Shinhan Financial Group Co., Ltd. (SHG): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of a major Asian financial player, and frankly, understanding Shinhan Financial Group Co., Ltd. (SHG)'s business model is key to seeing where Korean finance is headed. As a realist who's seen a few market cycles, what stands out is their dual focus: aggressively pushing digital transformation-think ERP banking and AI integration-while fortifying their foundation, which includes a solid CET1 ratio of 13.56% by Q3 2025. They are balancing this with a clear mandate to deliver value, targeting shareholder returns over 42% this year, all built on their diversified assets like the nation's top credit card arm. If you want the precise blueprint showing how they connect their massive asset base to these digital moves and revenue streams, check out the full nine-block canvas breakdown right here.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Shinhan Financial Group Co., Ltd. (SHG) relies on to drive innovation and manage regulatory compliance as of late 2025. These partnerships are crucial for accessing specialized technology, global capital, and aligning with national economic goals.

Fintechs for AI, blockchain, and digital asset development

Shinhan Financial Group Co., Ltd. (SHG) actively partners with technology firms to stay ahead in digital finance, especially concerning the emerging stablecoin market. Domestic stablecoin transactions have already surpassed 60 trillion won (US$41.15 billion) as of late 2025, making these alliances essential for platform development and regulatory readiness. Shinhan Financial Group Co., Ltd. (SHG) has been conducting pilot experiments to test stablecoin usage before full legalization, including through its in-house developed delivery app. Shinhan Financial Group Co., Ltd. (SHG) has been collaborating with Naver on joint product launches and is reportedly exploring three-way partnerships with Naver and Dunamu, the operator of Upbit, Korea's largest cryptocurrency exchange. Historically, Shinhan Bank also forged a partnership with telco provider KT Corp to jointly roll out a blockchain-powered platform to capture opportunities from government digital voucher efforts.

The Global Shinhan InnoBoost 2025 program also brings in specialized fintechs for co-creation. For example, the 2025 cohort included startups like Fineksi, which offers a Software-as-a-Service (SaaS) solution for automating credit analysis and fraud detection, and Metsakuur, which provides Vision AI for facial identification and electronic Know Your Customer (e-KYC).

Global financial institutions for GMTN program and capital market access

Access to global capital markets is maintained through the Global Medium Term Note (GMTN) programs managed with international financial institutions acting as dealers and joint lead managers. Shinhan Financial Group Co., Ltd. (SHG) updated its US$5 billion GMTN Program in June 2025, and its flagship subsidiary, Shinhan Bank, updated its US$8 billion GMTN Program, with a specific update noted in March 2025. Following the June 2025 update, Shinhan Financial Group Co., Ltd. (SHG) completed an offering of US$500 million Senior Unsecured Notes due 2030 under its program. Shinhan Bank also completed a US$500 million Senior Unsecured Social Notes Offering in May 2025 under its updated program.

Here's a look at the recent capital market activities:

These transactions involved major global financial institutions acting as dealers, including Citigroup Global Markets Inc., J.P. Morgan Securities plc, and Standard Chartered Bank.

Startups via Global Shinhan InnoBoost 2025 for co-creation of solutions

The Global Shinhan InnoBoost 2025 program, an Open Innovation initiative run by Shinhan Future's Lab Vietnam, focuses on co-creative cooperation. After a selection process that reviewed over 200 proposals submitted by startups globally, the program identified 6 most promising startups to enter the acceleration phase as of July 2025. By November 2025, the program concluded its second season with a Demo Day introducing Proof of Concepts (PoCs) between 5 startups and companies within the Shinhan financial ecosystem. This model aims for long-term application in the finance and banking sector.

The focus areas for the 2025 cohort included:

• Artificial Intelligence (AI) for credit decision-making.
• Comprehensive financial management for micro, small, and medium-sized enterprises (SMEs).
• Vision AI for e-KYC.
• AI for Gen Z behavior and emotion analysis.
• Digital banking and insurance solutions.

