Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 273

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 273
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   |     |      |    400 |   |     |          |   4.2 |   |
| Total interest expense                                      |     |                                       W | 16,761 |   |     |    W | 17,807 |   |     |          |   6.2 | % |
| Net interest income                                         |     |                                       W | 10,818 |   |     |    W | 11,402 |   |     |          |   5.4 | % |
| Net interest margin(1)                                      |     |                                         |   1.78 | % |     |      |   1.76 | % |     |          |       |   |

N/M = not meaningful Note:

| (1) | Represents the ratio of net interest income to average interest-earning assets. See “— Average Balance Sheet and Volume and Rate Analysis — Average Balances and Related Interest.” |

Interest income.Interest income increased by 5.9% to W29,209 billion in 2024 from W27,579 billion in 2023, primarily due to a 3.3% increase in interest income on loans to W22,511 billion in 2024 from W21,798 billion in 2023, and, to a lesser extent, a 16.4% increase in interest income on securities at fair value through other comprehensive income to W2,744 billion in 2024 from W2,357 billion in 2023. Interest income on loans increased primarily due to an increase in average balance of loans by 6.1% to W439,728 billion in 2024 from W414,595 billion in 2023, which was partially offset by a decrease in the average lending rate of loans to 5.12% in 2024 from 5.26% in 2023, driven by the two base interest rate reductions by the Bank of Korea in 2024. More specifically, the increase in interest income was primarily due to the following:

| • |     | a 5.8% increase in interest on corporate loans to W11,948 billion in 2024 from W11,293 billion in 2023, primarily due to a 9.3% increase in the average balance of corporate loans to W241,911 billion in 2024 from W221,341 billion in 2023, which was partially offset by a decrease in the average lending rate for corporate loans