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 March 2017
SHINHAN
FINANCIAL GROUP CO., LTD.
(Translation of registrants 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
.
Summary of FY2016 Business Report
On March 31, 2017, Shinhan Financial Group (SFG) filed its FY2016 Business Report (the Business Report) 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
2
1. Introduction of the Group
Company History in 2010 through 2016
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Jan. 2010 : Shinhan Data System became a direct subsidiary of SFG
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Aug. 2010 : Shinhan Macquarie Financial Advisory was disaffiliated from SFG
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Feb. 2011 : Shinhan BNP Paribas Asset Management (Hong Kong) Limited became an indirect subsidiary of SFG
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Nov. 2011 : Shinhan Bank Vietnam was merged with Shinhan Vina Bank
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Dec. 2011 : Shinhan Savings Bank became a direct subsidiary of SFG
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Nov. 2012 : Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary
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Jan. 2013 : Yehanbyoul Savings Bank joined SFG as a direct subsidiary
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|
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
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Nov. 2014 : LLP MFO Shinhan Finance (Kazakhstan) became an indirect subsidiary of SFG
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Jul. 2015 : Shinhan Securities Vietnam Co., ltd became an indirect subsidiary of SFG
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Oct. 2015 : Banco Shinhan de Mexico became an indirect subsidiary of SFG
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Nov. 2015 : PT Bank Shinhan Indonesia became an indirect subsidiary of SFG
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Dec. 2015 : PT. Shinhan Indo Finance became an indirect subsidiary of SFG
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Dec. 2015 : PT Centratama Nasional Bank became an indirect subsidiary of SFG
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Mar. 2016 : Shinhan Microfinance Co.,ltd. became an indirect subsidiary of SFG
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Jul. 2016 : PT Shinhan Securities Indonesia became an indirect subsidiary of SFG
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Dec. 2016 : Launched new integrated PT Bank Shinhan Indonesia
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3
Principal Subsidiaries under Korean Law (as of Dec. 31, 2016)
Direct Subsidiaries
|
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Subsidiaries
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Ownership by SFG
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|
Shinhan Bank
|
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|
100.0
|
%
|
Shinhan Card
|
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100.0
|
%
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Shinhan Investment Corp.
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|
|
100.0
|
%
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Shinhan Life Insurance
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|
100.0
|
%
|
Shinhan BNP Paribas Asset Management
|
|
|
65.0
|
%
|
Shinhan Capital
|
|
|
100.0
|
%
|
Jeju Bank
1)
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|
|
68.9
|
%
|
Shinhan Savings Bank
2)
|
|
|
100.0
|
%
|
Shinhan Data System
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|
|
100.0
|
%
|
Shinhan AITAS
3)
|
|
|
99.8
|
%
|
Shinhan Credit Information
|
|
|
100.0
|
%
|
Shinhan Private Equity
|
|
|
100.0
|
%
|
SHC Management
4)
|
|
|
100.0
|
%
|
1)
|
Jeju Bank is currently listed on the Korea Exchange.
|
2)
|
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.
3)
|
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.
|
4)
|
Currently in liquidation proceedings
|
4
Indirect subsidiaries held through direct subsidiaries (as of Dec. 31, 2016)
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|
|
|
|
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|
Direct Subsidiaries
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|
Indirect Subsidiaries
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|
Ownership by
the Parent
|
|
Shinhan Bank
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|
Shinhan Asia Limited
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|
|
100.0
|
%
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|
Shinhan Bank America
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|
|
100.0
|
%
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|
Shinhan Bank Europe
|
|
|
100.0
|
%
|
|
Shinhan Khmer Bank Limited
1)
|
|
|
90.0
|
%
|
|
Shinhan Bank Kazakhstan
|
|
|
100.0
|
%
|
|
Shinhan Bank China Limited
|
|
|
100.0
|
%
|
|
Shinhan Bank Canada
|
|
|
100.0
|
%
|
|
Shinhan Bank Japan
|
|
|
100.0
|
%
|
|
Shinhan Bank Vietnam
|
|
|
100.0
|
%
|
|
|
Banco Shinhan de Mexico
|
|
|
100.0
|
%
|
|
|
PT Bank Shinhan Indonesia
|
|
|
98.98
|
%
|
|
|
|
|
|
|
|
Shinhan Card
|
|
LLP MFO Shinhan Finance
|
|
|
100.0
|
%
|
|
PT. Shinhan Indo Finance
|
|
|
50.0
|
%
|
|
Shinhan Microfinance Co.,ltd.
|
|
|
100.00
|
%
|
|
|
|
|
|
|
|
Shinhan Investment Corp.
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|
Shinhan Investment Corp. USA Inc.
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|
|
100.0
|
%
|
|
Shinhan Investment Corp. Asia Inc.
|
|
|
100.0
|
%
|
|
KOFC Shinhan Frontier Champ
2010-4
PEF
2)
|
|
|
8.5
|
%
|
|
Shinhan Praxis
K-Growth
Global Private Equity Fund
3)
|
|
|
14.1
|
%
|
|
Shinhan Securities Vietnam Co., Ltd
|
|
|
100.0
|
%
|
|
PT Shinhan Securities Indonesia
|
|
|
99.0
|
%
|
|
|
|
|
|
|
|
Shinhan BNP Paribas Asset Management
|
|
Shinhan BNP Paribas Asset Management (Hong Kong) Limited
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|
|
100.0
|
%
|
|
|
|
|
|
|
|
Shinhan Private Equity
|
|
Shinhan NPS Private Equity Fund 1st
4)
|
|
|
5.0
|
%
|
|
Shinhan Private Equity Fund 2nd
5)
|
|
|
2.2
|
%
|
|
Shinhan-Stonebridge Petro Private Equity Fund
6)
|
|
|
0.6
|
%
|
1)
|
Shinhan Financial Group and its subsidiaries currently own 93.3% of Shinhan Khmer Bank Limited.
|
2)
|
Shinhan Financial Group and its subsidiaries currently own 34.6% of KOFC Shinhan Frontier Champ
2010-4
PEF Investment Corp.
|
3)
|
Shinhan Financial Group and its subsidiaries currently own 18.9% of Shinhan Praxis
K-Growth
Global Private Equity Fund.
|
4)
|
Shinhan Financial Group and its subsidiaries currently own 36.7% of Shinhan NPS Private Equity Fund 1st.
|
5)
|
Shinhan Financial Group and its subsidiaries currently own 32.6% of Shinhan Private Equity Fund 2nd.
|
6)
|
Shinhan Financial Group and its subsidiaries currently own 1.8% of Shinhan-Stonebridge Petro Private Equity Fund.
|
Number of Shares (as of Dec. 31, 2016)
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|
|
|
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Types of Shares
|
|
Number of Shares
|
|
Common Shares
|
|
|
474,199,587
|
|
|
|
|
|
|
Total
|
|
|
474,199,587
|
|
|
|
|
|
|
*
|
On April 21, 2016, we redeemed all of the Series 12 redeemable preferred shares.
