Shinhan Financial Group Co., Ltd. (NYSE:SHG) Q2 2023 Earnings Conference Call July 27, 2023 1:00 AM ET
Company Participants
Park Cheol Woo - Head, Investor Relations
Lee Taekyung - Chief Financial Officer
Kim Myoung Hee - Chief Development Officer
Bang Dong Kwon - Chief Risk Officer
Ko Seok-Hon - CSSO
Kim Kihoon - Shinhan Bank, CFO
Kim Nam-Jun - Shinhan Card, CFO
Park Kyoung Won - Shinhan Life, CFO
Conference Call Participants
Shane Mathews - WhiteOak Capital
Won Jae-woong - HSBC
Park Cheol Woo
Good afternoon. I am Park Cheol Woo, Head of IR. Thank you or participating to the Shinhan Financial Group’s Earnings Presentation for Q2, 2023. Before moving on to their earnings presentation, allow me to make some housekeeping announcements. The earnings presentation of Shinhan Financial Group is taking place through the Group's digital platform namely the Shinhan Financial Group IR YouTube channel and Zoom App. The YouTube live channel is only available in Korean and Q&A is not available. Therefore, if you wish to have an English view or participate in the Q&A, please join via Zoom. Please refer to our website, www.shinhangroup.com for detailed information on access.
From now on we will start the earnings presentation of Shinhan Financial Group for Q2 2023. For today's earnings release, the Group's CFO, Taekyung Lee; CRO, Bang Dong-Kwon; Group CDO, Myoung Hee Kim will be the main presenters. In addition, we are also joined by Shinhan Bank's CFO, Kihoon Kim; Shinhan Card CFO, Nam-Jun Kim; Shinhan Investment and Securities CFO, Hee-Dong Lee; and Shinhan Life CFO, Kyoung Won Park.
In today’s earnings release there will first be a presentation on the overall business results for Q2 2023, followed by a Q&A session.
Now I will hand it over to the Group CFO Taekyung Lee for the presentation on business results for Q2, 2023.
Lee Taekyung
Hello. As introduced I am Taekyung Lee, CFO of the Shinhan Financial Group. First I would like to extend my sincere appreciation to you for taking part in today's earnings conference call for Q2, 2023 despite your busy schedules.
Now I will walk you through the key highlights from Page 5 of the IR presentation. Please refer to Page 5. In Q2 of 2023, despite an increase in operating income, net income declined due to conservative provisioning, realizing a net income of KRW1.2383 trillion.
Non-interest income recorded KRW1.33 trillion, up again after increase in Q1. This was due to balance growth, a fee income deposit despite the decline in securities related income. The Group's cost income ratio in the first half of the year stood at 38.3%, maintaining a stable level despite the upward inflationary pressure and increase in digital and ICT related expenses through a solid trend of operating profit.