▪

Jan. 2010: Shinhan Data System became a direct subsidiary of SFG

▪

Aug. 2010: Shinhan Macquarie Financial Advisory was disaffiliated from SFG

▪

Feb. 2011: Shinhan BNP Paribas Asset Management (Hong Kong) Ltd. became an indirect subsidiary of SFG

▪

Nov. 2011: Shinhan Bank Vietnam was merged with Shinhan Vina Bank

▪

Dec. 2011: Shinhan Savings Bank became a direct subsidiary of SFG

▪

Nov. 2012: Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary

▪

Jan. 2013: Yehanbyoul Savings Bank joined SFG as a direct subsidiary

▪

Apr. 2013: Shinhan Savings Bank merged with Yehanbyoul Savings Bank. As a result of the integration, Shinhan Savings Bank has been liquidated and Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity

▪

Nov. 2014: LLP MFO Shinhan Finance (Kazakhstan) became an indirect subsidiary of SFG

▪

Jul. 2015: Shinhan Securities Vietnam Co., Ltd became an indirect subsidiary of SFG

▪

Oct. 2015: Banco Shinhan de Mexico became an indirect subsidiary of SFG

▪

Nov. 2015: PT Bank Shinhan Indonesia became an indirect subsidiary of SFG

▪

Dec. 2015: PT. Shinhan Indo Finance became an indirect subsidiary of SFG

▪

Dec. 2015: PT Centratama Nasional Bank became an indirect subsidiary of SFG

▪

Mar. 2016: Shinhan Microfinance Co., Ltd. became an indirect subsidiary of SFG

▪

Jul. 2016: PT Shinhan Securities Indonesia became an indirect subsidiary of SFG

▪

Dec. 2016: Launched new integrated PT Bank Shinhan Indonesia

▪

Oct. 2017: Established Shinhan REITs(Real Estate Investment Trusts) Management Co.,Ltd. as SFG subsidiary

▪

Dec. 2017: Shinhan K REITs became an indirect subsidiary of SFG

▪

Apr. 2018: Shinhan Alpha REITs (formerly known as Shinhan K REITs) was disaffiliated from SFG’s indirect subsidiary due to a change in the largest shareholder

▪

May 2018: GX SHINHAN INTERVEST 1st PEF became an indirect subsidiary of SFG

▪

May 2018: Shinhan DS Vietnam became an indirect subsidiary of SFG

▪

Sep. 2018: Shinhan Alpha Yongsan REIT became an indirect subsidiary of SFG

▪

Oct. 2018: SFG entered into a share purchase agreement with Asia Trust Co., Ltd. for the 100% acquisition.

▪

Feb. 2019: Orange Life Insurance, Ltd. joined SFG as a direct subsidiary (acquisition from majority shareholders)

▪

May 2019: Asia Trust. Co., Ltd. joined SFG as a direct subsidiary

▪

Aug. 2019: Shinhan AI Co., Ltd. incorporated and joined as a direct subsidiary

▪

Jan. 2020: Orange Life Insurance, Ltd. became a wholly-owned subsidiary (acquisition of remaining interests by effecting a comprehensive stock exchange)

▪

Sep. 2020: Neoplux Co., Ltd. joined SFG as a direct subsidiary (acquisition from majority shareholder)

▪

Dec. 2020: SFG acquired the remaining interests in Neoplux by effecting a small-scale stock exchange and hence Neoplux has become our wholly owned subsidiary and was renamed to Shinhan Venture Investment.

▪

Jan. 2021: SFG acquired the remaining 35% interests in Shinhan BNPP Asset Management and it became a wholly-owned subsidiary. Shinhan BNPP Asset Management was renamed to Shinhan Asset Management.

Subsidiaries

Ownership by SFG

Shinhan Bank

100.0%

Shinhan Card

100.0%

Shinhan Investment Corp.

100.0%

Shinhan Life Insurance

100.0%

Orange Life Insurance

100.0%

Shinhan Capital

100.0%

Shinhan BNP Paribas Asset Management ¹⁾

65.0%

Jeju Bank ²⁾

75.3%

Shinhan Savings Bank ³⁾

100.0%

Asia Trust. Co., Ltd.

60.0%

Shinhan DS

100.0%

Shinhan AITAS ⁴⁾

99.8%

Shinhan Credit Information

100.0%

Shinhan Alternative Investment Management

100.0%

Shinhan REITs Management

100.0%

Shinhan AI

100.0%

Neoplux Co., Ltd. ⁵⁾

100.0%

SHC Management ⁶⁾

100.0%

1)On January 15, SFG acquired remaining 35% interests in Shinhan BNP Paribas Asset Management and it became our wholly-owned subsidiary (renamed to Shinhan Asset Management)

2)Jeju Bank is currently listed on the Korea Exchange.

3)On January 30, 2013, Yehanbyoul Savings Bank joined SFG as a direct subsidiary. On April 1, 2013, Shinhan Savings Bank merged with Yehanbyoul Savings Bank, both of which were direct subsidiaries of Shinhan Financial Group. As a result of the integration of the two savings banks, the previous Shinhan Savings Bank has been liquidated and is thus no longer a subsidiary of Shinhan Financial Group and instead, Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity constituting a member of Shinhan Financial Group.

4)On November 30, 2012, Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary. Prior to November 30, 2012, Shinhan AITAS was an indirect subsidiary of SFG under Shinhan Bank, a wholly-owned bank subsidiary of SFG.

5)On January 11, Neoplux was renamed to Shinhan Venture Investment.

