Shinhan Financial third-quarter net income falls 12.9 percent from prior quarter

Shinhan Financial Group said Tuesday its third-quarter net income came to 1.58 trillion won ($1.2 billion), down 12.9 percent from the previous quarter, as lower non-interest income weighed on results.

Revenue in the quarter reached 1.45 trillion won ($1.1 billion), up 10.9 percent from 1.31 trillion won a year earlier, while operating profit fell 27.2 percent to 130 billion won ($97.9 million) from 178 billion won over the same period. Interest income rose 1.8 percent from the previous quarter, but non-interest income dropped 45.5 percent.

Return on equity stood at 11.94 percent and return on tangible common equity at 13.39 percent, each 0.88 percentage points and 0.89 percentage points better than a year earlier. The common equity tier 1 ratio rose 12 basis points from the previous quarter to 13.62 percent, while the cost-income ratio came in at 37.6 percent.

Risk-weighted assets totaled 360 trillion won ($272 billion) at the end of September, down 1.6 percent from the previous quarter, a decline the company attributed to a stronger won and a reduction in foreign-exchange risk-weighted assets.

For the first half of 2026, group net income attributable to controlling shareholders was 3.44 trillion won ($2.6 billion), up 13.3 percent from 3.04 trillion won a year earlier.

The board approved a 450 billion won ($340 million) share buyback, split into 200 billion won in 2026 and 250 billion won in January 2027, alongside a quarterly dividend of 740 won per share. Share purchases for all of 2026 total 1.6 trillion won ($1.21 billion), 28 percent more than a year earlier.

Shinhan is also pursuing the acquisition of Lotte Non-Life Insurance for 693 billion won ($524 million), or 0.9 times price-to-book value. Shinhan said it expects to fund the deal by reallocating existing capital rather than raising outside capital, with the CET1 ratio expected to fall about 19 basis points from its end-September level of 13.62 percent.

The group had a market capitalization of 40.7 trillion won ($30.7 billion) as of Monday, ranking 14th on the main board.