UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the Month of May 2021
SHINHAN FINANCIAL GROUP CO., LTD.
(Translation of registrant's name into English)
20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F √ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): _______
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): _______
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes No___√___
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- n/a .
1
Summary of 1Q 2021 Business Report
On May 17, 2021, Shinhan Financial Group (“SFG”) filed its Business Report (the “Business Report”) for the first quarter of 2021 with the Financial Services Commission of Korea and the Korea Exchange pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.
The financial information in this report has been prepared in accordance with Korean International Financial Reporting Standards.
Table of Contents
1. Introduction of the Group
2. Business Results
3. Other Financial Information
4. Independent Auditor
5. Corporate Governance
6. Major Shareholders and Market Price Information of our Common Shares and ADRs
7. Directors, Executive Officers and Employees
8. Related Party Transactions
2
1. Introduction of the Group
Company History (from Jan. 2010 through the reporting date)
| ▪ | Jan. 2010: Shinhan Data System became a direct subsidiary of SFG |
| ▪ | Aug. 2010: Shinhan Macquarie Financial Advisory was disaffiliated from SFG |
| ▪ | Feb. 2011: Shinhan BNP Paribas Asset Management (Hong Kong) Ltd. became an indirect subsidiary of SFG |
| ▪ | Nov. 2011: Shinhan Bank Vietnam was merged with Shinhan Vina Bank |
| ▪ | Dec. 2011: Shinhan Savings Bank became a direct subsidiary of SFG |
| ▪ | Nov. 2012: Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary |
| ▪ | Jan. 2013: Yehanbyoul Savings Bank joined SFG as a direct subsidiary |
| ▪ | Apr. 2013: Shinhan Savings Bank merged with Yehanbyoul Savings Bank. As a result of the integration, Shinhan Savings Bank has been liquidated and Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity |
| ▪ | Nov. 2014: LLP MFO Shinhan Finance (Kazakhstan) became an indirect subsidiary of SFG |
| ▪ | Jul. 2015: Shinhan Securities Vietnam Co., Ltd became an indirect subsidiary of SFG |
| ▪ | Oct. 2015: Banco Shinhan de Mexico became an indirect subsidiary of SFG |
| ▪ | Nov. 2015: PT Bank Shinhan Indonesia became an indirect subsidiary of SFG |
| ▪ | Dec. 2015: PT. Shinhan Indo Finance became an indirect subsidiary of SFG |
| ▪ | Dec. 2015: PT Centratama Nasional Bank became an indirect subsidiary of SFG |
| ▪ | Mar. 2016: Shinhan Microfinance Co., Ltd. became an indirect subsidiary of SFG |
| ▪ | Jul. 2016: PT Shinhan Securities Indonesia became an indirect subsidiary of SFG |
| ▪ | Dec. 2016: Launched new integrated PT Bank Shinhan Indonesia |
| ▪ | Oct. 2017: Established Shinhan REITs(Real Estate Investment Trusts) Management Co.,Ltd. as SFG subsidiary |
| ▪ | Dec. 2017: Shinhan K REITs became an indirect subsidiary of SFG |
| ▪ | Apr. 2018: Shinhan Alpha REITs (formerly known as Shinhan K REITs) was disaffiliated from SFG’s indirect subsidiary due to a change in the largest shareholder |
| ▪ | May 2018: GX SHINHAN INTERVEST 1st PEF became an indirect subsidiary of SFG |
| ▪ | May 2018: Shinhan DS Vietnam became an indirect subsidiary of SFG |
| ▪ | Sep. 2018: Shinhan Alpha Yongsan REIT became an indirect subsidiary of SFG |
| ▪ | Oct. 2018: SFG entered into a share purchase agreement with Asia Trust Co., Ltd. for the 100% acquisition. |
| ▪ | Feb. 2019: Orange Life Insurance, Ltd. joined SFG as a direct subsidiary (acquisition from majority shareholders) |
| ▪ | May 2019: Asia Trust. Co., Ltd. joined SFG as a direct subsidiary |
| ▪ | Aug. 2019: Shinhan AI Co., Ltd. incorporated and joined as a direct subsidiary |
| ▪ | Jan. 2020: Orange Life Insurance, Ltd. became a wholly-owned subsidiary (acquisition of remaining interests by effecting a comprehensive stock exchange) |
| ▪ | Sep. 2020: Neoplux Co., Ltd. joined SFG as a direct subsidiary (acquisition from majority shareholder) |
3
|
| ▪ | Dec. 2020: SFG acquired the remaining interests in Neoplux by effecting a small-scale stock exchange and hence Neoplux has become our wholly owned subsidiary and on January 11, 2021, Neoplux changed its legal name to Shinhan Venture Investment. |
| ▪ | Jan. 2021: SFG acquired the remaining 35% interests in Shinhan BNPP Asset Management and it became a wholly-owned subsidiary. Shinhan BNPP Asset Management changed its legal name to Shinhan Asset Management. |
4
Principal(Direct) Subsidiaries under Korean Law (as of Mar. 31, 2021)
Subsidiaries |
| Ownership by SFG |
Shinhan Bank |
| 100.0% |
Shinhan Card |
| 100.0% |
Shinhan Investment Corp. |
| 100.0% |
Shinhan Life Insurance |
| 100.0% |
Orange Life Insurance |
| 100.0% |
Shinhan Capital |
| 100.0% |
Shinhan Asset Management 1) |
| 100.0% |
Jeju Bank 2) |
| 75.3% |
Shinhan Savings Bank 3) |
| 100.0% |
Asia Trust. Co., Ltd. |
| 60.0% |
Shinhan DS |
| 100.0% |
Shinhan AITAS 4) |
| 99.8% |
Shinhan Credit Information |
| 100.0% |
Shinhan Alternative Investment Management |
| 100.0% |
Shinhan REITs Management |
| 100.0% |
Shinhan AI |