6)Currently in liquidation proceedings

Direct Subsidiaries

Indirect Subsidiaries

Ownership by the Parent

Shinhan Bank

Shinhan Bank America

100.0%

Shinhan Bank Japan

100.0%

Shinhan Bank Europe

100.0%

Shinhan Bank Cambodia

97.5%

Shinhan Bank Kazakhstan

100.0%

Shinhan Bank China Limited

100.0%

Shinhan Bank Canada

100.0%

Shinhan Bank Vietnam

100.0%

Banco Shinhan de Mexico

99.99%

PT Bank Shinhan Indonesia

99.0%

Shinhan Card

LLP MFO Shinhan Finance

100.0%

PT. Shinhan Indo Finance

50.0%

Shinhan Microfinance Co., Ltd.

100.00%

Shinhan Vietnam Finance Co. Ltd.

100.00%

Shinhan Investment Corp.

Shinhan Investment America Inc.

100.0%

Shinhan Investment Asia Ltd.

100.0%

Shinhan Securities Vietnam Co., Ltd

100.0%

PT Shinhan Sekuritas Indonesia

99.0%

KOFC Shinhan Frontier Champ 2010-4 PEF¹⁾

8.5%

GX SHINHAN INTERVEST 1st PEF⁵⁾

14.5%

Shinhan Praxis K-Growth Global Private Equity Fund ²⁾

14.1%

Shinhan Life Insurance

Shinhan Financial Plux

100.0%

Shinhan Capital

KOFC Shinhan Frontier Champ 2010-4 PEF¹⁾

6.5%

Shinhan Asset Management

Shinhan BNP Paribas Asset Management (Hong Kong) Limited

100.0%

Shinhan Alternative
Investment Management

Shinhan Private Equity Fund 2nd ³⁾

66.3%

Shinhan DS

Shinhan DS Vietnam Co. Limited

100.0%

Shinhan Venture Investment

Neoplux 3^rd PEF

10.0%

KTCNP Growth Champ

5.56%

1) Shinhan Financial Group and its subsidiaries currently own 34.6% of KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp.

2) Shinhan Financial Group and its subsidiaries currently own 18.9% of Shinhan Praxis K-Growth Global Private Equity Fund.

3) Shinhan Financial Group and its subsidiaries currently own 96.74% of Shinhan Private Equity Fund 2nd.
4) Shinhan Financial Group and its subsidiaries currently own 25.27% of GX SHINHAN INTERVEST 1st PEF.

Date

Types of Issuance

Credit Rating

Rating Company

(Rating Range)

8/26/2019

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

10/21/2019

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

2/5/2020

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

3/12/2020

Debentures

AAA

Korea Rating(AAA~D

3/13/2020

Debentures

AAA

KIS Rating(AAA~D) / NICE Investors Service(AAA~D)

4/9/2020

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

5/26/2020

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D)

5/27/2020

Debentures

AAA

NICE Investors Service(AAA~D)

6/30/2020

Commercial Paper

A1

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

6/30/2020

Electronic

Short-term Bond

A1

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

7/10/2020

Debentures

A

Standard & Poors (AAA~D)

7/10/2020

Debentures

A1

Moody’s (Aaa~C)

9/10/2020

Write-down Contingent

Capital Securities

AA-

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

10/28/2020

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

12/22/2020

Debentures

AAA

Korea Rating(AAA~D) / KIS Rating(AAA~D) /

NICE Investors Service(AAA~D)

Types of Shares

Number of Shares

Number of shares authorized

for issuance

1,000,000,000

Number of common shares issued ⁽¹⁾

516,599,554

Number of preferred shares issued ⁽²⁾

17,482,000

Total outstanding shares

534,081,554

Treasury stocks ⁽³⁾

6,350

Total outstanding shares
with voting rights

516,593,204

(1) SFG issued 8,232,906 shares of common stock in relation to a comprehensive stock exchange between SFG and Orange Life Insurance on January 28, 2020. On June 1, 2020, SFG cancelled 5,035,658 treasury shares. On September 29, 2020, SFG had a paid-in capital increase and issued 39,130,000 common shares (third-party allocation). On December 30, 2020, SFG issued 72,719 shares of common stock in relation to a small-scale stock exchange between SFG and Neoplux.

(2) For more information, please refer to SFG’s reports on Form 6-K furnished to the Securities and Exchange Commission on February 12, 2019 and April 30, 2019.

(3) SFG acquired treasury stocks through the acquisition of fractional shares as a result of a stock exchange between SFG and Orange Life Insurance on January 28, 2020 and between SFG and Neoplux on December 30, 2020.

(KRW million)

Items

FY2020

(Jan. 1 ~ Dec. 31)

FY2019

(Jan. 1 ~ Dec. 31)

FY2018

(Jan. 1 ~ Dec. 31)

Par value per share (Won)

5,000

5,000

5,000

(Consolidated) Net Income

3,414,595

3,403,497

3,156,722

(Separate) Net Income

1,274,443

1,129,173

1,234,883

(Consolidated Earnings per share (Won)

6,654

7,000

6,579

Total Cash dividends

803,838

883,929

753,041

Total stock dividends

-

-

-

(Consolidated) Cash dividend payout ratio (%)

23.54

25.97

23.86

Cash dividend yield (%) – common shares

4.52

4.06

3.91

Cash dividend yield (%) – preferred shares

5.17

4.06

Stock dividend yield (%)

-

-

-

Cash dividend per share (Won)

1,500

1,850

1,600

Stock dividend per share

-

-

-

Note) Cash dividend payout ratio on a common share basis for FY2020 is 22.66%

(KRW billion)

