Higher payouts in Shinhan Financial (NYSE: SHG) 2026 value-up plan

Higher payouts in Shinhan Financial (NYSE: SHG) 2026 value-up plan

Higher payouts in Shinhan Financial (NYSE: SHG) 2026 value-up plan

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Key Figures

Key Terms

How did Shinhan Financial Group (SHG) perform in Q1 2026?

What is Shinhan Financial Group’s new 2026 value-up plan?

What dividend did Shinhan Financial Group declare for Q1 2026?

How strong are Shinhan Financial Group’s capital ratios in 2026?

What is Shinhan Financial Group’s recent ROE and shareholder return ratio?

How is Shinhan Financial Group managing asset quality and non-performing loans?

Positive

Negative

Key Figures

Key Terms

How did Shinhan Financial Group (SHG) perform in Q1 2026?

What is Shinhan Financial Group’s new 2026 value-up plan?

What dividend did Shinhan Financial Group declare for Q1 2026?

How strong are Shinhan Financial Group’s capital ratios in 2026?

What is Shinhan Financial Group’s recent ROE and shareholder return ratio?

How is Shinhan Financial Group managing asset quality and non-performing loans?

Positive

Negative

Key Figures

Key Terms

How did Shinhan Financial Group (SHG) perform in Q1 2026?

What is Shinhan Financial Group’s new 2026 value-up plan?

What dividend did Shinhan Financial Group declare for Q1 2026?

How strong are Shinhan Financial Group’s capital ratios in 2026?

What is Shinhan Financial Group’s recent ROE and shareholder return ratio?

How is Shinhan Financial Group managing asset quality and non-performing loans?

Press Releases

Press Releases

(Neutral)

Form Type

6-K

Shinhan Financial Group reported solid Q1 2026 results and updated its capital return strategy. Consolidated net profit was W 1,649,148 million, up from W 1,517,046 million a year earlier, with basic earnings per share of W 3,327.

The Group highlighted progress on its value-up program, achieving a 2025 ROE of 9.11%, a shareholder return ratio of 50.2%, and reducing issued and outstanding shares by about 25 million by January 2026. A new “Shinhan Value-Up +++ (Triple Plus)” plan targets ROE of 10–12%, a shareholder return ratio of at least 50%, and a CET1 ratio of at least 13%. The board resolved a quarterly cash dividend of W 740 per share for Q1 2026, with record date April 30 and expected payment on May 29. Capital and liquidity remain strong, with a consolidated BIS ratio of 15.72% and Shinhan Bank’s liquidity coverage ratio at 106.0%.

Q1 profit grew modestly, with a more explicit, shareholder-friendly capital return framework.

Shinhan Financial Group generated Q1 2026 consolidated net profit of W 1,649,148 million, with net interest income of W 3,024,143 million and net fees and commissions of W 940,826 million. Credit costs remained meaningful, with provision for credit losses of W 520,112 million, but overall profitability improved versus the prior-year quarter.

Capital metrics are robust: the consolidated BIS ratio was 15.72% and CET1 exceeded 13% as of March 31, 2026. Asset quality is generally sound, with a consolidated NPL ratio of 0.72%, though the “Substandard & Below” ratio ticked up to 0.83%. Liquidity indicators, including Shinhan Bank’s liquidity coverage ratio of 106.0%, sit comfortably above regulatory minimums.

The refreshed “Shinhan Value-Up +++ (Triple Plus)” plan formalizes targets of ROE of at least 10% (10–12% range), a shareholder return ratio of at least 50%, and CET1 of at least 13%, following early achievement of the original payout goal. The board also approved a quarterly cash dividend of W 740 per share for Q1 2026. Subsequent filings may provide more detail on execution of buybacks and dividend trajectory within this framework.

Q1 2026 consolidated net profit: W 1,649,148 million Basic EPS: W 3,327 per share 2025 ROE: 9.11% +5 more

8 metrics

Q1 2026 consolidated net profit W 1,649,148 million Three-month period ended March 31, 2026

Basic EPS W 3,327 per share Q1 2026, consolidated

2025 ROE 9.11% Full year 2025, Group level

2025 shareholder return ratio 50.2% Combined dividends and buybacks, 2025

Target CET1 ratio ≥ 13% Shinhan Value-Up +++ plan target

Q1 2026 cash dividend W 740 per share Record date April 30, 2026; expected payment May 29, 2026

Consolidated BIS ratio 15.72% As of March 31, 2026

Total loans W 491,346.4 billion Consolidated basis, March 31, 2026

CET1 ratio, BIS Ratio, Liquidity Coverage Ratio, Substandard & Below Ratio, +2 more

6 terms

CET1 ratio financial

"13% or more of the CET1 ratio (stable management in line with regulatory and market environment)."

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.

BIS Ratio financial

"BIS Ratio (A/B) | 15.72% | 15.94% | 15.74%"

The BIS ratio is a measure of a bank’s financial cushion, calculated by comparing the bank’s capital to the size and risk of its assets as defined by international banking standards. It tells investors how well a bank can absorb losses and stay solvent—think of it as the thickness of an airbag relative to the size of a car: the bigger the cushion, the safer the ride. Regulators use it to judge stability and permission to grow lending.

Liquidity Coverage Ratio financial

"Liquidity Coverage Ratio(%)* | High Quality Liquid Assets | Net Cash Outflows | Liquidity Coverage Ratio(%)*"

The liquidity coverage ratio is a banking rule that measures whether a bank has enough high-quality, easy-to-sell assets to cover expected net cash outflows for 30 days. Think of it as a household’s emergency fund that must cover a month of bills; for investors, a higher ratio means the bank is better positioned to survive short-term stress, reducing the risk of fire sales, funding problems, or sudden capital needs that can hurt the share price.

Substandard & Below Ratio financial

"Substandard & Below Ratio | 0.83% | 0.74% | 0.79%"

hybrid bonds financial

"Hybrid bonds | 4,719,886 | 4,749,837"

Hybrid bonds are loan-like securities that combine features of regular debt and equity: they pay interest like a bond but often rank lower than other creditors, may allow skipped payments, be callable, or convert into stock. Investors get higher yields to compensate for greater risk, because hybrids act as a buffer that can absorb losses or become ownership if a company gets into trouble — like lending money with the option to become a partial owner if needed.

K-IFRS 1118 financial

"K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’"

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

Accepted by SEC EDGAR 05/15/2026 - 06:05 AM

Shinhan Financial Group posted consolidated net profit of W 1,649,148 million in Q1 2026, up from W 1,517,046 million a year earlier. Net interest income reached W 3,024,143 million and net fees and commissions were W 940,826 million, supporting overall earnings growth.

The “Shinhan Value-Up +++ (Triple Plus)” plan keeps 2027 goals but adds rolling three-year guidance. It targets ROE of 10–12%, a shareholder return ratio of at least 50%, and a CET1 ratio of at least 13%, balancing growth investment with shareholder returns.

The board approved a quarterly cash dividend of W 740 per share for Q1 2026. The record date is April 30, 2026, with an expected payment date of May 29, 2026, subject to possible adjustments after consultation with relevant institutions.

As of March 31, 2026, Shinhan Financial Group’s consolidated BIS ratio was 15.72%. Aggregate equity capital totaled W 57,363.3 billion against risk-weighted assets of W 365,001.9 billion, indicating a solid capital position above minimum regulatory requirements.

For 2025, Shinhan Financial Group reported ROE of 9.11%, improving by 67 basis points year-on-year. The shareholder return ratio exceeded its target, reaching 50.2%, reflecting combined cash dividends and share repurchases under its prior value-up plan.

On a consolidated basis at March 31, 2026, total loans were W 491,346.4 billion. The NPL ratio stood at 0.72% and the “Substandard & Below” ratio at 0.83%, with a Substandard & Below coverage ratio of 112.87%, indicating significant reserves relative to problem loans.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

——————————

FORM 6-K

——————————

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of May 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 

INDEX


No.	Description
1. 2.	Summary of 1Q 2026 Business Report Exhibit 99.1 Shinhan Financial Group Review Report for the 1Q 2026 (Consolidated)
3.	Exhibit 99.2 Shinhan Financial Group Review Report for the 1Q 2026 (Separate)

Summary of 1Q 2026 Business Report

On May 15, 2026, Shinhan Financial Group (“SFG”) filed its 1Q 2026 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

1. Introduction of the Group

2. Business Results

3. Other Financial Information

4. Independent Auditor

5. Corporate Governance

6. Major Shareholders and Market Price Information of our Common Shares and ADRs

7. Directors, Executive Officers and Employees

8. Related Party Transactions

9. Internal Control

10. Contingencies

11. Material Information after the reporting period

1. Introduction of the Group

Business Objective

Shinhan Financial Group is a financial holding company that was established in September 1, 2001, through a stock transfer from the Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd., and Shinhan BNP Paribas Asset Management Co., Ltd. The primary business objectives of the company includes the control and management of financial business, as well as financial support for its subsidiaries.

On September 10, 2001, the company was listed on the Korea Stock Exchange and on September 16, 2003, the company was registered with the U.S. Securities and Exchange Commission(SEC), where its American Depositary Shares(ADSs) were listed on the New York Stock Exchange(NYSE).

Company History

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your references.

Overview of the Business Group

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your references.

Credit Ratings

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your references.

Capital Structure

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your references.

Dividends

On July 26, 2024, we announced a value-up plan and set 2027 as the target year for achieving the following key targets:

10% of ROE

50% of shareholder return ratio

Reduction of the total issued shares by 50 million shares

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.

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.

10% or more of ROE (target range 10–12%);

50% or more of the shareholder return ratio (presenting a predictable shareholder return policy based on the above formula); and

13% or more of the CET1 ratio (stable management in line with regulatory and market environment).

To achieve the above goals, we will advance the execution methodology while focusing on the following strategic priorities:

Improving the achievability of ROE targets by strengthening the ROTCE-ROC value chain, which is our unique methodology; and

Reviewing the shareholder return mix strategies in consideration of tax reforms and the PBR level.

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

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.

For further details regarding the Company’s Corporate Value-up Plan, please refer to the voluntary disclosure titled ‘2026 Value-up Plan of Shinhan Financial Group Co., Ltd’ announced on April 23, 2026.

2026 Quarterly Dividend Record Dates and Expected Payment Dates


Quarter	Dividend Record Date	Expected Payment Date
Q1 2026	April 30, 2026	May 29, 2026


Q2 2026	July 30, 2026	August 28, 2026
Q3 2026	November 3, 2026	November 27, 2026

Note) The dividend amount for each quarter will be determined at the Board meeting held before each respective record date. The expected payment dates may subject to change based on consultations with relevant institutions.


		(KRW million)
Items	1Q FY2026 (Jan. 1 ~ Mar. 31)	FY2025 (Jan. 1 ~ Dec. 31)	FY2024 (Jan. 1 ~ Dec. 31)
Par value per share (Won)	5,000	5,000	5,000
(Consolidated) Net Income	1,622,594	4,971,561	4,450,177
(Separate) Net Income	2,360,316	2,385,457	1,619,867
(Consolidated) Earnings per share (Won)	3,327	9,812	8,441
Total Cash dividends	348,750	1,245,730	1,088,042
Total Stock dividends	-	-	-
(Consolidated) Cash dividend payout ratio (%)	21.49	25.06	24.45
Cash dividend yield (%) – common shares	0.74	3.01	4.26
Cash dividend yield (%) – preferred shares	-	-	-
Stock dividend yield (%)	-	-	-
Cash dividend per share (Won) – common shares	740	2,590	2,160
Cash dividend per share (Won) – preferred shares	-	-	-
Stock dividend per share	-	-	-

2. Business Results

Operating Results


		(KRW billion)
	1Q FY 2026 (Jan. 1 ~ Mar. 31)		FY 2025 (Jan. 1 ~ Dec. 31)	FY 2024 (Jan. 1 ~ Dec. 31)
Net interest income	3,024		11,695	11,402
Interest income	7,072		27,989	29,209
Interest expense	4,048		16,294	17,807
Net fees and commission income	941		2,921	2,715
Fees and commission income	1,362		4,564	4,295
Fees and commission expense	421		1,643	1,581
Net insurance income	-147		-136	884
Insurance income	953		3,611	3,393
Insurance expense	1,100		3,746	2,509
Net gain(loss) on securities and FX trading/derivatives	935		3,134	2,038
Provision for credit loss and impairment loss	-513		-2,012	-2,104
Net other operating income(expense)	-540		-2,176	-2,360
General and administrative expenses	1,545		6,403	6,116
Net operating income	2,155		7,023	6,459
Equity method income	49		221	-24
Other non-operating income(expense), net	18		-316	-406
Profit before income taxes	2,221		6,929	6,029
Income tax expense	572		1,845	1,471
Consolidated net profit	1,649		5,085	4,558
Net profit attributable to equity holders of the Group	1,623		4,972	4,450
Net profit attributable to non-controlling interest	27		113	108
1) Some of the totals may not sum due to rounding numbers.

Source and Use of Funds


Consolidated Basis (KRW billion, %)		1Q 2026				FY 2025				FY 2024
		Jan. 01 ~ Mar. 31				Jan. 01 ~ Dec. 31				Jan. 01 ~ Dec. 31
		Average Balance1)	Propor-tions (%)	Interest Paid	Interest Rate (%)	Average Balance1)	Propor-tions (%)	Interest Paid	Interest Rate (%)	Average Balance1)	Propor-tions (%)	Interest Paid	Interest Rate (%)
Source	Deposits	456,449.5	57.0	2,258.9	2.0	430,736.9	56.6	9,202.3	2.1	403,986.6	55.9	10,220.8	2.5
	Borrowings	55,659.7	7.0	396.3	2.9	52,442.2	6.9	1,534.8	2.9	54,754.3	7.6	1,862.4	3.4
	Debt Securities Issued	90,575.7	11.3	822.7	3.7	91,752.3	12.1	3,347.4	3.7	87,474.4	12.1	3,422.0	3.9
	Other Liabilities	137,757.8	17.2	-	-	126,732.1	16.6	-	-	119,008.3	16.5	-	-
	Total Liabilities	740,442.7	92.4	-	-	701,663.5	92.1	-	-	665,223.6	92.0	-	-
	Total Stockholder's Equity	60,923.3	7.6	-	-	59,862.9	7.9	-	-	57,655.6	8.0	-	-
	Total Liabilities & SE	801,366.0	100.0	-	-	761,526.4	100.0	-	-	722,879.2	100.0	-	-
Use	Cash & Due from Banks	40,602.1	5.1	208.0	2.1	42,566.8	5.6	782.5	1.8	38,020.3	5.3	780.2	2.1
Use	Loans	472,931.0	59.0	5,330.3	4.6	455,659.5	59.8	21,419.3	4.7	434,102.2	60.1	22,542.6	5.


												2
Loans in KRW	367,287.5	45.8	3,803.1	4.2	356,117.1	46.8	15,398.7	4.3	339,139.5	46.9	16,520.0	4.9
Loans in Foreign Currency	54,668.2	6.8	638.2	4.7	49,607.3	6.5	2,461.5	5.0	44,188.9	6.1	2,402.3	5.4
Credit Card Accounts	28,588.3	3.6	578.3	8.2	28,528.8	3.8	2,331.9	8.2	27,982.2	3.9	2,256.0	8.1
Others	22,387.0	2.8	310.7	5.6	21,406.3	2.8	1,227.3	5.7	22,791.6	3.2	1,364.3	6.0
FVPL Financial Assets	44,679.7	5.6	418.2	3.8	44,793.8	5.9	1,499.1	3.4	44,711.6	6.2	1,693.1	3.8
FVOCI Financial Assets	101,567.3	12.7	774.5	3.1	95,525.5	12.5	2,888.3	3.0	88,378.8	12.2	2,744.1	3.1
AC Financial Assets	31,611.4	3.9	250.2	3.2	32,462.5	4.3	1,044.1	3.2	35,015.5	4.8	1,101.7	3.2
Other Assets	109,974.5	13.7	-	-	90,518.3	11.9	-	-	82,650.8	11.4	-	-
Total Assets	801,366.0	100.0	-	-	761,526.4	100.0	-	-	722,879.2	100.0	-	-

Notes :

Consolidated basis

The “Average Balance” is the arithmetric mean of the ending balance of each quarter

3. Other Financial Information

1) Capital Adequacy

Consolidated BIS Ratio (Shinhan Financial Group)


			(KRW billion)
	Mar. 31, 2026	Dec. 31, 2025	Dec. 31, 2024
Aggregate Amount of Equity Capital (A)	57,363.3	56,260.6	53,903.4
Risk-Weighted Assets (B)	365,001.9	352,907.6	342,375.3
BIS Ratio (A/B)	15.72%	15.94%	15.74%
Note: ▪ Calculated in accordance with Basel III

Capital Adequacy Ratios (Subsidiaries)


				(%)
Subsidiary	Capital Adequacy Ratio	Mar. 31, 2026	Dec. 31 2025	Dec. 31, 2024
Shinhan Bank	BIS Capital Adequacy Ratio	17.1	17.4	17.6
Shinhan Card	Adjusted Equity Capital Ratio	20.9	20.8	20.0
Shinhan Securities	Net Capital Ratio	1,986.5	1,924.7	1,345.0
Shinhan Life Insurance	Risk Based Capital Ratio(K-ICS)	200.6	206.0	205.7
Shinhan Capital	Adjusted Equity Capital Ratio	19.5	19.5	19.3
Shinhan Asset Management	Equity Capital (KRW billion)	256.1	287.6	316.6
Shinhan Asset Management	Minimum Capital Requirement (KRW billion)	55.1	54.2	50.1
Jeju Bank	BIS Capital Adequacy Ratio	15.9	16.2	17.6
Shinhan Savings Bank	BIS Capital Adequacy Ratio	18.4	19.9	20.1
Shinhan Asset Trust	Net Capital Ratio	660.8	443.5	519.1
Shinhan EZ Gen. Insurance	Risk Based Capital Ratio(K-ICS)	210.9	231.2	159.2
Notes : ▪ Basel III was applied in calculating Shinhan Bank and Jeju Bank’s BIS Capital Adequacy Ratio. ▪ Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio. ▪ Shinhan Life and Shinhan EZ General Insurance upgraded its insurance risk measurement system in anticipation of a new regulatory solvency regime for insurance companies, the Korean-Insurance Capital Standard (the “K-ICS”). As of the date of submission of the 1Q Report in 2026, the above payment capacity ratio is preliminary calculated, and the finally confirmed ratio will be amended and disclosed in Shinhan Life's 1Q 2026 business report and Shinhan EZ General Insurance's 1Q 2026 management disclosure.

2) Liquidity

Won Liquidity Ratio


								(KRW billion, %)
Company	Mar. 31, 2026			Dec. 31, 2025			Dec. 31, 2024
Company	Won Assets	Won Liabilities	Won Liquidity Ratio(%)	Won Assets	Won Liabilities	Won Liquidity Ratio(%)	Won Liabilities		Won Liabilities	Won Liquidity Ratio(%)
Shinhan Financial Group	3,390.6	959.5	353.4	934.2	149.7	623.9	1,051.7		56.4	1865.9
Shinhan Card	21,013.8	6,056.1	347.0	21,507.1	6,786.6	316.9	21,546.6		6,077.3	354.5
Shinhan Securities	24,536.2	19,973.9	122.8	23,577.5	18,417.5	128.0	23,664.4		18,128.1	130.5
Shinhan Life Insurance	4,327.4	1,387.7	311.8	5,034.1	1,371.5	367.0	5,635.7		1,359.9	414.4
Shinhan Capital	1,906.6	975.8	195.4	2,218.8	830.6	267.1	2,529.0		1084.1	233.3
Shinhan Savings Bank	729.2	635.5	114.7	604.6	544.3	111.1	608.4		480.2	126.7
Shinhan Asset Trust	240.0	123.7	194.0	61.7	15.3	402.8	186.3		11.0	1,686.2
Shinhan EZ General Insurance	92.9	18.9	491.8	111.9	17.0	659.4	73.1		9.9	736.3
Notes: ▪ Shinhan Financial Group: Due within 1 month ▪ Shinhan Life Insurance and EZ General Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100 ▪ Shinhan Card, Shinhan Securities, Shinhan Capital, Shinhan Savings Bank and Shinhan Asset Trust : 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. ▪ Shinhan Life Insurance recorded a decline in its liquidity ratio following the amendment to the Insurance Business Supervision Regulations on December 31, 2024, which narrowed the scope of assets recognized as liquid - such as government bonds with maturities exceeding three months now classified as only 30% liquid.

