Shinhan Financial Group Co Ltd (SHG) 2025 Q2 法說會逐字稿

ood afternoon. I am Park Cheol Woo, Head of IR. I would like to thank everyone for attending the 2025 Q2 Shinhan Financial Group's earnings presentation. In today's earnings presentation, what we have with us, the Group's CFO, Chun Sang-Yong; Group CSO, Go Suk-Hyun; Group CRO, Bang Dong-kwon; Shinhan Banks CFO, Lee Jeong Bin; Shinhan Credit Card CFO, Park Hae-Chang; Shinhan Investment Securities CFO, Jang Jeonhoon; and from Shinhan Life CFO, Joo Sung-Hwan is with us.

午安.我是投資人關係部主管朴哲宇。感謝各位蒞臨新韓金融集團2025年第二季業績發表會。在今天的業績發表會上，我們邀請到了集團財務長 Chun Sang-Yong；集團首席策略長 Go Suk-Hyun；集團首席風險長 Bang Dong-kwon；新韓銀行財務長 Lee Jeong Bin；新韓信用卡財務長 Park Hae-Chang；新韓投資證券首席財務長 Jang Jeonhoon；新韓信用卡財務長 Park Hae-Chang；新韓投資證券首席財務長 Jang Jeonhoon；新韓信用卡財務長 Park Hae-Chang；新韓投資證券首席財務長 Jang Jeonhoon；

Today's earnings releases will proceed as follows. We will hear a presentation on the Q2 business results by our CFO, which will be followed by a Q&A session. I now invite our Group CFO, Chun Sang-Yong for a presentation on the quarter's business results.

今天的財報發布將按以下順序進行。我們將聽取財務長關於第二季度業務業績的報告，隨後將進行問答環節。現在我邀請集團財務長 Chun Sang-Yong 先生就本季業務業績作報告。

ood afternoon. Thank you for participating in the 2025 second quarter earnings presentation. Let me begin on Page 2 with the highlights of our business performance. As of the end of June 2025, the gross CET1 ratio was only estimated at 13.59% an improvement of 32 bits compared to previous quarter. This was driven by solid Group's earnings, the impact of a weaker exchange rate, and continued efforts to manage RWA efficiently.

午安.感謝您參加2025年第二季財報會。讓我們從第 2 頁開始，重點介紹一下我們的業務表現。截至 2025 年 6 月底，CET1 總比率估計僅為 13.59%，比上一季提高了 32 位。這主要得益於集團穩健的獲利、匯率走弱的影響以及持續有效管理風險加權資產的努力。

Today, the Board of Directors resolved to pay a cash dividend of KRW571 per share for the second quarter and resolved a share back, amounting to KRW800 billion of the total share. Repurchase amount at KRW600 billion will be executed in the second half of this year, and the remaining KRW200 billion will be carried out in January 2026.

今天，董事會決定派發第二季每股571韓元的現金股息，決定回購股份，總額達8,000億韓元。6,000億韓元的回購款項將於今年下半年執行，剩餘的2,000億韓元將於2026年1月執行。

So with this we'll continue our year-round share buyback program as we have done this year, including the KRW650 billion and $0.01 already acquired in the first half and the KRW600 billion is scheduled for the second half. The total share back for 2025 will amount to approximately KRW1.250 billion. In the second quarter of 2025, the group recorded a net income of [KRW1.549.1 billion], growing 4.1% to QoQ despite an increase in credit costs thanks to improvements in non-interest income. While the cost to income ratio remains stable. The credit cost ratio showed a slight increase due to delayed economic recovery.

因此，我們將繼續執行今年以來的全年股票回購計劃，包括上半年已回購的 6,500 億韓元 0.01 美元，以及計劃在下半年回購的 6,000 億韓元。2025 年返還的股票總額約為 12.5 億韓元。2025 年第二季度，該集團錄得淨利潤 15.491 億韓元，儘管信貸成本增加，但由於非利息收入的改善，環比增長 4.1%。成本收入比保持穩定。由於經濟復甦延遲，信貸成本率略有上升。

Next on Page 3, moving on to capital, as mentioned earlier, the gross CET1 ratio improved by 32 bits QoQ despite the increased size of a share buyback program supported by a favorable exchange rate and a stable net profit.

接下來在第 3 頁，我們來看資本方面，如前所述，儘管股票回購計劃規模擴大，且匯率有利，淨利潤穩定，但總 CET1 比率環比提高了 32 位。

The group RWA declined by KRW4 trillion QoQ as foreign currency dominated risk weighted assets decreased due to FX depreciation, and the group's portfolio was adjusted to prioritize profitability alongside appropriate growth in (inaudible) denominated loans.

由於外匯貶值導致以外幣計價的風險加權資產減少，集團風險加權資產環比下降 4 兆韓元，集團調整了投資組合，優先考慮盈利能力，同時適當增加（聽不清楚）計價貸款。

Going forward, we will do our utmost to supply funds while necessary -- were necessary while maintaining capital stability through internal efficiencies and strategic resource allocation. Page for assets and liabilities, please refer to the slides for more details.

展望未來，我們將盡最大努力在必要時提供資金——在維持資本穩定的同時，透過提高內部效率和策略性資源配置來實現這一目標。資產負債表頁面，更多詳情請參閱投影片。

Next, moving on to Page 5, profit and loss. In Q2, 2025, the group's net income increase by 4.1% QoQ, despite rising credit costs driven by strong growth in non-interest income under a diversified portfolio. As a result, ROE and ROTC, the key indicators of our value enhancement strategy, each rose by (inaudible) recording 11.4% and 12.9% respectively. We will explain the details of each item on the following pages.

接下來，翻到第 5 頁，損益表。2025 年第二季度，儘管信貸成本上升，但由於多元化投資組合下非利息收入的強勁增長，該集團的淨收入環比增長了 4.1%。因此，作為我們價值提升策略的關鍵指標，ROE 和 ROTC 分別上升了 11.4% 和 12.9%。我們將在接下來的幾頁中詳細解釋每項內容。

Next Page 6 net interest income, despite falling market interest rates, and net interest income remained flat QoQ supported by appropriate growth focused on return on capital. The bank's Korean won loan book grew at a similar level to the previous quarter as we pursued portfolio optimization through asset rebalancing or responding to market demand, especially in retail lending.

下一頁 6 淨利息收入，儘管市場利率下降，但淨利息收入環比持平，這得益於以資本回報為中心的適當增長。由於我們透過資產再平衡或響應市場需求（尤其是在零售貸款方面）來追求投資組合優化，該行的韓元貸款組合成長與上一季基本持平。

For more details, please refer to Page 27. The bank's NIM declined by 16 bps QoQ as yield on interest earning assets including Korean won loans reflected the falling market rates. However, thanks to adequate asset growth and effective execution of LM strategies, NIM was maintained at the previous quarter's level.

更多詳情請見第27頁。由於包括韓元貸款在內的生息資產收益率反映出市場利率下降，該行淨利差環比下降 16 個基點。然而，由於資產成長充足且LM策略執行有效，淨利差維持在上一季的水準。

Next page is on non-interest income. The group of non-interest income grew 34.7% to Q with improvement across all segments. In particular, securities and FX derivatives related gains which benefited significantly from favorable market conditions led the overall growth in non-interest income.