FY2020

(Jan. 1 ~ Dec. 31)

FY2019

(Jan. 1 ~ Dec. 31)

FY2018

(Jan. 1 ~ Dec. 31)

Net interest income

9,883

9,738

8,580

Interest income

14,774

15,707

13,572

Interest expense

4,891

5,969

4,992

Net fees and commission income

2,383

2,141

1,939

Fees and commission income

3,815

3,557

3,295

Fees and commission expense

1,432

1,417

1,356

Net insurance income

-604

-497

-472

Insurance income

7,248

7,569

4,399

Insurance expense

7,852

8,066

4,870

Net gain(loss) on securities and FX trading/derivatives

1,125

982

615

Provision for credit loss and impairment loss

-1,391

-951

-739

Net other operating income(expense)

-1,254

-1,231

-683

General and administrative expenses

5,212

5,135

4,742

Net operating income

4,930

5,046

4,499

Equity method income

160

53

17.5

Other non-operating income(expense), net

-335

-188

-50

Profit before income taxes

4,754

4,912

4,467

Income tax expense

1,256

1,269

1,268

Consolidated net profit

3,498

3,642

3,198

Net profit attributable to equity holders of the Group

3,415

3,404

3,157

Net profit attributable to non-controlling interest

84

239

42

Notes : Some of the totals may not sum due to rounding.

Consolidated Basis

(KRW billion, %)

FY2020

FY2019

FY2018

Jan. 1 ~ Dec. 31

Jan. 1 ~ Dec. 31

Jan. 1 ~ Dec. 31

Average

Balance¹⁾

Propor-tions

(%)

Interest

Paid

Interest

Rate

(%)

Average

Balance¹⁾

Propor-tions

(%)

Interest

Paid

Interest

Rate

(%)

Average

Balance¹⁾

Propor-tions

(%)

Interest

Paid

Interest

Rate

(%)

Source

Deposits

312,544.7

53.8

2,842.6

0.91

280,108.9

53.8

3,644.6

1.30

257,656.5

58.2

3,091.7

1.20

Borrowings

26,883.5

4.6

336.1

1.25

22,705.0

4.4

400.2

1.76

19,211.9

4.3

316.9

1.65

Debt Securities Issued

74,756.2

12.9

1,554.5

2.08

  69,636.9

13.4

1,666.3

2.39

57,284.3

12.9

1,336.8

2.33

Other Liabilities

123,179.9

21.2

-

-

108,013.9

20.7

-

-

73,666.5

16.7

-

-

Total Liabilities

537,364.3

92.5

-

-

480,464.7

92.3

-

-

407,819.2

92.1

-

-

Total Stockholder's Equity

43,823.3

7.5

-

-

39,922.0

7.7

-

-

34,911.0

7.9

-

-

Total Liabilities & SE

581,187.6

100.0

-

-

520,386.7

100.0

-

-

442,730.2

100.0

-

-

Use

Cash & Due from Banks

31,358.5

5.4

141.9

0.45

24,598.6

4.7

241.9

0.98

20,581.4

4.6

188.9

0.92

Loans

343,266.4

59.1

11,776.8

3.43

313,159.5

60.2

12,508.9

3.99

287,925.9

65.0

11,190.7

3.89

  Loans in KRW

266,548.8

45.9

8,210.5

3.08

244,234.3

46.9

8,737.8

3.58

224,504.2

50.7

7,892.5

3.52

  Loans in Foreign Currency

28,989.4

5.0

1,084.1

3.74

24,284.0

4.7

1,082.6

4.46

19,306.0

4.4

795.6

4.12

  Credit Card Accounts

23,308.6

4.0

1,874.7

8.04

23,058.3

4.4

1,916.8

8.31

21,543.9

4.9

1,790.2

8.31

  Others

24,419.6

4.2

607.5

2.49

21,582.9

4.2

771.6

3.58

22,571.8

5.0

712.5

3.16

FVOCI Financial Assets

56,886.1

9.8

952.4

1.67

50,641.0

9.7

1,072.9

2.12

37,064.0

8.4

754.6

2.04

AC Financial Assets

46,426.1

8.0

1,076.8

2.32

40,955.7

7.9

1,061.3

2.59

26,456.1

6.0

730.4

2.76

Other Assets

103,250.5

17.7

-

-

91,031.9

17.5

-

-

70,702.8

16.0

-

-

Total Assets

581,187.6

100.0

-

-

520,386.7

100.0

-

-

442,730.2

100.0

-

-

1) The “Average Balance” is the arithmetic mean of the ending balance of each quarter.

(KRW billion)

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Aggregate Amount of Equity Capital (A)

39,709.1

35,712.3

33,993.1

Risk-Weighted Assets (B)

252,321.4

256,891.7

228,678.1

BIS Ratio (A/B)

15.74%

13.90%

14.87%

Note) based on Basel III

(%)

Subsidiary

Capital Adequacy Ratio

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Shinhan Bank

BIS Capital Adequacy Ratio

18.5

15.9

16.0

Shinhan Card

Adjusted Equity Capital Ratio

19.9

20.1

21.7

Shinhan Investment Corp.