| 100.0% |
Shinhan Venture Investrment 5) |
| 100.0% |
SHC Management 6) |
| 100.0% |
1)On January 15, SFG acquired remaining 35% interests in Shinhan BNP Paribas Asset Management and it became our wholly-owned subsidiary (changed its legal name to Shinhan Asset Management) 2)Jeju Bank is currently listed on the Korea Exchange. 3)On January 30, 2013, Yehanbyoul Savings Bank joined SFG as a direct subsidiary. On April 1, 2013, Shinhan Savings Bank merged with Yehanbyoul Savings Bank, both of which were direct subsidiaries of Shinhan Financial Group. As a result of the integration of the two savings banks, the previous Shinhan Savings Bank has been liquidated and is thus no longer a subsidiary of Shinhan Financial Group and instead, Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity constituting a member of Shinhan Financial Group. 4)On November 30, 2012, Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary. Prior to November 30, 2012, Shinhan AITAS was an indirect subsidiary of SFG under Shinhan Bank, a wholly-owned bank subsidiary of SFG. 5)On January 11, Neoplux changed its legal name to Shinhan Venture Investment. 6)Currently in liquidation proceedings
|
5
Indirect subsidiaries held through direct subsidiaries (as of the reporting date)
Direct Subsidiaries |
| Indirect Subsidiaries |
| Ownership by the Parent |
Shinhan Bank |
| Shinhan Bank America |
| 100.0% |
| Shinhan Bank Japan |
| 100.0% | |
| Shinhan Bank Europe |
| 100.0% | |
| Shinhan Bank Cambodia |
| 97.5% | |
| Shinhan Bank Kazakhstan |
| 100.0% | |
| Shinhan Bank China Limited |
| 100.0% | |
| Shinhan Bank Canada |
| 100.0% | |
| Shinhan Bank Vietnam |
| 100.0% | |
|
| Banco Shinhan de Mexico |
| 99.99% |
|
| PT Bank Shinhan Indonesia |
| 99.0% |
Shinhan Card |
| LLP MFO Shinhan Finance |
| 100.0% |
| PT. Shinhan Indo Finance |
| 50.0% | |
| Shinhan Microfinance Co., Ltd. |
| 100.00% | |
| Shinhan Vietnam Finance Co. Ltd. |
| 100.00% | |
Shinhan Investment Corp. |
| Shinhan Investment America Inc. |
| 100.0% |
| Shinhan Investment Asia Ltd. |
| 100.0% | |
| Shinhan Securities Vietnam Co., Ltd |
| 100.0% | |
| PT Shinhan Sekuritas Indonesia |
| 99.0% | |
| KOFC Shinhan Frontier Champ 2010-4 PEF1) |
| 8.5% | |
| Shinhan Praxis K-Growth Global Private Equity Fund 2) |
| 14.1% | |
| Shinhan Smilegate Global PEF I 3) |
| 10.0% | |
Shinhan Life Insurance |
| Shinhan Financial Plux |
| 100.0% |
Shinhan Capital |
| KOFC Shinhan Frontier Champ 2010-4 PEF1) |
| 6.5% |
Shinhan Asset Management |
| Shinhan BNP Paribas Asset Management (Hong Kong) Limited |
| 100.0% |
Shinhan Alternative |
| Shinhan Private Equity Fund 2nd 4) |
| 66.3% |
Shinhan DS |
| Shinhan DS Vietnam Co. Limited |
| 100.0% |
Shinhan Venture Investment |
| Neoplux 3rd PEF |
| 10.0% |
KTCNP Growth Champ |
| 5.56% | ||
1) Shinhan Financial Group and its subsidiaries currently own 34.6% of KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp. 2) Shinhan Financial Group and its subsidiaries currently own 18.9% of Shinhan Praxis K-Growth Global Private Equity Fund. 3) Shinhan Financial Group and its subsidiaries currently own 14.21% of Shinhan Smilegate Global PEF I. |
6
Credit Ratings
Date | Types of Issuance | Credit Rating | Rating Company (Rating Range) |
4/9/2020 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
5/26/2020 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) |
5/27/2020 | Debentures | AAA | NICE Investors Service(AAA~D) |
6/30/2020 | Commercial Paper | A1 | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
6/30/2020 | Electronic Short-term Bond | A1 | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
7/10/2020 | Debentures | A | Standard & Poors (AAA~D) |
7/10/2020 | Debentures | A1 | Moody’s (Aaa~C) |
9/10/2020 | Write-down Contingent Capital Securities | AA- | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
10/28/2020 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
12/22/2020 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2/8/2021 | Electronic Short-term Bond | A1 | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2/18/2021 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2/24/2021 | Debentures | AAA | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
3/4/2021 | Write-down Contingent Capital Securities | AA- | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
3/4/2021 | Write-down Contingent Capital Securities | AA- | Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
Number of Shares (as of Mar. 31, 2021)
Types of Shares |
| Number of Shares |
Number of shares authorized for issuance |
| 1,000,000,000 |
Number of common shares issued (1) |
| 516,599,554 |
Number of preferred shares issued (2) |
| 17,482,000 |
Total outstanding shares |
| 534,081,554 |
Treasury stocks (3) |
| 6,350 |
Total outstanding shares |
| 516,593,204 |