Liquidity Coverage Ratio


							(KRW billion, %)
Company	Mar. 31, 2026			Dec. 31, 2025			Dec. 31, 2024
Company	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	98,504.1	93,002.8	106.0	99,551.4	95,016.8	104.8	90,658.4	87,753.4	103.3
Jeju Bank	1,156.1	778.4	150.5	1,090.1	907.0	120.9	939.4	770.1	122.7
Notes: ▪ Liquidity Coverage Ratios are the arithmetic mean of daily LCRs. ▪ Financial Services Commission temporarily eased the regulatory minimum from 100.0% to 85.0% by end of June 2022 to 90.0% by end of September 2022, to 92.5% by end of June, 2023, to 95.0% by end of December 2023, to 97.5% by end of December 2024. From 2025 onwards, the regulatory minimum is back to 100% after normalized process.

Foreign Currency (FC) Liquidity Ratio


							(USD millions, %)
Company	March. 31, 2026			Dec. 31, 2025			Dec. 31, 2024
Company	FC Assets	FC Liabilities	FC Liquidity Ratio(%)	FC Assets	FC Liabilities	FC Liquidity Ratio(%)	FC Assets	FC Liabilities	FC Liquidity Ratio(%)


Shinhan Financial Group	328.2	-	NA	540.7	523.5	103.3	531.4	519.2	102.4
Shinhan Bank	72,538.5	67,669.6	107.2	77,073.0	71,832.5	107.3	63,127.9	56,347.0	112.0
Shinhan Life Insurance	2,862.4	366.4	781.2	2,707.4	243.6	1,111.7	2,074.0	163.0	1,272.3
Shinhan Securities	9,961.0	8,567.7	116.3	9,534.0	8,026.4	118.8	11,083.7	9,616.5	115.3
Shinhan Capital	235.8	202.2	116.6	54.5	1.7	3,273.5	79.7	0.6	13,741.7
Jeju Bank	12.9	2.9	450.4	13.5	5.6	240.4	10.1	0.8	1,295.2
Notes : ▪ Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months. ▪ Shinhan Bank and Jeju Bank’s foreign currency liquidity ratio is based on the application of the liquidity weight.

Foreign Currency (FC) Liquidity Coverage Ratio


			(%)
Company	1Q 2026	FY 2025	FY 2024
Company	Jan. 1 ~ Mar. 31	Jan. 1 ~ Dec. 31	Jan. 1 ~ Dec. 31
Shinhan Bank	172.6	185.0	148.8

Notes :

▪

Foreign Currency Liquidity Coverage Ratio started from January 2017, and is calculated by quarterly average.

3) Asset Quality

SFG Consolidated Basis


(KRW billion)
	Mar. 31, 2026	Dec. 31, 2025	Dec. 31, 2024
Total Loans	491,346.4	478,739.9	452,826.9
Substandard & Below	4,080.9	3,536.6	3,562.4
Substandard & Below Ratio	0.83%	0.74%	0.79%
Non-Performing Loans	3,524.4	3,067.6	2,974.7
NPL Ratio	0.72%	0.64%	0.66%
Substandard & Below Coverage Ratio	112.87%	126.55%	132.48%
Loan Loss Allowance	4,606.2	4,475.4	4,719.3
Substandard & Below Loans	4,080.9	3,536.6	3,562.4

Separate Basis


(%)	Mar. 31 2026			Dec. 31 2025			Dec. 31 2024
(%)	Substandard & Below Ratio	NPL Ratio	Substandard & Below Coverage Ratio	Substandard & Below Ratio	NPL Ratio	Substandard & Below Coverage Ratio	Substandard & Below Ratio	NPL Ratio	Substandard & Below Coverage Ratio 1)
Shinhan Financial Group	-	-	-	-	-	-	-	-	-
Shinhan Bank	0.30	0.27	162	0.28	0.25	173	0.24	0.18	202
Shinhan Card	1.25	0.61	227	1.16	0.57	234	1.32	0.80	243
Shinhan Securites	10.00	10.00	63	10.62	10.62	76	18.30	18.30	70
Shinhan Life Insurance	2.87	0.38	53	0.54	0.38	235	0.32	0.32	393
Shinhan Capital	3.30	2.58	104	2.30	2.26	144	3.98	2.35	75
Jeju Bank	1.50	1.46	91	1.57	1.54	86	1.32	1.22	114
Shinhan Savings Bank	5.95	10.75	92	6.24	11.98	91	7.90	13.16	72
Shinhan Asset Trust	90.38	72.32	34	86.17	64.06	38	75.15	52.31	43

4) Debt to Equity Ratios

Shinhan Financial Group (Separate Basis)


(KRW billion)
	Mar. 31, 2026	Dec. 31, 2025	Dec. 31, 2024
Debt	11,340.1	11,458.4	11,324.1
Equity	27,807.7	26,335.5	26,348.2
Debt to Equity Ratio	40.78%	43.51%	42.98%

Twenty Largest Exposures by Borrower


(KRW billion)
As of March 31, 2026 Consolidated basis	Loans in Won	Loans in Foreign Currency	Securities	Guarantees and Acceptances	Others	Total Exposures
Korea Electric Power Corporation	0.4	129.0	3,037.0	88.7	-	3,255.1
KEB Hana Bank	1,373.3	-	1,746.2	49.7	-	3,169.1
Samsung Electronics	-	2,714.5	4.2	-	-	2,718.7
Woori Bank	1,482.8	10.5	1,032.2	0.0	-	2,525.6
LG Display	1,117.0	665.7	10.0	-	-	1,792.7
Nong Hyup Bank	344.8	245.3	1,066.5	21.2	-	1,677.8
KB Bank	825.2	-	746.9	10.0	-	1,582.2
Lotte Hotel	66.6	645.9	129.5	735.8	-	1,577.9
Songpa Biz-Cluster PFV	1,405.1	-	7.2	-	-	1,412.3
HD Hyundai Heavy Industries Co., Ltd.	-	-	0.1	1,409.8	-	1,409.8
Samsung Heavy Industries Co., Ltd.	20.0	-	9.9	1,347.3	-	1,377.2
Hyundai Rotem Company	2.1	26.0	-	1,323.0	-	1,351.1
S-Oil	579.6	342.1	348.3	13.0	-	1,283.0
Hanwha Corporation	800.5	185.8	185.1	71.2	-	1,242.5
KT	77.6	-	1,037.0	117.0	-	1,231.5
LIG Defense&Aerospace	6.3	-	19.9	1,162.9	-	1,189.1
Mirae Asset Securities	700.3	22.7	310.3	100.0	-	1,133.3
Kiwoom Securities Co., Ltd.	576.0	-	504.8	-	-	1,080.9
Lotte Chemical Corporation	280.0	209.8	79.6	434.1	-	1,003.6
Meritz Securities Co., Ltd.	548.2	-	418.8	-	-	967.0
Total	10,205.9	5,197.4	10,693.5	6,883.5	-	32,980.2
Note) Some of the totals may not sum due to rounding

Exposure to ten Main Debtor Groups


(KRW billion)
As of Mar. 31, 2026 Consolidated basis	Loans in Won	Loans in Foreign Currency	Securities	Guarantees and Acceptances	Others	Total Exposures
Samsung	540.8	4,664.0	662.3	2,222.5	0.0	8,089.7
Lotte	2,487.9	1,353.6	843.9	1,598.6	0.1	6,284.1
Hyundai Motor Company	1,274.5	1,351.5	1,086.6	1,548.1	0.0	5,260.7
Hanwha	1,795.8	786.0	1,283.8	980.7	0.3	4,846.6
SK	1,561.3	947.8	1,677.6	475.0	0.0	4,661.7
LS	337.1	1,481.3	447.0	1,301.9	0.0	3,567.3
LG	1,516.1	877.0	510.8	336.1	0.0	3,240.1
HD Hyundai	500.3	51.7	172.9	2,334.3	-	3,059.2
POSCO	759.0	851.9	187.2	10.7	0.0	1,808.8
KT	134.8	82.9	1,175.5	200.6	-	1,593.8
Total	10,907.7	12,447.7	8,047.7	11,008.5	0.4	42,411.9
Note) Some of the totals may not sum due to rounding

Top Twenty Non-Performing Loans


(KRW billion)
Borrower	Industry	Gross Principal Outstanding	Substandard & Below	Allowance for Loan Losses
A	Other financial service activities n.e.c.	159.0	159.0	112.0
B	Other financial service activities n.e.c.	99.6	99.6	19.4
C	Other financial investment business	65.0	65.0	12.2
D	Cable boradcasting	64.9	64.9	64.9
E	Development and subdividing of non-residential building	49.0	49.0	38.3
F	Manufacture of rail locomotives and rolling stock	48.8	47.4	38.7
G	Development and subdividing of non-residential building	49.4	47.4	19.5
H	Development and subdividing of other real estate	30.0	30.0	4.5
I	Other financial service activities n.e.c.	52.1	29.8	14.8
J	Other financial service activities n.e.c.	27.7	27.7	7.4
K	Advertising agencies	27.1	27.1	1.6
L	Museum activities	20.0	20.0	0.0
M	Other financial service activities n.e.c.	20.0	20.0	-
N	Development and subdividing of non-residential building	19.5	19.5	9.9
O	Other financial service activities n.e.c.	19.0	19.0	19.0
P	Development and subdividing of non-residential building	16.6	16.6	2.7
Q	Development and subdividing of residential buildings	15.5	15.5	5.4
R	Other financial service activities n.e.c.	15.0	15.0	15.0
S	Development and subdividing of other real estate	15.0	15.0	0.3
T	Non-specialized wholesale trade	14.1	14.1	14.1
Total		827.2	801.5	399.7
Notes : • Consolidated basis as of Mar. 31, 2026 • Some of the totals may not sum due to rounding.

4. Independent Auditor

Audit Opinion for the last 3 years


	1Q 2026	FY 2025	FY 2024
Independent Auditor	PWC Samil Accounting Corp.	KPMG Samjong Accounting Corp.	KPMG Samjong Accounting Corp.
Audit Opinion	-	Unqualified	Unqualified
Note) The review of the 1st quarter of 2026 by the external auditor did not identify any matters that would cause the interim financial statements, prepared in accordance with K-IFRS, to be considered not fairly presented in all material respects.

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
1Q 2026	PWC Samil Accounting Corp.	1,047 (annualized basis)	Review/Audit of Financial Statements	1,339 Hours
1Q 2026	PWC Samil Accounting Corp.	129 (annualized basis)	K-IFRS Report Package Audit for Shinhan Savings Bank	126 Hours
FY 2025	KPMG Samjong Accounting Corp.	1,025 (annualized basis)	Review/Audit of Financial Statements	9,107 Hours
FY 2025	KPMG Samjong Accounting Corp.	135 (annualized basis)	K-IFRS Report Package Audit for Shinhan Savings Bank	1,115 Hours
FY 2024	KPMG Samjong Accounting Corp.	1,025 (annualized basis)	Review/Audit of Financial Statements	9,071 Hours
FY 2024	KPMG Samjong Accounting Corp.	135 (annualized basis)	K-IFRS Report Package Audit for Shinhan Savings Bank	1,144 Hours
1) Excluding value-added taxes.

Change of External Auditor

     Financial
Year

     Changed Company

     Previous Auditor

     Changed Auditor

     Detail

     FY2026

     Shinhan Financial Group Co., Ltd.

     KPMG Samjong
Accounting 

     PWC Samil 
Accounting 

     Expiration of the audit


		Corp.	Corp.	contract term

Note) Pursuant to the Act on External Audit of Stock Companies, etc. and its enforcement decree, the audit contract term of KPMG Samjong, designated as the external auditor for Shinhan Financial Group for the 23rd to 25th fiscal year has expired. Accordingly, the external auditor for the 26th fiscal year of Shinhan Financial Group and its subsidiaries has been changed from KPMG Samjong to PWC Samil.

5. Corporate Governance

Board of Directors and committees of the Board of Directors

Our board of directors, which currently consists of one executive director, one non-executive director and nine outside directors, has the ultimate responsibility for the management of our affairs.

• Committees of the Board of Directors

We currently have eight management committees that serve under the board:

the Committee for Recommending Candidates for CEO;

the Audit Committee;

the Committee for Recommending Candidates for Independent Directors and Members of Audit Committee;

the Risk Management Committee;

the Remuneration Committee;

the Environment, Social and Governance (ESG) Strategy Committee;

the Subsidiary’s CEO Recommendation Committee; and

the Internal Control Committee.

Each committee member is appointed by the board of directors, except for members of the Audit Committee, who are elected at the general meeting of shareholders.

Committee for Recommending Candidates for CEO

The Committee for Recommending Candidates for CEO currently consists of five directors: Choi Young Gwon (Chairman), Kwak Su Keun, Kim Jo Seol, Park Jong Bok and Bae Hoon. However, for the meeting for the final selection of candidates for the CEO position, all outside directors are called to participate in the committee, and in this case, all outside directors are considered to be part of the committee. This committee is responsible for matters concerning the recommendation of candidates for the CEO position, including establishing and reviewing our management succession plan and its operation, setting and evaluating the qualifications and criteria for the CEO and CEO candidate pool and other matters necessary for improving our overall corporate governance structure. The chairman of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to the CEO selection.

Audit Committee

The Audit Committee currently consists of four outside directors: Lim Seung Yeon (Chairman), Kwak Su Keun, Bae Hoon and Choi Young Gwon. The committee oversees our financial reporting and approves the appointment of, and interaction with, our independent auditors and our internal audit-related officers. The committee also reviews our financial information, audit examinations, key financial statement issues and the administration of our financial affairs by the board of directors. The committee examines the agenda, and financial statements and other reports to be submitted by the board of directors, for each general meeting of shareholders. The committee holds regular meetings every quarter.

Committee for Recommending Candidates for Independent Directors and Members of Audit Committee

The Committee for Recommending Candidates for Independent Directors and Members of Audit Committee currently consists of four outside directors: Yang In Jip (Chairman), Kim Jo Seol, Lim Seung Yeon and Chun Myo Sang. Members of this committee will be appointed by our board of directors only to the extent necessary to recommend and nominate candidates for our outside director positions and audit committee members, and related matters. However, when the process for final recommendation of outside director and audit committee member candidates commences, all outside directors are called to participate in the committee, and in this case, all outside directors are considered to be part of the committee. The committee meetings are called by the committee’s chairman, who must be an outside director. This committee is responsible for matters relating to: (i) establishment, review and reinforcement of policies for outside director and audit committee member selection, (ii) recommendation of outside director and audit committee member candidates for approval at the general shareholders’ meeting and (iii) continual recruitment and screening of potential outside director candidates.

Risk Management Committee

The Risk Management Committee currently consists of three outside directors: Song Seong Joo (Chairman), Park Jong Bok and Yang In Jip. The committee oversees and makes determinations on all issues relating to our comprehensive risk management function. In order to ensure our stable financial condition and to maximize our profits, the committee monitors our overall risk exposure and reviews our compliance with risk policies and risk limits. In addition, the committee reviews risk and control strategies and policies, evaluates whether each risk is at an adequate level, establishes or abolishes

risk management divisions, reviews risk-based capital allocations, and reviews the plans and evaluation relating to our internal controls. The committee holds regular meetings every quarter.

Remuneration Committee

The Remuneration Committee currently consists of three outside directors: Park Jong Bok (Chairman), Lim Seung Yeon and Chun Myo Sang. This committee is responsible for reviewing and approving the management’s evaluation and compensation programs. At least one-half of the members of this committee must be outside directors, and currently all members of this committee are outside directors. The committee meetings are called by the committee’s chairman, who must be an outside director.

Environmental, Social and Governance (ESG) Strategy Committee

The ESG Strategy Committee currently consists of five directors: Song Seong Joo (Chairman), Kim Jo Seol, Chun Myo Sang, Jung Sang Hyuk and Jin Okdong. This committee is responsible for setting the corporate policy for sustainable management, corporate disclosure of sustainability reports and discussing specific business agenda in relation to socially responsible management and other matters such as corporate strategy regarding climate change.

Subsidiary’s CEO Recommendation Committee

The Subsidiary’s CEO Recommendation Committee currently consists of five directors: Jin Okdong (Chairman), Kwak Su Keun, Bae Hoon, Song Seong Joo and Yang In Jip. This committee is responsible for matters relating to the evaluation of subsidiary management leadership, establishment of subsidiary CEO qualifications, verification and recommendation of subsidiary CEO candidates and other matters deemed necessary by the committee.

Internal Control Committee

The Internal Control Committee currently consists of four directors: Choi Young Gwon (Chairman), Bae Hoon, Song Seong Joo and Yang In Jip. This committee is responsible for reviewing and approving matters concerning internal controls, including establishing our internal control policies and strategies. The committee also monitors and evaluates whether executive officers are appropriately performing their management and reporting duties regarding internal controls in accordance with the relevant regulations, and may demand necessary remedial actions in the event of any deficiencies.

6. Major Shareholder and Market Price Information of our Common Shares and ADRs

Major Shareholders of Shinhan Financial Group (as of Mar. 31, 2026)


Name	No. of Common Shares owned2)	Ownership%1)
National Pension Service	42,747,919	9.01%
1) Ownership% is based on rounding numbers of third decimal place 2) The number of common shares owned and ownership is based on shareholder registry as of end of March 2026

Common Shares Traded on the Korea Exchange

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

American Depositary Receipts traded on the New York Stock Exchange

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

7. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Director

     Name

     Date of Birth

     Position

     Executive
Director Since

     Date Term Ends(1)

     Jin Okdong

     Feb. 21, 1961

     Chief Executive Officer

     March 23, 2023

     March 2029

Note: The date on which the term will end will be the date of the general shareholders’ meeting in the relevant year.

Jin Okdong is our Chief Executive Officer. Prior to his election, Mr. Jin served as the chief executive officer of Shinhan Bank from 2019 to 2023. Mr. Jin served as the deputy president of Shinhan Financial Group from 2017 to 2018, the deputy president of Shinhan Bank in 2017 and the chief executive officer of Shinhan Bank Japan from 2015 to 2016. Mr. Jin received a master’s degree in business administration from Chung Ang University.

2) Non-Executive and Outside Directors

Non-executive directors are directors who are not our employees and do not hold executive officer positions with us. Outside directors are non-executive directors who also satisfy the independence requirements set forth under the Financial Investment Services and Capital Markets Act. Our non-executive directors and outside directors are selected based on the candidates’ expertise in diverse areas, such as law, finance, economics, management and accounting. Currently, one non-executive director and nine outside directors are in office, all of whom were nominated by our board of directors and approved at a general meeting of shareholders.

Our non-executive and outside directors are as follows:


Name	Date of Birth	Position	Director Since	Date Term Ends(1)
Jung Sang Hyuk	Nov. 26, 1964	Non-Executive Director	March 23, 2023	March 2027
Kwak Su Keun	Aug. 16, 1953	Outside Director and Chairman of the Board of Directors	March 25, 2021	March 2027
Bae Hoon	Mar. 30, 1953	Outside Director	March 25, 2021	March 2027
Kim Jo Seol	Dec. 5, 1957	Outside Director	March 24, 2022	March 2027
Song Seongjoo	Mar. 26, 1971	Outside Director	March 26, 2024	March 2027
Choi Young-Gwon	Jul. 16, 1964	Outside Director	March 26, 2024	March 2027
Yang In Jip	Jul. 16, 1957	Outside Director	March 26, 2025	March 2027
Chun Myo Sang	May 20, 1980	Outside Director	March 26, 2025	March 2027
Park Jong Bok	May. 29, 1955	Outside Director	March 26, 2026	March 2028
Lim Seung Yeon	Jul. 18, 1973	Outside Director	March 26, 2026	March 2028

Note: The date on which each term will end will be the date of the general shareholders’ meeting in the relevant year.

Jung Sang Hyuk has been our non-executive director since March 23, 2023. Mr. Jung was the chief executive officer of Shinhan Bank and previously served as the deputy president of Shinhan Bank from 2020 to 2023. Mr. Jung received a bachelor’s degree in economics from Seoul National University.

Kwak Su Keun has been our outside director since March 25, 2021 and the chairman of our board of directors since March 26, 2026. Mr. Kwak currently serves as an honorary professor of accounting at Seoul National University, Business School and chair of Corporate Governance Advisory Board at Korea Listed Companies Association. Mr. Kwak received a doctoral degree in business administration from University of North Carolina Chapel Hill.

