6-K 1 shg-6k_20210520.htm 6-K SUMMARY OF 1Q 2021 BUSINESS REPORT shg-6k_20210520.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

Under the Securities Exchange Act of 1934

 

For the Month of May 2021

 

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

 

20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will

file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  √    Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in

paper as permitted by Regulation S-T Rule 101(b)(1): _______

 

Indicate by check mark if the registrant is submitting the Form 6-K in

paper as permitted by Regulation S-T Rule 101(b)(7): _______

 

Indicate by check mark whether the registrant by furnishing the

information contained in this form is also thereby furnishing the

information to the Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.

 

Yes        No___√___

 

If "Yes" is marked, indicate below the file number assigned to the

registrant in connection with Rule 12g3-2(b): 82-  n/a  .


1


 

Summary of 1Q 2021 Business Report

 

On May 17, 2021, Shinhan Financial Group (“SFG”) filed its Business Report (the “Business Report”) for the first quarter of 2021 with the Financial Services Commission of Korea and the Korea Exchange pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

 

The financial information in this report has been prepared in accordance with Korean International Financial Reporting Standards.

 

Table of Contents

 

1. Introduction of the Group

2. Business Results

3. Other Financial Information

4. Independent Auditor

5. Corporate Governance

6. Major Shareholders and Market Price Information of our Common Shares and ADRs

7. Directors, Executive Officers and Employees

8. Related Party Transactions


2


1. Introduction of the Group

 

Company History (from Jan. 2010 through the reporting date)

 

 

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)

3


 

 

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 on January 11, 2021, Neoplux changed its legal name 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 changed its legal name to Shinhan Asset Management.

 


4


 

Principal(Direct) Subsidiaries under Korean Law (as of Mar. 31, 2021)

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 Asset Management 1)

 

100.0%

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%

Shinhan Venture Investrment 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 (changed its legal name 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 changed its legal name to Shinhan Venture Investment.

6)Currently in liquidation proceedings

 

 


5


 

Indirect subsidiaries held through direct subsidiaries (as of the reporting date)

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%

 

Shinhan Praxis K-Growth Global Private Equity Fund 2)

 

14.1%

 

Shinhan Smilegate Global PEF I 3)

 

10.0%

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 4)

 

66.3%

Shinhan DS

 

Shinhan DS Vietnam Co. Limited

 

100.0%

Shinhan Venture Investment

 

Neoplux 3rd 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 14.21% of Shinhan Smilegate Global PEF I.
4)
Shinhan Financial Group and its subsidiaries currently own 96.74% of Shinhan Private Equity Fund 2nd.

 


6


 

Credit Ratings

Date

Types of Issuance

Credit Rating

Rating Company

(Rating Range)

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)

2/8/2021

Electronic

Short-term Bond

A1

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

NICE Investors Service(AAA~D)

2/18/2021

Debentures

AAA

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

NICE Investors Service(AAA~D)

2/24/2021

Debentures

AAA

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

NICE Investors Service(AAA~D)

3/4/2021

Write-down Contingent

Capital Securities

AA-

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

NICE Investors Service(AAA~D)

3/4/2021

Write-down Contingent

Capital Securities

AA-

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

NICE Investors Service(AAA~D)

 

Number of Shares (as of Mar. 31, 2021)

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.

 


7


Dividends

 

 

 

(KRW million)

Items

1Q FY2021

(Jan. 1 ~ Mar. 31)

FY2020

(Jan. 1 ~ Dec. 31)

FY2019

(Jan. 1 ~ Dec. 31)

Par value per share (Won)

5,000

5,000

5,000

(Consolidated) Net Income

1,191,938

3,414,595

3,403,497

(Separate) Net Income

1,328,049

1,274,443

1,129,173

(Consolidated Earnings per share (Won)

2,173

6,654

7,000

Total Cash dividends

-

803,838

883,929

Total stock dividends

-

-

-

(Consolidated) Cash dividend payout ratio (%)

-

23.54

25.97

Cash dividend yield (%) – common shares

-

4.52

4.06

Cash dividend yield (%) – preferred shares

-

5.17

4.06

Stock dividend yield (%)

-

-

-

Cash dividend per share (Won)

-

1,500

1,850

Stock dividend per share

-

-

-

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


8


2. Business Results

Operating Results

 

