[Sponsored Report] In a difficult situation, Shinhan keeps shiningFor the eighth time in a row, Shinhan has been ranked in first place among domestic financial groups.
In the third quarter, Shinhan’s accumulated net profit reached 1.96 billion won ($1.71 million), an 11 percent increase year on year. Earlier this year, Shinhan reported that its net profit in the first half surpassed 1 trillion won for the sixth consecutive year.
This year’s performance has been called an “earnings surprise,” particularly significant since it was achieved amid difficult circumstances. The Korean financial market has been going through a tough time since the government cut the base interest rate last year.
Shinhan has been striving to overcome this situation from various angles. Internally, Shinhan Financial Group’s strength lies in its consistent risk management policy, which it has persistently pursued over the last five years. The group’s current non-performing loan ratio is 0.95 percent, the lowest since the international financial crisis.
Apart from improving its main business in banking, Shinhan Financial Group has been working to diversify its portfolio and develop new profit sources.
The group’s growth in the nonbanking sector demonstrates this effort. Launched in 2011, Shinhan’s non-banking businesses - Shinhan Card, Shinhan Investment, Shinhan Capital and Shinhan Life Insurance - have been recently showing increases in revenue, contributing to the group’s balance sheet. As for the third quarter, Shinhan’s nonbanking affiliates accounted for 41 percent of the group’s total profit.
This performance has been gaining international attention. The American financial information firm Dow Jones & Company included Shinhan Group in its Dow Jones Sustainability World Index for three consecutive years, a record unsurpassed by its domestic peers.
The Banker, a globally renowned banking industry publication, also ranked Shinhan Group first domestically and 36th globally on its 2015 list of Top 500 Banking Brands.
BY SONG KYOUNGSON [firstname.lastname@example.org]