Shinhan Financial (NYSE: SHG) boosts Value-Up +++ plan with 50%+ shareholder returns

Rhea-AI Filing Summary

Shinhan Financial Group updated its multi‑year value‑up strategy, now branded “Shinhan Value-Up +++ (Triple Plus).” The group previously targeted 2027 goals of 10% ROE, a 50% shareholder return ratio, and a 50 million share reduction, and has already made substantial progress.

Based on 2025 assessments, Shinhan kept its CET1 capital ratio above 13%, lifted ROE by 67 basis points year-on-year to 9.11%, achieved a 50.2% shareholder return ratio, and cut issued and outstanding shares by about 25 million by January 2026. The revamped plan keeps the 2027 goals but adds rolling three‑year guidance.

New quantitative aims include ROE of at least 10% (with a 10–12% range), a shareholder return ratio of at least 50% under a clear formula, and a CET1 ratio of at least 13% for stable management. Execution priorities focus on strengthening Shinhan’s ROTCE‑ROC value chain to improve ROE and reviewing the mix of dividends and buybacks in light of tax reforms and improving price‑to‑book ratios. The board approved the new plan on April 23, 2026.

Insights

Banking equity analyst

Shinhan tightens capital targets while committing to high shareholder returns.

Shinhan Financial Group is formalizing a value‑creation framework that balances profitability, capital strength, and payouts. It reports a CET1 ratio above 13%, ROE of 9.11% after a 67 bp improvement, and a shareholder return ratio of 50.2%, alongside a reduction of about 25 million shares.

The refreshed “Shinhan Value-Up +++ (Triple Plus)” plan keeps the original 2027 objectives but adds rolling three‑year guidance: ROE of at least 10% (10–12% range), shareholder returns of at least 50%, and CET1 of at least 13%. This ties future distributions to an explicit formula while preserving strong capital.

Strategically, the group highlights its ROTCE‑ROC value chain to support ROE improvement and plans to adjust the mix of dividends versus buybacks in response to tax changes and domestic PBR trends. The plan’s effectiveness will depend on sustaining profitability while maintaining the CET1 floor through at least 2027, as indicated by the target horizon.

Key Figures

ROE (2025 assessment): 9.11% Shareholder return ratio: 50.2% CET1 ratio: Exceeding 13% +5 more

8 metrics

ROE (2025 assessment) 9.11% Improved by 67 basis points year-on-year under value-up plan

Shareholder return ratio 50.2% Exceeded 50% target during 2025 assessment period

CET1 ratio Exceeding 13% Maintained above 13% while executing value-up initiatives

Shares reduced ≈25 million shares Issued and outstanding shares cut by January 2026

2027 ROE target range 10–12% New Value-Up +++ plan target for return on equity

Minimum shareholder return ratio target 50% or more Ongoing commitment under updated value-up plan

Minimum CET1 ratio target 13% or more Capital adequacy goal aligned with regulation and markets

Original share reduction target 50 million shares Planned cut in total issued shares by 2027

Key Terms

CET1 ratio, ROE, shareholder return ratio, PBR, +2 more

6 terms

CET1 ratio financial

"we maintained a stable CET1 ratio exceeding 13%."

CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.

ROE financial

"Our ROE improved by 67 basis points year-on-year, reaching 9.11%"

Return on equity (ROE) measures how much profit a company generates from the money shareholders have invested, like checking how effectively a chef turns ingredients into meals. Investors use it to compare how well companies turn investor funds into earnings—higher ROE usually means management is using capital more efficiently, while a low ROE can signal weaker profitability or poor use of equity.

shareholder return ratio financial

"our shareholder return ratio exceeded the targeted 50%, reaching 50.2%."

PBR financial

"the trend of PBR improvement among domestic banking and financial holding companies."

ROTCE-ROC value chain financial

"by strengthening the ROTCE-ROC value chain, which is our unique methodology"

Value-Up +++ (Triple Plus) financial

"This new value-up plan is named as “Shinhan Value-Up +++ (Triple Plus).”"