 

 

(KRW billion)

 

1Q FY2020

(Jan. 1 ~ Mar. 31)

FY2020

(Jan. 1 ~ Dec. 31)

FY2019

(Jan. 1 ~ Dec. 31)

Net interest income

2,556

9,883

9,738

Interest income

3,523

14,774

15,707

Interest expense

966

4,891

5,969

Net fees and commission income

682

2,383

2,141

Fees and commission income

1,024

3,815

3,557

Fees and commission expense

343

1,432

1,417

Net insurance income

-156

-604

-497

Insurance income

1,698

7,248

7,569

Insurance expense

1,854

7,852

8,066

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

444

1,125

982

Provision for credit loss and impairment loss

-188

-1,391

-951

Net other operating income(expense)

-377

-1,254

-1,231

General and administrative expenses

1,279

5,212

5,135

Net operating income

1,682

4,930

5,046

Equity method income

13

160

53

Other non-operating income(expense), net

-50

-335

-188

Profit before income taxes

1,645

4,754

4,912

Income tax expense

427

1,256

1,269

Consolidated net profit

1,218

3,498

3,642

Net profit attributable to equity holders of the Group

1,192

3,415

3,404

Net profit attributable to non-controlling interest

26

84

239

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


 

9


 

Source and Use of Funds

Consolidated Basis

(KRW billion, %)

1Q FY2021

FY2020

FY2019

Jan. 1 ~ Mar. 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

332,078.0

54.3

528.1

0.64

280,108.9

53.8

3,644.6

1.30

257,656.5

58.2

3,091.7

1.20

Borrowings

28,279.5

4.6

60.9

0.87

22,705.0

4.4

400.2

1.76

19,211.9

4.3

316.9

1.65

Debt Securities Issued

75,495.3

12.3

346.7

1.86

  69,636.9

13.4

1,666.3

2.39

57,284.3

12.9

1,336.8

2.33

Other Liabilities

129,583.1

21.2

-

-

108,013.9

20.7

-

-

73,666.5

16.7

-

-

Total Liabilities

565,435.9

92.4

-

-

480,464.7

92.3

-

-

407,819.2

92.1

-

-

Total Stockholder's Equity

46,549.7

7.6

-

-

39,922.0

7.7

-

-

34,911.0

7.9

-

-

Total Liabilities & SE

611,985.6

100.0

-

-

520,386.7

100.0

-

-

442,730.2

100.0

-

-

Use

Cash & Due from Banks

31,920.6

5.2

23.4

0.30

24,598.6

4.7

241.9

0.98

20,581.4

4.6

188.9

0.92

Loans

363,988.8

59.5

2843.8

3.17

313,159.5

60.2

12,508.9

3.99

287,925.9

65.0

11,190.7

3.89

  Loans in KRW

284,385.6

46.5

2001.2

2.85

244,234.3

46.9

8,737.8

3.58

224,504.2

50.7

7,892.5

3.52

  Loans in Foreign Currency

30,006.0

4.9

259.9

3.51

24,284.0

4.7

1,082.6

4.46

19,306.0

4.4

795.6

4.12

  Credit Card Accounts

23,846.1

3.9

466.3

7.93

23,058.3

4.4

1,916.8

8.31

21,543.9

4.9

1,790.2

8.31

  Others

25,751.1

4.2

116.4

1.83

21,582.9

4.2

771.6

3.58

22,571.8

5.0

712.5

3.16

FVOCI Financial Assets

57,400.9

9.4

212.1

1.50

50,641.0

9.7

1,072.9

2.12

37,064.0

8.4

754.6

2.04

AC Financial Assets

47,660.6

7.8

265.1

2.26

40,955.7

7.9

1,061.3

2.59

26,456.1

6.0

730.4

2.76

Other Assets

111,014.7

18.1

-

-

91,031.9

17.5

-

-

70,702.8

16.0

-

-

Total Assets

611,985.6

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.