|
5
2. Business Results
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Operation Results
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|
(KRW billion)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2016
(Jan. 1 ~ Dec. 31)
|
|
|
FY2015
(Jan. 1 ~ Dec. 31)
|
|
|
FY2014
(Jan. 1 ~ Dec. 31)
|
|
Operating income
|
|
|
3,108.6
|
|
|
|
2,973.1
|
|
|
|
2,654.8
|
|
Equity method income
|
|
|
10.0
|
|
|
|
21.0
|
|
|
|
30.6
|
|
Other
non-operating
income
|
|
|
51.8
|
|
|
|
146.5
|
|
|
|
182.2
|
|
Profit before income taxes
|
|
|
3,170.5
|
|
|
|
3,140.6
|
|
|
|
2,867.6
|
|
Income tax expense
|
|
|
345.6
|
|
|
|
694.6
|
|
|
|
668.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
2,824.9
|
|
|
|
2,446.0
|
|
|
|
2,199.6
|
|
Net income attributable to equity holders of the Group
|
|
|
2,774.8
|
|
|
|
2,367.2
|
|
|
|
2,081.1
|
|
Net income attributable to
non-controlling
interest
|
|
|
50.1
|
|
|
|
78.8
|
|
|
|
118.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes :
|
|
|
Some of the totals may not sum due to rounding.
|
6
Source and Use of Funds
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|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Basis
(KRW billion, %)
|
|
FY2016
|
|
|
FY2015
|
|
|
FY2014
|
|
|
Jan. 1 ~ Dec. 31
|
|
|
Jan. 1 ~ Dec. 31
|
|
|
Jan. 1 ~ Dec. 31
|
|
|
Average
Balance
1
)
|
|
|
Proportions
(%)
|
|
|
Interest
Paid
|
|
|
Interest
Rate
(%)
|
|
|
Average
Balance
1)
|
|
|
Proportions
(%)
|
|
|
Interest
Paid
|
|
|
Interest
Rate
(%)
|
|
|
Average
Balance
1)
|
|
|
Proportions
(%)
|
|
|
Interest
Paid
|
|
|
Interest
Rate
(%)
|
|
Source
|
|
Deposits
|
|
|
226,966.8
|
|
|
|
58.7
|
|
|
|
2,586.7
|
|
|
|
1.14
|
|
|
|
203,910.5
|
|
|
|
57.3
|
|
|
|
2,861.0
|
|
|
|
1.40
|
|
|
|
186,086.1
|
|
|
|
57.2
|
|
|
|
3,449.5
|
|
|
|
1.85
|
|
|
Borrowings
|
|
|
15,047.2
|
|
|
|
3.9
|
|
|
|
176.4
|
|
|
|
1.17
|
|
|
|
13,492.9
|
|
|
|
3.8
|
|
|
|
150.7
|
|
|
|
1.12
|
|
|
|
12,145.2
|
|
|
|
3.7
|
|
|
|
190.0
|
|
|
|
1.56
|
|
|
Debt Securities Issued
|
|
|
42,790.8
|
|
|
|
11.1
|
|
|
|
1,085.8
|
|
|
|
2.54
|
|
|
|
39,334.8
|
|
|
|
11.0
|
|
|
|
1,183.8
|
|
|
|
3.01
|
|
|
|
36,609.9
|
|
|
|
11.3
|
|
|
|
1,301.9
|
|
|
|
3.56
|
|
|
Other Liabilities
|
|
|
70,504.9
|
|
|
|
18.2
|
|
|
|
|
|
|
|
|
|
|
|
68,378.1
|
|
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
|
60,397.7
|
|
|
|
18.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
355,309.7
|
|
|
|
91.9
|
|
|
|
|
|
|
|
|
|
|
|
325,116.3
|
|
|
|
91.3
|
|
|
|
|
|
|
|
|
|
|
|
295,238.9
|
|
|
|
90.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders Equity
|
|
|
31,499.5
|
|
|
|
8.1
|
|
|
|
|
|
|
|
|
|
|
|
31,063.1
|
|
|
|
8.7
|
|
|
|
|
|
|
|
|
|
|
|
30,023.9
|
|
|
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & SE
|
|
|
386,809.3
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
356,179.4
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
325,262.8
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use
|
|
Cash & Due from Banks
|
|
|
20,933.1
|
|
|
|
5.4
|
|
|
|
185.5
|
|
|
|
0.89
|
|
|
|
21,993.4
|
|
|
|
6.2
|
|
|
|
225.6
|
|
|
|
1.03
|
|
|
|
19,646.5
|
|
|
|
6.0
|
|
|
|
236.9
|
|
|
|
1.21
|
|
|
Loans
|
|
|
252,132.2
|
|
|
|
65.2
|
|
|
|
9,244.0
|
|
|
|
3.67
|
|
|
|
231,889.2
|
|
|
|
65.1
|
|
|
|
9,031.6
|
|
|
|
3.89
|
|
|
|
212,237.2
|
|
|
|
65.3
|
|
|
|
9,722.5
|
|
|
|
4.58
|
|
|
Loans in KRW
|
|
|
197,841.4
|
|
|
|
51.2
|
|
|
|
6,541.9
|
|
|
|
3.31
|
|
|
|
180,410.1
|
|
|
|
50.7
|
|
|
|
6,479.5
|
|
|
|
3.59
|
|
|
|
164,597.9
|
|
|
|
50.6
|
|
|
|
7,092.5
|
|
|
|
4.31
|
|
|
Loans in Foreign Currency
|
|
|
14,936.7
|
|
|
|
3.9
|
|
|
|
482.2
|
|
|
|
3.23
|
|
|
|
13,528.2
|
|
|
|
3.8
|
|
|
|
415.0
|
|
|
|
3.07
|
|
|
|
11,598.8
|
|
|
|
3.6
|
|
|
|
403.0
|
|
|
|
3.47
|
|
|
Credit Card Accounts
|
|
|
18,804.3
|
|
|
|
4.9
|
|
|
|
1,708.5
|
|
|
|
9.09
|
|
|
|
17,819.5
|
|
|
|
5.0
|
|
|
|
1,635.3
|
|
|
|
9.18
|
|
|
|
17,575.1
|
|
|
|
5.4
|
|
|
|
1,702.5
|
|
|
|
9.69
|
|
|
Others
|
|
|
20,549.8
|
|
|
|
5.3
|
|
|
|
511.4
|
|
|
|
2.49
|
|
|
|
20,131.5
|
|
|
|
5.7
|
|
|
|
501.9
|
|
|
|
2.49
|
|
|
|
18,465.4
|
|
|
|
5.7
|
|
|
|
524.5
|
|
|
|
2.84
|
|
|
AFS Financial Assets
|
|
|
30,308.9
|
|
|
|
7.8
|
|
|
|
612.1
|
|
|
|
2.02
|
|
|
|
26,830.0
|
|
|
|
7.5
|
|
|
|
654.4
|
|
|
|
2.44
|
|
|
|
26,801.5
|
|
|
|
8.2
|
|
|
|
814.8
|
|
|
|
3.04
|
|
|
HTM Financial Assets
|
|
|
17,409.7
|
|
|
|
4.5
|
|
|
|
561.8
|
|
|
|
3.23
|
|
|
|
14,961.0
|
|
|
|
4.2
|
|
|
|
539.0
|
|
|
|
3.60
|
|
|
|
12,076.7
|
|
|
|
3.7
|
|
|
|
521.7
|
|
|
|
4.32
|
|
|
Other Assets
|
|
|
66,025.3
|
|
|
|
17.1
|
|
|
|
|
|
|
|
|
|
|
|
60,505.8
|
|
|
|
17.0
|
|
|
|
|
|
|
|
|
|
|
|
54,500.9
|
|
|
|
16.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
386,809.3
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
356,179.4
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
325,262.8
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
The Average Balance is the arithmetic mean of the ending balance of each quarter.