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Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

———————————

FORM 6-K

———————————

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of April 2026

Commission File Number: 001-31798

———————————

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

———————————

20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)

———————————

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

2026 Value-up Plan of Shinhan Financial Group Co., Ltd

1.On July 26, 2024, Shinhan Financial Group(hereafter ‘we’) announced a value-up plan and set 2027 as the target year for achieving the following key targets:
① 10% of ROE
② 50% of shareholder return ratio
③ Reduction of the total issued shares by 50 million shares

2.According to the assessment results of the implementation of the value-up plan in 2025, we maintained a stable CET1 ratio exceeding 13%. Our ROE improved by 67 basis points year-on-year, reaching 9.11%, and our shareholder return ratio exceeded the targeted 50%, reaching 50.2%. We also reduced the number of our issued and outstanding shares by approximately 25 million by January 2026, demonstrating solid progress in implementing the plan.

3.We have now set new targets of the value-up plan and advanced its execution methodology, taking into account changes in the overall environment – early achievement of the original targets including the shareholder return ratio, the enactment of legislation on separate taxation of dividend income, and the trend of PBR improvement among domestic banking and financial holding companies. This new value-up plan is named as “Shinhan Value-Up +++ (Triple Plus).” Each year, we will set out our goals for the next three years based on an annual review of the appropriateness of our targets.

- New Targets: While maintaining the existing 2027 targets, we will provide updated guidance for the next three-year period annually. In addition, we will present and communicate principles for the allocation between growth and shareholder returns, as well as a formula for the shareholder return ratio. ① 10% or more of ROE (target range 10–12%);
② 50% or more of the shareholder return ratio (presenting a predictable shareholder return policy based on the above formula); and
③ 13% or more of the CET1 ratio (stable management in line with regulatory and market environment).

4.To achieve the above goals, we will advance the execution methodology while focusing on the following strategic priorities:
① Improving the achievability of ROE targets by strengthening the ROTCE-ROC value chain, which is our unique methodology; and
② Reviewing the shareholder return mix strategies in consideration of tax reforms and the PBR level.

5.With the restructuring of the value-up plan, we aim to enhance core profitability at a fast pace based on a stable CET1 ratio, implement more sustainable, and predictable growth and shareholder return policies.

6.This value-up plan was adopted by resolution of the Board of Directors on April 23, 2026. We will continue to assess the progress of the implementation and communicate any updates or changes to this plan after deliberation and resolution by the Board of Directors.

Please refer to attached PDF file for further details.

The English version of the Plan can also be viewed from the company’s website at www.shinhangroup.com

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.
				(Registrant)
Date: April 23, 2026				By:		/s/ JANG Jeong Hoon
				Name: JANG Jeong Hoon
				Title: Chief Financial Officer

FAQ

What is Shinhan Financial Group (SHG) announcing in this 6-K filing?

Shinhan Financial Group is updating its value-up strategy, now called “Shinhan Value-Up +++,” keeping its 2027 targets while adding rolling three-year guidance for ROE, shareholder returns, and CET1 capital, all approved by the board on April 23, 2026.

How has Shinhan Financial Group progressed on its original value-up targets?

Shinhan reports a CET1 ratio above 13%, ROE improved to 9.11% after a 67 basis-point increase, a shareholder return ratio of 50.2%, and a reduction of about 25 million issued and outstanding shares by January 2026, showing substantial progress toward its 2027 goals.

What new financial targets are included in Shinhan’s Value-Up +++ plan?

The updated plan targets ROE of at least 10% within a 10–12% range, a shareholder return ratio of at least 50% based on a defined formula, and a CET1 ratio of at least 13%, aligning profitability, payouts, and capital strength for the coming years.

How will Shinhan Financial Group manage shareholder returns under the new plan?

Shinhan plans to maintain a shareholder return ratio of at least 50%, supported by a clear formula, and to review the mix between dividends and share repurchases, considering tax reforms and domestic price-to-book trends when deciding its capital return structure.

What strategic priorities support Shinhan’s ROE and capital targets?

Shinhan will strengthen its ROTCE‑ROC value chain, a proprietary framework aimed at improving return on equity, and continuously reassess its shareholder return mix, seeking to enhance core profitability while maintaining a CET1 ratio of at least 13% for stable management.

Who approved Shinhan Financial Group’s Value-Up +++ plan and how will it be monitored?

The board of directors approved the Value-Up +++ plan on April 23, 2026. Shinhan will annually review target appropriateness, set new three-year goals each year, and communicate updates or changes after board deliberation and resolutions.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 EX-99.1 8.4 MB