Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 280

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 280
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8 | % |

N/M = not meaningful Note:

| (1) | Consist of securities at amortized cost and securities at fair value through other comprehensive income. |

Provision for credit loss allowance on financial assets increased by 73.8% from W1,292 billion in 2022 to W2,245 billion in 2023 principally due to a 69.9% increase in credit loss allowance on loans from W1,244 billion in 2022 to W2,114 billion in 2023. Our provision for credit loss allowance on loans increased primarily due to an increase in provision for credit loss allowance on corporate loans and credit card loans. Provision for credit loss allowance for corporate loans increased in 2023 as we preemptively recognized credit loss allowance in light of real estate project financing risks. Provision for credit loss allowance for credit card loans increased in 2023 primarily due to an increase in overall delinquency rates compared to 2022. Income Tax Expense Income tax expense decreased by 7.7% from W1,611 billion in 2022 to W1,487 billion in 2023 primarily as a result of a decrease in profit before income taxes by 6.3% to W5,965 billion in 2023 from W6,367 billion in 2022. Our effective rate of income tax decreased to 24.9% in 2023 from 25.3% in 2022. Profit for the Year As a result of the foregoing, our profit for the year decreased by 5.8% from W4,756 billion in 2022 to W4,478 billion in 2023. 207

Other Comprehensive Income (loss) for the Year

|                                                                                                     |     |        For the Years Ended December 31, |        |   |     |      |        |   |     |          |      |   |
|                                                                                                     |     |                                    2022 |        |   |     | 2023 |        |   |     | % Change |      |   |
|                                                                                                     |     | -In billions of Won, except percentages |        |   |     |      |        |   |     |          |      |   |
| Items that are or may be reclassified to profit or loss:                                            |     |                                         |        |   |     |      |        |   |     |          |      |   |
| Net gain (loss) on securities at fair value through other