|
7
Other Financial Information
ø
|
The main serial financial figures and indices for Dec. 31, 2016 listed herein may be subject to change.
|
1)
Capital Adequacy
|
|
|
Consolidated BIS Ratio (Shinhan Financial Group)
|
|
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
Aggregate Amount of Equity Capital (A)
|
|
|
29,786.5
|
|
|
|
27,216.4
|
|
|
|
25,938.0
|
|
Risk-Weighted Assets (B)
|
|
|
198,642.6
|
|
|
|
203,274.5
|
|
|
|
198,832.9
|
|
BIS Ratio (A/B)
|
|
|
15.00
|
%
|
|
|
13.39
|
%
|
|
|
13.05
|
%
|
Note) based on Basel III
|
|
|
Capital Adequacy Ratios (Subsidiaries)
|
|
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
|
Capital Adequacy Ratio
|
|
Dec. 31,
2016
|
|
|
Dec. 31,
2015
|
|
|
Dec. 31,
2014
|
|
Shinhan Bank
|
|
BIS Capital Adequacy Ratio
|
|
|
15.7
|
|
|
|
14.8
|
|
|
|
15.4
|
|
Shinhan Card
|
|
Adjusted Equity Capital Ratio
|
|
|
26.2
|
|
|
|
28.9
|
|
|
|
29.7
|
|
Shinhan Investment Corp.
|
|
Net Capital Ratio
|
|
|
892.0
|
|
|
|
387.2
|
|
|
|
461.8
|
|
Shinhan Life Insurance
|
|
Risk Based Capital Ratio
|
|
|
178.3
|
|
|
|
204.2
|
|
|
|
230.7
|
|
Shinhan BNP Paribas Asset Management
|
|
Equity Capital (KRW billion)
|
|
|
148.6
|
|
|
|
157.3
|
|
|
|
159.0
|
|
|
Minimum Capital Requirement (KRW billion)
|
|
|
24.0
|
|
|
|
23.2
|
|
|
|
22.1
|
|
Shinhan Capital
|
|
Adjusted Equity Capital Ratio
|
|
|
14.9
|
|
|
|
16.8
|
|
|
|
15.5
|
|
Jeju Bank
|
|
BIS Capital Adequacy Ratio
|
|
|
12.8
|
|
|
|
12.6
|
|
|
|
14.3
|
|
Shinhan Savings Bank
|
|
BIS Capital Adequacy Ratio
|
|
|
14.9
|
|
|
|
16.3
|
|
|
|
16.3
|
|
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 Banks BIS Capital Adequacy Ratio.
|
|
|
|
Basel III TSA was applied in calculating Jeju Banks BIS Capital Adequacy Ratio.
|
|
|
|
Basel I was applied in calculating Shinhan Savings Banks BIS Capital Adequacy Ratio.
|
|
|
|
The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholders 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 BNP Paribas Asset Management is required to hold Equity Capital that exceeds the Minimum Capital Requirement.
|
8
2) Liquidity
|
|
|
Won Liquidity Ratio
|
|
(KRW billion, %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
|
Won
Assets
|
|
|
Won
Liabilities
|
|
|
Won
Liquidity
Ratio(%)
|
|
|
Won
Assets
|
|
|
Won
Liabilities
|
|
|
Won
Liquidity
Ratio(%)
|
|
|
Won
Assets
|
|
|
Won
Liabilities
|
|
|
Won
Liquidity
Ratio(%)
|
|
Shinhan Financial Group
|
|
|
198.8
|
|
|
|
134.8
|
|
|
|
147.5
|
|
|
|
624.1
|
|
|
|
216.0
|
|
|
|
288.9
|
|
|
|
76.1
|
|
|
|
41.4
|
|
|
|
183.9
|
|
Shinhan Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55338.0
|
|
|
|
45258.5
|
|
|
|
122.3
|
|
Shinhan Card
|
|
|
14722.9
|
|
|
|
4069.1
|
|
|
|
361.8
|
|
|
|
14588.0
|
|
|
|
3845.4
|
|
|
|
379.4
|
|
|
|
14583.7
|
|
|
|
3014.5
|
|
|
|
483.8
|
|
Shinhan Investment Corp.
|
|
|
12472.3
|
|
|
|
8227.4
|
|
|
|
151.6
|
|
|
|
11546.7
|
|
|
|
6525.0
|
|
|
|
177.0
|
|
|
|
17500.5
|
|
|
|
11305.5
|
|
|
|
154.8
|
|
Shinhan Life Insurance
|
|
|
915.8
|
|
|
|
502.0
|
|
|
|
182.4
|
|
|
|
1189.5
|
|
|
|
486.7
|
|
|
|
244.4
|
|
|
|
1302.2
|
|
|
|
472.6
|
|
|
|
275.6
|
|
Shinhan Capital
|
|
|
684.5
|
|
|
|
521.2
|
|
|
|
131.3
|
|
|
|
784.7
|
|
|
|
355.4
|
|
|
|
220.8
|
|
|
|
567.6
|
|
|
|
161.1
|
|
|
|
352.3
|
|
Jeju Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
798.2
|
|
|
|
716.9
|
|
|
|
111.3
|
|
Shinhan Savings Bank
|
|
|
169.8
|
|
|
|
138.7
|
|
|
|
122.4
|
|
|
|
144.2
|
|
|
|
103.1
|
|
|
|
139.9
|
|
|
|
242.0
|
|
|
|
94.9
|
|
|
|
255.0
|
|
Notes :
|
|
|
Shinhan Financial Group, Shinhan Bank and Jeju Bank: Due within 1 month
|
|
|
|
Shinhan 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
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
|
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
|
|
|
35,961.9
|
|
|
|
37,257.5
|
|
|
|
96.7
|
|
|
|
37,421.5
|
|
|
|
38,253.3
|
|
|
|
97.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jeju Bank
|
|
|
563.2
|
|
|
|
401.9
|
|
|
|
140.1
|
|
|
|
546.3
|
|
|
|
352.0
|
|
|
|
155.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note) The High quality liquid assets and Net cash outflows are the arithmetic mean of the ending
balance of every month.