Bae Hoon has been our outside director since March 25, 2021. Mr. Bae is a lawyer and Certified Public Accountant in Japan and currently serves as a representative attorney at Orbis Legal Profession Corporation. Mr. Bae received a master’s degree in business administration from Kobe University.

Kim Jo Seol has been our outside director since March 24, 2022. Ms. Kim is a professor who teaches economics at Osaka University of Commerce and an economist with a high awareness of Northeast Asian economics. Ms. Kim received a doctoral degree in economics from Osaka City University.

Song Seong Joo has been as our outside director since March 26, 2024. Ms. Song has served as a professor of statistics at Korea University since 2008 and is also the Director of the Korea Risk Management Society. Ms. Song was previously an advisory professor at the Economic Statistics Division of the Bank of Korea. Ms. Song received a doctoral degree in statistics from the University of Chicago.

Choi Young Gwon has been as our outside director since March 26, 2024. Mr. Choi currently serves as the Chairman of the Korea Society of Financial Analysts and previously served as the chief executive officer of Woori Asset Management from 2019 to 2023. Mr. Choi received a doctoral degree in business administration, specializing in financial management, from Soongsil University.

Yang In Jip has been our outside director since March 26, 2025. Mr. Yang is the founder and currently serves as the chief executive officer and chairman of Onycom, Inc. Mr. Yang received a master of business administration degree from the University of Southern California.

Chun Myo Sang has been our outside director since March 26, 2025. Ms. Chun currently serves as the Head of Planning and Administration at SmartNews Inc. and is a Certified Public Accountant in Japan. Ms. Chun previously served as a manager at KPMG FAS and as a research and accounting advisor at the Development Bank of Japan. Ms. Chun received a master of business administration degree from the University of Southern California.

Park Jong Bok has been our outside director since March 26, 2026. Mr. Park previously served as the chief executive officer, the head of retail banking and the head of the retail channel business of SC Bank Korea. Mr. Park received a bachelor’s degree in economics from Kyung Hee University.

Lim Seung Yeon has been our outside director since March 26, 2026. Ms. Lim has served as a professor of business at Kookmin University since 2011, and previously served as an outside director and a member of the audit committee of Kakao Games Corp. Ms. Lim received a doctoral degree in business administration from Seoul National University.

Any director wishing to enter into a transaction with Shinhan Financial Group or any of its subsidiaries in his or her personal capacity is required to obtain the prior approval of our board of directors. The director having an interest in the transaction may not vote at the meeting of our board of directors at which the relevant transaction is subject to vote for approval.

3) Executive Officers

In addition to the executive directors who are also our executive officers, we currently have the following executive officers.


Name	Date of Birth		Position
Koh Seogheon		Sept. 27, 1968		Deputy President and Chief Strategy Officer
Jang Jeong Hoon		May 30, 1971		Deputy President and Chief Financial Officer
Lee Een-kyoon		Apr. 1, 1967		Deputy President and Chief Operation Officer
Park Hyun Joo		Apr. 22, 1965		Deputy President and Chief Consumer Protection Officer
Choi Hyuck Jae		Aug. 15, 1970		Deputy President and Chief AI Officer and Chief Digital Officer
Ra Hoon		Mar. 19, 1969		Executive Director and Chief Risk Officer
Lee Young Ho		Oct. 17, 1970		Executive Director and Chief Compliance Officer
Kim Jion		May. 12, 1968		Executive Director and Chief Audit Officer
Kim Junhwan		Jun. 23, 1972		Executive Director and Head of Digital Market Sensing Part

None of the executive officers have any significant activities outside Shinhan Financial Group.

Koh Seogheon has been our deputy president and chief strategy officer since January 1, 2022. Mr. Koh previously served as the head of business management division and strategic planning team of Shinhan Financial Group. Mr. Koh received a bachelor’s degree in economics from Seoul National University.

Jang Jeong Hoon has been our deputy president and chief financial officer since January 1, 2026. Mr. Jang previously served as the deputy president of Shinhan Securities. Mr. Jang received an M.B.A. from Washington University in St. Louis.

Lee Een-kyoon has been our deputy president and chief operation officer since January 1, 2019. Mr. Lee previously served as the head of the management support team and the head of the secretary’s office of Shinhan Bank. Mr. Lee received a bachelor’s degree in English literature from Hanyang University.

Park Hyun Ju has been our deputy president and chief consumer protection officer since July 1, 2023. Ms. Park previously served as the head of Consumer Protection Division of Shinhan Bank. Ms. Park graduated from Seoul Girl’s Commercial High School.

Choi Hyuck Jae has been our deputy president and chief AI officer and chief digital officer since October 1, 2025. Mr. Choi previously served as an executive director of Shinhan Bank. Mr. Choi received a master’s degree in human resource management from Korea University.

Ra Hoon has been our executive director and chief risk officer since January 1, 2026. Mr. Ra previously served as the head of the risk management group of Shinhan Bank. Mr. Ra received a bachelor’s degree in statistics from Korea University.

Lee Youngho has been our executive director and chief compliance officer since January 1, 2025. Mr. Lee previously served as a general manager of the compliance department and the chief compliance officer of Shinhan Bank. Mr. Lee received a bachelor’s degree in law from Sogang University.

Kim Jion has been our executive director and chief audit officer since January 1, 2024. Ms. Kim previously served as the head of the PRM marketing team of Shinhan Bank. Ms. Kim received a bachelor’s degree in economics from Yonsei University.

Kim Junhwan has been our executive director and head of digital market sensing part since January 1, 2024. Mr. Kim previously served as the head of the digital innovation team of Shinhan Bank. Mr. Kim received a doctor’s degree in computer application design studies from Korea Advanced Institute of Science & Technology.

There are no family relationships among our directors and/or executive officers.

Compensation to Directors

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

Compensation to Non-registered directors

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

Stock Options

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

Employees

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

8. Related Party Transactions

Loans to Subsidiaries


(KRW billion)
Loans to Subsidiaries (in KRW bil.)	Type	Origination Date	Maturity Date	Lending Rate	Beginning Balance (Jan. 1, 2026)	Decrease	Increase	Others	Ending Balance (Mar. 31, 2026)
Shinhan Card	Loan	2019-04-18	2026-04-18	2.09%	100	-	-	-	100
	Loan	2019-10-22	2026-10-22	1.81%	60	-	-	-	60
	Loan	2021-02-18	2026-02-18	1.54%	150	150	-	-	-
	Loan	2021-02-24	2026-02-24	1.62%	150	150	-	-	-
	Loan	2021-11-11	2026-11-11	2.55%	10	-	-	-	10
	Loan	2022-07-18	2027-07-18	4.25%	100	-	-	-	100
	Loan	2023-04-21	2028-04-21	4.21%	100	-	-	-	100
	Loan	2025-03-25	2028-03-25	2.97%	100	-	-	-	100
	Loan	2025-03-25	2030-03-25	3.02%	100		-	-	100
	Loan	2025-07-18	2028-07-18	2.73%	100	-	-	-	100
	Loan	2025-07-18	2030-07-18	2.92%	70	-	-	-	70
	Loan	2025-09-17	2028-09-17	2.76%	100	-	-	-	100
	Loan	2025-09-17	2030-09-17	2.90%	50	-	-	-	50
	Loan	2025-10-29	2028-10-29	2.87%	80	-	-	-	80
	Loan	2025-10-29	2030-10-29	3.02%	70	-	-	-	70
	Loan	2021-05-26	2026-05-12	1.53%	43	-	-	2	45
	Financial assets at FVPL	2022-03-17	2052-03-17	4.01%	404	-	-	-2	402
	Financial assets at FVPL	2023-02-14	2053-02-14	5.28%	310	-	-	-5	305
Shinhan Securities	Loan	2025-07-29	2030-07-29	5.13%	703	-	-	38	741
Shinhan Securities	Financial assets at FVPL	2021-06-14	Perpetual Bond	2.93%	383	-	-	24	407
Shinhan Capital	Loan	2021-03-16	2026-03-16	1.83%	150	150	-	-	-
	Loan	2025-04-22	2028-04-22	2.77%	100	-	-	-	100
	Loan	2025-12-04	2028-12-04	3.35%	60	-	-	-	60
	Loan	2026-03-16	2029-03-16	3.72%	-	-	150	-	150
	Loan	2021-05-13	2026-05-12	1.53%	287	-	-	16	303


	Financial assets at FVPL	2021-07-28	2051-07-28	3.38%	149	-	-	-	149
	Financial assets at FVPL	2025-04-22	2055-04-22	3.78%	99	-	-	-2	97
Shinhan Savings Bank	Loan	2021-04-26	2026-04-26	1.85%	50	-	-	-	50
Shinhan Savings Bank	Loan	2021-05-28	2026-05-28	1.99%	50	-	-	-	50
Shinhan DS	Loan	2025-01-31	2026-01-30	3.08%	10	10	-	-	-
	Loan	2026-01-30	2026-07-31	3.05%	-	-	5	-	5
	Loan	2026-01-30	2027-01-29	3.11%	-	-	5	-	5
Shinhan Venture	Loan	2025-02-26	2026-02-26	3.02%	60	60	-	-	-
Shinhan Venture	Loan	2026-02-26	2027-02-26	3.25%		-	60	-	60
Shinhan Asset Trust	Loan	2024-03-25	2027-03-25	3.76%	100	-	-	-	100
	Financial assets at FVPL	2024-05-23	2054-05-23	4.71%	97	-	-	-	97
	Financial assets at FVPL	2024-10-29	2054-10-29	4.10%	51	-	-	-	51
	Financial assets at FVPL	2026-01-30	2056-01-30	4.16%	-	-	100	-	100
Total					4,446	520	320	71	4,317

9. Internal Control

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2025 submitted on March 18, 2026 for your reference.

10. Contingencies

Please refer to attached Exhibit 99.1 Shinhan Financial Group Review Report for the 1Q 2026(Consolidated), note 29. commitments and contingencies.

11. Material Information after the reporting period

1) Shinhan Financial Group resolved to pay quarterly cash dividends

On April 23, 2026, the Board of Directors of Shinhan Financial Group made a resolution to pay quarterly cash dividends.

- Dividend Amount : KRW 740 per share

- Record date : April 30, 2026

- Expected payment date : May 29, 2026

Please refer to Form 6-K submitted to Edgar system on April 23, 2026.

2) 2026 Value-up Plan of Shinhan Financial Group

On April 23, 2026, Shinhan Financial Group announced 2026 Value-up Plan.

10% or more of ROE (target range 10–12%);

50% or more of the shareholder return ratio (presenting a predictable shareholder return policy based on the above formula); and

13% or more of the CET1 ratio (stable management in line with regulatory and market environment).

Please refer to Form 6-K submitted to Edgar system on April 23, 2026.

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: May 15, 2026	By:	/s/ JANG Jeong Hoon


	Name: JANG Jeong Hoon
	Title: Chief Financial Officer

SHINHAN FINANCIAL GROUP CO., LTD.

AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(Unaudited)

Contents


		Page

Report on Review of Condensed Consolidated Interim Financial Statements		1

Condensed Consolidated Interim Statements of Financial Position		3

Condensed Consolidated Interim Statements of Comprehensive Income		4

Condensed Consolidated Interim Statements of Changes in Equity		6

Condensed Consolidated Interim Statements of Cash Flows		10

Notes to the Condensed Consolidated Interim Financial Statements		12

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

Shinhan Financial Group Co., Ltd.:

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of Shinhan Financial Group Co., Ltd. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the condensed consolidated interim statement of financial position of the Group as at March 31, 2026, and the related condensed consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

The condensed consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2025, presented herein for comparative purposes, were reviewed by another auditor whose report dated May 15, 2025. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed consolidated interim financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

The consolidated statement of financial position as at December 31, 2025, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 3, 2026. The consolidated statement of financial position as at December 31, 2025, presented herein for comparative purposes, is consistent, in all material respects, with the above audited consolidated statement of financial position as at December 31, 2025.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

May 15, 2026

     This report is effective as of May 15, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

    

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024


(In millions of won)	Note		March 31, 2026 (Unaudited)	December 31, 2025
Assets
Cash and due from banks at amortized cost	4, 7	W	40,203,086	39,742,605
Financial assets at fair value through profit or loss	4, 8		79,037,737	78,053,377
Derivative assets	4, 9		12,101,971	7,153,950
Securities at fair value through other comprehensive income	4, 10		104,194,552	103,216,950
Securities at amortized cost	4, 10		31,260,884	31,944,368
Loans at amortized cost	4, 11		477,752,638	464,773,880
Property and equipment			4,174,461	4,153,186
Intangible assets			5,993,232	5,893,158
Investments in associates	12		2,529,691	2,639,202
Current tax assets			35,045	68,609
Deferred tax assets			209,702	209,718
Investment property			616,191	611,620
Net defined benefit assets	16		403,661	353,097
Insurance contract assets	18		885	760
Reinsurance contract assets	18		455,260	603,442
Other assets	4, 11		57,688,407	46,524,351
Assets held for sale			61,143	71,212
Total assets		W	816,718,546	786,013,485

Liabilities
Deposits	4	W	462,030,453	447,648,971
Financial liabilities at fair value through profit or loss	4, 13		2,958,931	2,312,487
Financial liabilities designated at fair value through profit or loss	4, 14		6,605,239	6,378,064
Derivative liabilities	4, 9		11,985,937	7,020,846
Borrowings	4		56,182,097	55,394,834
Debt securities issued	4, 15		87,603,422	92,991,422
Net defined benefit liabilities	16		17,794	17,820
Provisions	17		1,269,876	1,363,345
Current tax liabilities			722,000	763,377
Deferred tax liabilities			816,344	446,799
Insurance contract liabilities	18		47,988,453	50,471,303
Reinsurance contract liabilities	18		31,144	56,378
Investment contract liabilities	4		1,314,260	1,536,393
Other liabilities	4		75,717,025	59,237,657
Liabilities held for sale			1,208	1,465
Total liabilities			755,244,183	725,641,161

Equity	20
Share capital			2,969,641	2,969,641
Hybrid bonds			4,719,886	4,749,837
Capital surplus			2,232,781	12,098,558
Capital adjustments			(772,638)	(1,180,080)
Accumulated other comprehensive loss			(2,107,196)	(2,474,813)
Retained earnings			52,016,605	41,796,129
Equity attributable to shareholders of the Parent Company			59,059,079	57,959,272
Non-controlling interests			2,415,284	2,413,052
Total equity			61,474,363	60,372,324

Total liabilities and equity		W	816,718,546	786,013,485

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Comprehensive Income

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won)	Note		2026 (Unaudited)	2025 (Unaudited)
Interest income		W	7,072,131	7,067,924
Interest expense			(4,047,988)	(4,213,036)
Net interest income	22		3,024,143	2,854,888

Fees and commission income			1,361,879	1,053,432
Fees and commission expense			(421,053)	(375,286)
Net fees and commission income	23		940,826	678,146

Insurance income			881,584	816,068
Reinsurance income			52,194	26,501
Insurance service expense			(610,128)	(554,505)
Reinsurance service expense			(47,253)	(33,758)
Net insurance income	18		276,397	254,306

Insurance finance income			18,961	20,718
Insurance finance expense			(442,542)	(75,274)
Net insurance finance expense	19		(423,581)	(54,556)

Dividend income			70,861	71,411
Net gain on financial instruments at fair value through profit or loss			588,959	510,235
Net gain (loss) on financial instruments designated at fair value through profit or loss			119,923	(156,845)
Net gain on foreign currency transaction			89,019	135,338
Net gain on disposal of securities at fair value through other comprehensive income	10		21,066	74,543
Net loss on disposal of securities at amortized cost	10		(14)	(27)
Provision for credit losses	24		(520,112)	(439,351)
General and administrative expenses	25		(1,545,405)	(1,413,958)
Other operating expenses, net			(487,629)	(569,916)

Operating income			2,154,453	1,944,214

Equity method income	12		48,839	39,447
Other non-operating income			18,090	21,897
Profit before income tax expense			2,221,382	2,005,558

Income tax expense	27		572,234	488,512
Profit for the period		W	1,649,148	1,517,046

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Comprehensive Income (Continued)

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won, except earnings per share data)	Note		2026(Unaudited)	2025(Unaudited)

Other comprehensive income (loss) for the period, net of income tax	20
Items that are or may be reclassified to profit or loss:
Valuation gain (loss) on securities at fair value through other comprehensive income		W	(1,933,965)	777,036
Equity in other comprehensive income (loss) of associates			1,055	(4,427)
Foreign currency translation adjustments for foreign operations			340,629	5,007
Net change in unrealized fair value of cash flow hedges			(127,130)	47,802
Net finance income (expense) on insurance contract assets (liabilities)			2,030,489	(1,413,304)
Net finance expense on reinsurance contract assets (liabilities)			(78,621)	(6,374)
			232,457	(594,260)
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liability (asset)			(412)	200
Equity in other comprehensive loss of associates			(3)	-
Valuation gain on securities at fair value through other comprehensive income			137,282	60,415
Gain (loss) on disposal of securities at fair value through other comprehensive income			683	(467)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss			(1,660)	(547)
			135,890	59,601
Total other comprehensive income (loss), net of income tax			368,347	(534,659)

Total comprehensive income for the period		W	2,017,495	982,387

Profit attributable to:
Shareholders of the Parent Company		W	1,622,594	1,488,346
Non-controlling interests			26,554	28,700
		W	1,649,148	1,517,046
Total comprehensive income attributable to:
Shareholders of the Parent Company		W	1,989,996	953,628
Non-controlling interests			27,499	28,759
		W	2,017,495	982,387

Earnings per share:	28
Basic and diluted earnings per share in won		W	3,327	2,917

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Changes in Equity

For the three-month period ended March 31, 2025


		March 31, 2025
		Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
		Share Capital	Hybrid bonds	Capital surplus	Capital adjustments	Accumulated other compre-hensive income (loss)	Retained earnings	Sub-total	Non-controlling interests	Total
Balance at January 1, 2025	W	2,969,641	4,600,121	12,094,968	(807,114)	(1,824,440)	39,020,580	56,053,756	2,767,277	58,821,033
Total comprehensive income
Profit for the period		-	-	-	-	-	1,488,346	1,488,346	28,700	1,517,046
Other comprehensive income (loss), net of income tax:
Gain on valuation and disposal of securities at fair value through other comprehensive income		-	-	-	-	836,758	-	836,758	226	836,984
Equity in other comprehensive loss of associates		-	-	-	-	(4,427)	-	(4,427)	-	(4,427)
Foreign currency translation adjustments for foreign operations		-	-	-	-	5,174	-	5,174	(167)	5,007
Net change in unrealized fair value of cash flow hedges		-	-	-	-	47,802	-	47,802	-	47,802
Net finance expense on insurance contract assets (liabilities)		-	-	-	-	(1,413,304)	-	(1,413,304)	-	(1,413,304)
Net finance expense on reinsurance contract assets (liabilities)		-	-	-	-	(6,374)	-	(6,374)	-	(6,374)
Remeasurements of net defined benefit liability (asset)		-	-	-	-	200	-	200	-	200
Changes in own credit risk on financial liabilities designated at fair value through profit or loss		-	-	-	-	(547)	-	(547)	-	(547)
Total other comprehensive income (loss)		-	-	-	-	(534,718)	-	(534,718)	59	(534,659)
Total comprehensive income (loss)		-	-	-	-	(534,718)	1,488,346	953,628	28,759	982,387

Other changes in equity
Dividends		-	-	-	-	-	(267,755)	(267,755)	-	(267,755)
Dividends to hybrid bonds		-	-	-	-	-	(42,590)	(42,590)	-	(42,590)
Issuance of hybrid bonds		-	398,835	-	-	-	-	398,835	-	398,835
Transfer to retained earnings of redemption loss of hybrid bonds		-	-	-	524	-	(524)	-	-	-
Acquisition of treasury shares (Note 20)		-	-	-	(276,260)	-	-	(276,260)	-	(276,260)
Retirement of treasury shares (Note 20)		-	-	-	-	-	(3)	(3)	-	(3)
Change in other capital adjustments		-	-	-	(1,054)	-	(672)	(1,726)	-	(1,726)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Changes in Equity

For the three-month period ended March 31, 2025

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Changes in Equity (Continued)