(1) SFG issued 8,232,906 shares of common stock in relation to a comprehensive stock exchange between SFG and Orange Life Insurance on January 28, 2020. On June 1, 2020, SFG cancelled 5,035,658 treasury shares. On September 29, 2020, SFG had a paid-in capital increase and issued 39,130,000 common shares (third-party allocation). On December 30, 2020, SFG issued 72,719 shares of common stock in relation to a small-scale stock exchange between SFG and Neoplux. (2) For more information, please refer to SFG’s reports on Form 6-K furnished to the Securities and Exchange Commission on February 12, 2019 and April 30, 2019. (3) SFG acquired treasury stocks through the acquisition of fractional shares as a result of a stock exchange between SFG and Orange Life Insurance on January 28, 2020 and between SFG and Neoplux on December 30, 2020. |
7
Dividends
|
|
| (KRW million) |
Items | 1Q FY2021 (Jan. 1 ~ Mar. 31) | FY2020 (Jan. 1 ~ Dec. 31) | FY2019 (Jan. 1 ~ Dec. 31) |
Par value per share (Won) | 5,000 | 5,000 | 5,000 |
(Consolidated) Net Income | 1,191,938 | 3,414,595 | 3,403,497 |
(Separate) Net Income | 1,328,049 | 1,274,443 | 1,129,173 |
(Consolidated Earnings per share (Won) | 2,173 | 6,654 | 7,000 |
Total Cash dividends | - | 803,838 | 883,929 |
Total stock dividends | - | - | - |
(Consolidated) Cash dividend payout ratio (%) | - | 23.54 | 25.97 |
Cash dividend yield (%) – common shares | - | 4.52 | 4.06 |
Cash dividend yield (%) – preferred shares | - | 5.17 | 4.06 |
Stock dividend yield (%) | - | - | - |
Cash dividend per share (Won) | - | 1,500 | 1,850 |
Stock dividend per share | - | - | - |
Note) Cash dividend payout ratio on a common share basis for FY2020 is 22.66% |
8
2. Business Results
Operating Results
|
|
| (KRW billion) | |||
| 1Q FY2020 (Jan. 1 ~ Mar. 31) | FY2020 (Jan. 1 ~ Dec. 31) | FY2019 (Jan. 1 ~ Dec. 31) | |||
Net interest income | 2,556 | 9,883 | 9,738 | |||
Interest income | 3,523 | 14,774 | 15,707 | |||
Interest expense | 966 | 4,891 | 5,969 | |||
Net fees and commission income | 682 | 2,383 | 2,141 | |||
Fees and commission income | 1,024 | 3,815 | 3,557 | |||
Fees and commission expense | 343 | 1,432 | 1,417 | |||
Net insurance income | -156 | -604 | -497 | |||
Insurance income | 1,698 | 7,248 | 7,569 | |||
Insurance expense | 1,854 | 7,852 | 8,066 | |||
Net gain(loss) on securities and FX trading/derivatives | 444 | 1,125 | 982 | |||
Provision for credit loss and impairment loss | -188 | -1,391 | -951 | |||
Net other operating income(expense) | -377 | -1,254 | -1,231 | |||
General and administrative expenses | 1,279 | 5,212 | 5,135 | |||
Net operating income | 1,682 | 4,930 | 5,046 | |||
Equity method income | 13 | 160 | 53 | |||
Other non-operating income(expense), net | -50 | -335 | -188 | |||
Profit before income taxes | 1,645 | 4,754 | 4,912 | |||
Income tax expense | 427 | 1,256 | 1,269 | |||
Consolidated net profit | 1,218 | 3,498 | 3,642 | |||
Net profit attributable to equity holders of the Group | 1,192 | 3,415 | 3,404 | |||
Net profit attributable to non-controlling interest | 26 | 84 | 239 | |||
Notes : Some of the totals may not sum due to rounding. |
9
Source and Use of Funds
Consolidated Basis (KRW billion, %) | 1Q FY2021 | FY2020 | FY2019 | ||||||||||
Jan. 1 ~ Mar. 31 | Jan. 1 ~ Dec. 31 | Jan. 1 ~ Dec. 31 | |||||||||||
Average Balance1) | Propor-tions (%) | Interest Paid | Interest Rate (%) | Average Balance1) | Propor-tions (%) | Interest Paid | Interest Rate (%) | Average Balance1) | Propor-tions (%) | Interest Paid | Interest Rate (%) | ||
Source | Deposits | 332,078.0 | 54.3 | 528.1 | 0.64 | 280,108.9 | 53.8 | 3,644.6 | 1.30 | 257,656.5 | 58.2 | 3,091.7 | 1.20 |
Borrowings | 28,279.5 | 4.6 | 60.9 | 0.87 | 22,705.0 | 4.4 | 400.2 | 1.76 | 19,211.9 | 4.3 | 316.9 | 1.65 | |
Debt Securities Issued | 75,495.3 | 12.3 | 346.7 | 1.86 | 69,636.9 | 13.4 | 1,666.3 | 2.39 | 57,284.3 | 12.9 | 1,336.8 | 2.33 | |
Other Liabilities | 129,583.1 | 21.2 | - | - | 108,013.9 | 20.7 | - | - | 73,666.5 | 16.7 | - | - | |
Total Liabilities | 565,435.9 | 92.4 | - | - | 480,464.7 | 92.3 | - | - | 407,819.2 | 92.1 | - | - | |
Total Stockholder's Equity | 46,549.7 | 7.6 | - | - | 39,922.0 | 7.7 | - | - | 34,911.0 | 7.9 | - | - | |
Total Liabilities & SE | 611,985.6 | 100.0 | - | - | 520,386.7 | 100.0 | - | - | 442,730.2 | 100.0 | - | - | |
Use | Cash & Due from Banks | 31,920.6 | 5.2 | 23.4 | 0.30 | 24,598.6 | 4.7 | 241.9 | 0.98 | 20,581.4 | 4.6 | 188.9 | 0.92 |
Loans | 363,988.8 | 59.5 | 2843.8 | 3.17 | 313,159.5 | 60.2 | 12,508.9 | 3.99 | 287,925.9 | 65.0 | 11,190.7 | 3.89 | |
Loans in KRW | 284,385.6 | 46.5 | 2001.2 | 2.85 | 244,234.3 | 46.9 | 8,737.8 | 3.58 | 224,504.2 | 50.7 | 7,892.5 | 3.52 | |
Loans in Foreign Currency | 30,006.0 | 4.9 | 259.9 | 3.51 | 24,284.0 | 4.7 | 1,082.6 | 4.46 | 19,306.0 | 4.4 | 795.6 | 4.12 | |
Credit Card Accounts | 23,846.1 | 3.9 | 466.3 | 7.93 | 23,058.3 | 4.4 | 1,916.8 | 8.31 | 21,543.9 | 4.9 | 1,790.2 | 8.31 | |
Others | 25,751.1 | 4.2 | 116.4 | 1.83 | 21,582.9 | 4.2 | 771.6 | 3.58 | 22,571.8 | 5.0 | 712.5 | 3.16 | |
FVOCI Financial Assets | 57,400.9 | 9.4 | 212.1 | 1.50 | 50,641.0 | 9.7 | 1,072.9 | 2.12 | 37,064.0 | 8.4 | 754.6 | 2.04 | |
AC Financial Assets | 47,660.6 | 7.8 | 265.1 | 2.26 | 40,955.7 | 7.9 | 1,061.3 | 2.59 | 26,456.1 | 6.0 | 730.4 | 2.76 | |
Other Assets | 111,014.7 | 18.1 | - | - | 91,031.9 | 17.5 | - | - | 70,702.8 | 16.0 | - | - | |
Total Assets | 611,985.6 | 100.0 | - | - | 520,386.7 | 100.0 | - | - | 442,730.2 | 100.0 | - | - | |
1) The “Average Balance” is the arithmetic mean of the ending balance of each quarter.