下一頁是關於非利息收入的。非利息收入組年增 34.7%，所有細分市場均有所改善。特別是，受益於有利市場條件的證券和外匯衍生性商品相關收益，引領了非利息收入的整體成長。

Let's take a closer look at commission and fees. Credit card fee income was improved from savings and marketing costs, but still sluggish on a year-on-year basis. Meanwhile, brokerage commissions were boosted by active stock market trading up significantly YoY as brokerage trading volume increased.

讓我們仔細看看佣金和費用。信用卡手續費收入因節省開支和降低行銷成本而有所改善，但年比仍增長緩慢。同時，由於券商交易量增加，活躍的股票市場交易量較去年同期大幅成長，券商佣金也隨之上漲。

Investment banking commissions continued growth momentum centered around our banking business driven by a continuing pipeline of solid IB deals. Aid favorable market conditions, we recorded growth in our trust fee income from, funds and bank assurance up both YoY and QoQ. While insurance related income showed a decline worldwide, this was due to the high base effect from last year when SDP or short term payment policy sales were promoted, otherwise we're seeing stable earnings.

投資銀行佣金持續成長，主要得益於我們銀行業務的持續穩健的投資銀行交易項目。由於有利的市場環境，我們的信託費收入（包括基金和銀行擔保）實現了同比增長和環比增長。雖然全球保險相關收入有所下降，但這主要是由於去年短期付款保單（SDP）銷售受到推廣，導致基數較高，否則我們看到的是穩定的收益。

Next, Page 8 on SG&A and credit cost. Group SG&A is under a stable management with nothing notable from last year. We recorded cost to income ratio of 36.6% in the first half. The rising credit cost versus Q1 was mostly due to the delay in economic recovery, as well as our conservative management, in terms of our loan book where we recognize more of recurring credit cost in the current period.

接下來是第 8 頁關於銷售、一般及行政費用和信貸成本的內容。集團銷售、管理及行政費用管理穩定，與去年相比並無顯著變化。上半年我們的成本收入比為 36.6%。與第一季相比，信貸成本上升主要是由於經濟復甦延遲，以及我們在貸款組合方面採取了保守的管理方式，我們在本期確認了更多的經常性信貸成本。

In the process of implementation of the government led resolution of real estate loans while we have seen some additional provisioning, mostly from non banking, it is within our expected and manageable range amid the delayed economic recovery, we expect corporates to see rising credit risk while vulnerable customers will be increasingly challenged for credit cost the size may be slightly above our initial expectations while timing of recovery slightly later than expected.

在政府主導的房地產貸款解決方案實施過程中，雖然我們看到一些額外的撥備，主要來自非銀行機構，但在經濟復甦延遲的情況下，這些撥備仍在我們預期和可控的範圍內。我們預期企業將面臨更高的信用風險，而弱勢客戶的信貸成本將面臨越來越大的挑戰，其規模可能略高於我們最初的預期，而復甦時間將略晚於預期。

Please refer to Pages 9 to 10 for further details on our group asset quality metrics and loss absorbing capacity. Next on to Page 11, net income by subsidiary and our overseas business performance. Shinhan Bank, despite the increasing credit cost, well interest income held up at Q1 levels, while non-interest income was up significantly thanks to improve the income from IB and marketable securities, maintaining solid performance.

有關我們集團資產品質指標和損失吸收能力的更多詳情，請參閱第 9 至 10 頁。接下來是第 11 頁，各子公司的淨收入以及我們的海外業務表現。儘管信貸成本不斷上升，但新韓銀行的利息收入仍保持在第一季的水平，而由於投資銀行和有價證券的收入增加，非利息收入大幅增長，保持了穩健的業績。

Shinhan Investment Securities has been working to recover from last year's poor performance, improving the competitiveness of its core offerings such as security, trust and prop trading to improve underlying business fundamentals.

新韓投資證券一直在努力從去年的糟糕業績中恢復過來，提高其核心產品（如證券、信託和自營交易）的競爭力，以改善其基本業務狀況。

For Shinhan, Card and capital, both remain sluggish amid continued funding and credit cost pressures, but, through self-help measures such as asset rebalancing, we expect improved fundamentals and a gradual recovery in earnings.

對於新韓集團而言，由於持續的融資和信貸成本壓力，信用卡和資本業務仍然疲軟，但透過資產再平衡等自助措施，我們預期基本面將有所改善，獲利也將逐步復甦。

Our group's overseas business continues to return solid performance despite ongoing internal and external uncertainties. Pages 12 through 13 outline our digital and sustainability related initiatives, and Page 14 is on our groupwide inclusive coal prosperity finance initiatives.

儘管面臨持續的內部和外部不確定因素，我們集團的海外業務依然保持了穩健的表現。第 12 至 13 頁概述了我們的數位化和永續發展相關舉措，第 14 頁介紹了我們集團範圍內的包容性煤炭繁榮融資舉措。

We have been offering refinancing for borrowers from Shinhan Savings Bank with lending from Shinhan Bank to enhance the credit of our customers. We've been helping customers discover their forgotten dormant accounts while lowering to a single digit lending rate on all Shinhan Bank household loans, charging 10% or more to help support economic self-reliance and sustainable consumption.

我們一直為新韓儲蓄銀行的借款人提供再融資服務，貸款方為新韓銀行，以提高我們客戶的信用。我們一直在幫助客戶發現他們遺忘的休眠帳戶，同時將新韓銀行所有家庭貸款的利率降至個位數，而先前收取 10% 或更高的利率，以幫助支持經濟自立和永續消費。

We also have institutionalized support to help improve the financing conditions of our customers going forward, we are committed to the core role of finance to provide productive intermediation of financing, and we will continue, to pursue diverse programs for co-prosperity, to grow together with our customers as we do our best to become a sustainable financial group.

我們也建立了製度化的支持機制，以幫助改善客戶未來的融資條件；我們致力於發揮金融的核心作用，提供高效的融資中介服務；我們將繼續推行多元化的共贏計劃，與客戶共同成長，盡最大努力成為可持續發展的金融集團。

Pages 15 through 18 are more on our corporate value program in terms of implementation progress and performance relative to the plans announced last year and this year I can say that we have achieved good implementation results so far.

第 15 至 18 頁更多地介紹了我們的企業價值計劃在實施進展和績效方面與去年和今年宣布的計劃相比的情況。我可以說，到目前為止，我們已經取得了良好的實施成果。

Please refer to the materials for further details. From Page 19 and onward Provide detailed breakdown of group subsidiaries including financial highlights, P&L, asset management and funding. So please refer to the pages in terms of first half performance and shareholder return policies, we intend to hold a separate R session for individual retail investors, so we look forward to, your engagement and support and your interest. Thank you very much.

更多詳情請參閱相關資料。從第 19 頁開始，提供集團子公司的詳細分類，包括財務亮點、損益表、資產管理和融資情況。因此，請參閱有關上半年業績和股東回報政策的頁面，我們計劃為個人零售投資者單獨舉辦一次R會議，期待您的參與、支持和關注。非常感謝。

hank you very much. (Event Instructions) (inaudible) from NH Securities.

非常感謝。 （活動說明）（聽不清楚）來自 NH Securities。

ood afternoon. I'm (inaudible) from NH Securities. Thank you very much for this opportunity to ask my question. I have two questions actually. The first question has to do with the fact that in the beginning of the year, one of your competitors had actually carried a distribution from reduced capital and yesterday another peer announced, that they're considering distribution from reduced capital.