9
|
|
|
Foreign Currency (FC) Liquidity Ratio
|
|
(USD millions, %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
|
FC
Assets
|
|
|
FC
Liabilities
|
|
|
FC
Liquidity
Ratio(%)
|
|
|
FC
Assets
|
|
|
FC
Liabilities
|
|
|
FC
Liquidity
Ratio(%)
|
|
|
FC
Assets
|
|
|
FC
Liabilities
|
|
|
FC
Liquidity
Ratio(%)
|
|
Shinhan Financial Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shinhan Bank
|
|
|
39,631.1
|
|
|
|
35,968.5
|
|
|
|
110.2
|
|
|
|
31,925.0
|
|
|
|
27,205.6
|
|
|
|
117.4
|
|
|
|
25,309.1
|
|
|
|
19,472.6
|
|
|
|
130.0
|
|
Shinhan Investment Corp.
|
|
|
5,635.3
|
|
|
|
5,073.4
|
|
|
|
111.1
|
|
|
|
1,875.7
|
|
|
|
1,793.8
|
|
|
|
104.6
|
|
|
|
1,195.7
|
|
|
|
871.5
|
|
|
|
137.2
|
|
Shinhan Capital
|
|
|
80.3
|
|
|
|
1.1
|
|
|
|
7,333.0
|
|
|
|
83.1
|
|
|
|
73.4
|
|
|
|
113.2
|
|
|
|
73.8
|
|
|
|
49.6
|
|
|
|
148.8
|
|
Jeju Bank
|
|
|
13.3
|
|
|
|
10.7
|
|
|
|
124.7
|
|
|
|
15.2
|
|
|
|
9.7
|
|
|
|
156.3
|
|
|
|
9.8
|
|
|
|
6.1
|
|
|
|
160.0
|
|
Notes :
|
|
|
Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months.
|
|
|
|
Shinhan Banks foreign currency liquidity ratio reflected securitization weight with the guidelines issued by the FSS.
|
|
|
|
Shinhan Financial Group figures are based on the separate basis.
|
10
3) Asset Quality
|
|
|
SFG Consolidated Basis
|
|
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
Total Loans
|
|
|
259,772.6
|
|
|
|
246,487.6
|
|
|
|
226,503.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Substandard & Below
|
|
|
1,927.6
|
|
|
|
2,171.6
|
|
|
|
2,595.3
|
|
Substandard & Below Ratio
|
|
|
0.74
|
%
|
|
|
0.88
|
%
|
|
|
1.15
|
%
|
Non-Performing
Loans
|
|
|
1,595.8
|
|
|
|
1,691.5
|
|
|
|
2,031.7
|
|
NPL Ratio
|
|
|
0.61
|
%
|
|
|
0.69
|
%
|
|
|
0.90
|
%
|
Substandard & Below Coverage Ratio
|
|
|
125.99
|
%
|
|
|
191.22
|
%
|
|
|
168.88
|
%
|
Loan Loss Allowance
|
|
|
2,428.7
|
1)
|
|
|
4,152.5
|
|
|
|
4,383.0
|
|
Substandard & Below Loans
|
|
|
1,927.6
|
|
|
|
2,171.6
|
|
|
|
2,595.3
|
|
1)
|
excluding reserve for credit losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
|
Substandard
& Below
Ratio
|
|
|
NPL
Ratio
|
|
|
Substandard &
Below
Coverage
Ratio
1)
|
|
|
Substandard
& Below
Ratio
|
|
|
NPL
Ratio
|
|
|
Substandard
& Below
Coverage
Ratio
|
|
|
Substandard
& Below
Ratio
|
|
|
NPL
Ratio
|
|
|
Substandard
& Below
Coverage
Ratio
|
|
Shinhan Financial Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shinhan Bank
|
|
|
0.65
|
|
|
|
0.56
|
|
|
|
96
|
|
|
|
0.80
|
|
|
|
0.61
|
|
|
|
173
|
|
|
|
1.03
|
|
|
|
0.78
|
|
|
|
154
|
|
Shinhan Card
|
|
|
1.16
|
|
|
|
0.76
|
|
|
|
271
|
|
|
|
1.24
|
|
|
|
0.81
|
|
|
|
355
|
|
|
|
1.69
|
|
|
|
1.21
|
|
|
|
295
|
|
Shinhan Investment Corp.
|
|
|
0.10
|
|
|
|
0.10
|
|
|
|
413
|
|
|
|
0.15
|
|
|
|
0.15
|
|
|
|
485
|
|
|
|
1.37
|
|
|
|
1.36
|
|
|
|
208
|
|
Shinhan Life Insurance
|
|
|
0.09
|
|
|
|
0.08
|
|
|
|
335
|
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
927
|
|
|
|
0.10
|
|
|
|
0.09
|
|
|
|
867
|
|
Shinhan Capital
|
|
|
2.61
|
|
|
|
2.93
|
|
|
|
94
|
|
|
|
3.06
|
|
|
|
3.58
|
|
|
|
86
|
|
|
|
2.87
|
|
|
|
4.08
|
|
|
|
96
|
|
Jeju Bank
|
|
|
1.24
|
|
|
|
0.93
|
|
|
|
35
|
|
|
|
0.87
|
|
|
|
0.50
|
|
|
|
141
|
|
|
|
2.04
|
|
|
|
1.84
|
|
|
|
80
|
|
Shinhan Savings Bank
|
|
|
5.42
|
|
|
|
3.45
|
|
|
|
53
|
|
|
|
6.51
|
|
|
|
5.37
|
|
|
|
58
|
|
|
|
12.15
|
|
|
|
10.27
|
|
|
|
33
|
|
1)
|
excluding reserve for credit losses.
|
4) Debt to Equity Ratios
|
|
|
Shinhan Financial Group (Separate Basis)
|
|
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2016
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
|
Debt
|
|
|
6,977.7
|
|
|
|
6,894.5
|
|
|
|
6,859.4
|
|
Equity
|
|
|
20,217.9
|
|
|
|
20,781.0
|
|
|
|
20,235.1
|
|
Debt to Equity Ratio
|
|
|
34.51
|
%
|
|
|
33.18
|
%
|
|
|
33.90
|
%
|
11
Twenty Largest Exposures by Borrower
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Dec. 31, 2016
Consolidated basis
|
|
Loans in
Won
|
|
|
Loans in
Foreign
Currency
|
|
|
Securities
|
|
|
Guarantees
and
Acceptances
|
|
|
Others
|
|
|
Total
Exposures
|
|
Ministry of Strategy & Finance
|
|
|
0.0
|
|
|
|
|
|
|
|
9,807.9
|
|
|
|
|
|
|
|
|
|
|
|
9,807.9
|
|
Bank of Korea
|
|
|
1,890.0
|
|
|
|
|
|
|
|
5,947.1
|
|
|
|
0.1
|
|
|
|
|
|
|
|
7,837.2
|
|
Korea Housing Finance Corporation
|
|
|
0.0
|
|
|
|
|
|
|
|
5,267.8
|
|
|
|
|
|
|
|
|
|
|
|
5,267.8
|
|
Korea Development Bank
|
|
|
69.0
|
|
|
|
32.9
|
|
|
|
4,943.7
|
|
|
|
|
|
|
|
|
|
|
|
5,045.7
|
|
Industrial Bank of Korea
|
|
|
660.0
|
|
|
|
|
|
|
|
1,667.0
|
|
|
|
0.3
|
|
|
|
|
|
|
|
2,327.2
|
|
Korea Deposit Insurance Corporation
|
|
|
|
|
|
|
|
|
|
|
1,776.9
|
|
|
|
|
|
|
|
|
|
|
|
1,776.9
|
|
NongHyup Bank
|
|
|
519.9
|
|
|
|
135.9
|
|
|
|
986.8
|
|
|
|
4.3
|
|
|
|
|
|
|
|
1,646.8
|
|
Export-Import Bank of Korea
|
|
|
|
|
|
|
|
|
|
|
1,452.1
|
|
|
|
0.7
|
|
|
|
|
|
|
|
1,452.8
|
|
Samsung Electronics Co., Ltd.