Net Capital Ratio

1677.7

1,217.4

796.9

Shinhan Life Insurance

Risk Based Capital Ratio

249.5

227.9

238.7

Orange Life Insurance

Risk Based Capital Ratio

395.4

393.9

425.0

Shinhan Capital

Adjusted Equity Capital Ratio

15.2

13.1

13.2

Shinhan BNP Paribas

Asset Management

Equity Capital (KRW billion)

170.6

164.5

159.0

Minimum Capital Requirement (KRW billion)

30.7

29.3

27.4

Jeju Bank

BIS Capital Adequacy Ratio

15.8

14.9

14.9

Shinhan Savings Bank

BIS Capital Adequacy Ratio

15.8

15.5

14.7

Asia Trust

Net Capital Ratio

1,016.5

969.6

730.9

Notes :

▪Basel III was applied in calculating Shinhan Bank’s and Jeju Bank’s BIS Capital Adequacy Ratio.

▪Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio.

(KRW billion, %)

Company

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Shinhan Financial Group

1,562.0

451.8

345.7

192.7

37.9

508.2

1,860.4

138.3

1,344.8

Shinhan Card

17,596.2

4,658.9

377.7

17,922.1

4,464.9

401.4

17,425.6

4,568.9

381.4

Shinhan Investment Corp.

18,292.3

13,295.7

137.6

15,099.7

10,869.3

138.9

13,014.2

8,837.3

147.3

Shinhan Life Insurance

1,475.7

778.7

189.5

1,130.3

703.7

160.6

1,136.0

637.3

178.3

Orange Life Insurance

1,292.8

612.5

211.1

1,291.8

655.4

197.1

1,247.9

524.5

237.9

Shinhan Capital

1,280.7

628.5

203.8

970.1

659.9

147.0

637.7

543.7

117.3

Shinhan Savings Bank

314.7

184.8

170.3

226.1

188.8

119.8

320.5

222.4

144.1

Asia Trust

185.5

21.8

851.4

101.8

10.9

933.1

72.7

10.9

668.1

Notes:

▪Shinhan Financial Group: Due within 1 month

▪Shinhan Life Insurance and Orange Life Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100

▪Shinhan Card, Shinhan Investment Corp., Shinhan Capital, and Shinhan Savings Bank : Due within 3 months

▪Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015

to reflect the recent amendments to detailed regulations on supervision of banking business.

(KRW billion, %)

Company

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

High Quality Liquid Assets

Net Cash Outflows

Liquidity Coverage Ratio(%)*

High Quality Liquid Assets

Net Cash Outflows

Liquidity Coverage Ratio(%)

High Quality Liquid Assets

Net Cash Outflows

Liquidity Coverage Ratio(%)

Shinhan Bank

63,154.4

70,453.2

89.6

63,054.8

60,280.6

104.6

51,326.2

52,043.4

98.7

Jeju Bank

600.5

572.9

106.0

642.0

510.7

126.2

625.5

514.1

122.3

Notes:

▪Liquidity Coverage Ratios are the arithmetic mean of daily LCRs for 3 months.

▪Financial Services Commission temporarily eased the regulatory minimum from 100.0% to 85.0% in response to
COVID-19 pandemic until September 30, 2021.

(USD millions, %)

Company

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC

Liabilities

FC Liquidity Ratio(%)

Shinhan Financial Group

108.8

9.9

1,099.0

135.3

6.7

2,019.4

-

-

-

Shinhan Investment Corp.

6,426.3

6,587.4

97.6

6,769.9

6,488.4

104.3

5,983.6

5,641.7

106.1

Shinhan Capital

19.2

6.5

221.5

131.9

128.0

103.0

118.3

100.4

117.8

Jeju Bank

21.7

16.3

132.7

29.1

13.9

209.4

34.2

17.2

198.8

Notes :

▪Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months.

▪Jeju Bank’s foreign currency liquidity ratio reflected securitization weight with the guidelines issued by the FSS.

▪Shinhan Bank’s foreign currency liquidity ratio has been replaced by Foreign Liquidity Coverage Ratio.

(USD millions, %)

Company

2020 4Q

2019 4Q

2018 4Q

Oct. 1 ~ Dec. 31

Oct. 1 ~ Dec. 31

Oct. 1 ~ Dec. 31

Shinhan Bank

97.0

110.5

123.1

Notes :

▪The minimum requirement of the foreign currency liquidity coverage ratio was set at 60% in 2017, 70% in 2018 and was increased gradually to 80% in 2019.

▪Financial Services Commission temporarily eased the regulatory minimum from 80% to 70% in response to COVID-19 pandemic until September 30, 2021.

▪Foreign Currency Liquidity Coverage Ratio is calculated by averaging the daily foreign liquidity coverage ratio for the quarter.

(KRW billion)

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Total Loans

357,566.8

326,413.7

299,349.9

Substandard & Below

1,878.3

1,818.0

1,612.9

Substandard & Below Ratio

0.53%

0.56%

0.54%

Non-Performing Loans

1,390.3

1,433.3

1,318.4

NPL Ratio

0.39%

0.44%

0.44%

Substandard & Below Coverage Ratio

162.95%

148.29%

170.4%

Loan Loss Allowance

3,060.8

2,695.8

2,748.3

Substandard & Below Loans

1,878.3

1,818.0

1,612.9

(%)

