers. As of December 31, 2024, 90.8% of Shinhan Bank’s total retail loans were floating rate loans and 9.2% were fixed rate loans. As of the same date, 90.8% of Shinhan Bank’s retail loans with