 

 

10


 

3. Other Financial Information

 

1) Capital Adequacy

 

Consolidated BIS Ratio (Shinhan Financial Group)

 

 

 

(KRW billion)

 

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Aggregate Amount of Equity Capital (A)

41,051.4

39,709.1

35,712.3

Risk-Weighted Assets (B)

258,256.0

252,321.4

256,891.7

BIS Ratio (A/B)

15.90%

15.74%

13.90%

Note) based on Basel III

 

 

 

 

Capital Adequacy Ratios (Subsidiaries)

 

 

 

 

(%)

Subsidiary

Capital Adequacy Ratio

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Shinhan Bank

BIS Capital Adequacy Ratio

18.0

18.5

15.9

Shinhan Card

Adjusted Equity Capital Ratio

19.0

19.9

20.1

Shinhan Investment Corp.

Net Capital Ratio

1,645.9

1,677.7

1,217.4

Shinhan Life Insurance

Risk Based Capital Ratio

243.5

249.5

227.9

Orange Life Insurance

Risk Based Capital Ratio

380.0

395.4

393.9

Shinhan Capital

Adjusted Equity Capital Ratio

13.8

15.2

13.1

Shinhan Asset Management

Equity Capital (KRW billion)

181.7

170.6

164.5

Minimum Capital Requirement (KRW billion)

31.4

30.7

29.3

Jeju Bank

BIS Capital Adequacy Ratio

16.1

15.8

14.9

Shinhan Savings Bank

BIS Capital Adequacy Ratio

15.0

15.8

15.5

Asia Trust

Net Capital Ratio

985.9

1,016.5

969.6

Notes :

The BIS Capital Adequacy Ratio is computed in accordance with the guidelines issued by the FSS for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%.

Basel III FIRB was applied in calculating Shinhan Bank’s BIS Capital Adequacy Ratio.

Basel III TSA was applied in calculating Jeju Bank’s BIS Capital Adequacy Ratio.

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

The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholder’s equity to total adjusted assets and is computed in accordance with the guidelines issued by FSS. Under these guidelines, Shinhan Card and Shinhan Capital are required to maintain a minimum adjusted equity capital ratio of 8%.

Net Capital Ratio is computed in accordance with the guidelines issued by the FSS. Under these guidelines, Shinhan Investment Corporation is required to maintain a minimum net capital ratio of 100%.

Under the guidelines issued by the FSS, Shinhan Life Insurance is required to maintain a minimum RBC ratio of 100%.

Under the guidelines issued by the FSS, Shinhan Asset Management is required to hold Equity Capital that exceeds the Minimum Capital Requirement.

 

 


 

11

 


 

2) Liquidity

 

Won Liquidity Ratio

 

 

 

(KRW billion, %)

Company

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Shinhan Financial Group

2,898.5

1,236.9

234.3

1,562.0

451.8

345.7

192.7

37.9

508.2

Shinhan Card

18,008.3

5,086.6

354.0

17,596.2

4,658.9

377.7

17,922.1

4,464.9

401.4

Shinhan Investment Corp.

20,054.3

14,305.6

140.2

18,292.3

13,295.7

137.6

15,099.7

10,869.3

138.9

Shinhan Life Insurance

1,033.4

794.0

130.2

1,475.7

778.7

189.5

1,130.3

703.7

160.6

Orange Life Insurance

885.4

572.4

154.7

1,292.8

612.5

211.1

1,291.8

655.4

197.1

Shinhan Capital

1,481.9

793.2

186.8

1,280.7

628.5

203.8

970.1

659.9

147.0

Shinhan Savings Bank

387.7

293.0

132.3

314.7

184.8

170.3

226.1

188.8

119.8

Asia Trust

205.2

22.5

912.3

185.5

21.8

851.4

101.8

10.9

933.1

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.

 

 

Liquidity Coverage Ratio

 

 

 

(KRW billion, %)

Company

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

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

62,499.1

69,530.7

89.9

63,154.4

70,453.2

89.6

63,054.8

60,280.6

104.6

Jeju Bank

680.1

603.0

112.8

600.5

572.9

106.0

642.0

510.7

126.2

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.

 

 

12

 


 

Foreign Currency (FC) Liquidity Ratio

 

 

 

(USD millions, %)

Company

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC

Liabilities

FC Liquidity Ratio(%)

Shinhan Financial Group

44.4

-

N/A

108.8

9.9

1,099.0

135.3

6.7

2,019.4

Shinhan Investment Corp.