Government and FSS for policy alignment and household debt management

Shinhan Financial Group Co., Ltd. (SHG) must align closely with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) on national financial stability measures, particularly concerning household debt. The FSC's 2025 Household Debt Management Plan is a key policy driver. The FSS's 2025 business plan emphasizes establishing a management framework for household loans to gradually reduce the household debt-to-GDP ratio. Specific measures in the 2025 plan include the implementation of Stress DSR Phase 3 and a reduction in jeonse loan guarantee coverage from 100% to 90%. To be fair, Shinhan Bank, along with Hana Bank and Woori Bank, was among the three that surpassed their self-imposed household loan limits the previous year, making close policy adherence critical now.

Samsung Electronics for SME low-carbon transition finance support

Shinhan Financial Group Co., Ltd. (SHG) is a key participant in the joint initiative with Samsung Electronics and the FSS to support SMEs transitioning to low-carbon operations. This collaboration centers around a fund initially announced to be up to 2 trillion won (US$1.4 billion). Under this structure, Samsung Electronics will make a 1 trillion-won deposit, with its interest income used to lower loan rates for SMEs investing in low-emissions facilities. Shinhan Financial Group Co., Ltd. (SHG) is one of the five major financial holding firms contributing. Specifically, the five lenders, including Shinhan, will contribute 20 million won each as loans to the new Partner ESG Fund, while Samsung Electronics deposits 80 million won and Samsung Display deposits 20 million won. This support is vital given the impending EU Carbon Border Adjustment Mechanism (CBAM) in 2026, which could cost SMEs up to 90 million won annually in related costs.

Shinhan Financial Group Co., Ltd. (SHG) is already active in this area; in 2024, the Group provided a total of KRW 960.5 billion in transition finance, comprising KRW 580.5 billion in loans and KRW 380.0 billion in investments. The incentives offered through this partnership can lower the interest rate on fresh SME loans by up to 1 percentage point, or up to 2 percentage points if the investment qualifies under the local green taxonomy.

Finance: draft 13-week cash view by Friday.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Key Activities

You're looking at the core engine room of Shinhan Financial Group Co., Ltd. (SHG) as of late 2025. These aren't just business lines; they are the specific actions driving the group's performance, especially as they aim to overtake rivals.

Commercial Banking, Including Retail, Corporate, and International Lending

The banking division remains the foundation, with Shinhan Bank holding the title of Korea's leading bank as of last year, based on total assets. The group's consolidated total assets climbed past 780 trillion won. For the first half of 2025 (1H 2025), the consolidated net profit hit KRW 3,094 billion, and net interest income was KRW 5,719 billion. The bank's Net Interest Margin (NIM) in Q3 2025 was reported at 1.56%, up 1 basis point quarter-on-quarter. Total loans across the group reached KRW 454.3 trillion as of 1H 2025. The bank's won-denominated loan balance saw growth of 2.7% quarter-on-quarter in Q3 2025, driven by the retail sector growing 3.1%.

Accelerating Digital Transformation and AI Innovation

Shinhan Financial Group Co., Ltd. (SHG) is actively pushing digital transformation as a core future growth strategy. This involves integrating technologies like ERP (enterprise resource planning) banking to give corporate clients real-time financial management capabilities. The group is also focusing on AI-powered financial agents. A key operational step has been consolidating services across banking, card, brokerage, and insurance into the single super app, called Super SOL.

Strengthening Internal Control and Asset Quality Management (Zero Scandals Goal)

Strengthening internal control is a differentiated capability focus, tied to the Chairman's pledge for the "Zero Scandals" agenda. Asset quality management is a top priority. The group's overall Non-Performing Loan (NPL) ratio stood at 0.69% as of 1H 2025. The Substandard & Below ratio was 0.84% for the same period. For the credit card arm, the delinquency ratio improved to 1.3% as of September 2024. The Credit Cost Ratio for the group in Q3 2025 was 46 basis points (bp).

Here's a quick look at asset quality metrics:

• H1 2025 NPL Ratio: 0.69%
• H1 2025 Substandard & Below Ratio: 0.84%
• Q3 2025 Credit Cost Ratio: 46 bp
• Shinhan Card Delinquency Ratio: 1.3% (as of Sept 2024)

Securities Brokerage, Asset Management, and Investment Banking (IB)

Shinhan Securities Co., Ltd., a key subsidiary, is actively growing its core offerings. In the securities division, brokerage market share is reportedly going up, and Investment Banking (IB)-related activities showed growth in Q2 2025. Shinhan Securities demonstrated its focus on technology and digital-transformation investments by making a strategic investment in Sensor Tower in October 2025.