For the three-month period ended March 31, 2025


		March 31, 2025
		Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
		Share Capital	Hybrid bonds	Capital surplus	Capital adjustments	Accumulated other compre-hensive income (loss)	Retained earnings	Sub-total	Non-controlling interests	Total
Other changes in equity
Change in other non-controlling interests		-	-	-	-	-	-	-	(266,335)	(266,335)
		-	398,835	-	(276,790)	-	(311,544)	(189,499)	(266,335)	(455,834)
Reclassification of OCI to retained earnings		-	-	-	-	1,348	(1,348)	-	-	-
Balance at March 31, 2025	W	2,969,641	4,998,956	12,094,968	(1,083,904)	(2,357,810)	40,196,034	56,817,885	2,529,701	59,347,586

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Changes in Equity (Continued)

For the three-month period ended March 31, 2026


		March 31, 2026
		Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
		Share Capital	Hybrid bonds	Capital surplus	Capital adjustments	Accumulated other compre-hensive income (loss)	Retained earnings	Sub-total	Non-controlling interests	Total
Balance at January 1, 2026	W	2,969,641	4,749,837	12,098,558	(1,180,080)	(2,474,813)	41,796,129	57,959,272	2,413,052	60,372,324
Total comprehensive income
Profit for the period		-	-	-	-	-	1,622,594	1,622,594	26,554	1,649,148
Other comprehensive income (loss), net of income tax:
Loss on valuation and disposal of securities at fair value through other comprehensive income		-	-	-	-	(1,794,205)	-	(1,794,205)	(1,795)	(1,796,000)
Equity in other comprehensive income of associates		-	-	-	-	1,052	-	1,052	-	1,052
Foreign currency translation adjustments for foreign operations		-	-	-	-	337,889	-	337,889	2,740	340,629
Net change in unrealized fair value of cash flow hedges		-	-	-	-	(127,130)	-	(127,130)	-	(127,130)
Net finance income on insurance contract assets (liabilities)		-	-	-	-	2,030,489	-	2,030,489	-	2,030,489
Net finance expense on reinsurance contract assets (liabilities)		-	-	-	-	(78,621)	-	(78,621)	-	(78,621)
Remeasurements of net defined benefit liability (asset)		-	-	-	-	(412)	-	(412)	-	(412)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss		-	-	-	-	(1,660)	-	(1,660)	-	(1,660)
Total other comprehensive income		-	-	-	-	367,402	-	367,402	945	368,347
Total comprehensive income		-	-	-	-	367,402	1,622,594	1,989,996	27,499	2,017,495

Other changes in equity
Dividends		-	-	-	-	-	(417,502)	(417,502)	-	(417,502)
Dividends to hybrid bonds		-	-	-	-	-	(44,051)	(44,051)	-	(44,051)
Issuance of hybrid bonds		-	399,058	-	-	-	-	399,058	-	399,058
Redemption of hybrid bonds		-	(429,009)	-	(991)	-	-	(430,000)	-	(430,000)
Transfer to retained earnings of redemption loss of hybrid bonds		-	-	-	3,059	-	(3,059)	-	-	-
Acquisition of treasury shares (Note 20)		-	-	-	(395,618)	-	-	(395,618)	-	(395,618)
Retirement of treasury shares (Note 20)		-	-	-	800,000	-	(800,000)	-	-	-


		March 31, 2026

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Changes in Equity (Continued)

For the three-month period ended March 31, 2026


		Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
		Share Capital	Hybrid bonds	Capital surplus	Capital adjustments	Accumulated other compre-hensive income (loss)	Retained earnings	Sub-total	Non-controlling interests	Total
Other changes in equity
Reclassification of share premium to retained earnings		-	-	(9,865,923)	-	-	9,865,923	-	-	-
Change in other capital adjustments		-	-	146	992	-	-	1,138	-	1,138
Change in other non-controlling interests		-	-	-	-	-	(3,214)	(3,214)	(25,267)	(28,481)
		-	(29,951)	(9,865,777)	407,442	-	8,598,097	(890,189)	(25,267)	(915,456)
Reclassification of OCI to retained earnings		-	-	-	-	215	(215)	-	-	-
Balance at March 31, 2026	W	2,969,641	4,719,886	2,232,781	(772,638)	(2,107,196)	52,016,605	59,059,079	2,415,284	61,474,363

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won)	Note		2026 (Unaudited)	2025 (Unaudited)

Cash flows from operating activities
Profit for the period		W	1,649,148	1,517,046
Adjustments for:
Interest income	22		(7,072,131)	(7,067,924)
Interest expense	22		4,047,988	4,213,036
Dividend income	21		(70,861)	(71,411)
Income tax expense	27		572,234	488,512
Net fees and commission expense			85,672	95,799
Net insurance income	18		(276,397)	(254,306)
Net insurance finance expense	19		423,581	54,556
Net loss (gain) on financial instruments at fair value through profit or loss			48,719	(137,816)
Net gain on derivatives			(243,754)	(219,147)
Net gain on foreign currency translation			(42,294)	(28,523)
Net loss (gain) on financial instruments designated at fair value through profit or loss			(143,751)	97,795
Net gain on disposal of securities at fair value through other comprehensive income	10		(21,066)	(74,543)
Net loss on disposal of securities at amortized cost	10		14	27
Provision for credit losses	24		520,112	439,351
Employee benefits			56,477	34,946
Depreciation and other amortization	25		313,179	331,677
Other operating expense			119,994	189,369
Equity method income, net	12		(48,839)	(39,447)
Other non-operating expense			14,865	4,617
			(1,716,258)	(1,943,432)
Changes in assets and liabilities:
Due from banks at amortized cost			1,191,092	871,087
Securities at fair value through profit or loss			(971,309)	(2,697,028)
Due from banks at fair value through profit or loss			(2,355)	105
Loans at fair value through profit or loss			(493,962)	98,188
Financial instruments designated at fair value through profit or loss			368,636	(492,183)
Derivative instruments			167,694	239,245
Loans at amortized cost			(7,452,124)	4,477,743
Insurance contract assets			(124)	3,327
Reinsurance contract assets			148,182	9,658
Other assets			(11,111,451)	(4,786,130)
Deposits			13,497,253	(5,182,107)
Net defined benefit liabilities			(86,014)	(155,681)
Provisions			(78,463)	(101,508)
Insurance contract liabilities			(142,473)	(326,271)
Reinsurance contract liabilities			(127,986)	17,540
Investment contract liabilities			(235,167)	(165,096)
Other liabilities			15,654,607	12,071,899
			10,326,036	3,882,788

Income taxes paid			(237,507)	(244,100)
Interest received			6,866,867	6,983,378
Interest paid			(3,477,926)	(3,730,028)
Dividends received			36,862	39,117
Net cash inflow from operating activities		W	13,447,222	6,504,769

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Cash Flows (Continued)

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won)	Note		2026(Unaudited)	2025(Unaudited)

Cash flows from investing activities
Proceeds from disposal of financial instruments at fair value through profit or loss		W	1,239,539	1,000,910
Acquisition of financial instruments at fair value through profit or loss			(1,131,106)	(1,179,511)
Proceeds from disposal of securities at fair value through other comprehensive income			10,233,269	13,467,240
Acquisition of securities at fair value through other comprehensive income			(15,907,250)	(12,931,977)
Proceeds from disposal of securities at amortized cost			1,614,994	1,597,589
Acquisition of securities at amortized cost			(855,360)	(1,322,151)
Proceeds from disposal of property and equipment			2,117	4,384
Acquisition of property and equipment			(38,775)	(40,723)
Proceeds from disposal of intangible assets			1,077	2,665
Acquisition of intangible assets			(263,577)	(118,281)
Proceeds from disposal of investments in associates			157,486	174,136
Acquisition of investments in associates			(27,896)	(99,517)
Net cash inflow from loss of control			(2,405)	-
Net cash outflow from acquisition of control			(78,956)	-
Acquisition of investment property			(168)	(761)
Proceeds from disposal of assets held for sale			13,155	-
Changes in other assets			8,579	(13,017)
Changes in other liabilities			-	(248)
Proceeds from settlement of hedging derivative financial instruments			33,132	5,642
Payments of settlement of hedging derivative financial instruments			(126,668)	(23,903)
Net cash inflow (outflow) from investing activities		W	(5,128,813)	522,477

Cash flows from financing activities
Issuance of hybrid bonds		W	399,058	398,835
Redemption of hybrid bonds			(430,000)	-
Net change in borrowings			(917,332)	546,312
Proceeds from debt securities issued			6,037,453	7,404,090
Repayments of debt securities issued			(12,293,388)	(11,607,576)
Changes in other liabilities			(25,311)	(39)
Dividends paid			(52,771)	(48,668)
Proceeds from settlement of hedging derivative financial instruments			710,654	662,637
Payments of settlement of hedging derivative financial instruments			(640,511)	(609,735)
Acquisition of treasury shares			(395,618)	(276,260)
Expense for retirement of treasury shares			-	(3)
Increase (decrease) in non-controlling interests			(24,625)	(268,891)
Repayments of lease liabilities			(86,460)	(72,647)
Net cash inflow (outflow) from financing activities			(7,718,851)	(3,871,945)

Effect of exchange rate changes on cash and cash equivalents held			295,672	(3,016)
Increase in cash and cash equivalents			895,230	3,152,285
Changes in cash and cash equivalents included in assets held for sale			2,782	-
Cash and cash equivalents at the beginning of the period	30		35,295,123	35,247,543

Cash and cash equivalents at the end of the period	30	W	36,193,135	38,399,828

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

1. Reporting entity

Shinhan Financial Group Co., Ltd., the Parent Company, and its subsidiaries included in consolidation (collectively the “Group”) are summarized as follows:

(a) The Parent Company

Shinhan Financial Group Co., Ltd. (the “Parent Company”, “Company” and Shinhan Financial Group) was incorporated on September 1, 2001 for the main purposes of controlling, managing and funding Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd. and Shinhan BNP Asset Management Co., Ltd. by way of share transfers. The total share capital amounted to W 1,461,721 million. Also, Shinhan Financial Group’s shares have been listed on the Korea Exchange since September 10, 2001 and Shinhan Financial Group’s American Depositary Shares have been registered with the Securities and Exchange Commission (SEC) and listed on the New York Stock Exchange since September 16, 2003.

(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of March 31, 2026 and December 31, 2025 are as follows:


			Date of financial information	Ownership (%)
Investor	Investee (*1)	Location	Date of financial information		March 31, 2026		December 31, 2025
Shinhan Financial Group Co., Ltd.	Shinhan Bank	Korea	March 31	100.0		100.0
〃	Shinhan Card Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Securities Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Life Insurance Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Capital Co., Ltd.	〃	〃	100.0		100.0
〃	Jeju Bank	〃	〃	64.0		64.0
〃	Shinhan Asset Management Co., Ltd.	〃	〃	100.0		100.0
〃	SHC Management Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan DS	〃	〃	100.0		100.0
〃	Shinhan Savings Bank	〃	〃	100.0		100.0
〃	Shinhan Asset Trust Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Fund Partners Co., Ltd.	〃	〃	99.8		99.8
〃	Shinhan REITs Management Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Venture Investment Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan EZ General Insurance Co., Ltd.	〃	〃	91.7		91.7
Shinhan Bank	Shinhan Bank America	USA	〃	100.0		100.0
〃	Shinhan Bank Europe GmbH	Germany	〃	100.0		100.0
〃	Shinhan Bank Cambodia	Cambodia	〃	97.5		97.5
〃	Shinhan Bank Kazakhstan Limited	Kazakhstan	〃	100.0		100.0
〃	Shinhan Bank Canada	Canada	〃	100.0		100.0
〃	Shinhan Bank (China) Limited	China	〃	100.0		100.0
〃	Shinhan Bank Japan	Japan	〃	100.0		100.0
〃	Shinhan Bank Vietnam Limited	Vietnam	〃	100.0		100.0
〃	Banco Shinhan de Mexico	Mexico	〃	99.9		99.9
〃	PT Bank Shinhan Indonesia	Indonesia	〃	99.0		99.0

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

1. Reporting entity (continued)

(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of March 31, 2026 and December 31, 2025 are as follows (continued):


			Date of financial information	Ownership (%)
Investor	Investee (*1)	Location	Date of financial information		March 31, 2026		December 31, 2025
KIRAM HO CHI MINH OFFICE General Private Placement Real Estate Investment Trust (USD)	HIEP HIEP THANH Investment Company Limited	Vietnam	March 31	100.0		100.0
HIEP HIEP THANH Investment Company Limited	Khoi Phat Investment Company Limited	Vietnam	〃	100.0		100.0
Shinhan Bank Japan	SBJ DNX	Japan	〃	90.0		90.0
Shinhan Card Co., Ltd.	Shinhan Credit Information Co., Ltd.	Korea	〃	100.0		100.0
〃	LLP MFO Shinhan Finance	Kazakhstan	〃	72.1		72.1
〃	PT. Shinhan Indo Finance	Indonesia	〃	76.3		76.3
〃	Shinhan Microfinance Co., Ltd.	Myanmar	〃	100.0		100.0
〃	Shinhan Vietnam Finance Co., Ltd.	Vietnam	〃	100.0		100.0
Shinhan Securities Co., Ltd.	Shinhan Securities America Inc. (*2)	USA	〃	100.0		100.0
〃	Shinhan Securities Asia Ltd.	Hong Kong	〃	100.0		100.0
〃	Shinhan Securities Vietnam Co., Ltd.	Vietnam	〃	100.0		100.0
〃	PT. Shinhan Sekuritas Indonesia	Indonesia	〃	99.0		99.0
Shinhan Life Insurance Co., Ltd.	Shinhan Financial Plus Co., Ltd.	Korea	〃	100.0		100.0
〃	Shinhan LifeCare Co., Ltd.	〃	〃	100.0		100.0
〃	Shinhan Life Insurance Vietnam Co., Ltd.	Vietnam	〃	100.0		100.0
Shinhan DS	Shinhan DS Vietnam Co., Ltd.	Vietnam	〃	100.0		100.0

(*1) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.

(*2) As of March 31, 2026, the disposal is in progress, and the assets were classified as held for sale in the prior period.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

1. Reporting entity (continued)

Consolidated structured entities are as follows:


Category	Consolidated structured entities	Description
Trust	Shinhan Bank (including development trust) and 17 others	A trust is consolidated when the Group as a trustee is exposed to significant variable returns, if principal or interest amounts of the entrusted properties falls below guaranteed amount, the Group should compensate it, and the Group has the ability to affect those returns.
Asset-Backed Securitization	Tiger Eyes 3 Co., Ltd. and 152 others	An entity for asset backed securitization is consolidated when the Group has sole decision-making authority to dispose assets or change the conditions of the assets, and the Group is substantially exposed to, or has rights to significant variable returns by providing credit enhancement and purchases of subordinated securities.
Structured Financing	-	An entity established for structured financing relating to real estate, shipping, or mergers and acquisitions is consolidated when, due to events such as the counterparty’s default, normal operations become no longer feasible and the Group, as the largest credit provider to the entity, has sole decision-making authority of these entities due to the entities default, and is substantially exposed to, or has rights to significant variable returns.
Investment Fund	One Shinhan Future's Fund and 195 others	An investment fund is consolidated, when the Group manages or invests assets of the investment funds on behalf of other investors as a collective investor or a business executive, or has the ability to dismiss the manager of the investment funds, and is substantially exposed to, or has rights to, the significant variable returns.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

1. Reporting entity (continued)

(d) Summarized financial information of the subsidiaries

i) The summarized financial information of the Parent Company and the Group’s major subsidiaries as of March 31, 2026 and December 31, 2025 is as follows:


		March 31, 2026			December 31, 2025
Investees (1), (2)		Total Assets	Total Liabilities	Total Equity	Total Assets	Total Liabilities	Total Equity
Shinhan Financial Group (separate)	W	39,147,801	11,340,138	27,807,663	37,793,827	11,458,367	26,335,460
Shinhan Bank		616,839,536	579,086,825	37,752,711	596,967,318	558,513,573	38,453,745
Shinhan Card Co., Ltd.		42,800,481	34,370,296	8,430,185	43,186,732	34,686,850	8,499,882
Shinhan Securities Co., Ltd.		64,744,138	58,844,814	5,899,324	54,077,820	48,280,415	5,797,405
Shinhan Life Insurance Co., Ltd.		58,047,960	51,529,766	6,518,194	59,661,505	53,455,107	6,206,398
Shinhan Capital Co., Ltd.		12,403,304	10,076,195	2,327,109	12,482,497	10,166,788	2,315,709
Jeju Bank		8,361,346	7,719,244	642,102	8,019,927	7,372,657	647,270
Shinhan Asset Management Co., Ltd.		359,791	98,539	261,252	381,311	87,974	293,337
SHC Management Co., Ltd.		10,530	7	10,523	10,480	-	10,480
Shinhan DS		131,999	61,836	70,163	131,276	64,456	66,820
Shinhan Savings Bank		3,419,502	3,048,352	371,150	2,982,788	2,603,718	379,070
Shinhan Asset Trust Co., Ltd.		1,120,647	700,454	420,193	881,518	564,731	316,787
Shinhan Fund Partners Co., Ltd		111,124	22,690	88,434	112,911	23,555	89,356
Shinhan REITs Management Co., Ltd.		82,907	5,997	76,910	83,488	7,920	75,568
Shinhan Venture Investment Co., Ltd.		194,339	96,648	97,691	192,749	103,912	88,837
Shinhan EZ General Insurance Co., Ltd.		347,441	184,238	163,203	361,063	185,342	175,721

(*1) The summarized financial information of the consolidated subsidiaries are based on consolidated financial statements, if applicable.

(*2) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

1. Reporting entity (continued)

ii) The summarized income statement information of the Parent Company and the Group’s major subsidiaries for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026			March 31, 2025
Investees (1), (2)		Operating Revenue	Net Income (*3)	Comprehensive Income (*3)	Operating Revenue	Net Income (*3)	Comprehensive Income (*3)
Shinhan Financial Group (separate)	W	2,600,949	2,360,316	2,360,316	2,621,336	2,499,281	2,499,281
Shinhan Bank		18,156,749	1,157,576	1,207,588	9,690,434	1,128,284	1,252,683
Shinhan Card Co., Ltd.		1,697,189	116,673	175,788	1,469,158	136,878	146,942
Shinhan Securities Co., Ltd.		5,341,836	288,360	298,704	2,683,617	107,851	105,717
Shinhan Life Insurance Co., Ltd.		2,733,789	103,145	311,796	1,745,742	165,172	(524,073)
Shinhan Capital Co., Ltd.		417,705	61,799	69,068	284,098	31,329	28,733
Jeju Bank		94,629	4,210	62	91,130	2,904	3,751
Shinhan Asset Management Co., Ltd.		57,006	18,315	18,315	42,850	8,892	8,892
SHC Management Co., Ltd.		-	43	43	-	50	50
Shinhan DS		77,783	3,077	3,343	77,245	2,515	2,443
Shinhan Savings Bank		65,810	6,707	7,085	61,228	6,782	7,338
Shinhan Asset Trust Co., Ltd.		23,352	5,862	5,832	29,947	5,425	5,409
Shinhan Fund Partners Co., Ltd.		25,074	7,632	7,632	17,044	3,680	3,680
Shinhan REITs Management Co., Ltd.		3,290	1,344	1,342	2,846	(185)	(186)
Shinhan Venture Investment Co., Ltd.		19,002	8,848	8,854	8,332	(456)	(439)
Shinhan EZ General Insurance Co., Ltd.		41,197	(9,683)	(12,518)	32,246	(4,603)	(4,527)

(*1) The summarized financial information of the consolidated subsidiaries is based on consolidated financial statements, if applicable.

(*2) Subsidiaries such as trusts, beneficiary certificates, special purpose companies, partnerships and private equity funds which are not actually operating their own business are excluded.

(*3) This amount includes non-controlling interests.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

2. Basis of preparation

(a) Statement of compliance

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

The condensed consolidated interim financial statements of the Group are prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”). These financial statements are prepared under K-IFRS No. 1034, ‘Interim Financial Reporting’ and contain less information than required in the annual consolidated financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as of and for the year ended December 31, 2025.

(b) Use of estimates and judgments

The preparation of the condensed consolidated interim financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, incomes, and expenses. If the estimates and assumptions based on management's best judgment as of the end of the interim reporting period are different from the actual environment, these estimates and actual results may be different.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Income tax expense in the interim period is measured by applying the expected annual income tax rate, i.e. the estimated average annual effective income tax rate.