8,298.2

8,116.0

102.2

6,426.3

6,587.4

97.6

6,769.9

6,488.4

104.3

Shinhan Capital

10.1

2.0

505.4

19.2

6.5

221.5

131.9

128.0

103.0

Jeju Bank

32.1

28.9

111.2

21.7

16.3

132.7

29.1

13.9

209.4

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.

 

  

Foreign Currency (FC) Liquidity Coverage Ratio

 

 

 

 

(USD millions, %)

Company

2021 1Q

2020 1Q

2019 1Q

Jan. 1 ~ Mar. 31

Jan. 1 ~ Mar. 31

Jan. 1 ~ Mar. 31

Shinhan Bank

110.4

116.9

121.8

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.


13

 


 

3) Asset Quality

SFG Consolidated Basis

(KRW billion)

 

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Total Loans

365,405.7

357,566.8

326,413.7

Substandard & Below

1,930.3

1,878.3

1,818.0

Substandard & Below Ratio

0.53%

0.53%

0.56%

Non-Performing Loans

1,505.5

1,390.3

1,433.3

NPL Ratio

0.41%

0.39%

0.44%

Substandard & Below Coverage Ratio

157.09%

162.95%

148.29%

Loan Loss Allowance

3,032.3

3,060.8

2,695.8

Substandard & Below Loans

1,930.3

1,878.3

1,818.0

 

Separate Basis                                                                          

(%)

Mar. 31 2021

Dec. 31 2020

Dec. 31, 2019

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

0.30

135

0.36

0.29

143

0.45

0.36

116

Shinhan Card

1.06

0.48

274

1.09

0.56

277

1.15

0.6

265

Shinhan Investment Corp

4.77

4.77

56

4.63

1.95

60

0.07

0.07

808

Shinhan Life Insurance

0.12

0.11

242

0.13

0.12

234

0.12

0.11

208

Orange Life
Insurance

0.01

0.05

98

0.02

0.04

97

0.02

0.06

100

Shinhan Capital

0.66

0.46

228

0.72

0.73

282

0.77

0.99

162

Jeju Bank

0.53

0.49

96

0.6

0.54

93

0.54

0.46

94

Shinhan Savings Bank

2.81

2.87

90

2.69

2.82

88

2.9

2.85

88

Asia Trust

82.78

82.78

63

84.84

84.84

61

50.61

50.37

67

 

 


14

 


 

4) Debt to Equity Ratios

 

Shinhan Financial Group (Separate Basis)

(KRW billion)

 

Mar. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Debt

11,296.5

10,426.8

9,795.9

Equity

26,147.8

25,057.1

22,465.4

Debt to Equity Ratio

43.20%

41.61%

43.60%


15

 


Twenty Largest Exposures by Borrower

(KRW billion)

As of Mar. 31, 2021

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total Exposures

Ministry of Economy & Finance

0.0

-

40,656.5

-

-

40,656.5

Korea Housing Finance Corporation

0.0

-

9,470.1

-

-

9,470.1

Bank of Korea

2,000.0

-

4,672.0

0.1

-

6,672.1

Korea Development Bank

3.9

43.2

5,682.4

-

-

5,729.5

Industrial Bank of Korea

672.0

141.2

3,726.8

-

-

4,539.9

NongHyup Bank

908.8

76.6

1,362.5

41.5

-

2,389.3

Export-Import Bank of Korea

-

14.2

2,257.5

28.0

-

2,299.7

Samsung Electronics

-

2,076.3

12.0

-

-

2,088.4

Kookmin Bank

678.8

144.5

593.2

26.3

-

1,442.8

Korea Land & Housing Corporation

0.0

-

1,383.8

-

-

1,383.8

Woori Bank

539.3

71.8

742.2

-

-

1,353.3

Korea Expressway Corporation

0.0

-

1,348.5

-

-

1,348.5

KEB Hana Bank

689.5

106.2

483.1

1.0

-

1,279.9

KB Koonmin Card

-

-

1,235.6

-

-

1,235.6

Hyundai Steel

346.3

346.3

502.1

12.9

0.0

1,207.6

Hotel Lotte

-

485.5

340.1

291.9

-

1,117.5

Korea SMEs and Startups Agency

0.0

-

1,107.2

-

-

1,107.2

Korea Electric Power Corporation

0.3

-

823.8

116.1

-

940.2

Korea National Railway

0.1

-

928.5

-

-

928.6

KB Securities

810.0

-

116.6

-

-

926.6

Total

6,649.0

3,505.9

77,444.5

517.7

0.0

88,117.2

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

 