Operating the Ddangyo Low-Fee Delivery App to Support Small Merchants

The Ddangyo app serves as infrastructure for shared growth, charging restaurants a fee of just 2 percent per order, compared to about 10 percent for mainstream apps. By November 2025, the cumulative order value on Ddangyo reached 570 billion won, a significant jump from 110 billion won at the end of 2024. The user base climbed to 7.5 million, and participating restaurants neared 300,000 as of November 2025. In October 2025, its nationwide market share in the delivery sector was 7.5%.

Ddangyo operational scale as of late 2025:

• Cumulative Order Value: 570 billion won (by Nov 2025)
• Total Users: 7.5 million (by Nov 2025)
• Participating Restaurants: Near 300,000 (by Nov 2025)
• October 2025 Nationwide Share: 7.5%

Finance: review Q4 2025 NIM projections against the 1.56% Q3 figure by next Tuesday.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Key Resources

The Key Resources for Shinhan Financial Group Co., Ltd. (SHG) are anchored in its substantial financial scale, robust capital structure, and the breadth of its specialized subsidiary network.

The foundation of Shinhan Financial Group's operational capacity rests on its balance sheet size. Consolidated total assets were reported at approximately ₩691,795 billion as of the December 2024 base. This massive asset base supports its extensive lending and investment activities across all business lines.

Capital adequacy is a critical resource, reflecting regulatory compliance and capacity for future growth. As of the third quarter of 2025, Shinhan Financial Group maintained a strong Common Equity Tier 1 (CET1) ratio of 13.56%. This level is viewed as sufficient for both safety and efficient capital deployment.

Shinhan Financial Group's diversified structure provides a deep pool of specialized human and institutional capital. This resource base is managed through a collection of leading financial entities.

• Shinhan Bank: Core banking operations, leading in net profit among major banks in 2024.
• Shinhan Card: Recognized as Korea's largest credit card company by market share, with 33 million customers.
• Shinhan Securities: Providing brokerage and investment banking services.
• Shinhan Life: Offering life insurance products.
• Other Subsidiaries: Including Capital, Savings Bank, Asset Management, and Insurance operations.

Digital infrastructure represents a modern, essential resource, enabling scale and efficiency across customer interactions. The group's digital platforms are key to serving a modern client base.

The global network extends the group's reach and diversifies its earnings away from the domestic market. This international footprint is a growing source of financial strength.

The digital platforms include the flagship mobile app and the AI branch system, supporting services like over 3 million successful biometric authentications in the last six months of 2024 alone. This digital capability is a core non-physical asset. The overseas profit for 2024 reached KRW 758.9 billion, showing the value of the global network. Finance: draft 13-week cash view by Friday.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Value Propositions

You're looking at the core promises Shinhan Financial Group Co., Ltd. (SHG) is making to its stakeholders as of late 2025. These aren't just mission statements; they are backed by concrete financial and operational commitments.

Comprehensive, one-stop financial services across all major segments

Shinhan Financial Group delivers a full spectrum of financial services, which is key to its one-stop value proposition. The structure is diversified, covering commercial banking, credit card services, securities, insurance, credit services, and asset management. This breadth means you can manage nearly all your financial needs within the ecosystem.

For context on the scale of this operation as of late 2025, consider these figures:

The group is definitely operating at a scale that supports a comprehensive offering. Also, the focus remains domestic, with 83.2% of revenue generated in Korea.

Enhanced shareholder returns with a target ratio over 42% in 2025

You want to see your investment work hard, and Shinhan Financial Group is making aggressive moves to deliver on shareholder value. The stated goal is to maintain targets to raise the shareholder return ratio to at least 42% through 2027. Honestly, the market estimates for 2025 are even higher, projecting the ratio to hit 45.8% for the year. This is up from the 40.2% achieved in 2024.

The mechanism for this enhancement involves capital management and direct returns:

• Expected full-year 2025 shareholder returns: KRW 2.35 trillion.
• Q3 2025 cash dividend declared: KRW 570 per share.
• 1H 2025 authorized treasury stock acquisition/cancellation: KRW 800 billion.
• Target for circulating shares reduction by 2027: 450 million shares.