|
10
3. Other Financial Information
1) Capital Adequacy
Consolidated BIS Ratio (Shinhan Financial Group)
|
|
| (KRW billion) |
| Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate Amount of Equity Capital (A) | 41,051.4 | 39,709.1 | 35,712.3 |
Risk-Weighted Assets (B) | 258,256.0 | 252,321.4 | 256,891.7 |
BIS Ratio (A/B) | 15.90% | 15.74% | 13.90% |
Note) based on Basel III |
|
|
|
Capital Adequacy Ratios (Subsidiaries)
|
|
|
| (%) |
Subsidiary | Capital Adequacy Ratio | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Shinhan Bank | BIS Capital Adequacy Ratio | 18.0 | 18.5 | 15.9 |
Shinhan Card | Adjusted Equity Capital Ratio | 19.0 | 19.9 | 20.1 |
Shinhan Investment Corp. | Net Capital Ratio | 1,645.9 | 1,677.7 | 1,217.4 |
Shinhan Life Insurance | Risk Based Capital Ratio | 243.5 | 249.5 | 227.9 |
Orange Life Insurance | Risk Based Capital Ratio | 380.0 | 395.4 | 393.9 |
Shinhan Capital | Adjusted Equity Capital Ratio | 13.8 | 15.2 | 13.1 |
Shinhan Asset Management | Equity Capital (KRW billion) | 181.7 | 170.6 | 164.5 |
Minimum Capital Requirement (KRW billion) | 31.4 | 30.7 | 29.3 | |
Jeju Bank | BIS Capital Adequacy Ratio | 16.1 | 15.8 | 14.9 |
Shinhan Savings Bank | BIS Capital Adequacy Ratio | 15.0 | 15.8 | 15.5 |
Asia Trust | Net Capital Ratio | 985.9 | 1,016.5 | 969.6 |
Notes : ▪The BIS Capital Adequacy Ratio is computed in accordance with the guidelines issued by the FSS for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%. ▪Basel III FIRB was applied in calculating Shinhan Bank’s BIS Capital Adequacy Ratio. ▪Basel III TSA was applied in calculating Jeju Bank’s BIS Capital Adequacy Ratio. ▪Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio. ▪The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholder’s equity to total adjusted assets and is computed in accordance with the guidelines issued by FSS. Under these guidelines, Shinhan Card and Shinhan Capital are required to maintain a minimum adjusted equity capital ratio of 8%. ▪Net Capital Ratio is computed in accordance with the guidelines issued by the FSS. Under these guidelines, Shinhan Investment Corporation is required to maintain a minimum net capital ratio of 100%. ▪Under the guidelines issued by the FSS, Shinhan Life Insurance is required to maintain a minimum RBC ratio of 100%. ▪Under the guidelines issued by the FSS, Shinhan Asset Management is required to hold Equity Capital that exceeds the Minimum Capital Requirement. |
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11
2) Liquidity
Won Liquidity Ratio
|
|
| (KRW billion, %) | ||||||
Company | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||||
Won Assets | Won Liabilities | Won Liquidity Ratio(%) | Won Assets | Won Liabilities | Won Liquidity Ratio(%) | Won Assets | Won Liabilities | Won Liquidity Ratio(%) | |
Shinhan Financial Group | 2,898.5 | 1,236.9 | 234.3 | 1,562.0 | 451.8 | 345.7 | 192.7 | 37.9 | 508.2 |
Shinhan Card | 18,008.3 | 5,086.6 | 354.0 | 17,596.2 | 4,658.9 | 377.7 | 17,922.1 | 4,464.9 | 401.4 |
Shinhan Investment Corp. | 20,054.3 | 14,305.6 | 140.2 | 18,292.3 | 13,295.7 | 137.6 | 15,099.7 | 10,869.3 | 138.9 |
Shinhan Life Insurance | 1,033.4 | 794.0 | 130.2 | 1,475.7 | 778.7 | 189.5 | 1,130.3 | 703.7 | 160.6 |
Orange Life Insurance | 885.4 | 572.4 | 154.7 | 1,292.8 | 612.5 | 211.1 | 1,291.8 | 655.4 | 197.1 |
Shinhan Capital | 1,481.9 | 793.2 | 186.8 | 1,280.7 | 628.5 | 203.8 | 970.1 | 659.9 | 147.0 |
Shinhan Savings Bank | 387.7 | 293.0 | 132.3 | 314.7 | 184.8 | 170.3 | 226.1 | 188.8 | 119.8 |
Asia Trust | 205.2 | 22.5 | 912.3 | 185.5 | 21.8 | 851.4 | 101.8 | 10.9 | 933.1 |
Notes: ▪Shinhan Financial Group: Due within 1 month ▪Shinhan Life Insurance and Orange Life Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100 ▪Shinhan Card, Shinhan Investment Corp., Shinhan Capital, and Shinhan Savings Bank : Due within 3 months ▪Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015 to reflect the recent amendments to detailed regulations on supervision of banking business. |
Liquidity Coverage Ratio
|
|
| (KRW billion, %) | ||||||
Company | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||||
High Quality Liquid Assets | Net Cash Outflows | Liquidity Coverage Ratio(%)* | High Quality Liquid Assets | Net Cash Outflows | Liquidity Coverage Ratio(%) | High Quality Liquid Assets | Net Cash Outflows | Liquidity Coverage Ratio(%) | |
Shinhan Bank | 62,499.1 | 69,530.7 | 89.9 | 63,154.4 | 70,453.2 | 89.6 | 63,054.8 | 60,280.6 | 104.6 |
Jeju Bank | 680.1 | 603.0 | 112.8 | 600.5 | 572.9 | 106.0 | 642.0 | 510.7 | 126.2 |
Notes: ▪Liquidity Coverage Ratios are the arithmetic mean of daily LCRs for 3 months. ▪Financial Services Commission temporarily eased the regulatory minimum from 100.0% to 85.0% in response to |
12
Foreign Currency (FC) Liquidity Ratio
|
|
| (USD millions, %) | ||||||
Company | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||||
FC Assets | FC Liabilities | FC Liquidity Ratio(%) | FC Assets | FC Liabilities | FC Liquidity Ratio(%) | FC Assets | FC Liabilities | FC Liquidity Ratio(%) | |
Shinhan Financial Group | 44.4 | - | N/A | 108.8 | 9.9 | 1,099.0 | 135.3 | 6.7 | 2,019.4 |
Shinhan Investment Corp. | 8,298.2 | 8,116.0 | 102.2 | 6,426.3 | 6,587.4 | 97.6 | 6,769.9 | 6,488.4 | 104.3 |
Shinhan Capital | 10.1 | 2.0 | 505.4 | 19.2 | 6.5 | 221.5 | 131.9 | 128.0 | 103.0 |
Jeju Bank | 32.1 | 28.9 | 111.2 | 21.7 | 16.3 | 132.7 | 29.1 | 13.9 | 209.4 |
Notes : ▪Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months. ▪Jeju Bank’s foreign currency liquidity ratio reflected securitization weight with the guidelines issued by the FSS. ▪Shinhan Bank’s foreign currency liquidity ratio has been replaced by Foreign Liquidity Coverage Ratio. |
Foreign Currency (FC) Liquidity Coverage Ratio
|
|
|
| (USD millions, %) | ||
Company | 2021 1Q | 2020 1Q | 2019 1Q | |||
Jan. 1 ~ Mar. 31 | Jan. 1 ~ Mar. 31 | Jan. 1 ~ Mar. 31 | ||||
Shinhan Bank | 110.4 | 116.9 | 121.8 | |||
Notes : ▪The minimum requirement of the foreign currency liquidity coverage ratio was set at 60% in 2017, 70% in 2018 and was increased gradually to 80% in 2019. ▪Financial Services Commission temporarily eased the regulatory minimum from 80% to 70% in response to COVID-19 pandemic until September 30, 2021. ▪Foreign Currency Liquidity Coverage Ratio is calculated by averaging the daily foreign liquidity coverage ratio for the quarter. |
13
3) Asset Quality
SFG Consolidated Basis
(KRW billion) | |||
| Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Total Loans | 365,405.7 | 357,566.8 | 326,413.7 |
Substandard & Below | 1,930.3 | 1,878.3 | 1,818.0 |