16

 


 

Exposure to ten Main Debtor Groups

(KRW billion)

As of Mar. 31, 2021

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total

Exposures

Samsung

648.3

2,422.6

1,347.2

1,063.2

0.0

5,481.2

Hyundai Motor Group

857.8

1,832.3

2,257.5

279.5

0.1

5,227.2

Lotte

73.6

972.9

1,853.9

439.2

0.2

3,339.9

SK

367.6

588.0

1,385.1

449.3

0.0

2,790.1

LG

279.9

631.5

1,103.1

583.3

-

2,597.8

Hanwha

208.3

429.1

1,057.9

311.5

0.0

2,006.8

Hyundai Heavy Industries

151.1

197.9

450.4

975.9

-

1,775.3

LS

196.6

615.6

241.4

649.3

0.0

1,702.9

CJ

155.0

157.6

574.3

154.2

-

1,041.1

GS

27.4

71.9

527.1

242.3

0.0

868.7

Total

2,965.6

7,919.4

10,797.9

5,147.7

0.3

26,830.9

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

 


17

 


 

Top Twenty Non-Performing Loans

(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.

56.5

56.5

56.5

C

Manufacture of sections for ships

42.1

39.8

22.3

D

Manufacture of plastic products for fabricating of machine

37.5

37.5

28.5

E

Other financial service activities n.e.c.

23.7

23.7

9.2

F

Building of steel ships

22.6

22.6

0.6

G

Sea freight water transport

16.5

16.5

7.7

H

Manufacture of sections for ships

15.0

13.6

0.2

I

Sea freight water transport

7.7

7.7

7.3

J

Other financial service activities n.e.c.

7.4

7.4

7.4

K

Other financial service activities n.e.c.

7.4

7.4

7.4

L

Manufacture of sections for ships

7.0

7.0

0.1

M

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

6.3

6.3

1.8

N

Sea freight water transport

6.1

6.1

2.2

O

Building of steel ships

5.7

5.7

5.1

P

Quarrying of sand and gravel

5.5

5.5

0.4

Q

General hospitals

5.0

5.0

1.0

R

Manufacture of other textiles n.e.c.

4.9

4.9

0.6

S

Manufacture of general electric lighting fixtures

4.6

4.6

1.0

T

Manufacture of taps, valves and similar products

5.1

4.5

2.1

Total

396.0

391.7

182.8

Notes :

Consolidated basis as of Mar. 31, 2021

Some of the totals may not sum due to rounding.

 

18

 


 

4. Independent Auditor

 

Audit Opinion for the last 3 years

 

FY2020

FY2019

FY2018

Independent Auditor

PwC Samil

Accounting Corp.

KPMG Samjong Accounting Corp.

KPMG Samjong Accounting Corp.

Audit Opinion

Unqualified

Unqualified

Unqualified

* Based on the external auditor’s review, the external auditor, PwC Samil Accounting Corp., concluded that nothing has come to their attention that causes them to believe the accompanying consolidated interim financial statements as of March 31, 2021 are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

 

Compensation to the Independent Auditor for Audit and Review Services

The following is a description of the fees for audit and review services performed by our independent auditor for the last three years in connection with our financial statements preparation.

 

Year

Auditor

Payment 1)
(KRW mil.)

Details

Working hours

FY2021

PwC Samil

Accounting Corp.

958

(annualized basis)

Review/Audit of Financial Statements

1,437.3

Hours

PwC Samil

Accounting Corp.

73

(annualized basis)

Review of Consolidation for Asia Trust

111

Hours

PwC Samil

Accounting Corp.

126

(annualized basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

173.5

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

1,119.5

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

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 KRW2,132 million(excluding value-added taxes) for FY2021.


19

 


 

5. Corporate Governance

Board of Directors and committees of the Board of Directors

As of the reporting date, our board of directors is comprised of one executive director, one non-executive directors and twelve outside directors. We currently have eight subcommittees that serve under the board:

 

The Risk Management Committee;

The Audit Committee;

The Remuneration Committee;

The Committee for Recommending Candidates for Independent Directors and Members of Audit Committee;

The Committee for Recommending Candidates for CEO;

The Environment, Social and Governance (ESG) Strategy Committee; and

The Committee for Managing Subsidiary’s Business.