午安.我是（聽不清楚）來自 NH Securities。非常感謝您給我這個機會提問。我其實有兩個問題。第一個問題與以下事實有關：年初時，你們的一家競爭對手實際上已經從減資中進行了分紅，而昨天另一家同行宣布，他們正在考慮從減資中分紅。

I think a similar question had been asked in the past, but there were recent changes. In the capital market, so, recently with regards to this issue, has there been a change in your views or petition, regarding this matter? And the second question has to do with the outlook for the second half, especially this year, second half, the economic outlook and also, the credit cost ratio. What is the outlook in the second half?

我認為以前有人問過類似的問題，但最近情況有所變化。那麼，就資本市場而言，最近在這個問題上，您對此事的看法或訴求是否有所改變？第二個問題與下半年的前景有關，特別是今年下半年的經濟前景以及信貸成本比率。下半年的前景如何？

hank you very much for that question. While we were preparing for the answer, please hold for a few seconds.

非常感謝你的提問。在我們準備答案的時候，請稍等幾秒鐘。

o thank you very much for that question. With regards to the distribution from reduced capital, our view, the second question was about the economic outlook and also credit cost outlook for the second half of the year.

非常感謝你的提問。關於減少資本的分配，我們認為，第二個問題是關於下半年的經濟前景以及信貸成本前景。

So the first question about the distribution from reduced capital reserves and the, second question about the credit cycle outlook, our CRO will take that question into the credit costs related question. I'll take that question with regards to distribution from reduced capital, so at this point in time, as of yet, well, there is no actually a positive consideration or review that I've been undertaken.

因此，關於減少資本儲備分配的第一個問題，以及關於信貸週期前景的第二個問題，我們的首席風險官會將這個問題納入信貸成本相關問題中。關於減少資本後的分配問題，我目前還沒有收到任何積極的考慮或審查。

At the beginning of the year when one of our peers had reviewed it, we did actually, reviewed it. There was a lot of factors to consider, but the regulatory body, I think they are looking into the tax related issues, and when this conclusion comes out from the regulatory body, i think at that point in time we can do another review, but at this point, we have new plans of engaging in distribution from reduced capital.

今年年初，我們的一位同儕審查了這份報告，我們也確實審閱了這份報告。有很多因素需要考慮，但我認為監管機構正在調查與稅務相關的問題，當監管機構得出結論時，我認為我們可以再進行一次審查，但目前，我們有了新的計劃，即用減少的資本進行分銷。

In the case of our peers, the reason why they have conducted distribution from reduced capital, I think it was partially done to enhance shareholder return or maybe they were forced to do it because they lacked their earnings, to distribute.

就我們的同行而言，他們之所以從減少的資本中進行分配，我認為部分原因是提高股東回報，或者可能是因為他們缺乏足夠的盈利來進行分配，所以才被迫這樣做。

But in our case, as of the end of last year we had enough, actually room for surely and KRW600 billion, and, so we're not in a position to really review this matter. So when there are any changes regarding tax issues or others, but as of now we have no plans to consider this matter.

但就我們而言，截至去年年底，我們實際上有足夠的空間容納 6000 億韓元，因此我們目前沒有條件重新審視此事。所以，如果稅務問題或其他方面有任何變化，我們會考慮，但目前我們還沒有計劃考慮此事。

es. This is the CRO. Regarding our economic outlook for the second half of the year and in terms of the overall assets on this, conditions, as in the first half of the year, across the financial sector, well, the real mark -- the real economy, domestic, political and economic conditions while various factors, weighed on the prospects for a quick economic turnaround at Shinhan Bank, of course it could be in part due to a base effect, but in terms of the number of new delinquencies or new or the delinquency amount has been in decline. And based on our vintage analysis within the last two years of new loans, the delinquency amount in the last two years from the last two years' worth of origination has been in decline as well.

es。這是轉換率優化（CRO）。關於我們對下半年的經濟展望，以及就整體資產而言，與上半年一樣，整個金融業的狀況，嗯，實際指標——實體經濟、國內政治和經濟狀況，儘管各種因素都對新韓銀行經濟快速復甦的前景造成了壓力，當然，部分原因可能是基數效應，但就新增不良貸款數量或新增不良貸款金額而言，已經下降。根據我們對近兩年新貸款的分析，近兩年新發放貸款的違約金額也呈現下降趨勢。

As recently, the supplementary budget will be implemented and there's the livelihood support voucher program and the bad bank initiative. These government policies are intended to promote consumption while providing support for small merchants.

最近，追加預算即將實施，還有生計支持券計畫和不良銀行計畫。這些政府政策旨在促進消費，同時為小型商家提供支援。

And starting from last year, regarding the real estate PF loans, well, we have been working together with the government for normalization of the PF loan, so as a result of these efforts and also there will be an added effect from rate cuts expected in the second half of the year. So on balance we think that in the second half cautiously we may see a peak out of our asset quality metrics. However, that said, given the tariff issue, this is a challenging time.

至於房地產公積金貸款，從去年開始，我們一直在與政府合作，推動公積金貸款正常化。因此，這些努力以及預計下半年降息帶來的額外影響，都將起到積極作用。因此，總的來說，我們謹慎地認為，下半年我們的資產品質指標可能會達到高峰。然而，鑑於關稅問題，目前情況充滿挑戰。

There are tighter regulations against household loans, so we still believe that there are many sources of uncertainty that remain, so we intend to stay on guard and be vigilant in our management. In terms of credit cost in the first half, just to recap what happened.

由於對家庭貸款的監管更加嚴格，我們仍然認為存在許多不確定因素，因此我們打算保持警惕，謹慎管理。簡單回顧一下上半年的信貸成本狀況。

As we explained earlier, overall there is a delayed recovery in terms of overall assets soundness, in the first half we were more conservative in terms of credit assessments and so that had the results of increasing credit costs. We did additional provisioning against real estate, loans as well, which is why compared to our initial expectations, our actual credit costs were above our expectations.

正如我們之前解釋的那樣，就整體資產穩健性而言，整體復甦有所延遲；上半年，我們在信貸評估方面更加保守，因此導致信貸成本上升。我們對房地產和貸款也進行了額外的撥備，因此，與我們最初的預期相比，我們的實際信貸成本高於預期。

he CRO talked about the outlook for the credit cycle in the second half, whenever we do this in earnings presentation, every quarter outlook for asset quality, and we are giving guidance for a credit cost as well. However, this is a difficult year. We have the full-year presentation and the first quarter earnings presentation.

首席風險官談到了下半年信貸週期的前景，我們在盈利報告中每季度都會展望資產質量，我們也會對信貸成本給予指導。然而，今年是艱難的一年。我們有全年業績報告和第一季財報。

Whenever we do that, the numbers are actually increasing, so. In the first quarter, actually, the number that we have provided was about 40 bps, early 40 bps, but we do believe that the number can go over mid 40 bps range.

每當我們這樣做時，數字實際上都在增加。實際上，第一季我們提供的數字約為 40 個基點，接近 40 個基點，但我們相信這個數字可能會超過 40 個基點中段。

So, internally our target, is for mid-40 bps level, but, a credit cost has been dealt with by the CRO, but as asset quality deteriorates, on a recurring level, credit costs, actually, does increase in proportion. But from a conservative point of view, provisioning, if we can move more proactively in this regard, if we do have some room in terms of capital ratio or in our ability to absorb, the losses, then, we do want to, actually absorb the losses in a more conservative manner, that is reflected in our credit cost as well. So all in all, for credit cost for the outlook for the second half, we do believe our assessment is for the mid to late 40% range -- 40 bps range.