In preparing the condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2025 except for the method of estimation used to determine the income tax expense for the interim period.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

3. Material accounting policies

(a) The Group applies the same accounting policies as those applied in the preparation of the annual consolidated financial statements for the year ended December 31, 2025, except for the following amendments first applied from January 1, 2026, as described in Note 2(b).

i) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’

To address questions raised in practice and incorporate new requirements, Korean IFRS No. 1109 ‘Financial Instruments’ and No. 1107 ‘Financial Instruments: Disclosures’ have been amended. There is no significant impact on the consolidated financial statements from these amendments.

- Permit a financial liability to be regarded as settled (derecognized) through an electronic payment system before the settlement date, provided that specified criteria are met.

- Clarify and add further guidance for assessing whether financial assets meet the criterion of consisting solely of payments of principal and interest (SPPI).

- Require disclosure, by each class of financial instruments, of the effects of contractual terms that may change the timing or amount of contractual cash flows, as well as the extent of the entity’s exposure.

- Require additional disclosures for equity instruments designated at FVOCI.

ii) Annual Improvements to K-IFRS Volume 11

Annual Improvements to K-IFRS Volume 11 are effective for annual reporting periods beginning on or after January 1, 2026. There is no significant impact on the consolidated financial statements from these amendments.

- K-IFRS No. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – Hedge accounting by a first-time adopter

- K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ – Gain or loss on derecognition

and Guidance on implementing K-IFRS No. 1107

- K-IFRS No. 1109 ‘Financial Instruments’ – Derecognition of lease liabilities and transaction price

- K-IFRS No. 1110 ‘Consolidated Financial Statements’ – Determination of ‘de facto agent’

- K-IFRS No. 1007 ‘Statement of Cash Flows’ – Cost method

iii) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ - Contracts referencing nature-dependent electricity

Contracts referencing nature-dependent electricity were defined as contracts in which an entity is exposed to variability in the underlying volume of electricity because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). It was also clarified that contracts to purchase or sell nature-dependent electricity are subject to assessment for the own-use exemption. In addition, the hedge accounting requirements were amended to allow the variable nominal amount of forecast nature-dependent electricity transactions to be designated as a hedged item, and related disclosure requirements were added. There is no significant impact on the consolidated financial statements from these amendments.

(b) As of March 31, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows:

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’

K-IFRS No. 1118, ‘Presentation and Disclosure in Financial Statements’, replaces K-IFRS 1001, ‘Presentation of Financial Statements’. K-IFRS No. 1118 is expected to enhance comparability of financial performance among similar entities by providing information useful to users of financial statements in analyzing and comparing an entity’s performance, with a particular focus on the statement of profit or loss.

When the Group prepares its financial statements in accordance with K-IFRS No. 1118, the principal accounting policies that may result in significant differences from the current financial statements are as follows. These matters

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

do not include all possible differences that may arise and are subject to change based on further analysis.

3. Material accounting policies (continued)

(b) As of March 31, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’(continued)

K-IFRS No. 1118 requires all income and expenses included in the statement of profit or loss to be classified into one of five categories: operating, investing, financing, income tax, and discontinued operations. The Standard classifies all income and expenses not included in the investing, financing, income tax, or discontinued operations categories as operating, and defines operating profit or loss as a residual measure.

The Group is required to assess its main business activities in order to classify income and expenses into categories. If the Group’s main business activities include investing in a particular type of asset or providing financing to customers, certain income and expenses that would otherwise have been classified in the investing or financing categories are classified in the operating category.

Accordingly, operating profit or loss under K-IFRS No. 1118 may differ significantly from operating profit or loss as defined under K-IFRS No. 1001, which is defined as operating revenue less operating expenses. K-IFRS No. 1118 requires disclosure in the notes of operating profit or loss as determined under K-IFRS No. 1001, as well as a reconciliation of the differences between operating profit or loss under K-IFRS No. 1118 and that under K-IFRS No. 1001.

In addition, K-IFRS No. 1118 requires the presentation of the following subtotals in the statement of profit or loss: ‘operating profit or loss’, comprising all income and expenses classified in the operating category; ‘profit or loss before financing and income tax’, comprising operating profit or loss and all income and expenses classified in the investing category; and ‘profit or loss’. However, if the Group’s main business activity is to provide financing to customers, the presentation of ‘profit or loss before financing and income tax’ may not be required, depending on the accounting policy elected.

K-IFRS No. 1118 introduces disclosure requirements for management-defined performance measures (MPMs), which are used by management in public communications outside the financial statements to convey management’s view of the entity’s overall financial performance. MPMs are defined as subtotals of income and expenses that are not specified in paragraph 118 of K-IFRS No. 1118 and are not otherwise required to be presented or disclosed by the Standard.

If MPMs are used, the Group is required to disclose the reasons for using such measures, how they are calculated, a reconciliation to the most directly comparable subtotal specified by K-IFRS No. 1118, the tax effects of each reconciling item, and the effects on non-controlling interests.

As a result of the issuance of K-IFRS No. 1118, certain amendments were made to K-IFRS No. 1007, ‘Statement of Cash Flows’. Under these amendments, the starting point for determining cash flows from operating activities using the indirect method has been changed from profit for the period to operating profit or loss, and the option to classify cash flows related to interest and dividends has been removed.

K-IFRS No. 1118 is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted. Entities are required to apply the Standard retrospectively in accordance with K-IFRS No. 1008, ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the year ending December 31, 2026 will be restated in accordance with K-IFRS No. 1118. Amendments to K-IFRS No. 1007 and K-IFRS No. 1033 resulting from the issuance of K-IFRS No. 1118, as well as amendments to K-IFRS No. 1008 and K-IFRS No. 1107, become effective upon application of K-IFRS No. 1118.

The Group has not applied K-IFRS No. 1118 as its mandatory effective date has not yet been reached, and it plans to present its first interim financial statements for the period ending March 31, 2027 in accordance with K-IFRS No. 1118.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

Based on information available as of March 31, 2026, the Group is conducting a preliminary overall assessment of the impact of adopting K-IFRS No. 1118.

4. Financial risk management

(a) Overview

The Shinhan Financial Group (the “Group”) manages various risks that may arise within the business sector and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled, and reported in accordance with risk management guidelines established at the Parent Company level and the subsidiary level.

i) Risk management principles

The risk management principles of the Group are as follows:

- All business activities take into account the balance of risks and profits within a predetermined risk appetite.

- The Parent Company shall present the Group Risk Management Model Standards, supervise their compliance and have responsibility and authority for group-level monitoring.

- Operate a risk-related decision-making system that enhances management's involvement.

- Organize and operate risk management organizations independent of the business sector.

- Operate a performance management system that clearly considers risks when making business decisions.

- Aim for preemptive and practical risk management functions.

- Share a cautious view to prepare for possible deterioration of the situation.

ii) Risk management organization

The fundamental policies for risk management of the Group are established by the Board of Directors of the Parent Company, while the basic risk management strategies are established by the Risk Management Committee (the “Group Risk Management Committee”) within the Parent Company’s Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiary implements the risk management policies and strategies of the Group through each company's risk management committee, risk-related committee, and risk management organization, and consistently establishes and implements the detailed risk policies and strategies of the subsidiary. The risk management team of the Parent Company assists the Group's Chief Risk Officer for risk management and supervision.

The Group has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Committees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(a) Overview (continued)

ii) Risk management organization (continued)

ii-1) Group Risk Management Committee

The Committee establishes the risk management framework for the Parent Company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group’s fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the Parent Company.

The resolution of the Committee is as follows:

Establish risk management basic policy in line with management strategy

Determine the level of risk that can be assumed by the Group and each subsidiary

Approve appropriate investment limit or loss allowance limit

Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations

Matters concerning risk management organization structure and division of duties

Matters concerning the operation of the risk management system

Matters concerning the establishment of various limits and approval of limits

Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems

Matters concerning risk disclosure policy

Crisis situation analysis results, related capital management plan and financing plan

Matters deemed necessary by the board of directors

Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines

Matters deemed necessary by the Chairman

The resolution of the Group Risk Management Committee is reported to the Board of Directors.

ii-2) Group Risk Management Council

In order to maintain the Group's risk management policies and strategies consistently, the Group resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group’s chief risk officer and shall consist of the chief risk officers of major subsidiaries.

iii) Group Risk Management System

iii-1) Management of the Risk Capital

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Parent Company and its subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management and establish a risk limit management system to control risk to an appropriate level.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(a) Overview (continued)

iii) Group Risk Management System (continued)

iii-2) Risk Monitoring

In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Parent Company on key issues that affect risk management at the Group level. The Parent Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Group takes preemptive risk management to establish and implement countermeasures.

iii-3) Risk Reviewing

When conducting new product, new business and major policy changes, risk factors are reviewed by using a pre-defined checklist to prevent indiscriminate promotion of business that is not easy to judge risk and to support rational decision making. The subsidiary's risk management department conducts a preliminary review and post-monitoring process on products, services, and projects to be pursued in the business division. In case of matters that are linked or jointly promoted with other subsidiaries, the risk reviews are carried out after prior-consultation with the risk management department of the Parent Company.

iii-4) Crisis Management

The Group maintains a group wide crisis management system to detect the signals of any risk crisis preemptively and, in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the Group’s survival as a going concern. Each subsidiary maintains crisis planning for four levels of contingencies, namely, ‘cautious’, ‘alert’, ‘imminent crisis’ and ‘crisis’, determination of which is made based on quantitative and qualitative monitoring and consequence analysis, and upon the happening of any such contingency, is required to respond according to a prescribed contingency plan. At the Parent Company level, the Parent Company maintains and installs a crisis detection and response system which is applied consistently group-wide, and upon the happening of any contingency at two or more subsidiaries level, the Parent Company directly takes charge of the situation so that the Company manages it on a concerted group wide basis.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk

Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Group faces. The Group’s credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.

Shinhan Bank's basic policy on credit risk management is determined by the Risk Policy Committee. The Risk Policy Committee consists of the chairman of the Chief Risk Officer (CRO), Chief Credit Officer (CCO), the head of the business group, and the head of the risk management department. The Risk Policy Committee decides the credit risk management plan and the direction of the loan policy for the entire bank. Apart from the Risk Policy Committee, the Credit Review Committee is established to separate credit monitoring, such as large loans and limit approval, and is composed of the chairman, the CCO, the CRO and the head of the group in charge of the credit-related business group, the head of the credit planning department, and the senior examination team to enhance the credit quality of the loan and profitability of operation.

Shinhan Bank's credit risk management includes processes such as credit evaluation, credit monitoring and supervision, credit risk measurement of counterparties and limit management processes and credit risk measurements for portfolios. All loan customers of Shinhan Bank are evaluated and managed with credit ratings. Retail customers are evaluated by summing up customer information from Shinhan Bank's internal information and external credit information, and the corporate customers are evaluated by considering financial and non-financial items such as industrial risk, operating risk, and management risk. The evaluated credit rating is used for credit approval, limit management, pricing, credit loss provisioning, etc., and is the basis for credit risk management. The credit evaluation system is divided into an evaluation system for retail customers, a small office home office (“SOHO”) evaluation system, and an evaluation system for corporate customers. It is subdivided and refined by each model to reflect the Basel III requirements. The corporate credit decision is based on a collective decision-making system, making objective and prudent decisions. In the case of a general credit of loans, the credit is approved based on the consultation between branch RM’s (Relationship Manager) and loan officers of each business division’s headquarters. In the case of a large or important credit, the credit is approved by the review council. In particular, the Credit Review Committee, the highest decision-making body for loan approvals, reviews for important loans such as large loans. Credits for retail customers are monitored by an automated credit scoring system (CSS) based on objective statistical methods and bank credit policies.

Shinhan Bank operates a regular monitoring system for the regular management of individual loans. The loan officers and RM’s evaluate the adequacy of the result of the loan review by automatically searching for anticipated insolvent companies among business loan partners, and if necessary, the credit rating of the corporate is adjusted. In accordance with these procedures, corporate customers are classified either as an early warning company, an observation company, or a normal company, and then managed differently according to management guidelines for each risk classification, thereby mitigating the risk of insolvency of the loan at an early stage. The financial analysis support system affiliated with a professional credit rating agency supports credit screening and management, and the credit planning department calculates and manages industrial grades and analyzes and provides industry trends and company information. In order to control the credit risk for the credit portfolio to an appropriate level, credit VaR limits are set and managed for each business and business sector, and to prepare for the credit risk caused by biased exposure to specific sectors, the Group sets and manages exposure limits for each sector by party, industry, country, etc.

Shinhan Card Co., Ltd.’s basic policy on credit risk is determined by the Risk Management Committee. The Risk Management Committee (RMC) consists of the Chief Risk Officer (CRO) as the chairperson, along with the heads of business and supporting groups, related department heads, and the Risk Management Manager. Apart from the RMC, a credit committee in charge of monitoring corporate credits and other important credits over a certain amount, has been established to separate credit policy decisions from credit monitoring.

Shinhan Card Co., Ltd.’s credit rating system is divided into ASS (Application Scoring System) and BSS (Behavior Scoring System). Unless a customer falls under “rejection due to policy” (such circumstances include delinquency

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

of other credit card companies) and his/her credit rating is above a certain rate, an application of ASS is approved. There is a separate screening criterion for credit card customers, who have maintained a long-term relationship with the Group and have a good credit history. In addition, the elements of credit ratings are used as the basis for setting limits when issuing cards. The BSS, which is recalculated monthly, predicts the delinquency probability of cardholders, and is utilized to monitor member and portfolio risk.

i) Techniques, assumptions, and input variables used to measure impairment

i-1) Determining significant increases in credit risk since initial recognition

At the end of each reporting period, the Group assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Group uses the change in the risk of default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make the assessment, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Group and analysis by an internal credit rating expert.

Measuring the risk of default

The Group assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.

Measuring term structure of probability of default

Internal credit risk ratings are the main variable input to determine the duration structure for the risk of default. The Group accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Group uses information obtained from external credit rating agencies when performing these analyses. The Group applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions, and input variables used to measure impairment (continued)

i-1) Determining significant increases in credit risk since initial recognition (continued)

Significant increases in credit risk

The Group uses the indicators defined as per portfolio to determine the significant increase in credit risk and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others. The method used to determine whether credit risk of financial instruments has significantly increased after the initial recognitions is summarized as follows:


Corporate exposures	Retail exposures	Card exposures

Significant change in credit ratings	Significant change in credit ratings	Significant change in credit ratings
Continued past due more than 30 days	Continued past due more than 30 days	Continued past due more than 7 days (personal card)
Loan classification of ‘precautionary’ or below	Loan classification of ‘precautionary’ or below	Loan classification of ‘precautionary’ or below
Borrower with early warning signals	Borrower with early warning signals	Specific pool segment
Negative net assets	Specific pool segment
Adverse audit opinion or disclaimer of opinion	Collective loans for housing for which the constructors are insolvent
Interest coverage ratio below 1 for a consecutive period of three years or negative cash flows from operating activities for a consecutive period of two years	Loans with identified indicators for significant increases in other credit risk
Loans with identified indicators for significant increases in other credit risk

The Group assumes that the credit risk of the financial instrument has been increased significantly since initial recognition if a specific exposure is past due more than 30 days (except, for card exposures if it is past due more than 7 days). The Group counts the number of days past due from the earliest date on which the Group fails to fully receive the contractual payments from the borrower, and does not take into account any grace period granted to the borrower.

The Group regularly reviews the criteria for determining if there has been a significant increase in credit risk from the following perspective:

- A significant increase in credit risk shall be identified prior to the occurrence of default.

- The criteria established to judge the significant increase in credit risk shall have a more predictive power than the criteria for days of delinquency.

- As a result of applying the judgment criteria, management would not expect frequent movement between the 12-month expected credit loss accumulation target and the entire period expected credit loss accumulation target.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions, and input variables used to measure impairment (continued)

i-2) Modified financial assets

If the contractual cash flows on a financial asset have been modified through renegotiation and the financial asset is not derecognized, the Group assesses whether there has been a significant increase in the credit risk of the financial instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.

The Group may adjust the contractual cash flows of loans to customers who are in financial difficulties in order to manage the risk of default and enhance the collectability (hereinafter referred to as ‘debt restructuring’). These adjustments generally involve extension of maturity, changes in interest payment schedule, and changes in other contractual terms.

Debt restructuring is a qualitative indicator of a significant increase in credit risk, and the Group recognizes lifetime expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes payments of contractual cash flows that are modified in accordance with the debt restructuring or if the borrower's internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the Group recognizes the 12-month expected credit losses for that exposure again.

i-3) Risk of default

The Group considers a financial asset to be in default if it meets one or more of the following conditions:

- If a borrower is overdue 90 days or more from the contractual payment date

- If the Group judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The Group uses the following indicators when determining whether a borrower is in default:

- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Group, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Group uses the number of days past due for each financial instrument),

- Internal observation data and external data

The definition of default applied by the Group generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred, and the extent thereof may vary.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions, and input variables used to measure impairment (continued)

i-4) Reflection of forward-looking information

The Group reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Group utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.

The Group reflects future macroeconomic conditions anticipated from a neutral standpoint that is free from bias in measuring expected credit losses. Expected credit losses in this respect reflect conditions that are most likely to occur and are based on the same assumptions that the Group used in its business plan and management strategy.

The Group analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation. To reflect external and internal economic uncertainties, the Group has incorporated the final forward-looking information by reviewing an additional worst-case scenario along with the three existing scenarios of upside, central and downside.


Major macroeconomic variables		Correlation between credit risks

GDP growth rate		(-)
Private consumption growth rate		(-)
Equipment investment growth rate		(-)
Consumer price index growth rate		(+)
Balance on current account		(-)

The predicted correlations between the macroeconomic variables and the risk of default, used by the Group, are derived based on long-term data over the past ten years.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions, and input variables used to measure impairment (continued)

i-5) Measurement of expected credit losses

Key variables used in measuring expected credit losses are as follows:

- Probability of default (“PD”)

- Loss given default (“LGD”)

- Exposure at default (“EAD”)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Group and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Group uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.

LGD refers to the expected loss in the event of a default. The Group calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Group derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

In measuring expected credit losses on financial assets, the Group uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.

Risk factors of PD for each reporting period, and those of LGD and EAD, are collectively estimated according to the following criteria:

- Type of products

- Internal credit risk rating

- Type of collateral

- Loan to value (“LTV”)

- Industry that the borrower belongs to

- Location of the borrower or collateral

- Days of delinquency

The criteria for classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Group uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the past experience.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-6) Write-off of financial assets

The Group writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Group conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. The decision to write off follows the internal regulations of the Group and, if necessary, is carried out after obtaining approval from external institutions. Apart from write-off, the Group may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

ii) Maximum exposure to credit risk

Exposure to credit risk is related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet items such as loan commitment. The exposures of due from banks and loans are classified into government, bank, corporation or retail based on the exposure classification criteria of Basel III credit risk weights, and the net carrying amount, excluding deductible items such as provisions, is presented as the maximum amount that can be exposed by credit risk.

Details of the maximum exposure to credit risk for financial instruments held as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Due from banks and loans at amortized cost (1), (3):
Banks	W	14,456,404	12,658,709
Retail		208,974,128	208,308,298
Government/Public sector/Central bank		27,297,694	26,417,332
Corporations		236,510,689	226,554,125
Card receivable		27,531,432	27,695,043
		514,770,347	501,633,507

Due from banks and loans at FVTPL (*3):
Banks		210,933	169,972
Corporations		1,751,386	1,286,144
		1,962,319	1,456,116

Securities at FVTPL		71,016,988	71,727,860
Securities at FVOCI		101,938,641	101,282,906
Securities at amortized cost (*1)		31,260,884	31,944,368
Derivative assets		12,101,971	7,153,950
Other financial assets (1), (2)		54,418,904	43,323,340
Guarantee contracts		27,345,542	26,221,968
Loan commitments and other credit liabilities		224,464,975	220,317,053
	W	1,039,280,571	1,005,061,068

(*1) The maximum exposure amounts for due from banks, loans, securities at amortized cost and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.

(*2) Other financial assets mainly comprise of accounts receivable, accrued income, deposits, domestic exchange settlement debit and suspense payments.

(*3) Classified as similar credit risk group based on calculation of the BIS ratio under new Basel Capital Accord (Basel III).