Dec. 31 2020

Dec. 31, 2019

Dec. 31, 2018

Substandard & Below Ratio

NPL Ratio

Substandard & Below Coverage Ratio

Substandard & Below Ratio

NPL Ratio

Substandard & Below Coverage Ratio

Substandard & Below Ratio

NPL Ratio

Substandard & Below Coverage Ratio ¹⁾

Shinhan Financial Group

-

-

-

-

-

-

-

-

-

Shinhan Bank

0.36

0.29

143

0.45

0.36

116

0.45

0.39

141

Shinhan Card

1.09

0.56

277

1.15

0.6

265

1.11

0.61

275

Shinhan Investment Corp

4.63

1.95

60

0.07

0.07

808

0.08

0.08

1,003

Shinhan Life Insurance

0.13

0.12

234

0.12

0.11

208

0.09

0.08

414

Orange Life
Insurance

0.02

0.04

97

0.02

0.06

100

0.02

0.06

100

Shinhan Capital

0.72

0.73

282

0.77

0.99

162

0.97

1.04

159

Jeju Bank

0.60

0.54

93

0.54

0.46

94

0.49

0.47

102

Shinhan Savings Bank

2.69

2.82

88

2.9

2.85

88

3.88

3.40

72

Asia Trust

84.84

84.84

61

50.61

50.37

67

54.93

54.93

54

(KRW billion)

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Debt

10,426.8

            9,795.9

8,464.2

Equity

25,057.1

           22,465.4

21,650.0

Debt to Equity Ratio

41.61%

43.60%

39.10%

(KRW billion)

As of Dec. 31, 2020

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total Exposures

Ministry of Economy & Finance

0.0

-

37,097.8

-

-

37,097.8

Korea Housing Finance Corporation

0.0

-

9,277.6

-

-

9,277.6

Bank of Korea

1,380.0

-

5,340.5

0.1

-

6,720.6

Korea Development Bank

4.4

21.8

6,026.2

-

-

6,052.4

Industrial Bank of Korea

684.3

189.2

4,772.4

-

-

5,645.9

Export-Import Bank of Korea

-

10.8

2,519.7

26.9

-

2,557.3

NongHyup Bank

920.5

6.5

1,500.9

48.9

-

2,476.9

Samsung Electronics

-

1,940.6

-

-

-

1,940.6

Kookmin Bank

720.1

116.8

760.3

13.4

-

1,610.6

Woori Bank

390.0

205.4

850.1

-

-

1,445.5

KEB Hana Bank

700.5

143.1

574.5

1.9

-

1,420.1

Korea Land & Housing Corporation

0.0

-

1,415.6

-

-

1,415.7

Korea Expressway Corporation

0.0

-

1,374.9

-

-

1,374.9

S-Oil Corporation

0.5

424.3

231.4

491.0

-

1,147.3

KB Koonmin Card Corp.

-

-

1,114.8

-

-

1,114.8

Hotel Lotte

-

459.0

350.0

276.5

-

1,085.4

National Agricultural Cooperative Federation

55.4

-

945.3

-

-

1,000.8

Korea Electric Power Corporation

0.3

-

798.5

111.5

-

910.2

Korea National Railway

0.2

-

853.3

-

-

853.5

Hyundai Steel

137.7

279.6

383.1

32.3

-

832.7

Total

4,994.0

3,797.1

76,187.0

1,002.3

-

85,980.4

Note) Some of the totals may not sum due to rounding

(KRW billion)

As of Dec. 31, 2020

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total

Exposures

Hyundai Motors

702.5

2,347.7

1,999.6

399.0

-

5,448.7

Samsung

290.8

2,553.1

1,190.7

857.2

-

4,891.9

SK

382.7

395.8

1,495.4

735.4

-

3,009.3

Lotte

105.8

926.3

1,558.4

418.5

-

3,008.9

LG

250.3

671.0

968.8

586.8

-

2,476.9

LS

197.3

514.2

230.5

713.8

-

1,655.8

Hanwha

247.9

315.9

750.0

274.3

-

1,588.1

Hyundai Heavy Industries

146.8

177.9

344.3

902.6

-

1,571.6

GS

34.6

127.3

445.7

605.3

-

1,213.0

S-Oil

0.5

424.3

231.4

491.0

-

1,147.3

Total

2,359.3

8,453.6

9,214.7

5,983.9

0.1

26,011.5

Note) Some of the totals may not sum due to rounding

(KRW billion)

Borrower

Industry

Gross Principal Outstanding

Substandard & Below

Allowance for Loan Losses

A

Other financial service activities n.e.c.

109.5

109.5

21.5

B

Other financial service activities n.e.c.

57.6

57.6

11.3

C

Manufacture of sections for ships

41.8

39.5

22.4

D

Manufacture of plastic products for fabricating of machine

35.8

35.8

27.2

E

Other financial service activities n.e.c.

23.7

23.7

9.2

F

Building of steel ships

21.7

21.7

0.6

G

Sea freight water transport

16.6

16.6

7.8

H

Sea freight water transport

14.7

14.7

12.6

I

Manufacture of sections for ships

15.8

14.4

0.2

J

Manufacture of sections for ships

7.0

7.0

0.1

K

Manufacture of other new parts and accessories for motor vehicles n.e.c.

6.3

6.3

1.8

L

Sea freight water transport

6.2

6.2

2.2

M

Building of steel ships

5.6

5.6

5.1

N

Wholesale of outerwear and shirts

5.1

5.1

4.4

O

Passenger air transport

5.0

5.0

3.9

P

General hospitals

5.0

5.0

1.0

Q

Manufacture of other textiles n.e.c.

5.2

4.9

0.6

R

Manufacture of taps, valves and similar products

5.1

4.5

2.0

S

Retail sale of household textile articles

5.5

4.4

0.5

T

Specialized hospitals

4.0

4.0

0.4

Total

397.2

391.5

134.7

Notes :

▪Consolidated basis as of Dec. 31, 2020

▪Some of the totals may not sum due to rounding.

FY2020

FY2019

FY2018

Independent Auditor

PwC Samil

Accounting Corp.

KPMG Samjong Accounting Corp.

KPMG Samjong Accounting Corp.