因此，我們內部的目標是 40 個基點左右，但首席風險長已經處理了信貸成本，但隨著資產品質的持續惡化，信貸成本實際上確實會成比例增加。但從保守的角度來看，在撥備方面，如果我們能夠在這方面採取更積極主動的措施，如果我們在資本充足率或吸收損失的能力方面還有一些空間，那麼，我們確實希望以更保守的方式吸收損失，這也反映在我們的信貸成本中。綜上所述，對於下半年的信貸成本展望，我們認為我們的評​​估範圍在 40% 的中後期——40 個基點左右。

r. Seol Yongjin, SK Securities.

r.Seol Yongjin，SK證券。

eah, thank you for the opportunity to ask. I will also ask about two things. Recently, separate taxation for divided income, for example, this has been drawing greater interest recently, so we -- if there's legislation, and if it does materialize, in terms of shareholder return, will there be any changes to your value of program? So if you could share your overall directionality and some thoughts. And then second, well, recently, there's a lot of talk about stable coins. So is there anything in the works within the Shinhan Group regarding stable coins?

嗯，謝謝您給我這個提問的機會。我還會問兩個問題。例如，最近對分拆收入單獨徵稅的做法引起了更多關注，因此，如果立法出台，並且最終得以實施，那麼就股東回報而言，您的計劃價值是否會有任何變化？所以，如果您能分享您的整體方向和一些想法就太好了。其次，最近關於穩定幣的討論很多。那麼，新韓集團內部是否有任何關於穩定幣的項目正在進行中？

es, please wait just momentarily as we prepare our answer.

是的，請稍等片刻，我們正在準備答案。

es, thank you for your questions. I think there were two, first about the shareholder return mix and then second about stable coins. I will take the first question and then pass on the second question to our CSO. Recently, in terms of separate taxation for dividend income, there is a lot of talk going on, and certainly we are monitoring very closely.

是的，謝謝你的提問。我認為有兩個問題，第一個是關於股東回報組合的，第二個是關於穩定幣的。我將回答第一個問題，然後將第二個問題轉交給我們的首席安全官。最近，關於股息收入單獨徵稅的問題有很多討論，我們當然也在密切關注。

However, it's similar for this as well, like we said, some are saying 35%. There's a lot of speculation but as to how it will, ultimately be decided we will have to wait and see for legislation. So once it is entered into law, of course we'll have to think harder about our shareholder return mix.

不過，這種情況也類似，就像我們說的，有些人說是 35%。目前有很多猜測，但最終將如何決定，我們只能等待立法出台。所以一旦這項法律生效，我們當然就需要更認真地考慮股東回報結構了。

When we first announced our value program every year and every quarter we said we will monitor progress and have discussions at the BOD level and so likewise this will of course be subject to those discussions as well at our BOD meeting earlier this morning, there were discussions about this as well.

當我們首次宣布我們的價值計劃時，我們說過每年和每個季度都會監控進展情況，並在董事會層面進行討論，因此，這當然也會在我們今天早上的董事會會議上進行討論，我們也討論了這個問題。

However, we still do not know how it will be legislated, so we did not, we were not able to review the details, but a key characteristic of our value program is in the pace of shareholder return and also our shareholder share buyback.

然而，我們仍然不知道它將如何立法，所以我們沒有，也無法審查細節，但我們價值計劃的一個關鍵特點是股東回報的速度以及我們的股東股份回購。

We have a target in terms of how many shares outstanding we will be buying back and canceling. So buyback and cancellation being the mainstay of our program, I think that remains unchanged and what's fortunate is that in terms of the pace of the buyback and cancellation has been quite fast, so we may not have to wait until 2027 to achieve our target of 50 million shares.

我們設定了回購和註銷已發行股份數量的目標。因此，回購和註銷是我們計劃的主要組成部分，我認為這一點不會改變，幸運的是，回購和註銷的速度相當快，所以我們可能不必等到 2027 年才能實現 5000 萬股的目標。

So at an appropriate time we may the mix between dividends and share buyback and cancellations, well, it gives us room to be more flexible in terms of adjusting the mix and, so our PBR if it goes above 0.8 times and we have adequate evaluation then rather than through buy back and cancellation we will actually -- we could shift toward more dividends to boost cash flow for post retirement, investors, for example, so we will be flexible in reviewing our options and then and also communicating our results with the market as well.

因此，在適當的時候，我們可能會調整分紅、股票回購和註銷之間的比例，這讓我們在調整比例方面有更大的彈性。如果我們的股息殖利率超過 0.8 倍，並且我們有充分的評估，那麼我們實際上可能會轉向更多分紅，以增加現金流，例如，用於退休後投資者。因此，我們將靈活地審查我們的選擇，並與市場溝通我們的業績。

egarding stable coins, I think according to the press, well, I can only provide a very high level generic answer, so 14 banks are studying, there's a consultative, consortium in place deliberating about stablecoins, and we are a member of that consortium as well, but again there has not been legislation yet as to who the insurers will be, where you can use the stablecoin, how the supervisory and oversight system will be there are many unknowns, but in the longer term, so we will not just stand by not doing anything as stablecoin materializes, but we will look and study hard to how to use this as an opportunity instead of as, something that can be a source of concern. Thank you.

關於穩定幣，根據媒體報道，我只能提供一個非常籠統的概括性回答。目前有14家銀行正在研究穩定幣，一個諮詢聯盟正在就此進行討論，我們也是該聯盟的成員。但是，關於保險公司是誰、穩定幣的使用範圍、監管體係如何等等，目前還沒有立法規定，還有很多未知數。但長遠來看，我們不會袖手旁觀，任由穩定幣發展，而是會認真研究如何將其轉化為機遇，而不是將其視為一個令人擔憂的問題。謝謝。

SBC Securities, Won Jaewoong.

SBC證券，元在雄。

n a difficult and challenging environment. Thank you for the solid results and also thank you very much for paying a lot of attention to shareholder returns. I have two questions. If you look at Page 16, when you do shareholder returns, depending on the PBR interval, you said, that the plans differ. In the case of greater, PBR than one vote, then they, it seems that the -- there is no mention about a share buyback. So if the number is greater than one PPR, then there will be no share buyback.

在一個困難且充滿挑戰的環境中。感謝你們取得的優異成績，也非常感謝你們對股東回報的高度重視。我有兩個問題。如果您查看第 16 頁，當您進行股東回報時，根據 PBR 間隔的不同，您說，計劃會有所不同。如果 PBR 大於一票，那麼似乎——沒有提到股票回購。因此，如果該數字大於 1 PPR，則不會進行股票回購。

Is that how we should understand it? And then there is no comments on the [1.8 to 1] multiple in that interval, will the cash dividend move up faster? That's my first question. And secondly, the loan growth, I think was a weaker than expectations in the first half.

我們該這樣理解嗎？那麼，對於該區間內的 [1.8 比 1] 倍數，目前還沒有任何評論，現金股利是否會上漲得更快？這是我的第一個問題。其次，我認為上半年的貸款成長弱於預期。

So in the second half, I think the loan environment will be quite challenging, but even in that environment, are you going to maintain the current pace in the second half, or going to increase the pace and also what is your outlook for NIM as well? So outlook for the loan as well as the NIM.