 

Each committee member is appointed by the board of directors, except for members of the Audit Committee, who are elected at the general meeting of shareholders.

 

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.

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 shareholders.

Remuneration Committee

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

Committee for Recommending Candidates for Independent Directors and Members of Audit 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, audit committee members and related matters. However, when the procedure for final recommendation of outside director and audit committee member candidates commences, all outside directors are called to participate in the committee and in this case, all outside directors are deemed as enrolled. The committee meetings are called by the chair of this committee, who must be an outside director. This committee is responsible and authorized

20

 


for: (i) establishment, review and reinforcement of policies for outside director and audit committee member selection, (ii) recommendation of outside director and audit committee member candidates for approval at the general shareholders’ meeting and (iii) continual recruitment and screening of potential outside director candidates.

Committee for Recommending Candidates for CEO

This committee is responsible for matters concerning the recommendation of candidates for the CEO including establishing and reviewing our management succession plan and its operation, setting and evaluating the qualifications and criteria for the CEO and CEO candidate pool and other matters necessary for improving our overall corporate governance structure. The chair of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to the CEO selection.

Environmental, Social and Governance (ESG) Strategy Committee

This committee is responsible for setting the corporate policy for sustainable management, corporate disclosure of sustainability report and discussing specific business agenda in relation to socially responsible management and other matters such as corporate strategy toward climate change.

Committee for Managing Subsidiary’s Business

This committee is responsible for matters concerning the evaluation of subsidiary management leadership. establishment of subsidiary CEO qualifications, verification and recommendation of subsidiary CEO candidates and other matters deemed necessary by the committee.


21

 


 

6. Major Shareholder and Market Price Information of our Common Shares and ADRs

 

Major Shareholders1) of Shinhan Financial Group as of Mar. 31, 2021

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

25,423,516

4.92%

1) Shareholders who own beneficial ownership of 5% or more and ESOP (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.

 

Share ownership of Employee Stock Ownership Association

(Number of shares, %)

Share ownership

Beginning Balance
(Jan. 1, 2021)

Increase

Decrease

Ending Balance

(Mar. 31, 2021)

Ownership%

(Mar. 31, 2021)

Employee Stock Ownership

24,680,673

1,562,901

941,783

25,301,791

-

ESOA account

107,466

14,259

-

121,725

-

Total

24,788,139

1,577,160

941,783

25,423,516

4.92%

 

Common Shares Traded on the Korea Exchange

 

 

 

 

 

(KRW, number of shares)

 

Oct. 2020

Nov. 2020

Dec. 2020

Jan. 2021

Feb. 2021

Mar. 2021

Price per share

High

31,500

34,650

34,600

34,200

34,100

37,450

Low

27,950

31,150

32,000

30,650

31,350

33,250

Avg.

29,353

32,924

33,571

32,825

32,547

35,423

Trading Volume

59,786,924

71,729,728

60,399,242

75,186,844

42,831,137

61,259,520

Highest Daily Trading Volume

6,673,095

7,202,607

4,462,333

7,289,269

4,263,157

5,756,996

Lowest Daily Trading Volume

1,332,326

1,708,598

1,832,455

1,810,352

1,132,192

1,380,687

 

American Depositary Receipts traded on the New York Stock Exchange

 

 

 

 

 

(USD, number of shares)

 

Oct. 2020

Nov. 2020

Dec. 2020

Jan. 2021

Feb. 2021

Mar. 2021

Price per share

High

27.57

31.24

31.96

31.43

30.18

33.54

Low

23.2

27.72

29.53

27.67

28.06

29.57

Avg.