Audit Opinion

Unqualified

Unqualified

Unqualified

Year

Auditor

Payment ¹⁾
(KRW mil.)

Details

Working hours

FY2020

PwC Samil

Accounting Corp.

976

(annualized basis)

Review/Audit of Financial Statements

8,809

Hours

PwC Samil

Accounting Corp.

120

(annualized basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

1,195.5

Hours

FY2019

KPMG Samjong Accounting Corp.

1,160

(annualized basis)

Review/Audit of Financial Statements

11,497

Hours

KPMG Samjong Accounting Corp.

102

(annualized basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

1,272

Hours

FY2018

KPMG Samjong Accounting Corp.

715

(annualized basis)

Review/Audit of Financial Statements

8,470

Hours

KPMG Samjong Accounting Corp.

94

(annualized basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

850

Hours

1)Excluding value-added taxes.

* In addition to above mentioned description of fees for audit and review services, PwC Samil Accounting Corp. also provided services related to US listing and ICOFR audit in accordance with the standards of the PCAOB which we agreed to pay KRW 2,061 million (excluding value-added taxes) for FY2020.

▪

The Board Steering Committee;

▪

The Risk Management Committee;

▪

The Audit Committee;

▪

The Remuneration Committee;

▪

The Outside Director Recommendation Committee;

▪

The Audit Committee Member Recommendation Committee;

▪

The Corporate Governance and Chief Executive Officer Recommendation Committee; and

▪

The Corporate Social Responsibility Committee.

▪

Corporate Governance and CEO Recommendation Committee

▪

The Committee is responsible for overall corporate governance matters of the Company. It will deliberate on matters related to corporate governance of the Company, such as the code of conduct and code of ethics, size of the Board of Directors and matters necessary for improvements to the Company’s corporate governance structure. The Committee is also responsible to develop, operate and review the Company’s management succession plan, including setting CEO qualification criteria, evaluating CEO candidate pool and recommending CEO candidates. The Chair of this Committee will be elected among the outside director members. The participation, and voting right, of the incumbent CEO will be limited if he or she is included in the CEO candidate pool.

▪

Board Steering Committee

▪

The Committee is responsible for ensuring the efficient operations of the board and the facilitation of the board’s functions. The Committee’s responsibilities also include reviewing and assessing the Board’s structure and the effectiveness of that structure in fulfilling the board’s fiduciary responsibilities.

▪

Audit Committee

▪

The Committee oversees our financial reporting and approves the appointment of and interaction with our independent auditors and our internal audit-related officers. The Committee also reviews our financial information, audit examinations, key financial statement issues and the administration of our financial affairs by the Board of Directors. In connection with the general meetings of stockholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the Board of Directors for each general meeting of stockholders.

▪

Outside Director Recommendation Committee

▪

Members of this Committee are appointed by our Board of Directors if and only to the extent necessary to recommend and nominate candidates for our Outside Director positions and related

matters. The committee meetings are called by the chairman of this committee, who must be an Outside Director.

▪

Risk Management Committee

▪

The Committee oversees and makes determinations on all issues relating to our comprehensive risk management function. In order to ensure our stable financial condition and to maximize our profits, the committee monitors our overall risk exposure and reviews our compliance with risk policies and risk limits. In addition, the committee reviews risk and control strategies and policies, evaluates whether each risk is at an adequate level, establishes or abolishes risk management divisions, reviews risk-based capital allocations, and reviews the plans and evaluation of internal control.

▪

Remuneration Committee

▪

This Committee is responsible for reviewing and approving the management’s evaluation and remuneration programs.

▪

Audit Committee Member Recommendation Committee

▪

Members of this Committee are appointed by our Board of Directors if and only to the extent necessary to recommend and nominate candidates for our Audit Committee member positions and related matters. The Committee should consist of all of the Outside Directors of the Group.

▪

Corporate Social Responsibility Committee

▪

The Committee is responsible for setting the general corporate policy and discussing specific business agenda in relation to enhancing our role as a responsible corporate citizen. This enables the Company to more actively respond to the demands of internal and external stakeholders, including customers, shareholders and the community fulfill its corporate social responsibility and actively and systematically realize the Group’s mission of “Compassionate Finance, Your Companion for the Future.”

Name

No. of Common Shares owned

Ownership%²⁾

National Pension Service

50,666,140

9.81%

BlackRock Fund Advisors³⁾

29,063,012

5.63%

Employee Stock Ownership Association

24,788,139

4.80%

1) Shareholders who own beneficial ownership of 5% or more (common share basis).

2) Ownership is based on the total number of common shares issued, 516,599,554 shares.

3) Based on the large equity ownership discloser by BlackRock Fund Advisors with the Financial Supervisory Service on Sep. 27, 2018.

(Number of shares, %)

Share ownership

Beginning Balance
(Jan. 1, 2020)

Increase

Decrease

Ending Balance

(Dec. 31, 2020)

Ownership%

(Dec. 31, 2020)

Employee Stock Ownership

24,086,717

4,416,990

3,823,034

24,680,673

-

ESOA account

165,585

30,846

88,965

107,466

-

Total

24,252,302

4,447,836

3,911,999

24,788,139

4.80%

(KRW, number of shares)

Jul. 2020

Aug 2020

Sep. 2020

Oct. 2020

Nov 2020

Dec. 2020

Price per share

High

31,050

33,800

30,200

31,500

34,650

34,600

Low

29,000

29,650

27,200

27,950

31,150

32,000

Avg.