因此，我認為下半年的貸款環境將相當具有挑戰性，但即便在這種環境下，您下半年會保持目前的步伐，還是會加快步伐？您對淨利差的前景有何看法？因此，對貸款和淨利差的前景也需要關注。

hank you very much for the question. While we are preparing for the answer, please hold.

非常感謝您的提問。請稍等，我們正在準備答案。

o PBR by the interval of PBR, the shareholder, returned a mix with us and also outlook for a loan was asked, so, the first question, I'll take the first question, and the CFO of the bank will take the second question. And with regards to your first question. I also, actually, talked about this during our, announcement of the corporate value program. So, our principle when it comes to the corporate value, is, we look at this in ROE.

o PBR 按照 PBR 的時間間隔，股東向我們反饋了混合情況，並詢問了貸款前景，所以，第一個問題，我將回答第一個問題，銀行的首席財務官將回答第二個問題。關於你的第一個問題。事實上，在宣布企業價值計畫時，我也談到了這一點。所以，我們衡量企業價值的原則是，我們用淨資產收益率（ROE）來衡量。

And so in ROE is looked at and a balanced approach will be taken. So if we look at the current levels in order to normalize the PVR, then the shareholder return rate has to be accelerated and in order to have, for this to have an impact, and, we do believe that share buyback is actually more effective than, cash dividend, and so if we say the PBR is one, then open.

因此，在考察淨資產收益率時，會採取平衡的方法。因此，如果我們從當前水平來看，為了使PVR正常化，那麼股東回報率必須加快，並且為了產生影響，我們相信股票回購實際上比現金股息更有效，所以如果我們說PBR是1，那麼打開。

So PPR of 0.8, then our principle would be to, do share buyback and then, if it goes beyond that, we will actually change the mix. So, if it goes over one PBR, then will we not engage in share buyback? No, that's not it actually. If you look at the overseas cases, up until one or two PBR, then our share buyback is actually effective.

如果 PPR 為 0.8，那麼我們的原則是進行股票回購，如果超過這個值，我們實際上會改變股票組合。所以，如果超過一個PBR，我們是否就不會進行股票回購？不，其實不是那樣。如果看看海外案例，直到出現一兩起股票回購事件，那麼我們的股票回購其實是有效的。

There are evidence of that and so our ROE and also the rate of recovery and the PBR level, all of these factors will be looked at, will be taking a very flexible approach and also this mix of dividends and share buyback will look at our performance as well as other factors and we'll discuss this matter with the market as well and decide.

有證據表明這一點，因此我們將考察淨資產收益率、回收率和每股收益水平等因素，採取非常靈活的方式，同時，我們將考察股息和股票回購的組合，並考慮其他因素，我們也會與市場討論此事並做出決定。

'm Lee Jeong Bin, the Bank CFO, with regards, to asset growth and, NIM outlet, that was the question. Let me answer those questions. In the first half, as we have mentioned, our asset growth will slowed down a bit, as you have mentioned.

我是銀行財務長李正彬，關於資產成長和淨利差出口，這就是我提出的問題。讓我來回答這些問題。正如我們之前提到的，上半年我們的資產成長速度會稍微放緩，正如您所提到的。

The case of household lending, there was a total quantity relate guidance from the regulator and so in the first half, household loans have grown by KRW2.5 trillion and so in the second half as well we will be taking into consideration the policy related environment and manage growth at an appropriate level. And so the corporate loan in the first.

就家庭貸款而言，監管機構給出了總量相關的指導意見，因此上半年家庭貸款增長了2.5萬億韓元，下半年我們也將考慮到政策環境，並將增長控制在適當水平。因此，第一筆是公司貸款。

Well, in 2024, we have actually increased significantly the corporate loan volume and so in the first half, we are focusing on profitability as well as margin management and also in terms of asset quality we had taken a rather conservative approach in our asset growth management.

2024年，我們實際上大幅增加了企業貸款規模，因此在上半年，我們將重點放在盈利能力和利潤率管理上，而且在資產質量方面，我們在資產增長管理方面採取了相當保守的方法。

And then so in the case of the corporate loan segment, the growth had been somewhat weak. However, in the second half, based on the portfolio management that was conducted in the first half, we do believe that the growth momentum for the corporate side had been secured.

因此，企業貸款領域的成長也相對疲軟。然而，在下半年，基於上半年進行的投資組合管理，我們相信企業方面的成長動能已經得到保障。

So in the second half, unlike the first half, we will be more proactive in the corporate loan market. And move forward as it growth and also in the case of corporate loan segment, while we are growing the segment, I think you may have concerns about the margins. Well, in the first half, when we managed the NM there was the interest rate related loans, but also funding cost management was very important. So in the second half, liquidity and other factors will be considered, so cost management for the funding will be done and also margins will be closely monitored in order to grow the assets. That is all. Thank you.

因此，與上半年不同，下半年我們將更積極主動開拓企業貸款市場。隨著業務成長，我們將繼續前進。就企業貸款業務而言，雖然我們正在發展壯大該業務，但我認為您可能會對利潤率感到擔憂。嗯，上半年我們管理新墨西哥州的時候，除了利率相關的貸款之外，資金成本管理也非常重要。因此，在下半年，我們將考慮流動性和其他因素，對融資成本進行管理，並密切監控利潤率，以實現資產成長。就這些。謝謝。

o I hope that was a sufficient, answer for you. Now, for your asset (inaudible)

希望這個答案對您夠滿意。現在，關於您的資產（聽不清楚）

es, this is [Chong Teejun from MA] I also have two questions. So the capital ratio seems, up. So what is your adequate level, in terms of An appropriate capital ratio. And by the way, other than loans, other, plans, regarding shareholder return, I think it's almost at 50% or so. So do you have plans to deliver above 50%, shareholder returns, so some of your competitors have been doing?

是的，我是來自馬薩諸塞州的 Chong Teejun，我也有兩個問題。所以資本充足率似乎上升了。那麼，就適當的資本充足率而言，您認為合適的水平是多少？順便說一句，除了貸款和其他計劃之外，關於股東回報，我認為已經接近 50% 左右了。那麼，你們是否有計劃實現超過 50% 的股東回報率，就像你們的一些競爭對手所做的那樣？

es, please wait as we prepare the answer.

是的，請稍候，我們正在準備答案。

kay, so there were two questions. First about the adequate capital ratio, I think. Compared to the first quarter, our capital ratio was actually quite improved. I think on the market, so regarding our capital position, there were some perceptions that we were a little bit tight, but internally.

好的，所以有兩個問題。首先，我認為應該考慮充足的資本充足率。與第一季相比，我們的資本充足率實際上有了相當大的改善。我認為在市場上，就我們的資本狀況而言，有些人認為我們資金有點緊張，但在我們內部並非如此。

Of course there was the matter externalities including FX rates, but there were many efficiency gain measures and rebalancing and that helped us boost our capital ratio. So I think you're asking about where we intend to use the capital other than loans.

當然，也存在一些外部因素，例如匯率，但我們採取了許多提高效率的措施和再平衡措施，這有助於我們提高資本充足率。所以我想你是在問除了貸款之外，我們打算把資金用在哪裡。

So we do not intend to use it for big projects like M&As, but like our bank CFO has mentioned, at an adequate level it can go toward loan growth and also toward investments as well. There will have to be an effective allocation, as the Korean economy overall is experiencing many challenges like low growth, sluggish consumption as well, so it's a combination of different factors.