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

iii) Impairment information by credit risk of financial assets

Details of impaired financial assets due to credit risk as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		12-month expected credit losses		Lifetime expected credit losses			Total	Allowances	Net	Mitigation of credit risk due to collateral
		Grade 1	Grade 2	Grade 1	Grade 2	Impaired	Total	Allowances	Net	Mitigation of credit risk due to collateral
Due from banks and loans at amortized cost:
Banks	W	11,890,115	2,382,658	200,886	148	-	14,473,807	(17,403)	14,456,404	796
Retail		188,656,020	6,765,657	9,168,418	4,166,846	1,309,938	210,066,879	(1,092,751)	208,974,128	162,789,742
Government/Public sector/Central bank		24,399,884	2,551,155	358,858	4	-	27,309,901	(12,207)	27,297,694	2,597
Corporations		127,008,145	60,979,191	23,774,997	24,621,435	2,513,410	238,897,178	(2,386,489)	236,510,689	130,387,932
Card receivable		20,554,852	4,349,758	1,046,641	2,003,006	531,905	28,486,162	(954,730)	27,531,432	15,165
		372,509,016	77,028,419	34,549,800	30,791,439	4,355,253	519,233,927	(4,463,580)	514,770,347	293,196,232
Securities at FVOCI (*)		91,164,515	10,737,306	-	36,820	-	101,938,641	-	101,938,641	-
Securities at amortized cost		29,217,179	2,052,544	-	-	-	31,269,723	(8,839)	31,260,884	-
	W	492,890,710	89,818,269	34,549,800	30,828,259	4,355,253	652,442,291	(4,472,419)	647,969,872	293,196,232

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

iii) Impairment information by credit risk of financial assets (continued)

Details of impaired financial assets due to credit risk as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
		12-month expected credit losses		Lifetime expected credit losses			Total	Allowances	Net	Mitigation of credit risk due to collateral
		Grade 1	Grade 2	Grade 1	Grade 2	Impaired	Total	Allowances	Net	Mitigation of credit risk due to collateral
Due from banks and loans at amortized cost:
Banks	W	11,039,981	1,445,815	183,147	121	-	12,669,064	(10,355)	12,658,709	171
Retail		188,215,501	6,674,522	9,227,654	3,991,054	1,252,699	209,361,430	(1,053,132)	208,308,298	162,423,106
Government/Public sector/Central bank		23,669,547	2,468,610	290,730	11	-	26,428,898	(11,566)	26,417,332	2,597
Corporations		121,819,093	56,460,975	22,692,064	25,790,138	2,091,404	228,853,674	(2,299,549)	226,554,125	126,763,442
Card receivable		20,649,246	4,449,746	1,060,430	1,976,109	481,682	28,617,213	(922,170)	27,695,043	18,139
		365,393,368	71,499,668	33,454,025	31,757,433	3,825,785	505,930,279	(4,296,772)	501,633,507	289,207,455
Securities at FVOCI (*)		90,408,440	10,847,635	-	26,831	-	101,282,906	-	101,282,906	-
Securities at amortized cost		30,031,575	1,921,484	-	-	-	31,953,059	(8,691)	31,944,368	-
	W	485,833,383	84,268,787	33,454,025	31,784,264	3,825,785	639,166,244	(4,305,463)	634,860,781	289,207,455

(*) Provision for credit losses recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 58,254 million and W 60,301 million as of March 31, 2026 and December 31, 2025.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

iv) Credit risk exposures per credit grade of off-balance sheet items

The credit risk exposure for off-balance sheet items such as guarantees, loan commitments, and other credit-related liabilities as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Grade 1	Grade 2	0.1	Impaired	Total
Guarantee contracts:
12-month expected credit losses	W	21,808,487	4,748,016		-	26,556,503
Lifetime expected credit losses		664,243	114,174		-	778,417
Impaired		-	-		10,622	10,622
		22,472,730	4,862,190		10,622	27,345,542
Loan commitments and other credit-related liabilities:
12-month expected credit losses		189,092,895	23,222,901		-	212,315,796
Lifetime expected credit losses		9,539,623	2,513,689		-	12,053,312
Impaired		-	-		95,867	95,867
		198,632,518	25,736,590		95,867	224,464,975
	W	221,105,248	30,598,780		106,489	251,810,517


		December 31, 2025
		Grade 1	Grade 2	0.1	Impaired	Total
Guarantee contracts:
12-month expected credit losses	W	20,555,651	4,535,466		-	25,091,117
Lifetime expected credit losses		964,695	154,378		-	1,119,073
Impaired		-	-		11,778	11,778
		21,520,346	4,689,844		11,778	26,221,968
Loan commitments and other credit-related liabilities:
12-month expected credit losses		185,899,148	22,774,387		-	208,673,535
Lifetime expected credit losses		8,896,231	2,642,174		-	11,538,405
Impaired		-	-		105,113	105,113
		194,795,379	25,416,561		105,113	220,317,053
	W	216,315,725	30,106,405		116,891	246,539,021

v) Credit qualities are classified based on the internal credit rating as follows:


Type of Borrower	Grade 1	Grade 2
Individuals	Probability of default below 2.25% for each pool	Probability of default 2.25% or above for each pool
Government/Public agency/Central bank	OECD sovereign credit rating of 6 or above	OECD sovereign credit rating of below 6
Banks and Corporations (Including card receivables)	Internal credit rating of BBB+ or above	Internal credit rating of below BBB+
Card receivables (Individuals)	Behavior scoring system of 7 grade or above	Behavior scoring system of below 7 grade

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

vi) Concentration by industry sector

An analysis of concentration by industry sector of financial instrument, net of allowance, as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
Classification (*)		Finance and insurance	Manu- facturing	Retail and wholesale	Real estate and business	Construction service	Lodging and Restaurant	Other	Retail customers	Total
Due from banks and loans at amortized cost:
Banks	W	14,197,342	-	-	-	-	-	259,062	-	14,456,404
Retail		-	-	-	-	-	-	-	208,974,128	208,974,128
Government/Public sector/Central bank		26,960,755	-	-	-	-	-	336,939	-	27,297,694
Corporations		23,481,817	67,146,910	24,504,628	49,627,479	5,155,097	7,218,953	59,375,805	-	236,510,689
Card receivable		66,577	347,914	234,417	78,159	50,547	27,002	1,292,052	25,434,764	27,531,432
		64,706,491	67,494,824	24,739,045	49,705,638	5,205,644	7,245,955	61,263,858	234,408,892	514,770,347
Due from banks and loans at FVTPL
Banks		42,117	-	-	-	99,339	-	69,477	-	210,933
Corporations		886,865	674,218	3,011	109,831	-	-	77,461	-	1,751,386
		928,982	674,218	3,011	109,831	99,339	-	146,938	-	1,962,319

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

vi) Concentration by industry sector (continued)

An analysis of concentration by industry sector of financial instrument, net of allowance, as of March 31, 2026 and December 31, 2025 are as follows (continued):


		March 31, 2026
Classification (*)		Finance and insurance	Manu- facturing	Retail and wholesale	Real estate and business	Construction service	Lodging and Restaurant	Other	Retail customers	Total

Securities at FVTPL	W	32,207,668	4,395,141	1,556,384	2,262,877	274,553	74,479	30,245,886	-	71,016,988
Derivative assets		9,651,589	1,652,956	109,911	72,621	948	6	613,616	324	12,101,971
Securities at FVOCI		46,059,045	2,415,958	560,412	1,595,333	667,765	22,840	50,617,288	-	101,938,641
Securities at amortized cost		7,136,418	83,090	-	863,409	269,341	-	22,908,626	-	31,260,884
		160,690,193	76,716,187	26,968,763	54,609,709	6,517,590	7,343,280	165,796,212	234,409,216	733,051,150
Off-balance sheet items
Guarantee contracts		5,733,009	13,065,946	3,841,538	207,412	224,206	61,308	4,211,050	1,073	27,345,542
Loan commitments and other credit-related liabilities		19,309,861	31,984,102	10,617,345	7,638,183	2,134,829	419,240	21,413,341	130,948,074	224,464,975
	W	25,042,870	45,050,048	14,458,883	7,845,595	2,359,035	480,548	25,624,391	130,949,147	251,810,517

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

vi) Concentration by industry sector (continued)

An analysis of concentration by industry sector of financial instrument, net of allowance, as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
Classification (*)		Finance and insurance	Manu- facturing	Retail and wholesale	Real estate and business	Construction service	Lodging and Restaurant	Other	Retail customers	Total
Due from banks and loans at amortized cost:
Banks	W	12,359,288	-	-	-	-	-	299,421	-	12,658,709
Retail		-	-	-	-	-	-	-	208,308,298	208,308,298
Government/Public sector/Central bank		26,140,603	-	-	-	-	-	276,729	-	26,417,332
Corporations		22,523,203	63,353,165	23,759,226	47,411,346	5,764,311	7,205,522	56,537,352	-	226,554,125
Card receivable		78,300	330,944	274,289	75,757	48,900	28,196	1,329,882	25,528,775	27,695,043
		61,101,394	63,684,109	24,033,515	47,487,103	5,813,211	7,233,718	58,443,384	233,837,073	501,633,507
Due from banks and loans at FVTPL
Banks		40,862	-	-	-	99,327	-	29,783	-	169,972
Corporations		575,478	399,668	3,004	156,286	-	-	151,708	-	1,286,144
		616,340	399,668	3,004	156,286	99,327	-	181,491	-	1,456,116

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

vi) Concentration by industry sector (continued)

An analysis of concentration by industry sector of financial instrument, net of allowance, as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
Classification (*)		Finance and insurance	Manu- facturing	Retail and wholesale	Real estate and business	Construction service	Lodging and Restaurant	Other	Retail customers	Total

Securities at FVTPL	W	35,054,770	3,090,284	1,399,374	3,087,667	242,695	29,279	28,823,791	-	71,727,860
Derivative assets		6,068,491	829,304	13,573	19,948	2,272	329	219,516	517	7,153,950
Securities at FVOCI		45,699,181	2,242,382	465,133	1,733,913	749,831	22,340	50,370,126	-	101,282,906
Securities at amortized cost		7,108,253	9,985	-	843,938	280,851	-	23,701,341	-	31,944,368
		155,648,429	70,255,732	25,914,599	53,328,855	7,188,187	7,285,666	161,739,649	233,837,590	715,198,707
Off-balance sheet items
Guarantee contracts		5,659,966	12,554,311	3,633,251	290,565	214,178	60,372	3,808,447	878	26,221,968
Loan commitments and other credit-related liabilities		18,227,705	31,211,151	10,863,979	6,914,971	2,269,120	444,003	20,103,475	130,282,649	220,317,053
	W	23,887,671	43,765,462	14,497,230	7,205,536	2,483,298	504,375	23,911,922	130,283,527	246,539,021

(*) The amounts by industry sector are presented as the net carrying amount after deducting allowances for loan losses.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

i) Market risk management from trading positions

i-1) Concept of Market risk

Market risk is defined as the risk of loss of trading account position of financial institutions due to changes on market price, such as interest rates, exchange rates and stock prices, etc. and is divided into general market risks and individual risks. A general market risk refers to a loss from price variability caused by events affecting the market as a whole, such as interest rates, exchange rates and stock prices; and an individual risk refers to a loss from price variability related to individual events of securities issuer, such as bonds and stocks. Structural foreign exchange positions refer to foreign exchange positions that, with the approval of the Governor of the Financial Supervisory Service, are excluded from the calculation of market risk regulatory capital, relating to amounts invested in foreign currencies such as capital contributions to overseas branches and Capital A (Gap-gi-geum).

i-2) Market Risk Management Method

The basic principle of market risk management in the trading sector is to maintain the maximum possible loss due to market risk within a certain level. To this end, the Group sets and operates VaR limits, investment limits, position limits, sensitivity limits, and loss limits from the portfolio to individual desks. These limits are managed daily by the department in charge of risk management, independent from the operating department.

Trading positions refer to all transactions for holding purposes such as short-term resale, profit seeking through short-term price fluctuations, risk-free arbitrage, and risk hedging. Trading positions refer to securities, foreign exchange positions, and derivative financial instruments held for the purpose of obtaining short-term trading gains. As a method of measuring market risk, VaR (Value at Risk) is typical, and it is a statistical measurement of the potential maximum loss that can occur due to changes in market conditions. VaR calculates the standardized approach market risk using the Group Market Risk Measurement System, and Shinhan Bank calculates the standardized approach market risk using its own model market risk calculation system. The Group and Shinhan Bank exclude structural foreign exchange positions, approved by the Governor of the Financial Supervisory Service, from the calculation of market risk under the standardized approach. Shinhan Securities Co., Ltd. uses its own market risk calculation system to calculate historical simulation VaR and the Group market risk system to calculate standardized approach market risk.

Stress tests are conducted to supplement risk measurement by statistical methods and to manage losses that may arise from rapid changes in the economic environment.

Shinhan Bank measures the risk of trading account products by applying market risk standardized approach. The trading account calculates market risk if it is for holding purposes such as short-term resale, profit seeking through short-term price fluctuations, risk-free arbitrage, and risk hedging. The standardized approach is a risk calculation methodology proposed by the Basel Committee on Banking Supervision (BCBS) of the Bank for International

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

i-2) Market risk management method (continued)

Settlements (BIS). In Korea, the Basel III standards for market risk have been incorporated into the Detailed Regulations on Banking Supervision since 2023, and the Group complies with these regulations. Under the Basel III

standardized approach, market risk is calculated by aggregating sensitivity risk, default risk, and residual risk. Sensitivity risk measures coverage of general interest rates, credit spreads, stocks, commodity, delta and vega of foreign exchange, and curvature. Delta refers to the change in product value due to changes in the price of the underlying asset, and vega refers to the change in product value due to changes in the volatility of the underlying asset. Curvature is defined as a loss that exceeds the delta risk in the event of an upward or downward shock to the underlying asset. Sensitivity risk is designed to measure both linear and non-linear risks of factors affecting value fluctuations regardless of the characteristics of the product. Default risk measures the discrete default risk of the underlying asset that cannot be captured in sensitivity risk. Complete offsetting between purchase and sale exposures of the same borrower is possible. Residual risk is a concept that calculates additional risk because sensitivity risk and default risk are not accurately measured when there is a special profit/loss structure or the underlying asset is special.

Trading position data is automatically interfaced into management system, and the system conducts VaR measurement and manages the limit. In addition, Shinhan Bank sets loss limit, sensitivity limit, investment limit, stress limit, etc. for Trading Department and desks, and monitors daily.

Shinhan Securities Co., Ltd. measures daily market risk by applying historical simulation VaR method of 99.9% confidence level-based VaR. It also measures market risk standardized approach to ensure consistent market risk management at the Group level. Historical simulation VaR method does not require assumption on a particular distribution since the method derives scenarios directly from historical market data, and measures non-linear products, such as options, in details. In addition to the VaR limit, Shinhan Securities Co., Ltd. sets and manages issuance and transaction limit, and stop-loss limit for each department.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

ii) Interest rate risk management from non-trading positions

ii-1) Principle

Interest rate risk refers to the possibility of a decrease in net interest income or in net asset value that occurs when interest rates fluctuate unfavorably from the Group's financial position. The Group manages changes in net interest income or net asset value that occur due to changes in interest rates by early predicting the factors of interest rate risk fluctuation related to the Group's net interest income and net asset value through the interest rate risk management.

ii-2) Managements

The Group's major financial subsidiaries manage interest rate risks independently by the risk management organization and the treasury department, and have internal regulations on interest rate risk management strategies, procedures, organization, measurement, and major assumptions.

One of the key indicators of managing interest rate risk is the Earnings at Risk (EaR) from an earning perspective and the Value at Risk (VaR) from an economic value perspective. Interest rate VaR represents the maximum anticipated loss in a net present value calculation, whereas interest rate EaR represents the maximum anticipated loss in a net interest income calculation for the immediately following one-year period, in each case, as a result of negative movements in interest rates.

Each subsidiary's interest rate risk measurement method varies depending on industry-specific regulations. However, interest rate VaR and interest rate EaR are measured using internal methodologies or IRRBB (Interest Rate Risk in the Banking Book). Interest rate risk limits are set based on interest rate VaR and monitored accordingly. In accordance with the amendments to the Detailed Enforcement Rules of the Financial Holding Companies Supervisory Regulations, the Group measures its interest rate risk using the standardized approach of IRRBB under Basel III, which measures interest rate risk more precisely than the existing BIS standard framework by segmenting interest rate maturities, reflecting customer behavior models, and diversifying interest rate shocks. The interest rate VaR scenario based IRRBB measures ① parallel up shock ② parallel down shock ③ steepener shock ④ flattener shock ⑤ short rate up shock ⑥ short rate down shock. By the parallel up shock and parallel down shock, the interest rate EaR scenario measures the scenario value with the largest loss as interest rate risk. Under the existing BIS standard framework, ± 200bp parallel shock scenario is applied to all currency. However, as the shock width is set differently by currency and period, interest rate risk is measured significantly by the IRRBB (e.g. (KRW) Parallel ± 225bp, Short Term ± 350bp, Long Term ± 225bp, (USD) Parallel ± 200bp, Short Term ± 300bp, Long Term ± 225bp). In the IRRBB method, the existing interest rate VaR and the interest rate EaR are expressed as △ EVE (Economic Value of Equity) and △ NII (Net Interest Income), respectively.

Since impacts of each subsidiary on changes of interest rates are differentiated by portfolios, the Group is preparing to respond proactively while monitoring the financial market and regulatory environment, and making efforts to hedge or reduce interest rate risk. In addition, the subsidiaries conduct the crisis analysis on changes in market interest rates and report it to management and the Group.

In particular, through its ALM (Asset and Liability Management) system, Shinhan Bank measures and manages its interest rate risk based on various analytical measures such as interest rate gap, duration gap and NPV (Net Present Value) and NII (Net Interest Income) simulations, and monitors on a monthly basis its interest rate VaR limits, interest rate EaR (Earnings at Risk) limits and interest rate gap ratio limits.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

iii) Foreign exchange risk

Exposure to foreign exchange risk can be defined as the difference (net position) between assets and liabilities presented in foreign currency, including derivative financial instruments linked to foreign exchange rate. Foreign exchange risk is a factor that causes market risk of the trading position and is managed by the Group under the market risk management system.

The management of Shinhan Bank’s foreign exchange position is centralized at the S&T Center. The desks and dealers of this department manage the overall position of spot foreign exchange or foreign exchange derivatives within the established market risk and foreign exchange position limits. Shinhan Bank sets a limit for net open positions by currency and the limits for currencies other than the U.S. dollars (USD), Japanese yen (JPY), Euros (EUR) and Chinese yuan (CNY) are set in order to minimize exposures from the other foreign exchange trading.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Liquidity risk

Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets at abnormal prices, high interest-rate financing, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.

Each subsidiary seeks to minimize liquidity risk through early detection of risk factors related to the sourcing and managing of funding that may cause volatility in liquidity by ensuring that it maintains an appropriate level of liquidity through systematic management. At the Group level, the Group manages liquidity risk by conducting monthly stress tests that compare liquidity requirements under normal situations against those under three types of stress situations, namely, the inherent crisis, crisis in the external market and a combination of internal and external crisis. Therefore, the Group is monitoring for any anomalies in terms of liquidity in preparation for potential crisis situations during normal times.

In particular, after the bankruptcy of Silicon Valley Bank, the Group has been strengthening its capability to respond to liquidity crises by conducting crisis situation analysis applying bank run scenarios to the banks and savings bank subsidiaries. The Group has established and reviewed emergency funding plans, accordingly.

In addition, in order to pre-emptively and comprehensively manage liquidity risk, the Group measures and monitors liquidity risk management using various indices, including the ‘limit management index’, ‘early warning index’ and ‘monitoring index’.

Shinhan Bank applies the following basic principles for liquidity risk management:

- Raise funding in sufficient amounts, at the optimal time at reasonable costs;

- Maintain risk at appropriate levels and pre-emptively manage them through a prescribed risk limit system and an early warning signal detection system;

- Secure stable sources of revenue and minimize actual losses by implementing an effective asset-liability management system based on diversified sources of funding with varying maturities;

- Monitor and manage daily and intra-daily liquidity positions and risk exposures for timely payment and settlement of financial obligations due under both normal and crisis situations;

- Conduct periodic contingency analysis to prepare for any potential liquidity crisis and establish and implement emergency plans in the event of a crisis; and

- Consider liquidity-related costs, benefits and risks in determining the pricing of the Group’s products and services, employee performance evaluations and approval of launching of new products and services.