30,137

31,088

28,548

29,353

32,924

33,571

Trading Volume

37,335,821

45,606,088

42,172,854

59,786,924

71,729,728

60,399,242

Highest Daily Trading Volume

2,739,196

5,025,552

4,212,332

6,673,095

7,202,607

4,462,333

Lowest Daily Trading Volume

1,027,988

1,091,079

1,193,407

1,332,326

1,708,598

1,832,455

(USD, number of shares)

Jul. 2020

Aug 2020

Sep. 2020

Oct. 2020

Nov 2020

Dec. 2020

Price per share

High

26.04

28.86

25.58

27.57

31.24

31.96

Low

24.44

24.92

22.97

23.2

27.72

29.53

Avg.

25.16

26.41

23.95

25.26

29.71

30.78

Monthly Trading Volume

3,353,300

2,387,410

3,729,180

2,569,344

1,583,197

2,408,500

Highest Daily Trading Volume

756,426

348,609

600,138

237,962

193,843

246,488

Lowest Daily Trading Volume

63,452

35,933

90,169

57,260

36,274

42,390

Note) 1 ADR = 1 Common Shares

(As of Dec. 31, 2020)

Name

Month and Year

of Birth

Position

Service Term

Cho Yong-byoung

June 1957

- Chairman of Shinhan Financial Group

- Board Steering Committee Chair

- Corporate Social Responsibility
Committee member

6 years starting from March 23, 2017

(As of Dec. 31, 2020)

Name

Month and Year

of Birth

Outside

Director

Sub-Committees

Service Term

Park Cheul

April 1946

O

▪Chairman of Board of Directors

▪Corporate Governance & CEO Recommendation Committee member

▪Risk Management Committee member

▪Board Steering Committee member

▪Outside Director Recommendation Committee member

6 years starting from March 25, 2015

Yoon Jaewon

August 1970

O

▪Audit Committee chair

▪Remuneration Committee member

▪Corporate Social Responsibility Committee member

▪Outside Director Recommendation Committee member

2 years starting from March 26, 2020

Yuki Hirakawa

October 1960

O

▪Board Steering Committee member

▪Outside Director Recommendation Committee member

6 years starting from March 25, 2015

Park Ansoon

January 1945

O

▪Board Steering Committee member

4 years starting from March 23, 2017

Jin Hyun-duk

September 1955

O

▪Corporate Governance & CEO Recommendation Committee member

▪Outside Director Recommendation Committee member

2 years starting from March 26, 2020

Choi Kyong-rok

May 1966

O

▪Corporate Social Responsibility Committee member

▪Corporate Governance & CEO Recommendation Committee member

3 years starting from March 22, 2018

Lee Yoon-jae

November 1950

O

▪Corporate Social Responsibility Committee chair

▪Corporate Governance & CEO Recommendation Committee chair

▪Audit Committee Member

2 years starting from March 27, 2019

Byeon Yang-ho

July 1954

O

▪Risk Management Committee Chair

▪Corporate Governance & CEO Recommendation Committee Member

▪Corporate Social Responsibility Committee member

2 years starting from March 27, 2019

Huh Yong-hak

September 1958

O

▪Remuneration Committee chair

▪Risk Management Committee member

▪Corporate Governance & CEO Recommendation Committee member

2 years starting from March 27, 2019

Sung Jae-ho

March 1960

O

▪Outside Director Recommendation Committee chair

▪Corporate Governance & CEO Recommendation Committee member

▪Audit Committee Member

▪Remuneration Committee member

2 years starting from March 27, 2019

Philippe Avril

April 1960

X

-

6 years starting from March 25, 2015

Jin Ok-dong

February 1961

X

-

2 years starting from March 27, 2019

* Audit Committee Member Recommendation Committee consists of all the outside directors.

(As of Dec. 31, 2020)

Name

Month and Year

of Birth

Position

In charge of

Yi Sunny

March 1962

Deputy President and Chief Digital Officer

Digital Strategy Group

Jang Dong-ki

January 1964

Deputy President

Global Markets & Securities Business Group

Jeong Woon-jin

April 1964

Deputy President

Global Investment Banking Business Group

Lee Byeong-cheol

January 1963

Deputy President and Chief Public Relations Officer

Brand Strategy Division

Jeong Jiho

June 1963

Deputy President

Global Business Management Group

Wang Mi-hwa

October 1964

Deputy President

Wealth Management Planning Group  

Roh Yong-hoon

March 1964

Deputy President and Chief Financial Officer

Finance Management Team

Accounting Team

Investor Relations Team

Internal Control on Financial Reporting Team

An Hyo-ryul

May 1965

Deputy President

Pension Business Group

Wang Ho-min

March 1964

Managing Director and Chief Compliance Officer

Compliance Team

Lee Een-kyoon

April 1967

Managing Director and Chief Operation Officer

Shinhan Leadership Center

Management Support Team

Park Sung-hyun

November 1965

Managing Director and Chief Strategy & Sustainability

Officer

Strategic Planning Team

One Shinhan Strategy Team

Business Management Team

Platform Marketing Team

Bang Dong-kwon

February 1966

Managing Director and Chief Risk Officer

Risk Management Team

Risk Model Validation Team

Credit Review Team

(As of Dec. 31, 2020)

Total number of persons

Total amount approved

at shareholders’ meeting

(KRW millions)

Notes

Directors

(Outside directors)

13(10)

3,500

-

Note) Represents the aggregate amount for all directors (including outside directors) excluding long-term incentives.