因此，我們不打算將其用於併購等大型項目，但正如我們銀行的財務長所提到的，在適當的水平上，它可以用於貸款成長，也可以用於投資。必須進行有效的資源配置，因為韓國經濟整體上面臨著成長緩慢、消費疲軟等諸多挑戰，這是多種因素共同作用的結果。

So our financing intermediation, mediation to more productive parts of the economy, we will be very faithful to that role in terms of the methodology of how, we will be quite thoughtful as we execute we do have a sufficient capital buffer but given the regulatory environment and the macro conditions it could be subject to change.

因此，我們將非常忠實地履行我們的融資中介職責，將資金輸送到經濟中更俱生產力的領域。在方法論方面，我們將非常謹慎地執行，我們確實擁有充足的資本緩衝，但考慮到監管環境和宏觀經濟狀況，這種情況可能會改變。

We said our CET1 ratio would be above 13.1%, so at a minimum we want to, we believe we should manage it at around that level or higher. Given the US tariff issues, there are lots of externalities in terms of the macro, so we do want to be more on the conservative side, regarding the level of shareholder returns.

我們說過我們的 CET1 比率會高於 13.1%，所以至少我們希望，我們認為應該將其控制在這個水平左右或更高。鑑於美國關稅問題，宏觀層面存在著許多外部因素，因此，在股東回報水準方面，我們希望採取更保守的態度。

I think July last year we talked about -- we committed to a 50% shareholder return ratio, and I think the reaction from the market found it to be quite revolutionary quite fresh because two years ago it was 30% last year it went up to 40%, and I think now for the other financial institutions I think some are talking about, above 50%.

我認為去年七月我們討論過——我們承諾股東回報率達到 50%，我認為市場對此的反應相當具有革命性，相當新穎，因為兩年前是 30%，去年上升到 40%，而現在我認為其他一些金融機構也在談論超過 50% 的回報率。

So we are, expecting significant increase on our side as well, but in terms of what level is most appropriate, I think I have to maintain a similar tone as before as to the actual level of shareholder return. 50% by 2027 is our directionality, but we are of course open to different options, but this will depend on PBR, ROE, and the internal management strategy, so these factors will have to be taken into comprehensive consideration.

因此，我們也預期自身收益將大幅成長，但至於最適合的成長水平，我認為在股東回報的實際水平上，我仍需保持與之前相似的態度。 2027年達到50%是我們的目標方向，但我們當然也對不同的方案持開放態度，但這取決於市淨率、淨資產收益率以及內部管理策略，因此這些因素必須綜合考慮。

So we have already announced our shareholder returns for the second half of the year. So if there are any changes beyond those plans, we will try to communicate those new developments with the market.

我們已經公佈了下半年的股東回報計畫。因此，如果計劃有任何變動，我們將努力把這些新的進展傳達給市場。

hank you for that answer. (inaudible)

謝謝你的回答。（聽不清楚）

hank you. I have two questions. With regards to credit costs, can you elaborate and give us more details about this period, the bank and the card, I think your write-offs have increased and also, the MP ratio is not falling. You look at Page 10, rather than the bank in the card or the non earning -- non-operating assets is.

謝謝。我有兩個問題。關於信貸成本，您能否詳細說明一下這段時間、銀行和信用卡的具體情況？我認為您的壞帳增加了，而且利率也沒有下降。你應該看第 10 頁，而不是銀行卡或不獲利的非經營性資產。

In the third quarter last year, I think you said that that the, in the car segment, the delinquency rate or the funding cost equals, so is that outlook still valid and also with regards to increasing credit costs, will you take into consideration the potential increase in NPL assets in the car segment.

去年第三季度，我記得您說過，在汽車領域，違約率或融資成本相等，那麼這種觀點是否仍然有效？另外，關於信貸成本不斷上升的問題，您是否會考慮汽車領域不良貸款資產可能增加的情況？

Also as the quality of the card side, can you explain more about that? And the second question is, you said in the second half there are fireback will be around KRW800 billion. And so, what will happen in 2005, it's, KRW600 billion, and then in KRW1200 billion will be done in the earlier half of next year. Is that correct?

另外，關於卡片背面的質量，您能詳細解釋一下嗎？第二個問題是，您提到下半年的火災損失將達到約 8,000 億韓元。因此，2005 年將完成 6,000 億韓元，而 12,000 億韓元將在明年上半年完成。是這樣嗎？

o thank you very much for the question. Please hold while we are preparing the answer.

非常感謝您的提問。請稍候，我們正在準備答案。

o you have asked two questions, so with regards to credit cost, you ask the question and also share a buyback, schedule. So with regards to the second question, let me take that first, and the credit cost, question, I'll give you a brief overview and, because your question pertained to the card business, which was asset quality and also other matters, our Card CFO will be taking that question.

您問了兩個問題，關於信貸成本，您提出了問題，並分享了回購計劃。那麼關於第二個問題，我先回答這個問題，也就是信貸成本的問題。我會給你一個簡要的概述，因為你的問題與信用卡業務有關，涉及資產品質和其他事項，所以我們的信用卡財務長將回答這個問題。

With regards to share buyback, our BOD had solved KRW800 billion one this time around and what they had clearly we saw was that KRW600 billion will be short bought back by the end of this year and KRW200 billion will be bought back early next year.

關於股票回購，我們的董事會這次解決了 8,000 億韓元的問題，他們明確表示，今年年底前將回購 6000 億韓元，明年年初將回購 2,000 億韓元。

This was the same last year, because our share buyback program is growing, in order to spread that out over the year we're taking this approach and, consistently on the fiscal year basis, we're differentiating it. So this year KRW600 billion up until that amount is what we are doing for this year, and the remaining KRW200 billion will be done, next year. And so that will be next year's shareholder return portion.

去年也是如此，因為我們的股票回購計劃正在擴大，為了將其分散到全年，我們採取了這種方法，並且始終以財政年度為基礎，我們對其進行差異化處理。所以今年我們計畫完成 6,000 億韓元，剩下的 2,000 億韓元將在明年完成。所以，這就是明年股東回報的一部分。

With regards to asset quality and credit cost. So, we are doing some right ops as well and disposal. The MPA loans are actually growing faster than our initial expectations, that is true. But in the right up and disposal, we do have. Some concerns and issues, so, because we are seeing a growing NPLs, the price for buyoffs and disposal is actually coming down very quickly, steeply compared to last year, and in order to manage asset quality, how much of loss are we going to take?

關於資產品質和信貸成本。所以，我們也在進行一些必要的操作和處置。MPA貸款的成長速度確實比我們最初的預期要快，這是事實。但在正確的處置方面，我們確實有。由於不良貸款不斷增加，收購和處置的價格實際上正在迅速下降，與去年相比大幅下降，為了管理資產質量，我們將承受多大的損失？

So that is actually, an issue of concern internally for us. So, managing asset quality ratio is very important, so we need to maintain that and manage that at an appropriate level, but there are that. And regarding the card business, I think our Card CFO can provide you with more sufficient answer.