Substandard & Below Ratio | 0.53% | 0.53% | 0.56% |
Non-Performing Loans | 1,505.5 | 1,390.3 | 1,433.3 |
NPL Ratio | 0.41% | 0.39% | 0.44% |
Substandard & Below Coverage Ratio | 157.09% | 162.95% | 148.29% |
Loan Loss Allowance | 3,032.3 | 3,060.8 | 2,695.8 |
Substandard & Below Loans | 1,930.3 | 1,878.3 | 1,818.0 |
Separate Basis
(%) | Mar. 31 2021 | Dec. 31 2020 | Dec. 31, 2019 | ||||||
Substandard & Below Ratio | NPL Ratio | Substandard & Below Coverage Ratio | Substandard & Below Ratio | NPL Ratio | Substandard & Below Coverage Ratio | Substandard & Below Ratio | NPL Ratio | Substandard & Below Coverage Ratio 1) | |
Shinhan Financial Group | - | - | - | - | - | - | - | - | - |
Shinhan Bank | 0.36 | 0.30 | 135 | 0.36 | 0.29 | 143 | 0.45 | 0.36 | 116 |
Shinhan Card | 1.06 | 0.48 | 274 | 1.09 | 0.56 | 277 | 1.15 | 0.6 | 265 |
Shinhan Investment Corp | 4.77 | 4.77 | 56 | 4.63 | 1.95 | 60 | 0.07 | 0.07 | 808 |
Shinhan Life Insurance | 0.12 | 0.11 | 242 | 0.13 | 0.12 | 234 | 0.12 | 0.11 | 208 |
Orange Life | 0.01 | 0.05 | 98 | 0.02 | 0.04 | 97 | 0.02 | 0.06 | 100 |
Shinhan Capital | 0.66 | 0.46 | 228 | 0.72 | 0.73 | 282 | 0.77 | 0.99 | 162 |
Jeju Bank | 0.53 | 0.49 | 96 | 0.6 | 0.54 | 93 | 0.54 | 0.46 | 94 |
Shinhan Savings Bank | 2.81 | 2.87 | 90 | 2.69 | 2.82 | 88 | 2.9 | 2.85 | 88 |
Asia Trust | 82.78 | 82.78 | 63 | 84.84 | 84.84 | 61 | 50.61 | 50.37 | 67 |
14
4) Debt to Equity Ratios
Shinhan Financial Group (Separate Basis)
(KRW billion) | |||
| Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt | 11,296.5 | 10,426.8 | 9,795.9 |
Equity | 26,147.8 | 25,057.1 | 22,465.4 |
Debt to Equity Ratio | 43.20% | 41.61% | 43.60% |
15
Twenty Largest Exposures by Borrower
(KRW billion) | ||||||
As of Mar. 31, 2021 Consolidated basis | Loans in Won | Loans in Foreign Currency | Securities | Guarantees and Acceptances | Others | Total Exposures |
Ministry of Economy & Finance | 0.0 | - | 40,656.5 | - | - | 40,656.5 |
Korea Housing Finance Corporation | 0.0 | - | 9,470.1 | - | - | 9,470.1 |
Bank of Korea | 2,000.0 | - | 4,672.0 | 0.1 | - | 6,672.1 |
Korea Development Bank | 3.9 | 43.2 | 5,682.4 | - | - | 5,729.5 |
Industrial Bank of Korea | 672.0 | 141.2 | 3,726.8 | - | - | 4,539.9 |
NongHyup Bank | 908.8 | 76.6 | 1,362.5 | 41.5 | - | 2,389.3 |
Export-Import Bank of Korea | - | 14.2 | 2,257.5 | 28.0 | - | 2,299.7 |
Samsung Electronics | - | 2,076.3 | 12.0 | - | - | 2,088.4 |
Kookmin Bank | 678.8 | 144.5 | 593.2 | 26.3 | - | 1,442.8 |
Korea Land & Housing Corporation | 0.0 | - | 1,383.8 | - | - | 1,383.8 |
Woori Bank | 539.3 | 71.8 | 742.2 | - | - | 1,353.3 |
Korea Expressway Corporation | 0.0 | - | 1,348.5 | - | - | 1,348.5 |
KEB Hana Bank | 689.5 | 106.2 | 483.1 | 1.0 | - | 1,279.9 |
KB Koonmin Card | - | - | 1,235.6 | - | - | 1,235.6 |
Hyundai Steel | 346.3 | 346.3 | 502.1 | 12.9 | 0.0 | 1,207.6 |
Hotel Lotte | - | 485.5 | 340.1 | 291.9 | - | 1,117.5 |
Korea SMEs and Startups Agency | 0.0 | - | 1,107.2 | - | - | 1,107.2 |
Korea Electric Power Corporation | 0.3 | - | 823.8 | 116.1 | - | 940.2 |
Korea National Railway | 0.1 | - | 928.5 | - | - | 928.6 |
KB Securities | 810.0 | - | 116.6 | - | - | 926.6 |
Total | 6,649.0 | 3,505.9 | 77,444.5 | 517.7 | 0.0 | 88,117.2 |
Note) Some of the totals may not sum due to rounding |
16
Exposure to ten Main Debtor Groups
(KRW billion) | ||||||
As of Mar. 31, 2021 Consolidated basis | Loans in Won | Loans in Foreign Currency | Securities | Guarantees and Acceptances | Others | Total Exposures |
Samsung | 648.3 | 2,422.6 | 1,347.2 | 1,063.2 | 0.0 | 5,481.2 |
Hyundai Motor Group | 857.8 | 1,832.3 | 2,257.5 | 279.5 | 0.1 | 5,227.2 |
Lotte | 73.6 | 972.9 | 1,853.9 | 439.2 | 0.2 | 3,339.9 |
SK | 367.6 | 588.0 | 1,385.1 | 449.3 | 0.0 | 2,790.1 |
LG | 279.9 | 631.5 | 1,103.1 | 583.3 | - | 2,597.8 |
Hanwha | 208.3 | 429.1 | 1,057.9 | 311.5 | 0.0 | 2,006.8 |
Hyundai Heavy Industries | 151.1 | 197.9 | 450.4 | 975.9 | - | 1,775.3 |
LS | 196.6 | 615.6 | 241.4 | 649.3 | 0.0 | 1,702.9 |
CJ | 155.0 | 157.6 | 574.3 | 154.2 | - | 1,041.1 |
GS | 27.4 | 71.9 | 527.1 | 242.3 | 0.0 | 868.7 |
Total | 2,965.6 | 7,919.4 | 10,797.9 | 5,147.7 | 0.3 | 26,830.9 |
Note) Some of the totals may not sum due to rounding |
17
Top Twenty Non-Performing Loans
(KRW billion) | ||||
Borrower | Industry | Gross Principal Outstanding | Substandard & Below | Allowance for Loan Losses |
A | Other financial service activities n.e.c. | 109.5 | 109.5 | 21.5 |
B | Other financial service activities n.e.c. | 56.5 | 56.5 | 56.5 |
C | Manufacture of sections for ships | 42.1 | 39.8 | 22.3 |
D | Manufacture of plastic products for fabricating of machine | 37.5 | 37.5 | 28.5 |
E | Other financial service activities n.e.c. | 23.7 | 23.7 | 9.2 |
F | Building of steel ships | 22.6 | 22.6 | 0.6 |
G | Sea freight water transport | 16.5 | 16.5 | 7.7 |
H | Manufacture of sections for ships | 15.0 | 13.6 | 0.2 |
I | Sea freight water transport | 7.7 | 7.7 | 7.3 |
J | Other financial service activities n.e.c. | 7.4 | 7.4 | 7.4 |
K | Other financial service activities n.e.c. | 7.4 | 7.4 | 7.4 |
L | Manufacture of sections for ships | 7.0 | 7.0 | 0.1 |
M | Manufacture of other new parts and accessories for motor vehicles n.e.c. | 6.3 | 6.3 | 1.8 |
N | Sea freight water transport | 6.1 | 6.1 | 2.2 |
O | Building of steel ships | 5.7 | 5.7 | 5.1 |
P | Quarrying of sand and gravel | 5.5 | 5.5 | 0.4 |
Q | General hospitals | 5.0 | 5.0 | 1.0 |
R | Manufacture of other textiles n.e.c. | 4.9 | 4.9 | 0.6 |
S | Manufacture of general electric lighting fixtures | 4.6 | 4.6 | 1.0 |
T | Manufacture of taps, valves and similar products | 5.1 | 4.5 | 2.1 |
Total | 396.0 | 391.7 | 182.8 | |
Notes : ▪Consolidated basis as of Mar. 31, 2021 ▪Some of the totals may not sum due to rounding. |
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4. Independent Auditor
Audit Opinion for the last 3 years
| FY2020 | FY2019 | FY2018 |
Independent Auditor | PwC Samil Accounting Corp. | KPMG Samjong Accounting Corp. | KPMG Samjong Accounting Corp. |
Audit Opinion | Unqualified | Unqualified | Unqualified |
* Based on the external auditor’s review, the external auditor, PwC Samil Accounting Corp., concluded that nothing has come to their attention that causes them to believe the accompanying consolidated interim financial statements as of March 31, 2021 are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting. |
Compensation to the Independent Auditor for Audit and Review Services
The following is a description of the fees for audit and review services performed by our independent auditor for the last three years in connection with our financial statements preparation.
