Shinhan-Financial-chalks-up-record-bottom-line
Chairman Cho Young-byoung heads Shinhan Financial Group, which logged record profits last year. Photo courtesy of Shinhan Financial Group

Korea’s top financial group tops W4 trillion in profits

Shinhan Financial, South Korea’s leading financial group, racked up more than 4 trillion won ($3.3 billion) in bottom line last year for the first time in the outfit’s history.

Shinhan Financial announced this week that it had netted 4.02 trillion won ($3.35 billion) in profit last year, up 17.7 percent from 2020.

Affiliates of Shinhan Financial, including Shinhan Bank, Shinhan Card, Shinhan Capital, and Shinhan Investment Corp, racked up solid performances to underpin the Seoul-based financial group.

In particular, Shinhan Bank accounted for 58 percent of the record-high profits.

The 2021 net incomes of Shinhan Bank and Shinhan Card jumped at double-digit ratios year on year, while that of Shinhan Investment Corp. more than doubled.

Shinhan Capital also reported a 71.2 percent rise in profit at 274.9 billion won ($229 million).

Among its major subsidiaries, only Shinhan Life saw its profit shrink due to the increased insurance payments. Still, its net profit neared 400 billion won ($33 million).

Of note is that Shinhan Financial chalked up stellar results last year, although it spent 268.9 billion won ($224 million) for early retirement programs of its employees.

The group has decided to pay out 1,960 won ($1.63) of dividends for share for a dividend ratio of higher than 25 percent.

Observers expected that Shinhan Financial would come up with various measures to boost the share price on top of the dividends.

“The chances are that Shinhan Financial would carry out steps to boost its share prices,” NH Investment & Securities analyst Jung Jun-sup said.

Shinhan Financial Group is headed by Chairman Cho Young-byoung.

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The publisher studied Korean history in Seoul and management of business administration in the United Kingdom. He has 20-year experiences in the media business. Kim can be reached at voc200@gmail.com or 82-2-6956-6698.