They are actively reducing the share count, which is a direct lever for boosting Earnings Per Share (EPS).

Customer-centric experience through speed and simplified digital procedures

The 2025 management slogan centers on Humanitas (humanity in finance) and Communitas (finance for the community), driving a focus on customer experience. Chairman Jin stressed maximizing satisfaction and trust by boldly innovating with speed and simplicity. This translates into a commitment to digital transformation and AI innovation.

The tangible proof points for this value proposition include:

• Shinhan Financial Group finished first in six categories of the Brand Power of Korean Industries (K-BPI) 2025 survey.
• The strategic vision centers on technologies like ERP (enterprise resource planning) banking for real-time corporate financial management.

The goal is to reorient essential financial functions to create new, customer-oriented values. Still, you should note that some digital rollouts, like a new mobile platform or the VietQR service, have reportedly faced delays past their initial 2025 targets.

Shared Growth Finance and ESG commitment (Green Finance, inclusion)

Shinhan Financial Group is embedding sustainability into its core lending and investment strategy, guided by the 3Ps: Planet, People, and Prosperity. The commitment to the Zero Carbon Drive aims for Net Zero by 2050.

Here are the hard numbers reflecting the progress toward these long-term goals:

The Group is actively using frameworks like the Green Taxonomy Corporate Loan Application System.

Specialized financial products for SMEs and socially vulnerable groups

The value proposition extends to specific segments needing targeted support, aligning with the 'People' pillar of their ESG framework. This focus is operationalized through dedicated programs.

For SMEs, for example, Shinhan Bank has been instrumental in providing green finance incentives. They have supported interest subsidization for SMEs issuing green bonds totaling KRW 1.4 trillion. Furthermore, the Group has set specific targets for supporting youth, SMEs, and socially vulnerable groups through initiatives like credit recovery and interest/fee reductions.

Finance: draft 13-week cash view by Friday.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Customer Relationships

You're looking at how Shinhan Financial Group Co., Ltd. (SHG) manages its connections with clients as of late 2025. The approach blends high-touch service for key clients with aggressive digital scaling.

Customer-Centric Top-Tier Shinhan (Humanitas, Communitas) management slogan

Shinhan Financial Group Co., Ltd. operates under the 2025 management slogan, Customer-Centric Top-Tier Shinhan: Humanitas, Communitas. This philosophy centers on the philosophy of humanity in finance (Humanitas) and finance for the community (Communitas).

• The Group established a proprietary SDGs strategy framework guided by three strategic directions: carbon neutrality, inclusion, and cooperation.
• Shinhan Financial Group Co., Ltd. was named the No. 1 brand in the financial group category for the 14th consecutive year based on consumer surveys conducted by KMAC in March 2025.
• Chairman Jin Ok-dong emphasized creating differentiated customer value and solving social issues through finance as key tasks for 2025.

Digital self-service and AI-powered financial agent interactions

Shinhan Financial Group Co., Ltd. is accelerating digital transformation and Artificial Intelligence (AI) innovation to enhance customer convenience. The Group has declared its leap to the 'AI Financial Group.'

Shinhan Financial Group Co., Ltd. invested a cumulative amount of 77.5 billion won in AI-related companies, which accounts for 15% of all strategic investments (SI). Shinhan Bank opened its first 'AI branch' in central Seoul last year (2024).

Shinhan Bank plans to apply a voice-based LLM (large language model) agent capable of addressing more complex customer needs in the coming months (post-Q2 2025). Furthermore, a wealth management AI agent, planned to expand private banker services to all customers, is expected to be developed by March 2026.

Dedicated relationship managers for corporate and institutional clients

Shinhan Securities Co., Ltd. supports its diversified customer base, including corporations and institutional investors, with a team of research analysts specializing in equity, bonds, and derivatives to support brokerage services. Shinhan Financial Group Co., Ltd. maintains channels in 20 countries.

As of the end of 2024, Shinhan Bank's exposure to the automotive sector amounted to KRW 8.8 trillion, representing 2.7% of its total won-denominated loan portfolio, which was KRW 320 trillion. The Group's corporate loans balance was KRW 180 trillion as of a point in 2025.