25.26

29.71

30.78

30.09

29.26

31.31

Monthly Trading Volume

2,569,344

1,583,197

2,408,500

2,225,016

1,853,572

3,526,506

Highest Daily Trading Volume

237,962

193,843

246,488

217,212

149,099

313,854

Lowest Daily Trading Volume

57,260

36,274

42,390

63,115

55,937

72,715

Note) 1 ADR = 1 Common Shares

22

 


 

7. Directors, Executive Officers and Employees

 

Directors and Executive Officers

 

1) Executive Director

 

 

 

(As of Mar. 31, 2021)

Name

Month and Year

of Birth

Position

Service Term

Cho Yong-byoung

June 1957

- CEO of Shinhan Financial Group
- Chair of Committee for Managing Subsidiary’s Business
- Member of Environmental, Social and Governance (ESG) Strategy Committee

6 years starting from March 23, 2017

 


23

 


 

2) Non-Executive Directors

Currently, 13 non-executive directors are in office, 12 of which outside directors who are nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting.

Our non-executive directors are as follows:

(As of Mar. 31, 2021)

Name

Month and Year

of Birth

Outside

Director

Sub-Committees

Service Term

Lee Yoon-jae

November 1950

O

- Chair of Board of Directors

- Member of Audit Committee

- Member of ESG Strategy Committee

- Member of Committee for Recommending Candidates for CEO

3 years starting from March 27, 2019

Kwak Su Keun

August 1953

O

- Chair of ESG Strategy Committee

- Member of Audit Committee

- Member of Committee for Managing Subsidiary Business

2 years starting from March 25, 2021

Byeon Yang-ho

July 1954

O

- Chair of Risk Management Committee

- Member of Remuneration Committee

- Member of Committee for Managing Subsidiary Business

- Member of Committee for Recommending Candidates for CEO

3 years starting from March 27, 2019

Huh Yong-hak

September 1958

O

- Chair of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

- Member of Risk Management Committee

- Member of Committee for Recommending Candidates for CEO

3 years starting from March 27, 2019

Sung Jae-ho

March 1960

O

- Chair of Committee for Recommending Candidates for CEO

- Member of Audit Committee

- Member of Remuneration Committee

- Member of Committee for Managing Subsidiary Business

3 years starting from March 27, 2019

Lee Yong Guk

May 1964

O

- Chair of Remuneration Committee

- Member of Risk Management Committee

- Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

2 years starting from March 25, 2021

Choi Jae Boong

February 1965

O

- Member of Risk Management Committee

- Member of ESG Strategy Committee

- Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

2 years starting from March 25, 2021

Yoon Jaewon

August 1970

O

- Chair of Audit Committee

- Member of ESG Strategy Committee

- Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

2 years starting from March 26, 2020

Park Ansoon

January 1945

O

- Member of Committee for Managing Subsidiary Business

5 years starting from March 23, 2017

Bae Hoon

March 1953

O

- Member of Remuneration Committee

2 years starting from March 25, 2021

Jin Hyun-duk

September 1955

O

- Member of Committee for Recommending Candidates for CEO

2 years starting from March 26, 2020

Choi Kyong-rok

May 1966

O

- Member of Committee for Recommending Candidates for CEO

- Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

4 years starting from March 22, 2018

24

 


Jin Ok-dong

February 1961

X

-

4 years starting from March 27, 2019

 

 

3) Executive Officers

In addition to the executive directors, we currently have the following executive officers:

(As of Mar. 31, 2021)

Name

Month and Year

of Birth

Position

In charge of

Yi Sunny

March 1962

Deputy President and Chief Digital Officer

- Digital Strategy Group

Heo Young Taeg

August 1961

Deputy President and Chief Management Officer

- Business Management Team 1, 2, 3

Jang Dong-ki

January 1964

Deputy President

- Global Markets & Securities Business Group

Lee Byeong-cheol

January 1963

Deputy President

- Pension Business 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

- Wealth Management Planning Group

Wang Ho-min

March 1964

Deputy President and Chief Compliance Officer

- Compliance Team

Lee Een-kyoon

April 1967

Deputy President and Chief Operation Officer

- Shinhan Leadership Center

- Management Support Team

Park Sung-hyun

November 1965

Deputy President and Chief Strategy & Sustainability

Officer

- Strategic Planning Team

- ESG Planning Team

Ahn Jun Sik

November 1965

Deputy President and Chief Public Relations Officer

- Brand PR Division

Jung Keun Soo

April 1966

Deputy President

- Global Investment Banking Business Group

Kim Soung Jo

January 1967

Deputy President

- Group Audit

Kang Shin Tae

April 1965

Deputy President

- Global Business Management Group

Bang Dong-kwon

February 1966

Managing Director and Chief Risk Officer

- Risk Management Team

- Risk Model Validation Team

- Credit Review Team

Kim Hye Joo

May 1970

Managing Director and Chief Bigdata Officer

- Group Bigdata Strategy

25

 