|
|
|
0.0
|
|
|
|
1,349.7
|
|
|
|
25.1
|
|
|
|
|
|
|
|
0.0
|
|
|
|
1,374.7
|
|
Korea Securities Finance Corporation
|
|
|
24.5
|
|
|
|
|
|
|
|
1,249.4
|
|
|
|
|
|
|
|
|
|
|
|
1,273.9
|
|
Korea Land & Housing Corporation
|
|
|
|
|
|
|
|
|
|
|
1,253.9
|
|
|
|
|
|
|
|
|
|
|
|
1,253.9
|
|
Kookmin Bank
|
|
|
419.2
|
|
|
|
|
|
|
|
830.7
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1,250.2
|
|
Hana Bank
|
|
|
171.5
|
|
|
|
94.6
|
|
|
|
875.2
|
|
|
|
0.0
|
|
|
|
|
|
|
|
1,141.3
|
|
Woori Bank
|
|
|
76.3
|
|
|
|
3.6
|
|
|
|
1,035.1
|
|
|
|
0.2
|
|
|
|
|
|
|
|
1,115.2
|
|
Hyundai Heavy Industries Co., Ltd.
|
|
|
81.0
|
|
|
|
140.2
|
|
|
|
15.0
|
|
|
|
796.9
|
|
|
|
|
|
|
|
1,033.1
|
|
Samsung Heavy Industries Co., Ltd.
|
|
|
150.0
|
|
|
|
|
|
|
|
10.2
|
|
|
|
643.7
|
|
|
|
|
|
|
|
803.8
|
|
LG Electronics Inc.
|
|
|
98.9
|
|
|
|
55.8
|
|
|
|
103.9
|
|
|
|
434.1
|
|
|
|
|
|
|
|
692.7
|
|
Hyundai Motor Company
|
|
|
107.8
|
|
|
|
478.3
|
|
|
|
42.3
|
|
|
|
43.7
|
|
|
|
0.1
|
|
|
|
672.2
|
|
National Federation of Fisheries Cooperatives
|
|
|
2.0
|
|
|
|
9.0
|
|
|
|
656.0
|
|
|
|
|
|
|
|
|
|
|
|
666.9
|
|
Mirae Asset Securities Co., Ltd.
|
|
|
500.9
|
|
|
|
|
|
|
|
147.8
|
|
|
|
|
|
|
|
|
|
|
|
648.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,771.1
|
|
|
|
2,300.0
|
|
|
|
38,093.7
|
|
|
|
1,924.2
|
|
|
|
0.1
|
|
|
|
47,089.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note) Some of the totals may not sum due to rounding
12
Exposure to ten Main Debtor Groups
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Dec. 31, 2016
Consolidated basis
|
|
Loans in
Won
|
|
|
Loans in
Foreign
Currency
|
|
|
Securities
|
|
|
Guarantees
and
Acceptances
|
|
|
Others
|
|
|
Total
Exposures
|
|
Samsung
|
|
|
464.6
|
|
|
|
1,894.6
|
|
|
|
886.4
|
|
|
|
1,312.5
|
|
|
|
0.0
|
|
|
|
4,558.2
|
|
Hyundai Motors
|
|
|
1,038.9
|
|
|
|
1,629.8
|
|
|
|
1,048.5
|
|
|
|
425.3
|
|
|
|
0.2
|
|
|
|
4,142.7
|
|
Lotte
|
|
|
481.8
|
|
|
|
877.5
|
|
|
|
1,318.5
|
|
|
|
441.1
|
|
|
|
0.2
|
|
|
|
3,119.1
|
|
Hyundai Heavy Industries
|
|
|
212.3
|
|
|
|
267.3
|
|
|
|
154.9
|
|
|
|
1,531.9
|
|
|
|
|
|
|
|
2,166.5
|
|
SK
|
|
|
317.0
|
|
|
|
326.1
|
|
|
|
643.1
|
|
|
|
655.1
|
|
|
|
0.0
|
|
|
|
1,941.3
|
|
LG
|
|
|
407.0
|
|
|
|
378.3
|
|
|
|
279.8
|
|
|
|
619.4
|
|
|
|
0.1
|
|
|
|
1,684.7
|
|
Hanwha
|
|
|
520.7
|
|
|
|
239.0
|
|
|
|
418.4
|
|
|
|
273.7
|
|
|
|
0.2
|
|
|
|
1,452.0
|
|
LS
|
|
|
85.9
|
|
|
|
452.3
|
|
|
|
159.6
|
|
|
|
604.7
|
|
|
|
0.0
|
|
|
|
1,302.5
|
|
GS
|
|
|
344.7
|
|
|
|
102.6
|
|
|
|
325.6
|
|
|
|
132.5
|
|
|
|
|
|
|
|
905.4
|
|
Hyosung
|
|
|
160.9
|
|
|
|
418.6
|
|
|
|
81.8
|
|
|
|
175.5
|
|
|
|
0.0
|
|
|
|
836.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,033.9
|
|
|
|
6,586.2
|
|
|
|
5,316.6
|
|
|
|
6,171.7
|
|
|
|
0.7
|
|
|
|
22,109.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note) Some of the totals may not sum due to rounding
Loans, Due from banks and Securities Concentration by Industry
(KRW billion)
|
|
|
|
|
|
|
|
|
As of Dec. 31, 2016
Consolidated basis
|
|
Total Exposures
|
|
|
Amount
|
|
|
Weight (%)
|
|
Finance and Insurance
|
|
|
71,025.7
|
|
|
|
20.1
|
%
|
Manufacturing
|
|
|
43,203.0
|
|
|
|
12.2
|
%
|
Retail and wholesale
|
|
|
16,927.5
|
|
|
|
4.8
|
%
|
Real Estate, leasing and service
|
|
|
22,338.6
|
|
|
|
6.3
|
%
|
Construction
|
|
|
3,669.6
|
|
|
|
1.0
|
%
|
Hotel and Restaurant
|
|
|
5,241.4
|
|
|
|
1.5
|
%
|
Others
|
|
|
57,562.5
|
|
|
|
16.3
|
%
|
Consumers
|
|
|
133,902.6
|
|
|
|
37.8
|
%
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
353,871.0
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Note) Some of the totals may not sum due to rounding
13
Top Twenty
Non-Performing
Loans
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrower
|
|
Industry
|
|
Gross Principal
Outstanding
|
|
|
Substandard &
Below
|
|
|
Allowance for Loan
Losses
|
|
A
|
|
Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products
|
|
|
110.6
|
|
|
|
110.6
|
|
|
|
34.8
|
|
B
|
|
Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators
|
|
|
81.0
|
|
|
|
81.0
|
|
|
|
55.9
|
|
C
|
|
Manufacture of Plastic Products for Fabricating of Machine
|
|
|
61.1
|
|
|
|
61.1
|
|
|
|
46.8
|
|
D
|
|
Wholesale of
Non-Specialized
Goods
|
|
|
40.3
|
|
|
|
40.3
|
|
|
|
40.2
|
|
E
|
|
Manufacture of Sections for Ships
|
|
|
42.4
|
|
|
|
40.1
|
|
|
|
25.4
|
|
F
|
|
Building of Steel Ships
|
|
|
39.3
|
|
|
|
39.3
|
|
|
|
3.4
|
|
G
|
|
Renting of
Non-Residential
Buildings
|
|
|
31.5
|
|
|
|
31.5
|
|
|
|
|
|
H
|
|
Development and Subdividing of Residential Buildings
|
|
|
30.0
|
|
|
|
30.0
|
|
|
|
23.5
|
|
I
|
|
Other Civil Engineering Construction
|
|
|
29.7
|
|
|
|
29.7
|
|
|
|
20.8
|
|
J
|
|
Building of Steel Ships
|
|
|
26.0
|
|
|
|
26.0
|
|
|
|
12.5
|
|
K
|
|
Manufacture of Sections for Ships
|
|
|
27.2
|
|
|
|
25.7
|
|
|
|
|
|
L
|
|
Building of Steel Ships
|
|
|
24.1
|
|
|
|
24.1
|
|
|
|
0.8
|
|
M
|
|
Construction of Highways, Streets and Roads
|
|
|
17.7
|
|
|
|
17.7
|
|
|
|
12.3
|
|
N
|
|
Apartment Building Construction
|
|
|
17.3
|
|
|
|
16.3
|
|
|
|
15.1
|
|
O
|
|
Apartment Building Construction
|
|
|
16.1
|
|
|
|
16.1
|
|
|
|
2.4
|
|
P
|
|
Manufacture of Sections for Ships
|
|
|
15.9
|
|
|
|
15.9
|
|
|
|
|
|
Q
|
|
Apartment Building Construction
|
|
|
15.4
|
|
|
|
15.4
|
|
|
|
15.1
|
|
R
|
|
Manufacture of Pipes and Tubes, of
Non-cast
Iron or
Steel
|
|
|
77.6
|
|
|
|
15.3
|
|
|
|
0.9
|
|
S
|
|
Golf Course Operation
|
|
|
15.0
|
|
|
|
15.0
|
|
|
|
7.6
|
|
T
|
|
Manufacture of Other Smelting, Refining and Alloys of
Non-ferrous
Metals
|
|
|
12.4
|
|
|
|
12.4
|
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
730.4
|
|
|
|
663.3
|
|
|
|
324.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes :
|
|
|
Consolidated basis as of Dec. 31, 2016.