Proactive shareholder engagement, including separate retail investor sessions

Shinhan Financial Group Co., Ltd. is committed to enhancing shareholder value through its 'Value-up Plan,' aiming for a shareholder return ratio of 50% by 2027. In 2024, the Group achieved a shareholder return rate of 40.2%.

For the second quarter of 2025, the Board of Directors resolved to pay a cash dividend of KRW571 per share and a share buyback amounting to KRW800 billion (KRW600 billion in H2 2025 and KRW200 billion in January 2026). The Group's net income for Q2 2025 was KRW1,549.1 billion.

Shinhan Financial Group Co., Ltd. intends to hold a separate session for individual retail investors to discuss H1 2025 performance and shareholder return policies. The Group's market value more than doubled over the past three years to nearly 40 trillion won as of late 2025.

The Group's CET1 ratio was provisionally estimated at 13.59% as of the end of June 2025.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Channels

You're looking at how Shinhan Financial Group Co., Ltd. (SHG) gets its products and services into the hands of customers. It's a massive, multi-pronged approach, blending traditional brick-and-mortar strength with aggressive digital expansion. Honestly, the sheer scale of their physical footprint, even as they push digital, is a key differentiator.

Extensive Domestic Branch and ATM Network for Commercial Banking

The core of the domestic channel remains the physical network, supporting retail and corporate banking services like deposits, lending, and ATM access. While the digital shift is real, the physical presence is still substantial, especially for complex transactions and relationship banking.

• Domestic branch count as of 2023: 1,105 Domestic branches.
• Hybrid branches as of 2023: 8.
• Retail banking services include electronic banking and ATM services.

Digital Platforms: Online Banking and Mobile Applications

Shinhan Financial Group has heavily invested in its digital ecosystem, which includes platforms like Shinhan Bank's Shinhan SOL application, Shinhan Card's SOL Pay, and Shinhan Securities' platforms. The group tracks a combined metric for digital reach.

• Digital channels include internet and mobile banking, as well as financial platforms like SOL Bank, SOL Pay, and SOL Securities.
• SFG Gross MAU (Monthly Active Users) is calculated as the sum of MAU from Shinhan's financial platforms and its non-financial platforms.
• Shinhan Bank introduced the future branch concept, the 'AI Branch,' in November 2024, deploying a Generative AI banker for customer tasks like account opening and foreign currency exchange.

Specialized Distribution Channels

Beyond standard banking, Shinhan Financial Group Co., Ltd. uses specialized channels to distribute insurance and investment products. This is where the group cross-sells across its subsidiaries effectively.

For instance, Shinhan Life Insurance distributes its products, which include whole life, health, juvenile, variable insurance, and annuities, through several avenues:

• Financial consultant network.
• Telemarketing operations.
• General agency setup.
• Bancassurance arrangements, primarily centered around the bank business.

The focus on bancassurance is evident in the Q1 2025 results, which noted continued growth in trust fee income driven by fund and bancassurance sales.

Overseas Subsidiaries and Branches

Shinhan Financial Group Co., Ltd. maintains a global footprint, though substantially all assets and revenues are generated in Korea. The overseas network is a key channel for international banking and localized services.

Here's a look at the scale of the international presence, using the latest reported year-end figures:

Proprietary Non-Financial Apps

Shinhan Financial Group Co., Ltd. uses non-financial apps to engage specific customer segments, deepening client relationships and supporting merchant-focused financial services. Ddangyo, the ultra-low-fee delivery app, is a prime example of this strategy in action.

The growth in Ddangyo's user base shows traction in this non-traditional channel:

• Ddangyo Monthly active users (MAU) tripled from about 1 million late 2024 to 3.5 million (early 2025 context).
• Hey Young Campus is a proprietary app supporting university life, featuring Mobile Student ID, Academic Administration, and Library Use functions for students at partner universities.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Customer Segments

You're looking at the core groups Shinhan Financial Group Co., Ltd. (SHG) serves, which is the foundation of their entire operation. They structure their approach to cover everyone from the individual saver to the largest global fund manager. This segmentation is key to understanding where their KRW 454.3 trillion in total loans (as of 1H 2025) is deployed.