(As of Dec. 31, 2020)

Total number of

Persons

Total compensation

(KRW million)

Average

compensation

per person

(KRW million)

Notes

Registered Directors

3

1,298

469

Excluding outside directors, Audit committee members

Outside Directors

7

516

71

Excluding Audit committee members

Audit committee members or internal auditor

3

247

82

Notes : Represents the total number of applicable persons as of Dec. 31, 2020.

(As of Dec. 31, 2020)

Total number of persons

Total compensation
(KRW million)

Average Compensation

per person

(KRW million)

Notes

Non-registered directors

6

1,948

325

-

(As of Dec. 31, 2020)

No. of

Granted Options (A)

No. of Exercised Options
(B)

No. of Cancelled Options
(C)

No. of Exercisable Options
(D = A – B – C)

Exercise Price
(KRW)

Granted in 2007

58,764

58,764

-

-

54,560

Granted in 2008

60,753

-

24,591

36,162

49,053

Total

119,517

58,764

24,591

36,162

-

Notes :

▪The weighted-average exercise price of outstanding exercisable options as of Dec. 31, 2020 is KRW 49,053.

The closing price of our common stock was KRW 32,050 on Dec. 31, 2020.

(As of Dec. 31, 2020)

Gender

Number of Employees

Average length of Service

Total Salaries and wages

paid in 2020

(KRW million)

Average Payment

per person

(KRW million)

Male

134

2 yrs 9 mths

(14 yrs 10 mths) ¹⁾

20,558

153

Female

33

3 yrs 9 mths

(11 yrs) ¹⁾

3,000

91

Total

167

3 yrs

(14 yrs 1 mth) ¹⁾

23,558

141

1) Average length of service including services within group subsidiaries

(KRW billion)

Loans to Subsidiaries
(in KRW bil.)

Type

Origination

Date

Maturity

Date

Lending

Rate

Beginning Balance

(Jan. 1, 2020)

Decrease

Increase

Others¹⁾

Ending Balance

(Dec. 31, 2020)

Shinhan Card            

Loan

2016-01-26

2021-01-26

1.98%

150

-

-

-

150

Loan

2016-02-24

2021-02-24

1.84%

150

-

-

-

150

Loan

2017-03-22

2022-03-22

2.22%

150

-

-

-

150

Loan

2017-04-20

2022-04-20

2.21%

100

-

-

-

100

Loan

2017-05-12

2022-05-12

2.35%

50

-

-

-

50

Loan

2018-02-22

2023-02-22

2.90%

100

-

-

-

100

Loan

2019-04-18

2024-04-18

2.04%

100

-

-

-

100

Loan

2019-04-18

2026-04-18

2.09%

100

-

-

-

100

Loan

2019-10-22

2024-10-22

1.76%

40

-

-

-

40

Loan

2019-10-22

2026-10-22

1.81%

60

-

-

-

60

Loan

2020-09-17

2025-09-17

1.48%

-

-

200

-

200

Loan

2020-10-29

2023-10-29

1.24%

-

-

150

-

150

Loan

2020-10-29

2025-10-29

1.46%

-

-

150

-

150

Loan

2019-11-19

2025-02-04

2.79%

463

-

-

-28

435

Shinhan Investment Corp    

Loan

2019-11-19

2025-02-04

2.79%

104

-

-

-6

98

Loan

2020-08-20

2025-08-20

2.55%

-

-

588

-47

541

Loan

2020-03-20

2020-06-20

1.78%

-

100

100

-

-

Loan

2020-03-24

2020-12-23

3.06%

-

240

240

-

-

Loan

2020-03-24

2020-09-25

2.93%

-

100

100

-

-

Loan

2020-03-24

2020-06-22

2.05%

-

30

30

-

-

Loan

2020-03-25

2020-12-23

3.06%

-

50

50

-

-

Shinhan

Capital

Loan

2016-03-16

2021-03-16

1.90%

50

50

-

-

-

Loan

2017-03-22

2022-03-22

2.22%

50

50

-

-

-

Loan

2017-04-20

2022-04-20

2.21%

50

50

-

-

-

Loan

2017-05-12

2022-05-12

2.35%

50

50

-

-

-

Loan

2017-08-24

2022-08-24

2.37%

50

50

-

-

-

Loan

2018-01-22

2023-01-22

2.75%

50

50

-

-

-

Loan

2019-02-01

2024-02-01

2.23%

50

-

-

-

50

Loan

2019-04-18

2024-04-18

2.04%

100

100

-

-

-

Loan

2019-05-24

2024-05-24

1.92%

80

60

-

-

20

Loan

2020-04-10

2025-04-10

1.75%

-

-

200

-

200

Loan

2020-12-23

2025-12-23

1.57%

-

-

160

-

160

Financial

assets at

FVPL

2020-04-22

2050-04-22

3.56%

-

-

100

1

101

Shinhan Alternative Investment

Loan

2020-03-16

2023-03-16

1.42%

-

-

38

-

38

Loan

2020-09-14

2020-12-14

0.83%

-

5

5

-

-

Loan

2020-12-14

2021-03-12

0.99%

-

-

5

-

5

Shinhan Savings Bank

Loan

2016-06-17

2021-06-17

1.61%

50

-

-

-

50

Loan

2017-06-23

2022-06-23

2.27%

50

-

-

-

50

Loan

2020-05-28

2025-05-28

1.52%

-

-

50

-

50

Shinhan DS

Loan

2019-02-01

2022-02-01

2.15%

24

-

-

-

24

Total

2,221

985

2,166

-80

3,322

Shinhan Financial Group Co., Ltd.

(Registrant)

    Date: March 17, 2021

By:

/s/ Roh Yong-hoon

Name: Roh Yong-hoon

Title:   Chief Financial Officer