SFG's Business Results for 2025 3Q (Including Script)

[Opening Remarks]

Good afternoon, everyone.
Thank you for joining Shinhan Financial Group’s earnings presentation for the third quarter of 2025.

Let me begin with Page 2, Highlights of Group Performance.

As of the end of September 2025, the Group’s CET1 ratio stood at 13.56%, remaining well within a stable range.
Despite loan growth driven by proactive business expansion and FX rate increases,
our continued RWA management efforts and solid profit generation have supported this stable capital position.

Based on this performance, the Board of Directors today approved a cash dividend of KRW 570 per share for the third quarter.

For full-year 2025, total shareholder return is expected to reach around KRW 2.35 trillion,
consisting of approximately KRW 1.1 trillion in cash dividends and KRW 1.25 trillion in share repurchases.
Given our strong capital base and solid fundamentals,
we expect to continue delivering a stable and consistent shareholder return policy going forward.

Turning to earnings, the Group reported net income of KRW 1.42 trillion for the third quarter.
Although securities-related income declined amid market conditions, credit cost remained well under control.

Our cost-to-income ratio stayed at a stable level, and the credit cost ratio recorded 46 basis points,
up 2bps YoY but down QoQ, showing a slight improvement in trend.

However, whether this improvement leads to a sustained turnaround in asset quality
still requires close monitoring, considering macro uncertainties and the domestic economic environment.

[Page 3 – Capital]

As mentioned earlier, despite several upward factors in RWA during the quarter,
the Group’s CET1 ratio decreased only modestly by 6bps QoQ, supported by stable net income generation.

Group RWA increased by around KRW 8 trillion QoQ, mainly due to FX rate effects on foreign-currency assets and loan growth. Going forward, we will continue to ensure sufficient funding support for productive sectors,
while maintaining capital stability through internal efficiency and strategic resource allocation.

[Page 5 – Group Earnings Overview]

Group net income for the quarter decreased 8.1% QoQ, primarily due to lower securities gains reflecting market rate movements, while credit cost was well contained.

Key profitability indicators—ROE and ROTCE, which are core metrics under our Value-Up Plan—
both improved 0.7 percentage points YoY to 11.1% and 12.5%, respectively.

[Page 6 – Net Interest Income]

Group net interest income increased 2.9% QoQ, driven by profit-focused asset growth and efficient ALM management. Bank won-denominated loans expanded 2.7% QoQ, with household loans up 3.1% mainly in policy financing, and corporate loans up 2.3% reflecting proactive support for productive financing since July.

Bank NIM came in at 1.56%, up 1bp QoQ as funding costs improved, even though asset yields declined 12bps following market rate trends.

[Page 7 – Non-Interest Income]

Group non-interest income decreased QoQ due to lower gains from securities and FX/derivatives reflecting market conditions, but fee income remained stable overall.

Card fee income declined due to higher promotional expenses during the Chuseok holiday season,
while brokerage and IB-related fees, as well as fund distribution fees, increased significantly thanks to a more active capital market environment. Insurance income decreased 2.4% QoQ, but remained stable thanks to disciplined CSM management and portfolio scale.

[Page 8 – SG&A and Credit Cost]

Group SG&A rose 2.2% QoQ, mainly due to voluntary retirement costs at the credit card subsidiary.
Nevertheless, the cost-to-income ratio remained at 37.3% (cumulative), continuing to reflect solid efficiency.

Credit cost declined 30.1% QoQ, driven by the expiration of temporary corporate credit adjustments
and strong asset quality management across subsidiaries.

Additional provisioning related to the government-led restructuring of real estate PF exposures also decreased significantly from the previous quarter, remaining within our expected range. That said,
as corporate credit risk and pressure on vulnerable borrowers continue amid a delayed economic recovery,
we plan to maintain a conservative approach to asset qualitywhile ensuring timely and adequate credit support to the market.

[Pages 9 – Asset Quality]

Group NPL coverage ratio declined 2.8 percentage points QoQ, reflecting an increase in non-performing assets in the non-bank sector. However, the bank’s NPL coverage ratio improved 12.17 percentage points QoQ,
driven by strategic NPL sales and enhanced asset quality management. Both bank and card delinquency ratios also continued to improve gradually. Detailed information on loss absorption capacity and NPL sales status
can be found on the following page.

[Page 11 – Subsidiary and Overseas Performance]

Shinhan Bank reported a slight QoQ decrease in profit mainly due to weaker non-interest income from securities.

Shinhan Card recorded profit growth QoQ, supported by lower credit cost despite weaker merchant fees and restructuring expenses.

Shinhan Investment & Securities saw profit decline due to lower trading gains, but continued to strengthen its core business and profitability compared to last year.

Shinhan Capital remains under pressure from funding costs and credit expenses, but ongoing asset rebalancing and internal initiatives are expected to drive gradual recovery.

In overseas operations, the Group continued to deliver differentiated results in key markets such as Japan and Vietnam, despite ongoing external uncertainties.

[Pages 12–18 – Digital, Sustainability, and Value-Up Plan Progress]

Pages 12 to 13 cover the Group’s digital and sustainability achievements, while Pages 15 to 18 outline progress under our Group Value-Up Plan. Overall, we are making solid progress across all dimensions—execution speed, achievement rate, and performance metrics— in line with the plans announced last year and earlier this year.

Detailed figures can be found in the presentation materials.

[Closing Remarks]

From Page 18 onward, you will find detailed financial statements and operational data for each subsidiary.

The Korean financial industry now faces a critical challenge to achieve productive finance transformation
that supports the nation’s economic revitalization and sustainable growth. Shinhan Financial Group will continue to expand resource allocation toward corporate and productive finance, leveraging our strong management discipline and strategic capital deployment. We remain fully committed to fulfilling the essential role of finance—
supporting growth, managing risk, and facilitating efficient capital intermediation. That concludes today’s presentation.

Thank you for your attention.