Shinhan Card Co., Ltd. sets and operates a level that can withstand a 3-month credit crunch for end-of-month liquidity. The Group defines and manages the level of ‘cautious’, ‘alert’, ‘imminent crisis’, and ‘crisis’ and risk for the real liquidity gap ratio, liquidity buffer ratio, and ratio of ABS (asset backed securities) to borrowings which are major indicators related to liquidity risk. A contingency plan has been established to prepare for a crisis.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Liquidity risk (continued)

The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
Classification (*1)		1 month or less (*3)	1~3 months	3~6 months	6 months ~ 1 year	1~5 years	5 years or more	Total
Non-derivative financial liabilities:
Liabilities:
Deposits (*2)	W	238,024,048	58,370,541	56,080,753	87,615,031	29,141,075	1,681,328	470,912,776
Financial liabilities at fair value through profit or loss		2,958,931	-	-	-	-	-	2,958,931
Borrowings		14,833,378	6,646,438	6,455,666	10,359,399	13,590,229	5,407,874	57,292,984
Debt securities issued		5,470,737	8,307,424	6,654,570	15,230,035	53,979,967	3,843,525	93,486,258
Financial liabilities designated at fair value through profit or loss		412,291	1,035,727	617,581	1,472,015	1,583,169	1,545,956	6,666,739
Investment contract liabilities		37,651	77,463	13,330	154,956	1,030,860	-	1,314,260
Other financial liabilities		67,770,853	94,196	47,527	668,136	1,192,899	272,435	70,046,046
	W	329,507,889	74,531,789	69,869,427	115,499,572	100,518,199	12,751,118	702,677,994
Off-balance sheet items (*3):
Guarantee contracts	W	27,345,542	-	-	-	-	-	27,345,542
Loan commitments and other credit-related liabilities		224,464,975	-	-	-	-	-	224,464,975
	W	251,810,517	-	-	-	-	-	251,810,517
Derivatives:
Derivatives	W	943,030	16,529	501	(388,347)	(2,403,575)	(72,190)	(1,904,052)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Liquidity risk (continued)

The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
Classification (*1)		1 month or less (*3)	1~3 months	3~6 months	6 months ~ 1 year	1~5 years	5 years or more	Total
Non-derivative financial liabilities:
Liabilities:
Deposits (*2)	W	231,520,722	54,103,105	54,526,232	84,041,299	30,677,571	2,274,736	457,143,665
Financial liabilities at fair value through profit or loss		2,212,215	-	-	-	-	100,272	2,312,487
Borrowings		16,797,623	6,963,957	6,221,726	8,478,193	11,924,157	6,074,035	56,459,691
Debt securities issued		6,230,564	8,486,174	9,202,855	15,052,890	56,411,740	3,889,537	99,273,760
Financial liabilities designated at fair value through profit or loss		399,298	977,019	854,498	1,180,049	1,423,212	1,586,327	6,420,403
Investment contract liabilities		189,704	10,554	91,041	159,182	1,085,912	-	1,536,393
Other financial liabilities		51,214,836	162,838	74,360	602,583	1,318,935	225,282	53,598,834
	W	308,564,962	70,703,647	70,970,712	109,514,196	102,841,527	14,150,189	676,745,233
Off-balance sheet items (*3):
Guarantee contracts	W	26,221,968	-	-	-	-	-	26,221,968
Loan commitments and other credit-related liabilities		220,317,053	-	-	-	-	-	220,317,053
	W	246,539,021	-	-	-	-	-	246,539,021
Derivatives:
Derivatives	W	771,588	(810,792)	(29,804)	(93,500)	(2,117,259)	(76,279)	(2,356,046)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Liquidity risk (continued)

The details of the composition of non-derivative financial liabilities and derivative financial instruments by remaining period as of March 31, 2026 and December 31, 2025 are as follows (continued):

(*1) These amounts include cash flows of principal and interest on financial liabilities.

(*2) Demand deposits amounting to W 176,322,382 million and W 172,840,773 million as of March 31, 2026 and December 31, 2025 are included in the ‘Less than 1 month’ category, respectively.

(*3) Although the Group's guarantee contracts, loan commitments, and other credit offerings have contractual maturities, the Group is required to fulfill its obligations immediately upon a counterparty's request for payment, and therefore are classified into the earliest maturity time band.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(e) Capital risk management

The Group is required, in accordance with the Financial Holding Companies Act, to maintain a total capital ratio based on consolidated risk-weighted assets of at least 8% (hereinafter referred to as the “Basel III capital ratio”). In addition, following the implementation of enhanced Basel III capital regulations from 2016, the required BIS capital ratio to be maintained in order to strengthen loss-absorbing capacity has been increased to a maximum of 14%. This requirement reflects the minimum regulatory ratio plus the additional accumulation of a capital conservation buffer (2.5%p), a domestic systemically important bank (“D-SIB”) buffer (1.0%p), and a countercyclical capital buffer (2.5%p). The countercyclical capital buffer may be imposed up to a maximum of 2.5%p during periods of excessive credit growth. In Korea, the countercyclical capital buffer requirement was increased from 0%p to 1%p effective May 1, 2024. Accordingly, as of March 31, 2026, the BIS capital ratio additionally required to enhance loss-absorbing capacity is 12.5%, which reflects the application of the capital conservation buffer (2.5%p), the D-SIB buffer (1.0%p), and the countercyclical capital buffer (1.0%p).

The Basel III capital ratio refers to an internationally harmonized standard for capital adequacy regulation established under the “International Convergence of Capital Measurement and Capital Standards” issued by the Basel Committee on Banking Supervision of the Bank for International Settlements (“BIS”). The ratio is calculated as:

(Common Equity Tier 1 capital (net of regulatory deductions) + Additional Tier 1 capital + Tier 2 capital) ÷ Risk-weighted assets

Common Equity Tier 1 capital is the first line of capital available to absorb losses of a financial holding company and ranks last in priority upon liquidation. It is not redeemable prior to liquidation and consists of share capital, capital surplus, retained earnings, and other components. Additional Tier 1 capital consists of perpetual capital instruments that meet certain regulatory requirements. Tier 2 capital consists of capital instruments that are available to absorb losses upon liquidation, subject to specific regulatory criteria. Regulatory deduction items are assets or capital items held by the Group that do not contribute to loss-absorbing capacity and, unless otherwise specified, are deducted from Common Equity Tier 1 capital.

As of March 31, 2026, the Group maintains an adequate capital ratio in accordance with the BIS capital adequacy requirements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value

The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Group are based on the trading agencies’ notifications.

If the market for a financial instrument is not active, such as OTC (Over- The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Group uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined by using valuation techniques; a method of using recent transactions between independent parties with reasonable judgment and willingness to trade, a method of referring to the current fair value of other financial instruments that are substantially identical, discounted cash flow model and option pricing models. For example, the fair value of an interest rate swap is calculated as the present value of the expected future cash flows, and the fair value of foreign exchange forward contract is calculated by applying the public forward exchange rate at the end of the reporting period.

The Group classifies and discloses fair value of financial instruments into the following three-level hierarchy:



Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level 1.



Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.



Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value

i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Level 1	Level 2	Level 3	Total
Financial assets:
Due from banks at FVTPL	W	-	42,117	-	42,117
Loans at FVTPL		-	874,873	1,045,329	1,920,202
Securities at FVTPL:
Debt securities and other securities		11,133,798	41,593,140	17,738,175	70,465,113
Equity securities		3,768,533	505,424	1,784,473	6,058,430
Gold/silver deposits		551,875	-	-	551,875
		15,454,206	42,098,564	19,522,648	77,075,418
Derivative assets:
Trading		67,568	10,383,245	740,454	11,191,267
Hedging		-	910,704	-	910,704
		67,568	11,293,949	740,454	12,101,971
Securities at FVOCI:
Debt securities		38,394,262	63,535,240	9,139	101,938,641
Equity securities		1,164,322	-	1,091,589	2,255,911
		39,558,584	63,535,240	1,100,728	104,194,552
	W	55,080,358	117,844,743	22,409,159	195,334,260
Financial liabilities:
Financial liabilities at FVTPL:
Securities sold	W	1,261,337	-	-	1,261,337
Gold/silver deposits		1,697,594	-	-	1,697,594
		2,958,931	-	-	2,958,931
Financial liabilities designated at FVTPL:
Derivative-linked securities sold		-	224,599	6,111,954	6,336,553
Debt securities issued		-	268,686	-	268,686
		-	493,285	6,111,954	6,605,239
Derivative liabilities:
Trading		113,758	9,699,947	568,471	10,382,176
Hedging		-	1,378,926	224,835	1,603,761
		113,758	11,078,873	793,306	11,985,937
	W	3,072,689	11,572,158	6,905,260	21,550,107

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
		Level 1	Level 2	Level 3	Total
Financial assets:
Due from banks at FVTPL	W	-	40,862	-	40,862
Loans at FVTPL		-	506,781	908,473	1,415,254
Securities at FVTPL:
Debt securities and other securities		12,198,754	41,464,110	17,441,328	71,104,192
Equity securities		2,900,162	461,978	1,507,261	4,869,401
Gold/silver deposits		623,668	-	-	623,668
		15,722,584	41,926,088	18,948,589	76,597,261
Derivative assets:
Trading		63,896	5,876,734	596,229	6,536,859
Hedging		-	617,091	-	617,091
		63,896	6,493,825	596,229	7,153,950
Securities at FVOCI:
Debt securities		37,077,188	64,196,579	9,139	101,282,906
Equity securities		998,372	-	935,672	1,934,044
		38,075,560	64,196,579	944,811	103,216,950
	W	53,862,040	113,164,135	21,398,102	188,424,277
Financial liabilities:
Financial liabilities at FVTPL:
Securities sold	W	790,416	-	-	790,416
Gold/silver deposits		1,522,071	-	-	1,522,071
		2,312,487	-	-	2,312,487
Financial liabilities designated at FVTPL:
Derivative-linked securities sold		-	255,532	5,834,683	6,090,215
Debt securities issued		-	287,849	-	287,849
		-	543,381	5,834,683	6,378,064
Derivative liabilities:
Trading		38,222	5,540,526	293,655	5,872,403
Hedging		-	994,626	153,817	1,148,443
		38,222	6,535,152	447,472	7,020,846
	W	2,350,709	7,078,533	6,282,155	15,711,397

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-2) Classification of financial instruments as fair value level 3

The Group uses the value from evaluators who are qualified, external, and independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the three-month period ended March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Financial asset at FVTPL	Securities at FVOCI	Financial liabilities designated at FVTPL	Held for trading			Held for hedging
		Financial asset at FVTPL	Securities at FVOCI	Financial liabilities designated at FVTPL			Derivative assets		Derivative liabilities		Derivative assets	Derivative liabilities
Beginning balance	W	19,857,062	944,811	(5,834,683)	596,229	(293,655)		-		(153,817)
Recognized in total comprehensive income for the period:
Recognized in profit (loss) for the period (*1)		384,712	-	75,487	137,223	(293,165)		-		(71,018)
Recognized in other comprehensive income (loss) for the period		832	155,917	(2,288)	-	-		-		-
		385,544	155,917	73,199	137,223	(293,165)		-		(71,018)

Purchase		1,845,383	-	-	15,735	(8,292)		-		-
Issue		-	-	(1,713,423)	-	-		-		-
Settlement		(1,495,706)	-	1,362,953	(8,733)	26,641		-		-
Transfer to level3 (*2)		23,987	-	-	-	-		-		-
Transfer out of level3 (*2)		(48,293)	-	-	-	-		-		-
Ending balance	W	20,567,977	1,100,728	(6,111,954)	740,454	(568,471)		-		(224,835)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-2) Classification of financial instruments as fair value level 3 (continued)

The Group uses the value from evaluators who are qualified and external independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the three-month period ended March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
		Financial asset at FVTPL	Securities at FVOCI	Financial liabilities designated at FVTPL	Held for trading			Held for hedging
		Financial asset at FVTPL	Securities at FVOCI	Financial liabilities designated at FVTPL			Derivative assets		Derivative liabilities		Derivative assets	Derivative liabilities
Beginning balance	W	18,632,327	922,191	(7,139,257)	719,177	(536,855)		-		(207,697)
Recognized in total comprehensive income for the year:
Recognized in profit (loss) for the period (*1)		8,721	-	(225,030)	95,523	155,722		-		36,007
Recognized in other comprehensive income (loss) for the year		(531)	69,448	(4,165)	-	-		-		-
		8,190	69,448	(229,195)	95,523	155,722		-		36,007

Purchase		5,875,977	6,324	-	87,869	(30,005)		-		(13,580)
Issue		-	-	(6,407,756)	-	-		-		-
Settlement		(4,667,721)	(62,292)	7,941,525	(306,359)	117,483		-		31,453
Transfer to level3 (*2)		65,173	9,140	-	23	-		-		-
Transfer out of level3 (*2)		(56,884)	-	-	(4)	-		-		-
Ending balance	W	19,857,062	944,811	(5,834,683)	596,229	(293,655)		-		(153,817)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

(*1) Recognized profit or loss of the changes in carrying amount of financial instruments classified as Level 3 for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are included in the accounts of the consolidated statements of comprehensive income, of which the amounts and the related accounts are as follows:


		March 31, 2026
		Amounts recognized in profit or loss	Recognized profit or loss from the financial instruments held as of March 31
Net gain on financial assets at FVTPL	W	228,770	255,388
Net gain on financial liabilities designated at FVTPL		75,487	83,573
Net other operating expense		(71,018)	(71,018)
	W	233,239	267,943


		December 31, 2025
		Amounts recognized in profit or loss	Recognized profit or loss from the financial instruments held as of December 31
Net gain on financial assets at FVTPL	W	259,966	250,113
Net gain (loss) on financial liabilities designated at FVTPL		(225,030)	2,884
Net other operating income		36,007	36,007
	W	70,943	289,004

(*2) Transfers between levels result from changes in the availability of observable market data for the financial instruments. The Group recognizes such transfers at the end of the reporting period in which the change occurs.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026
Type of financial instrument	Valuation technique		Carrying value	Significant inputs
Assets
Financial assets at FVTPL
Debt securities	DCF, NAV, Option model (*)	W	42,510,130	Discount rate, interest rate, stock price, etc.
Equity securities	NAV, Option model (*)		505,424	Price of underlying assets such as stocks, bonds, etc., dividend yield
			43,015,554
Derivative assets
Trading	Option model (*), Implied forward interest rate, DCF		10,383,245	Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc.
Hedging	Option model (*), Implied forward interest rate, DCF		910,704
			11,293,949
Securities at FVOCI
Debt securities	DCF, Option model (*)		63,535,240	Interest rate, discount rate, etc.
		W	117,844,743
Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold	Option model (*), NAV	W	224,599	Underlying asset price
Debt securities issued	Option model (*), NAV		268,686	Discount rate, volatility
			493,285
Derivative liabilities
Trading	Option model (*), Implied forward interest rate, DCF		9,699,947	Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging	Option model (*), Implied forward interest rate, DCF		1,378,926
			11,078,873
		W	11,572,158

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets (continued)

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of March 31, 2026 and December 31, 2025 are as follows (continued):


	December 31, 2025
Type of financial instrument	Valuation technique		Carrying value	Significant inputs
Assets
Financial assets at FVTPL
Debt securities	DCF, NAV, Option model (*)	W	42,011,753	Discount rate, interest rate, stock price, etc.
Equity securities	NAV, Option model (*)		461,978	Price of underlying assets such as stocks, bonds, etc., dividend yield
			42,473,731
Derivative assets
Trading	Option model (*), Implied forward interest rate, DCF		5,876,734	Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc.
Hedging	Option model (*), Implied forward interest rate, DCF		617,091
			6,493,825
Securities at FVOCI
Debt securities	DCF, Option model (*)		64,196,579	Interest rate, discount rate, etc.
		W	113,164,135
Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold	Option model (*), NAV	W	255,532	Underlying asset price
Debt securities issued	Option model (*), NAV		287,849	Discount rate, volatility
			543,381
Derivative liabilities
Trading	Option model (*), Implied forward interest rate, DCF		5,540,526	Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging	Option model (*), Implied forward interest rate, DCF		994,626
			6,535,152
		W	7,078,533

(*) Option models applied to measure fair value include the Black-Scholes model, Hull-White model and methods such as Monte Carlo simulation are applied to some products depending on the product type.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets (continued)

Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026
Type of financial instrument	Valuation technique		Carrying Value (*2)	Significant unobservable inputs	Range
Financial assets
Financial assets at FVTPL
Debt securities	DCF, NAV, Option model (*1), Income approach, Dividend discount model (DDM)	W	18,783,504	The volatility of the underlying asset, Discount rate, Correlations Growth rate, Interest rate volatility, Liquidation Value	0.61~73.36% 3.98~11.52% 31.11~68.71% 0.00% 0.51~0.95% -1.00~1.00%
Equity securities	DCF, NAV, Option model (*1), Comparable company analysis, Transaction case price, Dividend discount model (DDM), Cost method		1,784,473	The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value	0.00~97.28% 3.15~45.16% 0.00% 0.51~0.95% 0.00%
			20,567,977
Derivative assets
Equity and foreign exchange related	Option model (*1)		19,162	The volatility of the underlying asset, Correlations	19.42~67.44% 30.33~83.69%
Interest rate related			248,787	The volatility of the underlying asset, Correlations	0.49~1.65% -38.10~64.21%
Credit and commodity related			472,505	The volatility of the underlying asset, Correlations, Hazard Rate	29.54~30.16% 99.58~99.78% 0.01~10.25%
			740,454

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets (continued)


	March 31, 2026
Type of financial instrument	Valuation technique		Carrying Value (*2)	Significant unobservable inputs	Range
Financial assets
Securities at FVOCI
Debt securities	Option model (*1)	W	9,139	Discount rate, Interest rate volatility	6.23% 7.95%
Equity securities	DCF, NAV, Option model (*1), Comparable company analysis, Cost method		1,091,589	The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value	16.82~26.25% 4.35~14.15% 0.00% 0.51~0.95% 0.00%
			1,100,728
		W	22,409,159
Financial liabilities
Financial liabilities designated at fair value through profit or loss
Equity related	Option model (*1)	W	6,111,954	The volatility of the underlying asset, Correlations	0.49~61.22% -38.10~74.77%
Derivative liabilities
Equity and foreign exchange related	Option model (*1)		62,481	The volatility of the underlying asset, Correlations	8.15~61.22% 29.93~74.77%
Interest rate related			627,184	The volatility of the underlying asset, Regression coefficient, Correlations	0.49~1.65% 0.01~1.41% -38.10~90.34%
Credit and commodity related			103,641	The volatility of the underlying asset, Correlations, Hazard Rate	1.36~1.65% -11.82~64.21% 0.33~10.25%
			793,306
		W	6,905,260

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets (continued)


	December 31, 2025
Type of financial instrument	Valuation technique		Carrying Value (*2)	Significant unobservable inputs	Range
Financial assets
Financial assets at FVTPL
Debt securities	DCF, NAV, Option model (*1), Income approach	W	18,349,801	The volatility of the underlying asset, Discount rate, Correlations Growth rate, Interest rate volatility, Liquidation Value	0.50~67.94% 4.04~17.95% 31.11~69.16% 0.00% 0.46~0.70% 0.00%
Equity securities	DCF, NAV, Option model (*1), Comparable company analysis, Transaction case price, Dividend discount model (DDM), Cost method		1,507,261	The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value	0.00~68.67% 3.14~45.20% 0.00% 0.46~0.70% 0.00%
			19,857,062
Derivative assets
Equity and foreign exchange related	Option model (*1)		25,130	The volatility of the underlying asset, Correlations	10.63~61.54% 30.33~82.07%
Interest rate related			71,254	The volatility of the underlying asset, Correlations	0.48~1.51% -70.00~61.85%
Credit and commodity related			499,845	The volatility of the underlying asset, Correlations, Hazard Rate	30.76~31.08% 99.63% 0.08~9.29%
			596,229

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and significant inputs not observable in markets (continued)


	December 31, 2025
Type of financial instrument	Valuation technique		Carrying Value (*2)	Significant unobservable inputs	Range
Financial assets
Securities at FVOCI
Debt securities	Option model (*1)	W	9,139	Discount rate, Interest rate volatility	6.23% 7.92%
Equity securities	DCF, NAV, Option model (*1), Comparable company analysis, Cost method		935,672	The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value	23.87% 4.23~16.33% 0.00% 0.46~0.70% 0.00%
			944,811
		W	21,398,102
Financial liabilities
Financial liabilities designated at fair value through profit or loss
Equity related	Option model (*1)	W	5,834,683	The volatility of the underlying asset, Correlations	0.48~61.54% -70.00~82.07%
Derivative liabilities
Equity and foreign exchange related	Option model (*1)		21,150	The volatility of the underlying asset, Correlations	8.20~61.54% 0.23~82.07%
Interest rate related			335,811	The volatility of the underlying asset, Regression coefficient, Correlations	0.48~1.51% 0.01~0.98% -70.00~90.34%
Credit and commodity related			90,511	The volatility of the underlying asset, Correlations, Hazard Rate	0.65~1.51% -70.00~61.85% 0.21~9.22%
			447,472
		W	6,282,155

(*1) Option models applied to measure fair value include the Black-Scholes model, Hull-White model and methods such as Monte Carlo simulation are applied to some products depending on the product type.

