South Korea's Shinhan Financial Group Reports Record Cumulative Net Profit, Announces Dividend and Buyback

Shinhan Financial Group, a major South Korean financial holding company, reported on October 27, 2026, that its cumulative net profit for the first three quarters of 2026 reached KRW 5.027 trillion, a 12.7% year-over-year increase and a historical high. This growth was primarily driven by increased net interest income due to rising interest rates, along with continued asset expansion and improved net interest margins (NIM).

Despite the strong cumulative performance, the standalone net profit for the third quarter was KRW 1.5846 trillion, representing a 12.9% sequential decline from the second quarter. The company attributed this drop mainly to a decrease in non-interest income. However, the overall profit growth trend remains robust, supported by balanced increases in fee income and stable management of credit loss costs.

Regarding shareholder returns, the board of directors resolved to set the third-quarter dividend at KRW 740 per share and approved a total share buyback program worth KRW 450 billion. Of this amount, KRW 200 billion will be repurchased within the current year, while the remaining KRW 250 billion is scheduled for January 2027. These measures aim to boost investor confidence through active capital return policies.

Shinhan Financial Group CFO Jang Jung-hoon stated that as results toward the 10% Return on Equity (ROE) target become visible, the company will maintain profitability-centric portfolio management and efficient capital allocation to ensure sustainable growth. Additionally, the group is pursuing the acquisition of a property insurance company to strengthen its non-banking business base and further improve medium-to-long-term profitability.