Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 80

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 80
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 consist principally of the following:

| • |     | Mortgage and home equity loans, which are mostly comprised of mortgage loans that are used to finance home purchases and are generally secured by the housing unit being purchased; and |

| • |     | Other retail loans, which are loans made to customers for any purpose other than mortgage and home equity loans and the terms of which vary based primarily upon the characteristics of the borrower and which are either unsecured or secured, or guaranteed by deposits or by a third party. Other retail loans also include advance loans extended on an unsecured basis to retail borrowers the use of proceeds for which is restricted to financing of home purchases prior to the completion of the construction. |

As of December 31, 2024, our mortgage and home equity loans and other retail loans accounted for 60.8% and 39.2% of our total retail loans, respectively. For secured loans, our policy is to lend up to 40% to 100% of the appraisal value of the collateral, after taking into account the value of any lien or other security interest that has priority over our security interest (other than petty claims). For mortgage and home equity loans, our general policy is to lend up to 40% to 85% of the appraisal value of the collateral, but subject to the maximum loan-to-valueratio, debt-to-incomeratio and debt service ratio requirements for mortgage loans implemented by the Government. The loan-to-valueratio of secured loans, including mortgage and home equity loans, is updated on a monthly basis using the most recent appraisal value of the collateral, and maximum loan-to-valueratios are further adjusted based on factors such as the location of the secured property, nature and purpose of the loans and level of competition in the market. Since January 11, 2019, maximum loan-to-valueratios are determined and may be adjusted in increments of 1% (as opposed to increments of 5%, which was the case prior to January 11, 2019), allowing us to set more precise and tailored maximum loan-to-valueratios for secured loans. As of December 31, 2024, the loan-to-valueratio of mortgage and home equity loans of Shinhan Bank was 49.5%. As of December 31, 2024, substantially all of its mortgage and home equity loans were secured by residential property. Under the Regulation on the Supervision of the Banking Business and the Detailed Regulation on the Supervision of the Banking