Shinhan Financial Group Co., Ltd. (SHG) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 8, 2023 12:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Park Cheol Woo

Good afternoon. I am Park Cheol Woo, Head of IR. I would like to welcome everyone to the Shinhan Financial Group’s 2022 Fiscal Year Earnings Presentation. Several housekeeping rules before we begin the earnings presentation. We are holding today’s earnings presentation via digital platforms including the Shinhan Financial Group IR YouTube channel and the Zoom applications. The YouTube live channel is in Korean only and questions cannot be asked. And so if you’d like to view today’s IR in English or if you have questions to raise, please join us through the Zoom application. More details on how to join us is explained to you on our website www.shinhangroup.com.

We now begin the 2022 fiscal year earnings presentation. In today’s presentation, we have with us the Group’s CFO, Lee Taekyung, the main presenter and the Group’s CDO, Kim Myoung Hee; the Group CRO, Bang Dong-Kwon; the Group CSSO, Ko Seok-Hon; Shinhan Bank CFO, Kim Kihoon; Shinhan Card CFO, Kim Nam-Jun; Shinhan Securities CFO, [indiscernible]; and finally from Shinhan Life, the CFO, Park Kyoung Won.

Today’s earnings presentation will proceed as follows. CFO, Lee Taekyung will walk you through the overall business results for 2022 achievements in the digital area will be presented by Kim Myoung Hee, after which we will have a Q&A session.

I now invite CFO, Lee Taekyung to present the business results of 2022.

Lee Taekyung

Greetings. I am Shinhan Financial Group CFO, Lee Taekyung. First of all, thank you for participating in our fiscal year 2022 annual business results presentation despite your busy schedules. On Page 4 of the business results presentation, I will first go over the highlights. Please go to Page 4.

‘22 Q4 due to factors such as-non recurring items and recognition of cost to prepare for future uncertainties, net income was lower than the market consensus and recorded KRW326.9 billion. Regarding the major non-recurring items which occurred in Q4, I will explain in more detail from the next pages. On an annualized basis, group’s cumulative net income posted KRW4.6423 trillion and despite uncertain economic conditions at home and abroad, we steadily improved net income excluding the KRW321.8 billion of sales gain from Shinhan Securities HQ building sale income, it was a 7.5% increase YoY. Group’s annual CIR posted 45.5% and despite the digital-related cost increase and inflationary factors is being managed at a stable level. Group’s annual credit cost ratio posted at around 33 bp level and despite additional provision for future uncertainties due to deterioration of the internal and external economic environment, it is being maintained at a stable level. And going forward, Shinhan Financial Group will maintain a conservative provisioning policy.