 

Compensation to Directors

1) Total Amount Approved at the Meeting of Shareholders

(As of Mar. 31, 2021)

 

Total number of persons

Total amount approved

at shareholders’ meeting

(KRW millions)

Notes

Directors

(Outside directors)

14(12)

3,500

-

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

 

2) Total Amount Paid

(As of Mar. 31, 2021)

 

Total number of

Persons

Total compensation

(KRW million)

Average

compensation

per person

(KRW million)

Notes

Registered Directors

2

214

73

Excluding outside directors, Audit committee members

Outside Directors

8

123

17

Excluding Audit committee members

Audit committee members or internal auditor

4

60

19

 

Notes : Represents the total number of applicable persons as of Mar. 31, 2021.

 

Compensation to Non-registered directors

(As of Mar. 31, 2021)

 

Total number of persons

Total compensation
(KRW million)

Average Compensation

per person

(KRW million)

Notes

Non-registered directors

8

1,532

191

-

 

Stock Options

 

 

 

 

(As of Mar. 31, 2021)

 

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 Mar. 31, 2021 is KRW 49,053.

The closing price of our common stock was KRW 37,450 on Mar. 31, 2021.

 


26

 


 

Employees

(As of Mar. 31, 2021)

Gender

Number of Employees

Average length of Service

Total Salaries and wages

paid in 2021

(KRW million)

Average Payment

per person

(KRW million)

Male

136

2 yrs 7 mths

(14 yrs 11 mths) 1)

7,906

58

Female

34

3 yrs 9 mths

(10 yrs 4mths) 1)

955

28

Total

170

2 yrs 10 mths

(14 yrs) 1)

8,861

52

1) Average length of service including services within group subsidiaries

 


27

 


 

8. Related Party Transactions

Loans to Subsidiaries

(KRW billion)


Loans to Subsidiaries
(in KRW bil.)

Type

Origination

Date

Maturity

Date

Lending

Rate

Beginning Balance

(Jan. 1, 2021)

Decrease

Increase

Others1)

Ending Balance

(Mar. 31, 2021)

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%

435

-

-

18

453

Loan

2021-02-18

2026-02-18

1.54%

-

-

150

-

150

Loan

2021-02-24

2026-02-24

1.62%

-

-

150

-

150

Shinhan Investment Corp

Loan

2019-11-19

2025-02-04

2.79%

98

-

-

4

102

Loan

2020-08-20

2025-08-20

2.55%

541

-

-

23

564

Shinhan

Capital

Loan

2019-02-01

2024-02-01

2.23%

50

-

-

-

50

Loan

2019-05-24

2024-05-24

1.92%

20

-

-

-

20

Loan

2020-04-10

2025-04-10

1.75%

200

-

-

-

200

Loan

2020-12-23

2025-12-23

1.57%

160

-

-

-

160

Loan

2021-03-16

2026-03-16

1.83%

-

-

150

-

150

Financial assets at FVPL

2020-04-22

2050-04-22

3.56%

101

-

-

-

101

Shinhan Alternative Investment

Loan

2020-03-16

2023-03-16

1.42%

38

-

-

-

38

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

28

 


Shinhan Venture Investment

Loan

2021-02-08

2021-05-07

0.81%

-

-

7

-

7

Total

3,322

305

457

45

3,519

1) Due to foreign exchange translation


29

 


 

 

EXHIBIT INDEX

Exhibit No.

 

Description

99.1

 

Independent Auditors’ Review Report (Separate Financial Statements) of Shinhan Financial Group as of March 31, 2021

99.2

 

Independent Auditors’ Review Report (Consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2021

 

 

 

 

 

30

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

 

 

 

Shinhan Financial Group Co., Ltd.

 

 

 

 

(Registrant)

 

 

 

 

    Date: May 20, 2021

 

 

 

By:

 

/s/ Roh Yong-hoon

 

 

 

 

 

 

 

 

 

 

Name: Roh Yong-hoon

 

 

 

 

Title:   Chief Financial Officer

 

 

 

 

31