Year | Auditor | Payment 1) | Details | Working hours |
FY2021 | PwC Samil Accounting Corp. | 958 (annualized basis) | Review/Audit of Financial Statements | 1,437.3 Hours |
PwC Samil Accounting Corp. | 73 (annualized basis) | Review of Consolidation for Asia Trust | 111 Hours | |
PwC Samil Accounting Corp. | 126 (annualized basis) | K-IFRS Report Package Audit for Shinhan Savings Bank | 173.5 Hours | |
FY2020 | PwC Samil Accounting Corp. | 976 (annualized basis) | Review/Audit of Financial Statements | 8,809 Hours |
PwC Samil Accounting Corp. | 120 (annualized basis) | K-IFRS Report Package Audit for Shinhan Savings Bank | 1,119.5 Hours | |
FY2019 | KPMG Samjong Accounting Corp. | 1,160 (annualized basis) | Review/Audit of Financial Statements | 11,497 Hours |
KPMG Samjong Accounting Corp. | 102 (annualized basis) | K-IFRS Report Package Audit for Shinhan Savings Bank | 1,272 Hours | |
1)Excluding value-added taxes. * In addition to above mentioned description of fees for audit and review services, PwC Samil Accounting Corp. also provided services related to US listing and ICOFR audit in accordance with the standards of the PCAOB which we agreed to pay KRW2,132 million(excluding value-added taxes) for FY2021. |
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5. Corporate Governance
Board of Directors and committees of the Board of Directors
As of the reporting date, our board of directors is comprised of one executive director, one non-executive directors and twelve outside directors. We currently have eight subcommittees that serve under the board:
•The Risk Management Committee;
•The Audit Committee;
•The Remuneration Committee;
•The Committee for Recommending Candidates for Independent Directors and Members of Audit Committee;
•The Committee for Recommending Candidates for CEO;
•The Environment, Social and Governance (ESG) Strategy Committee; and
•The Committee for Managing Subsidiary’s Business.
Each committee member is appointed by the board of directors, except for members of the Audit Committee, who are elected at the general meeting of shareholders.
• | Risk Management Committee |
The Committee oversees and makes determinations on all issues relating to our comprehensive risk management function. In order to ensure our stable financial condition and to maximize our profits, the committee monitors our overall risk exposure and reviews our compliance with risk policies and risk limits. In addition, the committee reviews risk and control strategies and policies, evaluates whether each risk is at an adequate level, establishes or abolishes risk management divisions, reviews risk-based capital allocations, and reviews the plans and evaluation of internal control.
• | Audit Committee |
The Committee oversees our financial reporting and approves the appointment of and interaction with our independent auditors and our internal audit-related officers. The Committee also reviews our financial information, audit examinations, key financial statement issues and the administration of our financial affairs by the Board of Directors. In connection with the general meetings of stockholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the Board of Directors for each general meeting of shareholders. |
• | Remuneration Committee |
This Committee is responsible for reviewing and approving the management’s evaluation and remuneration programs.
• | Committee for Recommending Candidates for Independent Directors and Members of Audit Committee |
Members of this Committee are appointed by our Board of Directors if and only to the extent necessary to recommend and nominate candidates for our Outside Director positions, audit committee members and related matters. However, when the procedure for final recommendation of outside director and audit committee member candidates commences, all outside directors are called to participate in the committee and in this case, all outside directors are deemed as enrolled. The committee meetings are called by the chair of this committee, who must be an outside director. This committee is responsible and authorized
20
for: (i) establishment, review and reinforcement of policies for outside director and audit committee member selection, (ii) recommendation of outside director and audit committee member candidates for approval at the general shareholders’ meeting and (iii) continual recruitment and screening of potential outside director candidates.
• | Committee for Recommending Candidates for CEO |
This committee is responsible for matters concerning the recommendation of candidates for the CEO including establishing and reviewing our management succession plan and its operation, setting and evaluating the qualifications and criteria for the CEO and CEO candidate pool and other matters necessary for improving our overall corporate governance structure. The chair of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to the CEO selection.
• | Environmental, Social and Governance (ESG) Strategy Committee |
This committee is responsible for setting the corporate policy for sustainable management, corporate disclosure of sustainability report and discussing specific business agenda in relation to socially responsible management and other matters such as corporate strategy toward climate change.
• | Committee for Managing Subsidiary’s Business |
This committee is responsible for matters concerning the evaluation of subsidiary management leadership. establishment of subsidiary CEO qualifications, verification and recommendation of subsidiary CEO candidates and other matters deemed necessary by the committee.