所以，這其實是我們內在一個需要關注的問題。因此，管理資產品質比率非常重要，我們需要將其維持在適當的水平並進行管理，但除此之外還有其他因素。至於信用卡業務，我認為我們的信用卡財務長可以為您提供更充分的解答。

o this is the Card CFO, as we have, explained already about the delinquency during our last, new, delinquencies is actually something that we're focusing on, so two months overdue of rate, that's a key indicator.

o 這是信用卡財務官，正如我們之前解釋過的，在我們最近的新拖欠款項中，拖欠情況實際上是我們關注的重點，因此逾期兩個月的利率是一個關鍵指標。

After, the impeachment last year, the number has grown steeply. And internally, we are taking a lot of actions so that by February, the delinquency rate roll rate actually it peaked at [0.45%] and then in July, it's about [4.1%] that we're expecting, so it's improving.

自去年彈劾案發生以來，這一數字急劇增長。在公司內部，我們正在採取很多措施，因此到 2 月份，逾期率實際上達到了峰值 [0.45%]，然後到 7 月份，我們預計約為 [4.1%]，所以情況正在改善。

However, recently, in order to stabilize the housing prices. Loan provision is being limited, and so that impact will be felt in the next couple of months, and we need to closely monitor the market. So in the current situation, we have picked out and we are coming down.

然而，最近為了穩定房價。貸款供應受到限制，因此這種影響將在未來幾個月內顯現，我們需要密切關注市場。所以，在目前的情況下，我們已經選定了目標，現在正在撤離。

That is the trend that we are observing and you talked about the NPL, so the delinquent loans are becoming NPLs, and we are managing that through a write-offs and in the case of NPL ratio and also the delinquency ratio in order to ensure that those are not growing, we are actually increasing the write-offs, so, the rates will be managed at the previous level. Thank you.

這就是我們觀察到的趨勢，您也提到了不良貸款，也就是拖欠貸款正在變成不良貸款，我們正在透過核銷來控制這種情況。為了確保不良貸款率和拖欠率不再成長，我們實際上正在增​​加核銷，因此，這些比率將保持在先前的水平。謝謝。

kay, there are no, questions pending. Hanwha Investment Securities, Kim Doha.

好的，沒有待處理的問題。韓華投資證券，金多哈。

just have one final question regarding real estate trust. I don't understand there was a legal litigation. There was some write up in the press about it. So I think regarding your provisioning against that kind of litigation, I understand there's some set aside so additional provisioning, how much do you expect to have to set aside further against this kind of real estate trust, type exposure?

關於房地產信託，我還有一個最後的問題。我不明白為什麼會有法律訴訟。媒體對此進行了一些報導。所以，關於您針對這類訴訟的準備金，我了解到已經預留了一些，那麼對於這類房地產信託風險，您預計還需要額外預留多少準備金？

es, please hold on as we prepare the answer.

是的，請稍等，我們正在準備答案。

o in terms of real estate trust. I think within the industry if you look at real estate trust companies based on their financials a lot of them are still loss making and the sector remains still challenged for us you remember last year we actually saw a significant loss which was reflected into our closed accounts, so we wanted to be pre-emptive in terms of absorbing against that loss.

就房地產信託而言。我認為，就業內而言，如果你根據房地產信託公司的財務狀況來觀察，會發現很多公司仍然處於虧損狀態，而且該行業對我們來說仍然充滿挑戰。你還記得去年我們實際上也出現了重大虧損，這反映在我們的已結帳帳戶中，所以我們希望提前採取措施來應對這筆虧損。

So our provisioning is there is a significant buffer against that kind of loss. Regarding the litigation we actually set aside about KRW25 billion in provisioning against that kind of loss, but still for Shinhan Real Estate Trust, this, although profits actually have gone down compared to historical levels, we have seen up trends in the second, quarter.

因此，我們的儲備金足以應付這類損失。關於訴訟，我們實際上已撥出約 250 億韓元作為準備金以應對此類損失，但對於新韓房地產信託而言，儘管利潤實際上與歷史水平相比有所下降，但我們在第二季度看到了上升趨勢。

Yeah, it depends on the real estate market. So if we suppose that the down trend continues and the expected recovery amount of course will become smaller so there may be additional loss in that case, but at a high level, for the most part we have set aside our required provisioning so it's already done as of June we have about [KRW380 billion] in loans to the trust account and KRW340 billion in provisioning against that exposure, so it's almost full coverage. So rather than a large sum loss, we could we can have a little bit of loss depending on the real estate business cycle, but in the larger scheme of things, we have a good provisioning already.

是的，這取決於房地產市場。因此，如果我們假設下跌趨勢繼續，預期回收金額當然會減少，那麼在這種情況下可能會有額外的損失，但總體而言，我們已經基本撥備了所需的撥備，截至6月份，我們信託帳戶中約有[3800億韓元]的貸款，並針對該風險敞口撥備了3400億韓元，因此幾乎達到了全額覆蓋。因此，我們可能不會遭受巨額損失，可能會根據房地產商業週期遭受一些損失，但從長遠來看，我們已經做了充足的準備金。

eah, thank you, and we will move on. Yes, (inaudible)

嗯，謝謝，我們繼續。是的，（聽不清楚）

hank you very much for this opportunity to ask my question. I have questions about the securities. So recently, Shinhan securities, brokerage, market share is going up, and IB related activities is also growing as well.

非常感謝您給我這個機會提問。我對證券方面有一些疑問。所以最近，新韓證券的經紀業務市佔率不斷上升，投資銀行相關業務也在成長。

So in terms of contribution to the non-interest income, what, areas of business is a securities business focusing on or you diversifying, trying to diversify, and also I think, you have asked for a new issuer license. What kind of business are you pursuing based on that license?

那麼，就對非利息收入的貢獻而言，證券業務的重點領域是什麼？還是您正在努力實現多元化，嘗試實現多元化？另外，我認為您已經申請了新的發行人牌照。您打算憑藉該許可證從事哪種類型的業務？

o thank you very much for the question. Please hold while we are preparing the answer.

非常感謝您的提問。請稍候，我們正在準備答案。

es, I'm the CFO from Shinhan Securities. So thank you very much for those questions. With regards to the, brokerage [PBs], going forward, the income that we anticipate for the past four to five years, at WM and IB focused upgrades was pursued and we had the private equity issue and then the alternative investments in overseas market we had incurring losses and so retail WM and IB has been rather sluggish, that is true.

是的，我是新韓證券的財務長。非常感謝您提出的這些問題。關於經紀業務（PB），展望未來，我們預期過去四到五年內，財富管理和投資銀行專注於升級，我們進行了私募股權發行，然後在海外市場進行了另類投資，這些投資都出現了虧損，因此零售財富管理和投資銀行業務確實相當疲軟。

And as you have said, the asset management, the WM and IB segment, yes, we are trying to enhance profitability in these segments. In the case of overseas stocks, MS, even if those are included, it's over 5% in terms of MS and the workers' income continues to grow in this segment, in the IB in the first half compared to last year, there's been an increase of about KRW20 billion of underwriting fees. So our fundamentals are actually improving, that is our internal assessment.

正如您所說，資產管理、財富管理和投資銀行業務，是的，我們正在努力提高這些業務領域的獲利能力。就海外股票而言，即使算上這些股票，MS 的佔比也超過 5%，而且該領域員工的收入持續成長。與去年同期相比，IB 上半年的承銷費增加了約 200 億韓元。所以，我們的基本面其實正在改善，這是我們內部的評估。

However for potential loss factors, potential default factors, we are actually closely monitoring these issues and we will be pre-emptively removing, any of these uncertainty factors. And also the issue of license acquisition. I think this is a cautious issue five players have applied for this license.