|
|
|
|
Some of the totals may not sum due to rounding.
|
14
3. Independent Auditor
Audit Opinion for the last 3 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2016
|
|
|
FY2015
|
|
|
FY2014
|
|
Audit Opinion
|
|
|
Unqualified
|
|
|
|
Unqualified
|
|
|
|
Unqualified
|
|
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)
(KRW
mil.)
|
|
Details
|
|
Working
hours
|
FY2016
|
|
KPMG Samjong Accounting Corp.
|
|
581
(annualized basis)
|
|
Review/Audit of Financial Statements
|
|
7,512
Hours
|
|
KPMG Samjong Accounting Corp.
|
|
73
(annualized basis)
|
|
K-IFRS
Report Package Audit for Shinhan Savings Bank
|
|
807
Hours
|
FY2015
|
|
KPMG Samjong Accounting Corp.
|
|
561
(annualized basis)
|
|
Review/Audit of Financial Statements
|
|
8,236
Hours
|
|
KPMG Samjong Accounting Corp.
|
|
73
(annualized basis)
|
|
K-IFRS
Report Package Audit for Shinhan Savings Bank
|
|
895
Hours
|
|
KPMG Samjong Accounting Corp.
|
|
12
(annualized basis)
|
|
Non-statutory
audit of subsidiaries under the consolidated corporate tax system for CY2015
|
|
282
Hours
|
FY2014
|
|
KPMG Samjong Accounting Corp.
|
|
500
(annualized basis)
|
|
Review/Audit of Financial Statements
|
|
6,564
Hours
|
|
KPMG Samjong Accounting Corp.
|
|
73
(annualized basis)
|
|
K-IFRS
Report Package Audit for Shinhan Savings Bank
|
|
845
Hours
|
|
KPMG Samjong Accounting Corp.
|
|
12
(annualized basis)
|
|
Non-statutory
audit of subsidiaries under the consolidated corporate tax system for CY2014
|
|
182
Hours
|
1)
|
Excluding value-added taxes.
|
*
|
In addition to above mentioned description of fees for audit and review services, KPMG Samjong 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 KRW1,302 million(excluding value-added taxes) for FY2016.
|
15
4. Major Shareholder and Market Price Information of our Common Shares and ADRs
Major Shareholders
1)
of Shinhan Financial Group as of Dec. 31, 2016
|
|
|
|
|
|
|
Name
|
|
No. of Common Shares owned
|
|
Ownership%
|
|
National Pension Service
|
|
45,269,850
|
|
|
9.55
|
%
|
BNP Paribas
|
|
25,356,276
|
|
|
5.35
|
%
|
BlackRock Fund Advisors
3)
|
|
24,320,723
|
|
|
5.13
|
%
|
1)
|
Shareholders who own beneficial ownership of 5% or more(common share basis).
|
2)
|
Based on the results of shareholder registry closing as of December 31, 2016
|
3)
|
Based on the large equity ownership discloser by BlackRock Fund Advisors with the Financial Supervisory Service on Oct. 20, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share ownership of Employee Stock Ownership Association
|
|
|
|
|
|
|
|
|
(Number of shares, %)
|
|
Share ownership
|
|
Beginning Balance
(Jan. 1, 2016)
|
|
|
Increase
|
|
|
Decrease
|
|
|
Ending Balance
(Dec. 31, 2016)
|
|
|
Ownership%
1)
(Dec. 31, 2016)
|
|
Employee Stock Ownership
|
|
|
21,200,687
|
|
|
|
3,230,874
|
|
|
|
2,120,797
|
|
|
|
22,310,764
|
|
|
|
|
|
ESOA account
|
|
|
72,686
|
|
|
|
58,791
|
|
|
|
43,157
|
|
|
|
88,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
21,273,373
|
|
|
|
3,289,665
|
|
|
|
2,163,954
|
|
|
|
22,399,084
|
|
|
|
4.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Traded on the Korea Exchange
|
|
|
|
|
|
|
|
|
(KRW, number of shares)
|
|
|
|
Jul.2016
|
|
|
Aug.2016
|
|
|
Sep.2016
|
|
|
Oct.2016
|
|
|
Nov.2016
|
|
|
Dec.2016
|
|
Price
per
share
|
|
High
|
|
|
40,350
|
|
|
|
41,050
|
|
|
|
41,500
|
|
|
|
44,150
|
|
|
|
45,600
|
|
|
|
47,700
|
|
|
Low
|
|
|
37,300
|
|
|
|
39,450
|
|
|
|
39,500
|
|
|
|
39,950
|
|
|
|
42,100
|
|
|
|
43,000
|
|
|
Avg.
|
|
|
38,743
|
|
|
|
40,441
|
|
|
|
40,566
|
|
|
|
42,538
|
|
|
|
43,839
|
|
|
|
46,143
|
|
Trading Volume
|
|
|
14,316,441
|
|
|
|
13,120,803
|
|
|
|
12,441,477
|
|
|
|
16,898,605
|
|
|
|
26,285,441
|
|
|
|
19,185,002
|
|
Highest Daily Trading Volume
|
|
|
1,104,791
|
|
|
|
1,006,658
|
|
|
|
1,044,950
|
|
|
|
1,249,175
|
|
|
|
5,791,871
|
|
|
|
2,555,332
|
|
Lowest Daily Trading Volume
|
|
|
386,030
|
|
|
|
265,512
|
|
|
|
447,025
|
|
|
|
481,075
|
|
|
|
435,530
|
|
|
|
309,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Depositary Receipts traded on the New York Stock Exchange
|
|
|
(USD, number of shares)
|
|
|
|
Jul.2016
|
|
|
Aug.2016
|
|
|
Sep.2016
|
|
|
Oct.2016
|
|
|
Nov.2016
|
|
|
Dec.2016
|
|
Price
per
share
|
|
High
|
|
|
35.69
|
|
|
|
37.45
|
|
|
|
37.7
|
|
|
|
39
|
|
|
|
38.76
|
|
|
|
40.88
|
|
|
Low
|
|
|
31.82
|
|
|
|
35.43
|
|
|
|
35.15
|
|
|
|
35.87
|
|
|
|
36.93
|
|
|
|
37.17
|
|
|
Avg.