Here's a look at the scale across the main client types, based on the latest available figures:

The mass-market retail segment is the bedrock, supported by Shinhan Bank, which is Korea's second-largest bank by total assets as of December 31, 2024. Shinhan Card, a core part of this segment, is noted as Korea's largest credit card company by market share.

For the mass-market retail customers, the services cover the full spectrum:

• Deposits, withdrawals, and checking account services.
• Mortgage and home equity lending, plus retail lending.
• Credit card services, where fee income was impacted by marketing spend in Q1 2025.
• Variable insurance and annuity products via Shinhan Life Insurance.

When you look at large corporations and institutional investors, Shinhan Financial Group Co., Ltd. (SHG) uses its securities and investment banking arms to serve them. Shinhan Securities America, Inc. (SSA) specifically places services with Korean institutional investors and investment funds. The corporate banking side is substantial, with corporate loans totaling KRW 180 trillion (as of end of 2024).

Small and Medium-sized Enterprises (SMEs) are a clear focus area, especially for Shinhan Bank America (SHBA) in the U.S., which specializes in commercial loans to small business customers and is a preferred Small Business Administration (SBA) loan lender. Domestically, the growth in bank loans in the first quarter of 2025 was largely attributed to blue-chip SME loans.

The global customer base is served through an extensive footprint. As of the end of 2024, SHG had 249 offices across various regions, including the United States, Canada, the United Kingdom, and China. This global network supports international banking and services for clients operating outside of Korea, though the majority of revenue, 83.2%, still comes from Korean operations.

Finally, Shinhan Financial Group Co., Ltd. (SHG) is actively targeting younger demographics. While specific customer counts for platforms like Hey Young Campus aren't public, the Group's focus on digital innovation and customer experience in 2025 suggests these segments are important growth drivers. The Group's overall commitment to customer-centricity, reflected in their 2025 management slogan, applies to all segments, including the young generation.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Cost Structure

You're looking at the cost side of Shinhan Financial Group Co., Ltd. (SHG) as of late 2025, based on the latest reported figures from their 2024 and first-half 2025 disclosures. The cost structure is dominated by the sheer scale of their diversified operations.

The overall cost base for the group was substantial, with Operating Expenses for the fiscal year ending December 31, 2024, reported at $19.60B. This massive figure covers everything from running the physical branch network to funding the digital push.

Here's a breakdown of the most significant cost drivers we can quantify:

Funding Costs for Deposits and Wholesale Financing represent a core expense, directly tied to the interest paid on liabilities. For the first half of 2025 (1H2025), total Interest Expenses were reported at KRW 8,316.3 billion. This is a variable cost that shifts with market interest rates. The liability funding cost for the group in the second quarter of 2025 (2Q25) was 2.56%.

Credit Costs and Loan Loss Provisions are rising, reflecting economic uncertainty. For the first six months of 2025, Shinhan Financial Group recorded a Provision for credit loss of KRW 1,065 billion. This provision is set aside to cover potential future loan defaults. The underlying asset quality metrics warrant this caution, with the Non-Performing Loans (NPL) ratio at 0.69% and the Substandard & Below ratio at 0.84% as of 1H2025.

Personnel Expenses for a Large, Diversified Workforce are a fixed, major outlay, supporting the operations across banking, card, securities, and insurance subsidiaries. While a specific 2025 personnel expense figure isn't isolated in the latest summaries, the General and administrative expenses component in the FY2024 report was KRW 6,116 billion. Personnel costs are embedded within this and other operating line items, supporting the large workforce needed for a full-service financial conglomerate.

Significant Investment in Digital Transformation and IT Infrastructure is a strategic necessity, not just an operational cost. Chairman Jin Ok-dong has reaffirmed this as the long-term growth strategy, focusing on ERP banking and AI agents. While a precise internal IT spend figure for 2025 isn't public, the group's commitment is shown through strategic investments, such as Shinhan Securities' participation in funding technology companies driving digital transformation. This investment is aimed at future efficiency gains and customer experience enhancement.