但是對於潛在的損失因素、潛在的違約因素，我們正在密切關注這些問題，並將提前消除任何此類不確定因素。還有許可證獲取的問題。我認為這是一個需要謹慎對待的問題，目前已有五名球員申請了該許可證。

I do believe with regards to this matter, we're taking a cautious approach. We have, engaged in a thorough review of this and a more aggressive or proactive existing, issuers, rather than those kind of aggressive approach, is, align with the government policies and then also conservative growth and also, in order to align with our group's portfolio about these kind of assets, so the profitability and the growth of this segment, we want to pursue all of this in a balanced manner. That's how we have constructed our portfolio and so, we have done a simulation of various scenarios and, so we are preparing the business into your stable growth. Thank you.

我認為，在這個問題上，我們採取的是謹慎的態度。我們已經對此進行了徹底的審查，並採取了更為積極主動的現有發行方式，而不是那種激進的方式，這種方式與政府政策保持一致，同時保持保守增長，並且為了與我們集團的此類資產投資組合保持一致，因此，我們希望以平衡的方式追求這一領域的盈利能力和增長。這就是我們建立投資組合的方式，因此，我們對各種情況進行了模擬，從而為業務的穩定成長做好準備。謝謝。

hank you. (inaudible) Samsung Securities.

謝謝。（聽不清楚）三星證券。

es, thank you for the opportunity to ask. I just have some brief questions. First of all, you mentioned credit cost. You talked about mid to high 40 basis points. The full year if I do the math for the second quarter, I think you're around 60 basis points. So 50 basis is just on a cumulative basis for the second quarter it's 60 basis points.

是的，謝謝您給我這個提問的機會。我只有幾個簡短的問題。首先，你提到了信用成本。你提到40個基點中高段位。如果我以第二季來計算，全年大概是 60 個基點。所以，50個基點只是第二季的累積基點，而第二季的累計基點是60個基點。

So typically in the fourth quarter it does tend to go up. So are you expecting that in the second half the credit cost is likely to go down or to achieve that full-year goal, and then there was a lot of fee income from derivatives and other marketable securities.

所以通常情況下，第四季往往會上漲。所以您預計下半年信貸成本可能會下降，或實現全年目標，此外還有來自衍生性商品和其他有價證券的大量手續費收入。

So since it has gone up already, is there room for further upside? Was it more of a one-off or what are your expectations, for the second half? And regarding your collaboration with [Shinhan Bank] could you provide some progress updates, and if this goes well, is there a possibility of expanding it further?

既然價格已經上漲，還有上漲空間嗎？你覺得這只是曇花一現，還是對下半場有什麼期待？關於您與[新韓銀行]的合作，能否提供一些進展？如果進展順利，是否有可能進一步擴大合作？

es, yeah, let us prepare to answer just one moment.

是的，我們稍等片刻，準備回答這個問題。

egarding our credit cost outlook, I think you asked about some of the underlying grounds for our outlook. If you look at just the second quarter at 60 basis points, if these trends continue, of course mid to high 40 basis points will not be achievable.

關於我們的信貸成本展望，我想您問的是我們展望的一些基本依據。如果只看第二季 60 個基點，如果這種趨勢持續下去，當然不可能達到 40 個基點中高點。

So for us, we are looking at recurring trends in the third quarter. Are there any big factors in the third quarter? So we have run simulations. And we are expecting a slight decrease in credit cost going forward than the second quarter. Then market of securities and derivatives in the rate cut cycle, although our interest income goes down, this provides a boost to our overall earnings.

因此，我們關注的是第三季反覆出現的趨勢。第三季有哪些重大因素？我們已經進行了模擬。我們預計未來一季的信貸成本將比第二季略有下降。然後，在降息週期中，證券和衍生性商品市場雖然利息收入下降，但這卻提振了我們的整體收益。

But this is correlated with macro factors, so the stock market, how active it is, and the cost be index and the capital markets, the market interest trends, so these will be factors, so I cannot say it will go way above current levels to see explosive growth, but market interest trends and also the cost be activity that we have seen starting in the second quarter makes us believe that this kind of trend is likely to go up and there wasn't any one-off factor driving of derivatives.

但這與宏觀因素有關，例如股市的活躍程度、成本指數、資本市場以及市場興趣趨勢等等，這些都是影響因素。因此，我不能說它會遠遠超過目前的水平，爆炸性地成長，但從第二季開始，我們看到的市場興趣趨勢和成本活動讓我們相信，這種趨勢可能會繼續上升，衍生性商品市場的成長並非由任何一次性因素驅動。

It's not so much valuation gains, but. There's a lot of volatility in the [X-rays] for example, that can lead to gain and loss, and so that said, we see, remaining potential there as well. And then regarding the collaboration.

與其說是估值成長，不如說是…例如，[X射線]價格波動很大，可能導致收益和損失，因此，我們認為這方面仍然存在潛力。然後是關於合作方面的問題。

es, we are working hard on the, collaboration with (inaudible) and, we have experts from our side at Shinhan as well. So together we have a team of 40 people from all parties making the overall preparations starting in April this year.

是的，我們正在努力與（聽不清楚）合作，而且我們新韓方面也有專家參與。因此，我們共同組成了一個由各方人員組成的 40 人團隊，從今年 4 月開始進行全面籌備工作。

So like we said, the target is end of first quarter to provide meaningful products available to SMEs or small business owners and so we are working in line with the schedule in terms of expansion I think that's a matter for later after we do a successful launch of the initiative first, so that is it.

正如我們所說，目標是在第一季末向中小企業或小型企業主提供有意義的產品，因此我們正在按計劃推進擴張工作。我認為擴張問題應該等到我們成功推出該計劃之後再考慮，就是這樣。

hank you very much for that answer. Today is, so a number of financial groups have their earning presentations, but our time is up and we would like to conclude today's earnings presentation. And we have a bit of housekeeping, announcement for retail investors.

非常感謝您的解答。今天，許多金融集團都要進行獲利報告，但我們的時間到了，我們想結束今天的獲利報告。我們還有一些內部事務要宣布，這是給散戶的公告。

Our CFO did mention, but on August 28, we intend to have an individual IR session for retail investors through our Shinhan Financial Group, YouTube channel, same as last year. So from today up to August 4 you can apply to join on our website. So, during that session we will entertain your questions. So please upload your questions on the group website in advance of the IR session.

我們的財務長確實提到過，我們計劃在 8 月 28 日透過新韓金融集團的 YouTube 頻道為散戶投資者舉辦一場單獨的投資者關係會議，與去年相同。所以從今天起至8月4日，您可以在我們的網站上申請加入。所以，在那次會議期間，我們會回答你們的問題。所以請在投資者關係會議之前將您的問題上傳到小組網站。

So any questions that were not covered today, please go ahead and let us know by uploading them onto our home page. So more information will be provided through our website and the dot site as well. So we look forward to your interest, and with that we will conclude our earnings call for the second quarter. Thank you.

如果今天沒有解答您的任何疑問，請將其上傳到我們的主頁告知我們。因此，我們將透過我們的網站和.net網站提供更多資訊。期待您的關注，我們的第二季財報電話會議到此結束。謝謝。