21
6. Major Shareholder and Market Price Information of our Common Shares and ADRs
Major Shareholders1) of Shinhan Financial Group as of Mar. 31, 2021
Name | No. of Common Shares owned | Ownership%2) |
National Pension Service | 50,666,140 | 9.81% |
BlackRock Fund Advisors3) | 29,063,012 | 5.63% |
Employee Stock Ownership Association | 25,423,516 | 4.92% |
1) Shareholders who own beneficial ownership of 5% or more and ESOP (common share basis). 2) Ownership is based on the total number of common shares issued, 516,599,554 shares. 3) Based on the large equity ownership discloser by BlackRock Fund Advisors with the Financial Supervisory Service on Sep. 27, 2018. |
Share ownership of Employee Stock Ownership Association
(Number of shares, %) | |||||
Share ownership | Beginning Balance | Increase | Decrease | Ending Balance (Mar. 31, 2021) | Ownership% (Mar. 31, 2021) |
Employee Stock Ownership | 24,680,673 | 1,562,901 | 941,783 | 25,301,791 | - |
ESOA account | 107,466 | 14,259 | - | 121,725 | - |
Total | 24,788,139 | 1,577,160 | 941,783 | 25,423,516 | 4.92% |
Common Shares Traded on the Korea Exchange
|
|
|
|
| (KRW, number of shares) | ||
| Oct. 2020 | Nov. 2020 | Dec. 2020 | Jan. 2021 | Feb. 2021 | Mar. 2021 | |
Price per share | High | 31,500 | 34,650 | 34,600 | 34,200 | 34,100 | 37,450 |
Low | 27,950 | 31,150 | 32,000 | 30,650 | 31,350 | 33,250 | |
Avg. | 29,353 | 32,924 | 33,571 | 32,825 | 32,547 | 35,423 | |
Trading Volume | 59,786,924 | 71,729,728 | 60,399,242 | 75,186,844 | 42,831,137 | 61,259,520 | |
Highest Daily Trading Volume | 6,673,095 | 7,202,607 | 4,462,333 | 7,289,269 | 4,263,157 | 5,756,996 | |
Lowest Daily Trading Volume | 1,332,326 | 1,708,598 | 1,832,455 | 1,810,352 | 1,132,192 | 1,380,687 |
American Depositary Receipts traded on the New York Stock Exchange
|
|
|
|
| (USD, number of shares) | ||
| Oct. 2020 | Nov. 2020 | Dec. 2020 | Jan. 2021 | Feb. 2021 | Mar. 2021 | |
Price per share | High | 27.57 | 31.24 | 31.96 | 31.43 | 30.18 | 33.54 |
Low | 23.2 | 27.72 | 29.53 | 27.67 | 28.06 | 29.57 | |
Avg. | 25.26 | 29.71 | 30.78 | 30.09 | 29.26 | 31.31 | |
Monthly Trading Volume | 2,569,344 | 1,583,197 | 2,408,500 | 2,225,016 | 1,853,572 | 3,526,506 | |
Highest Daily Trading Volume | 237,962 | 193,843 | 246,488 | 217,212 | 149,099 | 313,854 | |
Lowest Daily Trading Volume | 57,260 | 36,274 | 42,390 | 63,115 | 55,937 | 72,715 | |
Note) 1 ADR = 1 Common Shares |
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7. Directors, Executive Officers and Employees
Directors and Executive Officers
1) Executive Director
|
|
| (As of Mar. 31, 2021) |
Name | Month and Year of Birth | Position | Service Term |
Cho Yong-byoung | June 1957 | - CEO of Shinhan Financial Group | 6 years starting from March 23, 2017 |
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2) Non-Executive Directors
Currently, 13 non-executive directors are in office, 12 of which outside directors who are nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting.
Our non-executive directors are as follows:
(As of Mar. 31, 2021) | ||||
Name | Month and Year of Birth | Outside Director | Sub-Committees | Service Term |
Lee Yoon-jae | November 1950 | O | - Chair of Board of Directors - Member of Audit Committee - Member of ESG Strategy Committee - Member of Committee for Recommending Candidates for CEO | 3 years starting from March 27, 2019 |
Kwak Su Keun | August 1953 | O | - Chair of ESG Strategy Committee - Member of Audit Committee - Member of Committee for Managing Subsidiary Business | 2 years starting from March 25, 2021 |
Byeon Yang-ho | July 1954 | O | - Chair of Risk Management Committee - Member of Remuneration Committee - Member of Committee for Managing Subsidiary Business - Member of Committee for Recommending Candidates for CEO | 3 years starting from March 27, 2019 |
Huh Yong-hak | September 1958 | O | - Chair of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee - Member of Risk Management Committee - Member of Committee for Recommending Candidates for CEO | 3 years starting from March 27, 2019 |
Sung Jae-ho | March 1960 | O | - Chair of Committee for Recommending Candidates for CEO - Member of Audit Committee - Member of Remuneration Committee - Member of Committee for Managing Subsidiary Business | 3 years starting from March 27, 2019 |
Lee Yong Guk | May 1964 | O | - Chair of Remuneration Committee - Member of Risk Management Committee - Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee | 2 years starting from March 25, 2021 |
Choi Jae Boong | February 1965 | O | - Member of Risk Management Committee - Member of ESG Strategy Committee - Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee | 2 years starting from March 25, 2021 |
Yoon Jaewon | August 1970 | O | - Chair of Audit Committee - Member of ESG Strategy Committee - Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee | 2 years starting from March 26, 2020 |
Park Ansoon | January 1945 | O | - Member of Committee for Managing Subsidiary Business | 5 years starting from March 23, 2017 |
Bae Hoon | March 1953 | O | - Member of Remuneration Committee | 2 years starting from March 25, 2021 |
Jin Hyun-duk | September 1955 | O | - Member of Committee for Recommending Candidates for CEO | 2 years starting from March 26, 2020 |
Choi Kyong-rok | May 1966 | O | - Member of Committee for Recommending Candidates for CEO - Member of Committee for Recommending Candidates for Independent Directors and Members of Audit Committee | 4 years starting from March 22, 2018 |
24
Jin Ok-dong | February 1961 | X | - | 4 years starting from March 27, 2019 |
|
3) Executive Officers
In addition to the executive directors, we currently have the following executive officers:
(As of Mar. 31, 2021) | |||
Name | Month and Year of Birth | Position | In charge of |
Yi Sunny | March 1962 | Deputy President and Chief Digital Officer | - Digital Strategy Group |
Heo Young Taeg | August 1961 | Deputy President and Chief Management Officer | - Business Management Team 1, 2, 3 |
Jang Dong-ki | January 1964 | Deputy President | - Global Markets & Securities Business Group |
Lee Byeong-cheol | January 1963 | Deputy President | - Pension Business Group |
Roh Yong-hoon | March 1964 | Deputy President and Chief Financial Officer | - Finance Management Team - Accounting Team - Investor Relations Team - Internal Control on Financial Reporting Team |
An Hyo-ryul | May 1965 | Deputy President | - Wealth Management Planning Group |