|
|
|
33.78
|
|
|
|
36.43
|
|
|
|
36.31
|
|
|
|
37.55
|
|
|
|
37.75
|
|
|
|
39.11
|
|
Trading Volume
|
|
|
1,342,910
|
|
|
|
1,081,119
|
|
|
|
1,083,707
|
|
|
|
850,185
|
|
|
|
1,404,277
|
|
|
|
2,168,102
|
|
Highest Daily Trading Volume
|
|
|
116,971
|
|
|
|
105,227
|
|
|
|
106,438
|
|
|
|
83,148
|
|
|
|
118,133
|
|
|
|
340,037
|
|
Lowest Daily Trading Volume
|
|
|
40,129
|
|
|
|
20,504
|
|
|
|
24,042
|
|
|
|
19,095
|
|
|
|
24,152
|
|
|
|
37,042
|
|
Note) 1 ADR = 1 Common Shares
16
5. Directors, Executive Officers and Employees
Directors and Executive Officers
|
|
|
|
|
|
|
1) Executive Director
|
|
|
|
(As of Mar. 31, 2017)
|
Name
|
|
Month and
Year
of Birth
|
|
Position
|
|
Service Term
|
Cho Yong-byoung
|
|
June 1957
|
|
- Chairman of Shinhan Financial Group
- Board Steering Committee
Chair
- Corporate
Governance & CEO Recommendation Committee member
- Outside Director Recommendation Committee member
- Corporate Social
Responsibility Committee member
|
|
3 years starting from March 23, 2017
|
On March 23, 2017, The Board of Directors of Shinhan Financial Group appointed Cho Yong-byoung as the Chairman and Chief
Executive Officer of Shinhan Financial Group.
17
2)
Non-Executive
Directors
Currently, 11
non-executive
directors are in office, 10 of which outside directors who are nominated by
our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders meeting.
7 outside
directors were appointed as board of directors at the 16th Annual General Meeting of Shareholders on March 23, 2017, of which 5 directors renewed their terms and 2 directors were newly appointed.
|
|
|
|
|
|
|
|
|
Our
non-executive
directors are as follows:
|
|
|
|
(As of Mar. 31, 2017)
|
Name
|
|
Month and Year
of Birth
|
|
Outside
Director
|
|
Sub-Committees
|
|
Service Term
|
Wi
Sung-ho
|
|
June 1958
|
|
X
|
|
|
|
2 years starting from March 23, 2017
|
Park Ansoon
|
|
January 1945
|
|
O
|
|
Corporate Social Responsibility Committee member
Outside Director Recommendation Committee member
|
|
2 years starting from March 23, 2017
|
Park Cheul
|
|
April 1946
|
|
O
|
|
Chairman of Board of Directors
Outside Director Recommendation
Committee Chair
Risk Management Committee member
Board Steering Committee member
|
|
3 years starting from March 25, 2015
|
Lee Manwoo
|
|
November 1954
|
|
O
|
|
Audit Committee Chair
Corporate Social Responsibility Committee member
Board Steering Committee member
|
|
4 years starting from March 26, 2014
|
Lee Sang-kyung
|
|
September 1945
|
|
O
|
|
Corporate Governance & CEO Recommendation Committee member
Audit Committee member
Remuneration Committee member
Outside Director Recommendation Committee member
|
|
6 years starting from March 29, 2012
|
Lee Steven Sung-ryang
|
|
August 1955
|
|
O
|
|
Remuneration Committee Chair
Audit Committee member
Corporate
Governance & CEO Recommendation Committee member
|
|
2 years starting from March 24, 2016
|
Lee
Jung-il
|
|
August 1952
|
|
O
|
|
Corporate Governance & CEO Recommendation Committee member
|
|
2 years starting from March 24, 2016
|
Lee
Heun-ya
|
|
September 1959
|
|
O
|
|
Risk Management Committee member
Board Steering Committee member
Outside Director Recommendation Committee member
|
|
2 years starting from March 24, 2016
|
Joo Jaeseong
|
|
January 1956
|
|
O
|
|
Risk Management Committee Chair
Corporate Social Responsibility Committee Chair
Board Steering Committee member
|
|
2 years starting from March 23, 2017
|
Yuki Hirakawa
|
|
October 1960
|
|
O
|
|
Corporate Social Responsibility Committee member
Corporate Governance & CEO Recommendation Committee member
|
|
3 years starting from March 25, 2015
|
Philippe Avril
|
|
April 1960
|
|
O
|
|
Risk Management Committee member
Remuneration Committee member
Corporate Governance & CEO Recommendation Committee member
|
|
3 years starting from March 25, 2015
|
*
|
Audit Committee Member Recommendation Committee consists of all the outside directors.
|
18
3) Executive Officers
In addition to the executive directors, we currently have the following executive officers:
(As of Mar. 31, 2017)
|
|
|
|
|
|
|
Name
|
|
Month and Year
of Birth
|
|
Position
|
|
In charge of
|
|
|
|
|
Yim
Bo-hyuk
|
|
March 1961
|
|
Deputy President &
Chief Financial Officer
|
|
- Finance Management Team
- Investor
Relations Team
- HR Team
- Information &
Communication Technology Planning Team
|
|
|
|
|
Woo Young-woong
|
|
March 1960
|
|
Deputy President &
Chief Strategy Officer
|
|
- Strategic Planning Team
- Global Business
Strategy Team
- Future Strategy Research Institute
- Digital
Strategy Team
|
|
|
|
|
Jin Okdong
|
|
February 1961
|
|
Deputy President
|
|
- Public Relations Team
- Management Support
Team
- CSR Team
- Synergy Management Team
- Platform Marketing Team
|
|
|
|
|
Lee
Chang-goo
|
|
January 1961
|
|
Executive Vice President
|
|
- Wealth Management Planning Office
|
|
|
|
|
Park
Woo-gyun
|
|
March 1959
|
|
Executive Director
|
|
- Compliance Team
- Corporate Culture
Development Team
|
|
|
|
|
Kim
Im-geun
|
|
July 1963
|
|
Executive Director &
Chief Risk Officer
|
|
- Risk Management Team
- Risk Model Validation
Team
- Credit Review Team
|
Compensation to Directors
|
1)
|
Total Amount Approved at the Meeting of Shareholders
|
(As of Dec. 31, 2016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number of persons
|
|
|
Total amount approved
at shareholders meeting
(KRW millions)
|
|
|
Notes
|
|
Directors (Outside directors)
|
|
|
12(9
|
)
|
|
|
3,500
|
|
|
|
|
|
Note) Represents the aggregate amount for all directors(including outside directors). Excludes long-term incentives.
