Shinhan Financial Group said on Wednesday its 2025 annual net profit rose 11.7 percent from a year earlier to 4.97 trillion won.

Its fourth-quarter net profit was 510.6 billion won. It fell due to one-off factors such as voluntary retirement costs, but it maintained a stable trend on a recurring profit basis.

Shinhan Financial's interest income rose 2.6 percent from a year earlier to 11.69 trillion won. Due to factors such as the Bank of Korea's benchmark rate cuts, the group's and the bank's annual net interest margins were 1.90 percent and 1.56 percent, respectively, down 0.03 percentage points and 0.02 percentage points over the year.

Among major affiliates, Shinhan Bank's 2025 annual net profit rose 2.1 percent from a year earlier to 3.77 trillion won. Its fourth-quarter net profit was 418.7 billion won, down 61.6 percent from the previous quarter.

Operating profit increased on improved fee income and higher gains and losses related to securities compared with a year earlier. Cumulative net profit rose 2.1 percent from a year earlier due to higher non-operating profit as one-off costs from the previous year disappeared.

As of end-December, won-denominated loans rose 4.4 percent from end-2024. Corporate loans rose 3.9 percent as loans to small and medium-sized firms and large companies increased 3.2 percent and 6.4 percent, respectively, and household loans rose 5.0 percent mainly on policy loans.

Shinhan Card's 2025 annual net profit fell 16.7 percent from a year earlier to 476.7 billion won. Its fourth-quarter net profit was 96.3 billion won, down 28.0 percent from the previous quarter.

Annual net profit fell 16.7 percent from a year earlier due to factors such as lower card fees from expanded member recruitment and higher funding and voluntary retirement costs.

As of end-December, the delinquency rate was 1.18 percent, down 0.19 percentage points from the previous quarter.

Credit card fee income rose from the previous quarter, but fourth-quarter net profit fell 28.0 percent due to factors including increased loan loss provision accumulation on a conservative economic outlook.

Shinhan Investment Corp's 2025 annual net profit rose 113.0 percent from a year earlier to 381.6 billion won. Its fourth-quarter net profit was 22.3 billion won, down 77.9 percent from the previous quarter. Annual net profit rose 113.0 percent as equity brokerage commissions increased on higher trading value amid a stronger stock market, and as IB fees and product management gains and losses improved.

From the previous quarter, domestic and overseas equity brokerage fee income improved, but fourth-quarter net profit fell 77.9 percent due to factors including lower valuation gains on securities amid rising market interest rates.

Shinhan Life's 2025 annual net profit fell 3.9 percent from a year earlier to 507.7 billion won, and it posted a fourth-quarter net loss of 6.8 billion won. Annual net profit fell 3.9 percent due to the impact of proactive cost recognition in the fourth quarter, despite higher insurance gains and losses and higher financial gains and losses amid a stronger stock market compared with a year earlier.

As of end-December, its contractual service margin was 7.6 trillion won and the preliminary K-ICS ratio was 204 percent, maintaining a stable level compared with the Financial Supervisory Service's recommended benchmark of 130 percent.

Insurance gains and losses rose from the previous quarter due to an expansion in new contracts, but it posted a net loss due to factors including recognition of voluntary retirement costs and the effect of higher corporate tax.

Shinhan Capital's 2025 annual net profit fell 7.4 percent from a year earlier to 108.3 billion won. Its fourth-quarter net profit was 16.3 billion won, down 41.9 percent from the previous quarter.

Annual net profit fell 7.4 percent from a year earlier due to factors including lower interest income on declines in interest-bearing assets and falling rates.

From the previous quarter, gains and losses related to securities increased as the domestic stock market rose in the fourth quarter, but net profit fell 41.9 percent due to factors including lower interest income and accumulation of loan loss costs related to real estate project finance.

Jang Jeong-hun (장정훈), vice president of the finance division at Shinhan Financial Group, said, "Even amid an uncertain business environment, we were able to achieve meaningful results as we consistently pursued stable profit generation and capital ratio management, along with an ROE-centered value-up strategy."