Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 450

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 450
---

The Group reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Group utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.

The Group reflects future macroeconomic conditions anticipated from a neutral standpoint that is free from bias in measuring expected credit losses. Expected credit losses in this respect reflect conditions that are most likely to occur and are based on the same assumptions that the Group used in its business plan and management strategy.

The Group analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through a regression estimation. To reflect external and internal economic uncertainties, the Group has incorporated the forward-looking information by reviewing an additional worst-case scenario along with the three existing scenarios of upside, central and downside.

<div align='center'>F-5 7</div>

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(In millions of won)

December 31, 2023 and 2024

| 5. | Financial risk management (continued) |

For the years ended December 31, 2023 and 2024, macroeconomic variables used by the Group are as follows for each scenario.

<December 31, 2023>

① Upside scenario

| Major variables (*1),(*2),(*3)                   |    | Correlationbetweencredit risks |     | 2023.4Q |       |   |     | 2024 |      |   |     |      |   |     |       |     |       |
|                                                  | 1Q |                                |     |         |    2Q |   |     |      |   3Q |   |     |   4Q |   |     |       |     |       |
| GDP growth rate (YoY %)                          |    | --                             |     |         |   2.1 |   |     |      |  2.2 |   |     |  2.1 |   |     |   2.2 |     |   2.1 |
| Private consumption index (YoY %)                |    | --                             |     |         |   1.8 |   |     |      |  1.7 |   |