Wang Ho-min | March 1964 | Deputy President and Chief Compliance Officer | - Compliance Team |
Lee Een-kyoon | April 1967 | Deputy President and Chief Operation Officer | - Shinhan Leadership Center - Management Support Team |
Park Sung-hyun | November 1965 | Deputy President and Chief Strategy & Sustainability Officer | - Strategic Planning Team - ESG Planning Team |
Ahn Jun Sik | November 1965 | Deputy President and Chief Public Relations Officer | - Brand PR Division |
Jung Keun Soo | April 1966 | Deputy President | - Global Investment Banking Business Group |
Kim Soung Jo | January 1967 | Deputy President | - Group Audit |
Kang Shin Tae | April 1965 | Deputy President | - Global Business Management Group |
Bang Dong-kwon | February 1966 | Managing Director and Chief Risk Officer | - Risk Management Team - Risk Model Validation Team - Credit Review Team |
Kim Hye Joo | May 1970 | Managing Director and Chief Bigdata Officer | - Group Bigdata Strategy |
25
Compensation to Directors
1) Total Amount Approved at the Meeting of Shareholders
(As of Mar. 31, 2021) | |||
| Total number of persons | Total amount approved at shareholders’ meeting (KRW millions) | Notes |
Directors (Outside directors) | 14(12) | 3,500 | - |
Note) Represents the aggregate amount for all directors (including outside directors) excluding long-term incentives. |
2) Total Amount Paid
(As of Mar. 31, 2021) | ||||
| Total number of Persons | Total compensation (KRW million) | Average compensation per person (KRW million) | Notes |
Registered Directors | 2 | 214 | 73 | Excluding outside directors, Audit committee members |
Outside Directors | 8 | 123 | 17 | Excluding Audit committee members |
Audit committee members or internal auditor | 4 | 60 | 19 |
|
Notes : Represents the total number of applicable persons as of Mar. 31, 2021. |
Compensation to Non-registered directors
(As of Mar. 31, 2021) | ||||||
| Total number of persons | Total compensation | Average Compensation per person (KRW million) | Notes | ||
Non-registered directors | 8 | 1,532 | 191 | - |
Stock Options
|
|
|
| (As of Mar. 31, 2021) | |
| No. of Granted Options (A) | No. of Exercised Options | No. of Cancelled Options | No. of Exercisable Options | Exercise Price |
Granted in 2007 | 58,764 | 58,764 | - | - | 54,560 |
Granted in 2008 | 60,753 | - | 24,591 | 36,162 | 49,053 |
Total | 119,517 | 58,764 | 24,591 | 36,162 | - |
Notes : ▪The weighted-average exercise price of outstanding exercisable options as of Mar. 31, 2021 is KRW 49,053. The closing price of our common stock was KRW 37,450 on Mar. 31, 2021. |
26
Employees
(As of Mar. 31, 2021) | ||||
Gender | Number of Employees | Average length of Service | Total Salaries and wages paid in 2021 (KRW million) | Average Payment per person (KRW million) |
Male | 136 | 2 yrs 7 mths (14 yrs 11 mths) 1) | 7,906 | 58 |
Female | 34 | 3 yrs 9 mths (10 yrs 4mths) 1) | 955 | 28 |
Total | 170 | 2 yrs 10 mths (14 yrs) 1) | 8,861 | 52 |
1) Average length of service including services within group subsidiaries |
27
8. Related Party Transactions
Loans to Subsidiaries
(KRW billion) | |||||||||
| Type | Origination Date | Maturity Date | Lending Rate | Beginning Balance (Jan. 1, 2021) | Decrease | Increase | Others1) | Ending Balance (Mar. 31, 2021) |
Shinhan Card | Loan | 2016-01-26 | 2021-01-26 | 1.98% | 150 | 150 | - | - | - |
Loan | 2016-02-24 | 2021-02-24 | 1.84% | 150 | 150 | - | - | - | |
Loan | 2017-03-22 | 2022-03-22 | 2.22% | 150 | - | - | - | 150 | |
Loan | 2017-04-20 | 2022-04-20 | 2.21% | 100 | - | - | - | 100 | |
Loan | 2017-05-12 | 2022-05-12 | 2.35% | 50 | - | - | - | 50 | |
Loan | 2018-02-22 | 2023-02-22 | 2.90% | 100 | - | - | - | 100 | |
Loan | 2019-04-18 | 2024-04-18 | 2.04% | 100 | - | - | - | 100 | |
Loan | 2019-04-18 | 2026-04-18 | 2.09% | 100 | - | - | - | 100 | |
Loan | 2019-10-22 | 2024-10-22 | 1.76% | 40 | - | - | - | 40 | |
Loan | 2019-10-22 | 2026-10-22 | 1.81% | 60 | - | - | - | 60 | |
Loan | 2020-09-17 | 2025-09-17 | 1.48% | 200 | - | - | - | 200 | |
Loan | 2020-10-29 | 2023-10-29 | 1.24% | 150 | - | - | - | 150 | |
Loan | 2020-10-29 | 2025-10-29 | 1.46% | 150 | - | - | - | 150 | |
Loan | 2019-11-19 | 2025-02-04 | 2.79% | 435 | - | - | 18 | 453 | |
Loan | 2021-02-18 | 2026-02-18 | 1.54% | - | - | 150 | - | 150 | |
Loan | 2021-02-24 | 2026-02-24 | 1.62% | - | - | 150 | - | 150 | |
Shinhan Investment Corp | Loan | 2019-11-19 | 2025-02-04 | 2.79% | 98 | - | - | 4 | 102 |
Loan | 2020-08-20 | 2025-08-20 | 2.55% | 541 | - | - | 23 | 564 | |
Shinhan Capital | Loan | 2019-02-01 | 2024-02-01 | 2.23% | 50 | - | - | - | 50 |
Loan | 2019-05-24 | 2024-05-24 | 1.92% | 20 | - | - | - | 20 | |
Loan | 2020-04-10 | 2025-04-10 | 1.75% | 200 | - | - | - | 200 | |
Loan | 2020-12-23 | 2025-12-23 | 1.57% | 160 | - | - | - | 160 | |
Loan | 2021-03-16 | 2026-03-16 | 1.83% | - | - | 150 | - | 150 | |
Financial assets at FVPL | 2020-04-22 | 2050-04-22 | 3.56% | 101 | - | - | - | 101 | |
Shinhan Alternative Investment | Loan | 2020-03-16 | 2023-03-16 | 1.42% | 38 | - | - | - | 38 |
Loan | 2020-12-14 | 2021-03-12 | 0.99% | 5 | 5 | - | - | - | |
Shinhan Savings Bank | Loan | 2016-06-17 | 2021-06-17 | 1.61% | 50 | - | - | - | 50 |
Loan | 2017-06-23 | 2022-06-23 | 2.27% | 50 | - | - | - | 50 | |
Loan | 2020-05-28 | 2025-05-28 | 1.52% | 50 | - | - | - | 50 | |
Shinhan DS | Loan | 2019-02-01 | 2022-02-01 | 2.15% | 24 | - | - | - | 24 |
28
Shinhan Venture Investment | Loan | 2021-02-08 | 2021-05-07 | 0.81% | - | - | 7 | - | 7 |
Total | 3,322 | 305 | 457 | 45 | 3,519 |
1) Due to foreign exchange translation
29
EXHIBIT INDEX
Exhibit No. |
| Description |
99.1 |
| Independent Auditors’ Review Report (Separate Financial Statements) of Shinhan Financial Group as of March 31, 2021 |
99.2 |
| Independent Auditors’ Review Report (Consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2021 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| Shinhan Financial Group Co., Ltd. | ||
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| (Registrant) | ||
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Date: May 20, 2021 |
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| By: |
| /s/ Roh Yong-hoon |
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| Name: Roh Yong-hoon | ||
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| Title: Chief Financial Officer |
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