Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 285

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 285
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% in 2022. The average volume of corporate loans increased largely due to corporate customers’ preference for loans over bonds as source of financing resulting from an increase in issuance costs of bonds. The increase in our net interest margin was largely due to an increase in the weighted average base interest rate to 3.49% in 2023 from 2.03% in 2022. |

| • |     | Net interest income for international banking increased by 5.6% from W1,063 billion in 2022 to W1,122 billion in 2023 primarily due to an increase in interest income resulting from an increase in interest rates in Vietnam and Indonesia. |

| • |     | For other banking, net interest expense decreased by 26.4% from W852 billion in 2022 to W627 billion in 2023 primarily due to an increase in interest income on securities held by the securities management department of Shinhan Bank. |

Net fees and commission income decreased by 6.6% from W801 billion in 2022 to W748 billion in 2023 primarily due to a decrease in net fees and commissions for other banking services, which was offset in part by an increase in net fees and commissions for international banking services. Net fees and commissions for other banking services decreased primarily due to an increase in commission expenses related to foreign currency procurement and foreign currency covered bonds. Net fees and commission income for international banking increased primarily due to an increase in credit card fees in Vietnam and an increase in credit placement fees in Japan. Net other expense increased by 3.6% from W5,100 billion in 2022 to W5,286 billion in 2023 primarily due to an increase in net other expense for other banking and retail banking services. Net other expense for other banking services increased mainly due to a transfer of other expenses from Shinhan Bank’s corporate banking segment to the other banking segment in connection with its internal operations and department structure changes, and also partly due to an increase in employee benefits expenses and fixed expenses. The increase in net other expense for retail banking services was principally due to an increase in allowance for credit loss in anticipation of the discontinuation of COVID-19financial support programs and in light of real estate project financing risks. 211

Credit Card Services The credit card services segment consists of the credit card business of Shinhan Card, including its installment finance and automobile leasing businesses.

|                                |     |        For the Years Ended December 31, |        |   |