Marketing and Customer Acquisition Spend is particularly high for competitive segments like credit card services, driven by Shinhan Card. This spend supports the consolidation into the 'Super SOL' super app, which aims to retain customers. Specific marketing spend figures are typically aggregated within the broader operating expenses.

Here is a summary of the most concrete cost figures available, noting the reporting periods:

The cost structure is clearly weighted towards funding the massive asset base through interest expenses and managing the risk embedded in the loan portfolio through provisions. The ongoing digital investment is a forward-looking cost designed to reduce future operational expenses.

You should track the trend in the Provision for credit loss against the growth in total loans, which stood at KRW 454.3 trillion in 1H2025.

• Digital Transformation: Focus on ERP banking and AI agents.
• Personnel Costs: Embedded within General and administrative expenses of KRW 6,116 billion (FY2024).
• Credit Costs: KRW 1,065 billion provisioned in 1H2025.
• Funding Costs: KRW 8,316.3 billion in Interest Expenses for 1H2025.
• Marketing Spend: Aggregated within overall operating budget.

Finance: draft 13-week cash view by Friday.

Shinhan Financial Group Co., Ltd. (SHG) - Canvas Business Model: Revenue Streams

You're looking at the core ways Shinhan Financial Group Co., Ltd. (SHG) brings in money as of late 2025. It's a mix of traditional banking spreads and higher-margin service fees, just like you'd expect from a major financial holding company.

The bedrock of the revenue is definitely the Net Interest Income (NII) generated from its lending and securities portfolios. For the first half of 2025 ($\text{1H 2025}$), Shinhan Financial Group booked $\text{KRW 5,719 billion}$ from NII. This shows the sheer scale of their balance sheet operations, even with Net Interest Margin (NIM) pressures noted in the market.

Non-Interest Income is where you see the push for diversification, and honestly, it's showing some positive momentum after a slower start to the year. While Q1 2025 saw Non-interest income drop $6.3\%$ year-over-year, the momentum shifted significantly. By Q2 2025, non-interest income including fees jumped $\text{13.7\%}$ year-over-year to $\text{KRW 1,265.0 billion}$. For the first nine months of 2025, the total noninterest income spiked $\text{4.9\%}$ year-over-year to $\text{KRW 3.17 trillion}$. This growth is what management points to, driven by securities-related profits and, as the outline suggests, foreign exchange gains.

Here's a quick look at how the major income components stacked up based on the latest available semi-annual and year-to-date figures:

Fees and commissions are a key part of that non-interest income story, coming from the various service lines. You're seeing activity across the board, even if some segments lagged early on. For instance, fee/commission income saw a quarter-over-quarter rise of $\text{12.1\%}$ in Q1 2025, showing underlying transactional strength in areas like brokerage, asset management, and Investment Banking (IB) services. Still, you have to watch the drivers; the Q1 year-over-year decline in overall non-interest income was attributed partly to lower securities fees and commissions.

For the credit card operations, primarily through Shinhan Card, revenue comes from a few distinct streams. These include merchant fees paid by establishments, interest charged on card loans and revolving services, and annual membership fees. It's worth noting that profits from card commissions were cited as a reason for the year-over-year dip in Q1 non-interest income, but the subsidiary itself still posted a solid Q1 2025 net income of $\text{KRW 135.7 billion}$.

Insurance premiums and investment income from Shinhan Life Insurance also feed into the total. Like other fee-related areas, insurance income saw a year-over-year decrease in Q1 2025. However, Shinhan Life Insurance contributed $\text{KRW 165.2 billion}$ in net income for that same first quarter. The group's strategy is clearly focused on growing these fee-based and insurance components to balance the core lending income.

• Net Interest Income: $\text{KRW 5,719 billion}$ ($\text{1H 2025}$).
• Non-Interest Income: $\text{KRW 3.17 trillion}$ ($\text{9M 2025}$ cumulative).
• Q1 2025 Fee/Commission Income: $\text{12.1\%}$ increase Quarter-over-Quarter.
• Q2 2025 Non-Interest Income (incl. fees): $\text{KRW 1,265.0 billion}$ year-over-year.
• Shinhan Life Q1 2025 Net Income: $\text{KRW 165.2 billion}$.

Finance: draft $\text{13-week}$ cash view by Friday.