19
2) Total Amount Paid
(As of Dec. 31, 2016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number of
Persons
|
|
|
Total
Compensation
(KRW millions)
|
|
|
Average
Compensation
per person
(KRW millions)
|
|
|
Notes
|
Registered Directors
|
|
|
3
|
|
|
|
1,619
|
|
|
|
584
|
|
|
Excluding outside directors
|
Outside Directors
|
|
|
6
|
|
|
|
326
|
|
|
|
54
|
|
|
Excluding Audit committee members
|
Audit committee members or internal auditor
|
|
|
3
|
|
|
|
203
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
12
|
|
|
|
2,148
|
|
|
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes :
|
|
Represents the total number of applicable persons as of Dec. 31, 2016.
|
|
|
Under the Financial Supervisory Services standards for preparing corporate disclosure forms, which standards were amended in November 2013, we are required to disclose in our Business Report the individual annual
compensation paid by us to our directors and auditors if such individual annual compensation is W500 million or greater.In 2016, Han Dongwoo, our Chairman and Chief Executive Officer, received W1,131 million which consisted of
W733 million in salaries and wages, W398 million in bonus payments. Separately, in 2016, Mr. Han received W236 million in long-term performance compensation and W204 million(4,996 shares) in performance shares which were
initially granted in 2011 subject to the Groups performance. He also currently holds 22,000 performance shares. The exercisability of these performance shares will be determined based on business performance evaluation and share price
performance during the period from 2016 to 2019.
|
Stock Options
(As of Dec. 31, 2016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No. of
Granted Options
(A)
|
|
|
No. of Exercised
Options
(B)
|
|
|
No. of Cancelled
Options
(C)
|
|
|
No. of Exercisable
Options
(D = A B C)
|
|
|
Exercise Price
(KRW)
|
|
Granted in 2005
|
|
|
2,620,331
|
|
|
|
2,266,642
|
|
|
|
251,300
|
|
|
|
102,389
|
|
|
|
28,006
|
|
Granted in 2006
|
|
|
3,206,173
|
|
|
|
2,617,517
|
|
|
|
480,300
|
|
|
|
108,356
|
|
|
|
38,829
|
|
Granted in 2007
|
|
|
1,231,169
|
|
|
|
967,092
|
|
|
|
205,313
|
|
|
|
58,764
|
|
|
|
54,560
|
|
Granted in 2008
|
|
|
805,174
|
|
|
|
574,150
|
|
|
|
185,396
|
|
|
|
45,628
|
|
|
|
49,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,862,847
|
|
|
|
6,425,401
|
|
|
|
1,122,309
|
|
|
|
315,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes :
|
|
|
The weighted-average exercise price of outstanding exercisable options as of Dec. 31, 2016 is KRW 39,726
|
|
|
|
The closing price of our common stock was KRW 45,250 on Dec. 31, 2016.
|
|
|
|
On March 18, 2015, the exercise period for all outstanding stock options expired, except for a limited number of stock options for which the expiration of the exercise period has been suspended by a resolution of
the board of directors.
|
|
|
|
Employees
|
|
(As of Dec. 31, 2016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gender
|
|
Number of
Employees
|
|
|
Average length of Service
|
|
Total Salaries and wages
paid in 2016
(KRW million)
|
|
|
Average Payment
per person
(KRW million)
|
|
Male
|
|
|
120
|
|
|
3 yrs 1 mths
(14 yrs)
1)
|
|
|
14,048
|
|
|
|
117
|
|
Female
|
|
|
27
|
|
|
6 yrs
(10 yrs)
1)
|
|
|
2,176
|
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
147
|
|
|
3 yrs 7 mths
(13 yrs 3 mths)
1)
|
|
|
16,224
|
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Average length of service including service within group subsidiaries
|
20
6. Related Party Transactions
|
|
|
Loans to Subsidiaries
|
|
(KRW billion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
|
Loan Type
|
|
Origination
Date
|
|
Maturity
Date
|
|
Lending
Rate
|
|
|
Beginning
Balance
(Jan. 1,
2016)
|
|
|
Decrease
|
|
|
Increase
|
|
|
Ending
Balance
(Dec. 31,
2016)
|
|
Shinhan Investment Corp.
|
|
Loans in KRW
|
|
2012-01-30
|
|
2017-01-30
|
|
|
4.11
|
%
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2012-06-28
|
|
2017-06-28
|
|
|
3.84
|
%
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
Shinhan Card
|
|
Loans in KRW
|
|
2011-01-28
|
|
2016-01-28
|
|
|
4.91
|
%
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2011-02-24
|
|
2016-02-24
|
|
|
4.82
|
%
|
|
|
250.0
|
|
|
|
250.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2011-05-17
|
|
2016-05-17
|
|
|
4.47
|
%
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2012-03-14
|
|
2017-03-14
|
|
|
4.12
|
%
|
|
|
150.0
|
|
|
|
|
|
|
|
|
|
|
|
150.0
|
|
|
Loans in KRW
|
|
2016-01-26
|
|
2021-01-26
|
|
|
1.98
|
%
|
|
|
|
|
|
|
|
|
|
|
150.0
|
|
|
|
150.0
|
|
|
Loans in KRW
|
|
2016-02-24
|
|
2021-02-24
|
|
|
1.84
|
%
|
|
|
|
|
|
|
|
|
|
|
150.0
|
|
|
|
150.0
|
|
Shinhan Capital
|
|
Loans in KRW
|
|
2011-04-29
|
|
2016-04-29
|
|
|
4.65
|
%
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2011-05-17
|
|
2016-05-17
|
|
|
4.47
|
%
|
|
|
50.0
|
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2012-03-14
|
|
2017-03-14
|
|
|
4.12
|
%
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
Loans in KRW
|
|
2012-12-14
|
|
2017-12-14
|
|
|
3.33
|
%
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
Loans in KRW
|
|
2013-01-18
|
|
2018-01-18
|
|
|
3.18
|
%
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
Loans in KRW
|
|
2013-09-05
|
|
2018-09-05
|
|
|
3.61
|
%
|
|
|
80.0
|
|
|
|
|
|
|
|
|
|
|
|
80.0
|
|
|
Loans in KRW
|
|
2014-01-27
|
|
2019-01-27
|
|
|
3.60
|
%
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
Loans in KRW
|
|
2016-03-16
|
|
2021-03-16
|
|
|
1.90
|
%
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
|
50.0
|
|
|
Loans in KRW
|
|
2016-04-27
|
|
2019-04-27
|
|
|
1.63
|
%
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
Shinhan Private Equity
|
|
Loans in KRW
|
|
2015-11-25
|
|
2016-11-23
|
|
|
2.12
|
%
|
|
|
5.0
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
Loans in KRW
|
|
2016-11-23
|
|
2017-11-22
|
|
|
1.95
|
%
|
|
|
|
|
|
|
|
|
|
|
5.0
|
|
|
|
5.0
|
|
Shinhan Savings Bank
|
|
Loans in KRW
|
|
2016-06-17
|
|
2021-06-17
|
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
1235.0
|
|
|
|
805.0
|
|
|
|
505.0
|
|
|
|
935.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
For more detailed information, please refer to the Independent Accountants Audit Report, which was reported
on Form
6-K
on March 8, 2017.
22
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.
|
|
|
SHINHAN FINANCIAL GROUP CO., LTD.
|
|
/s/ Yim
Bo-hyuk
|
Name:
|
|
Yim
Bo-hyuk
|
Title:
|
|
Chief Financial Officer
|
Date: March 31, 2017
23
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