(*2) Valuation techniques and input variables are not disclosed for items whose carrying amounts are considered to approximate fair value.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

i) Financial instruments measured at fair value (continued)

i-4) Sensitivity for changing in unobservable inputs

For level 3 fair value measurement, changing one or more of the unobservable inputs used to reasonably possible alternative assumptions would have the following effects on profit or loss, or other comprehensive income as of March 31, 2026 and December 31, 2025.


		March 31, 2026
		Favorable changes	Unfavorable changes
Financial assets:
Effects on profit or loss for the period (1), (2):
Financial assets at FVTPL	W	33,718	(29,520)
Derivative assets		30,964	(29,024)
Securities at FVOCI (*2)		61,420	(43,824)
	W	126,102	(102,368)
Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL	W	26,380	(28,864)
Derivative liabilities		17,157	(16,966)
	W	43,537	(45,830)


		December 31, 2025
		Favorable changes	Unfavorable changes
Financial assets:
Effects on profit or loss for the period (1), (2):
Financial assets at FVTPL	W	35,062	(34,827)
Derivative assets		15,446	(14,723)
Securities at FVOCI (*2)		60,531	(42,863)
	W	111,039	(92,413)
Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL	W	14,685	(14,764)
Derivative liabilities		6,889	(7,538)
	W	21,574	(22,302)

(*1) Fair value changes are calculated by increasing or decreasing the volatility of the underlying asset (-10~10%p) or correlations (-10~10%p), a significant unobservable input.

(*2) Fair value changes are calculated by increasing or decreasing the growth rate and discount rate, which are significant unobservable inputs, from -1%p to 1%p.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

ii) Financial instruments measured at amortized cost

ii-1) The method of calculating the fair value of financial instruments measured at amortized cost is as follows:


Type		Measurement methods of fair value

Cash and due from banks		The carrying amount and the fair value for cash are identical and most amounts due from banks are floating interest rate deposits or overnight deposits of short-term instruments. For this reason, the book value is used as a proxy for fair value.
Loans		The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower.
Securities		An external professional evaluation agency is used to calculate the valuation amount using the market information. The agency calculates the fair value based on active market prices, and DCF model is used to calculate the fair value if there is no quoted price.
Deposits and borrowings		The carrying amount and the fair value for demand deposits, cash management account deposits, call money as short-term instrument are identical. The remaining liabilities and borrowings were calculated as fair value by discounting contractual cash flows at the market interest rate that reflects the residual risk.
Debt securities issued		Where available, the fair value of deposits and borrowings is based on the published price quotations in an active market. In case there is no data for an active market price, it is measured by discounting the contractual cash flow at the market interest rate that reflects the residual risk.
Investment contract liabilities		The carrying amount of accumulated pension benefits of retirement pension contract holders, as defined under the Insurance Business Act and the Regulations on Supervision of Insurance Business, is used as a proxy for fair value as reliable estimates of expected future cash flows are not available.
Other financial assets and other financial liabilities		The carrying amount is measured at fair value for short-term and suspense accounts, such as spot exchange, inter-bank fund transfer, and domestic exchange of payments, and for the remaining financial instruments, the present value is calculated by discounting the contractual cash flows at the market interest rate that reflects the residual risk.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

ii) Financial instruments measured at amortized cost (continued)

ii-2) The carrying amount and the fair value of financial instruments measured at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026		December 31, 2025
		Carrying amount	Fair value	Carrying amount	Fair value
Assets:

Due from banks at amortized cost (*)	W	37,017,710	36,924,671	36,859,627	36,793,298

Loans at amortized cost		477,752,638	478,409,965	464,773,880	466,291,620

Securities at amortized cost:
Government bonds		21,985,079	21,132,434	22,779,176	22,300,505
Financial institution bonds		1,870,073	1,875,080	1,837,790	1,851,292
Corporation bonds		7,405,732	7,201,420	7,327,402	7,239,123
		31,260,884	30,208,934	31,944,368	31,390,920
Other financial assets		54,418,904	54,754,030	43,323,340	43,674,984
	W	600,450,136	600,297,600	576,901,215	578,150,822
Liabilities:
Deposit liabilities:
Demand deposits	W	176,322,382	176,322,383	172,840,773	172,840,773
Time deposits		248,246,939	247,845,698	238,328,250	238,238,605
Certificate of deposit		16,416,019	16,395,037	17,001,339	16,970,158
Issued bill deposit		9,076,225	9,073,810	8,921,064	8,920,096
CMA deposits		5,128,263	5,128,263	4,889,093	4,889,093
Others		6,840,625	6,840,585	5,668,452	5,668,466
		462,030,453	461,605,776	447,648,971	447,527,191
Borrowing debts:
Call-money		1,428,630	1,428,630	1,437,100	1,437,100
Bills sold		10,334	10,297	11,887	11,846
Bonds sold under repurchase agreements		12,425,113	12,425,113	14,988,698	14,988,698
Notes issued		198,516	198,516	-	-
Borrowings		42,119,504	42,002,976	38,957,149	38,924,550
		56,182,097	56,065,532	55,394,834	55,362,194
Debt securities issued:
Borrowings in Korean won		69,927,088	69,124,711	74,937,216	74,697,509
Borrowings in foreign currency		17,676,334	17,846,392	18,054,206	18,273,309
		87,603,422	86,971,103	92,991,422	92,970,818

Investment contract liabilities		1,314,260	1,314,260	1,536,393	1,536,393

Other financial liabilities		74,402,682	74,322,491	57,890,911	57,832,606
	W	681,532,914	680,279,162	655,462,531	655,229,202

(*) Cash is not included.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

ii) Financial instruments measured at amortized cost (continued)

ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Level 1	Level 2	Level 3	Total
Due from banks at amortized cost (*)	W	368,765	36,555,906	-	36,924,671

Loans at amortized cost		-	556,660	477,853,305	478,409,965

Securities at amortized cost:
Government bonds		9,816,551	11,315,883	-	21,132,434
Financial institution bonds		30,171	1,844,909	-	1,875,080
Corporation bonds		-	7,201,420	-	7,201,420
		9,846,722	20,362,212	-	30,208,934

Other financial assets		-	32,941,260	21,812,770	54,754,030
	W	10,215,487	90,416,038	499,666,075	600,297,600
Liabilities:
Deposit liabilities:
Demand deposits	W	-	176,322,383	-	176,322,383
Time deposits		-	-	247,845,698	247,845,698
Certificate of deposit		-	-	16,395,037	16,395,037
Issued bill deposit		-	-	9,073,810	9,073,810
CMA deposits		-	5,128,263	-	5,128,263
Other		-	6,797,017	43,568	6,840,585
		-	188,247,663	273,358,113	461,605,776
Borrowing debts:
Call-money		-	1,428,630	-	1,428,630
Bills sold		-	-	10,297	10,297
Bonds sold under repurchase agreements		-	-	12,425,113	12,425,113
Notes issued		-	-	198,516	198,516
Borrowings		-	109,550	41,893,426	42,002,976
		-	1,538,180	54,527,352	56,065,532
Debt securities issued:
Borrowings in won		-	37,103,226	32,021,485	69,124,711
Borrowings in foreign currency		-	11,720,277	6,126,115	17,846,392
		-	48,823,503	38,147,600	86,971,103

Investment contract liabilities		-	-	1,314,260	1,314,260

Other financial liabilities		-	26,172,173	48,150,318	74,322,491
	W	-	264,781,519	415,497,643	680,279,162

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(f) Measurement of fair value (continued)

ii) Financial instruments measured at amortized cost (continued)


		December 31, 2025
		Level 1	Level 2	Level 3	Total
Due from banks at amortized cost (*)	W	269,329	36,523,969	-	36,793,298

Loans at amortized cost		-	700,039	465,591,581	466,291,620

Securities at amortized cost:
Government bonds		10,815,330	11,485,175	-	22,300,505
Financial institution bonds		80,367	1,770,925	-	1,851,292
Corporation bonds		-	7,239,123	-	7,239,123
		10,895,697	20,495,223	-	31,390,920

Other financial assets		-	29,465,771	14,209,213	43,674,984
	W	11,165,026	87,185,002	479,800,794	578,150,822
Liabilities:
Deposit liabilities:
Demand deposits	W	-	172,840,773	-	172,840,773
Time deposits		-	-	238,238,605	238,238,605
Certificate of deposit		-	-	16,970,158	16,970,158
Issued bill deposit		-	-	8,920,096	8,920,096
CMA deposits		-	4,889,093	-	4,889,093
Other		-	5,625,593	42,873	5,668,466
		-	183,355,459	264,171,732	447,527,191
Borrowing debts:
Call-money		-	1,437,100	-	1,437,100
Bills sold		-	-	11,846	11,846
Bonds sold under repurchase agreements		-	-	14,988,698	14,988,698
Borrowings		-	108,795	38,815,755	38,924,550
		-	1,545,895	53,816,299	55,362,194
Debt securities issued:
Borrowings in won		-	40,127,224	34,570,285	74,697,509
Borrowings in foreign currency		-	12,618,554	5,654,755	18,273,309
		-	52,745,778	40,225,040	92,970,818

Investment contract liabilities		-	-	1,536,393	1,536,393

Other financial liabilities		-	22,535,595	35,297,011	57,832,606
	W	-	260,182,727	395,046,475	655,229,202

(*) Cash is not included.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(g) Classification by categories of financial instruments

Financial assets and liabilities are measured at fair value or amortized cost. The financial instruments measured at fair value or amortized costs are measured in accordance with the Group’s valuation methodologies, which are described in Note 4. (f) Measurement of fair value.

The carrying amounts of each category of financial assets and financial liabilities as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Financial assets at FVTPL	Financial assets at FVOCI	Financial assets at amortized cost	Derivatives held for hedging	Total
Assets:
Cash and due from banks at amortized cost	W	-	-	40,203,086	-	40,203,086
Due from banks at FVTPL		42,117	-	-	-	42,117
Securities at FVTPL		77,075,418	-	-	-	77,075,418
Derivatives assets		11,191,267	-	-	910,704	12,101,971
Loans at FVTPL		1,920,202	-	-	-	1,920,202
Loans at amortized cost		-	-	477,752,638	-	477,752,638
Securities at FVOCI		-	104,194,552	-	-	104,194,552
Securities at amortized cost		-	-	31,260,884	-	31,260,884
Others		-	-	54,418,904	-	54,418,904
	W	90,229,004	104,194,552	603,635,512	910,704	798,969,772


		March 31, 2026
		Financial liabilities at FVTPL	Financial liabilities designated at FVTPL	Financial liabilities at amortized cost	Derivatives held for hedging	Total
Liabilities:
Deposits	W	-	-	462,030,453	-	462,030,453
Financial liabilities at FVTPL		2,958,931	-	-	-	2,958,931
Financial liabilities designated at FVTPL		-	6,605,239	-	-	6,605,239
Derivatives liabilities		10,382,176	-	-	1,603,761	11,985,937
Borrowings		-	-	56,182,097	-	56,182,097
Debt securities issued		-	-	87,603,422	-	87,603,422
Investment contract liabilities		-	-	1,314,260	-	1,314,260
Others		-	-	74,402,682	-	74,402,682
	W	13,341,107	6,605,239	681,532,914	1,603,761	703,083,021

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(g) Classification by categories of financial instruments (continued)

The carrying amounts of each category of financial assets and financial liabilities as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
		Financial assets at FVTPL	Financial assets at FVOCI	Financial assets at amortized cost	Derivatives held for hedging	Total
Assets:
Cash and due from banks at amortized cost	W	-	-	39,742,605	-	39,742,605
Due from banks at FVTPL		40,862	-	-	-	40,862
Securities at FVTPL		76,597,261	-	-	-	76,597,261
Derivatives assets		6,536,859	-	-	617,091	7,153,950
Loans at FVTPL		1,415,254	-	-	-	1,415,254
Loans at amortized cost		-	-	464,773,880	-	464,773,880
Securities at FVOCI		-	103,216,950	-	-	103,216,950
Securities at amortized cost		-	-	31,944,368	-	31,944,368
Others		-	-	43,323,340	-	43,323,340
	W	84,590,236	103,216,950	579,784,193	617,091	768,208,470


		December 31, 2025
		Financial liabilities at FVTPL	Financial liabilities designated at FVTPL	Financial liabilities at amortized cost	Derivatives held for hedging	Total
Liabilities:
Deposits	W	-	-	447,648,971	-	447,648,971
Financial liabilities at FVTPL		2,312,487	-	-	-	2,312,487
Financial liabilities designated at FVTPL		-	6,378,064	-	-	6,378,064
Derivatives liabilities		5,872,403	-	-	1,148,443	7,020,846
Borrowings		-	-	55,394,834	-	55,394,834
Debt securities issued		-	-	92,991,422	-	92,991,422
Investment contract liabilities		-	-	1,536,393	-	1,536,393
Others		-	-	57,890,911	-	57,890,911
	W	8,184,890	6,378,064	655,462,531	1,148,443	671,173,928

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

5. Changes in subsidiaries

(a) There are no major subsidiaries included in or excluded from the consolidated financial statements during the three-month period ended March 31, 2026 and the year ended December 31, 2025.

6. Operating segments

(a) Segment information

General descriptions of operating segments as of March 31, 2026 are as follows:


Segment		Description

Banking		Credit to customers, lending to and receiving deposits from customers, and its accompanying work
Credit card		Sales of credit cards, short-term and long-term card loan services, installment financing, lease and its accompanying work
Securities		Securities trading, consignment trading, underwriting and its accompanying work
Insurance		Life insurance business, non-life insurance business and its accompanying work
Credit		Facility rental, new technology business financing, others and its accompanying work
Others		Business segments that do not belong to the above segments, such as real estate trust, investment advisory services, venture business investment and other remaining business

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

6. Operating segments (continued)

(b) The operating income (expense) and net income by operating segment for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment	Total
Net interest income (expense)	W	2,446,403	489,230	131,736	(52,298)	28,286	18,675	(37,889)	3,024,143
Net fees and commission income (expense)		283,932	215,779	330,438	(1,585)	3,559	104,099	4,604	940,826
Reversal (provision) of credit losses		(204,429)	(237,361)	46	(8,088)	(49,463)	(20,422)	(395)	(520,112)
General and administrative expenses		(963,952)	(232,162)	(238,149)	(42,240)	(14,597)	(109,602)	55,297	(1,545,405)
Other income (expense), net		(129,293)	(59,528)	162,336	239,012	83,230	127,806	(168,562)	255,001
Operating income (expense)		1,432,661	175,958	386,407	134,801	51,015	120,556	(146,945)	2,154,453

Equity method income (loss)		6,780	4,330	222	(517)	23,352	14,099	573	48,839
Income tax expense		331,258	45,249	97,015	36,162	12,537	39,337	10,676	572,234
Profit for the period	W	1,137,309	141,150	288,359	93,462	61,799	97,554	(170,485)	1,649,148
Shareholders of the Parent Company	W	1,136,864	139,926	288,358	93,462	61,799	97,555	(195,370)	1,622,594
Non-controlling interests		445	1,224	1	-	-	(1)	24,885	26,554

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

6. Operating segments (continued)

(b) The operating income (expense) and net income by operating segment for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


		March 31, 2025
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment	Total
Net interest income (expense)	W	2,268,627	488,953	132,419	(35,633)	25,501	22,716	(47,695)	2,854,888
Net fees and commission income (expense)		241,826	194,571	145,082	(957)	5,175	82,952	9,497	678,146
Reversal (provision) of credit losses		(124,761)	(255,698)	(13,515)	(1,677)	(24,196)	(19,959)	455	(439,351)
General and administrative expenses		(923,832)	(201,270)	(190,346)	(44,608)	(13,500)	(95,901)	55,499	(1,413,958)
Other income (expense), net		(35,320)	(15,602)	43,997	309,507	43,603	44,126	(125,822)	264,489
Operating income (expense)		1,426,540	210,954	117,637	226,632	36,583	33,934	(108,066)	1,944,214

Equity method income (loss)		(4,722)	(2,009)	15,957	(232)	1,443	(651)	29,661	39,447
Income tax expense		341,397	52,863	35,460	58,339	6,688	8,474	(14,709)	488,512
Profit for the period	W	1,105,531	162,535	107,851	160,569	31,329	22,213	(72,982)	1,517,046
Shareholders of the Parent Company	W	1,105,320	161,359	107,852	160,569	31,329	22,213	(100,296)	1,488,346
Non-controlling interests		211	1,176	(1)	-			27,314	28,700

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

6. Operating segments (continued)

(c) Net interest income from external customers by segment and inter-segment net interest income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment (*)	Total
Net interest income from:
External customers (*)	W	2,443,815	504,045	140,389	(50,324)	31,439	(3,162)	(42,059)	3,024,143
Inter-segment transactions		2,588	(14,815)	(8,653)	(1,974)	(3,153)	21,837	4,170	-
	W	2,446,403	489,230	131,736	(52,298)	28,286	18,675	(37,889)	3,024,143


		March 31, 2025
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment (*)	Total
Net interest income from:
External customers (*)	W	2,268,836	501,609	135,426	(34,097)	30,581	4,690	(52,157)	2,854,888
Inter-segment transactions		(209)	(12,656)	(3,007)	(1,536)	(5,080)	18,026	4,462	-
	W	2,268,627	488,953	132,419	(35,633)	25,501	22,716	(47,695)	2,854,888

(*) Consolidated adjustments to net interest income from external customers relate to the fair value measurement of securities and other assets arising from business combination accounting.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

6. Operating segments (continued)

(d) Net fee and commission income from external customers by segment and inter-segment net fees and commission income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment	Total
Net fee and commission income from:
External customers	W	292,815	226,849	332,591	1,706	3,501	83,363	1	940,826
Inter-segment transactions		(8,883)	(11,070)	(2,153)	(3,291)	58	20,736	4,603	-
	W	283,932	215,779	330,438	(1,585)	3,559	104,099	4,604	940,826


		March 31, 2025
		Banking	Credit card	Securities	Insurance	Credit	Others	Consolidation adjustment	Total
Net fee and commission income from:
External customers	W	253,870	208,143	146,930	1,235	4,834	63,134	-	678,146
Inter-segment transactions		(12,044)	(13,572)	(1,848)	(2,192)	341	19,818	9,497	-
	W	241,826	194,571	145,082	(957)	5,175	82,952	9,497	678,146

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

7. Cash and due from banks at amortized cost

Restricted due from banks in accordance with Related Regulations or Acts as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025	Related regulations or acts
Deposits denominated in Korean won:
Reserve deposits	W	14,968,378	8,164,072	Article 55 of the Bank of Korea Act
Other		1,030,001	1,727,588	Article 74 of the Capital Markets and Financial Investment Business Act, etc.
		15,998,379	9,891,660

Deposits denominated in foreign currency		3,803,740	8,367,341	Articles of the Bank of Korea Act, New York State Banking Act, derivatives related, etc.
	W	19,802,119	18,259,001

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

8. Financial assets at fair value through profit or loss

(a) Financial assets at fair value through profit or loss as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Securities:
Debt instruments
Governments	W	8,896,832	8,933,644
Financial institutions		6,309,852	8,572,717
Corporations		16,033,175	15,340,624
Stocks with put option		616,501	620,258
Equity investment with put option		5,812,282	5,737,916
Beneficiary certificates		16,229,084	16,068,876
Commercial papers		7,535,654	8,605,755
CMA		4,745,408	3,694,196
Others (*)		4,286,325	3,530,206
		70,465,113	71,104,192
Equity instruments
Stocks		5,506,377	4,370,515
Equity investment		5,630	5,981
Others		546,423	492,905
		6,058,430	4,869,401
Gold/silver deposits		551,875	623,668
	W	77,075,418	76,597,261

Loans		1,920,202	1,415,254
Due from banks		42,117	40,862
	W	79,037,737	78,053,377

(*) As of March 31, 2026 and December 31, 2025, restricted deposits for investor deposits (trusts) amounted to W 3,711,994 million and W 2,965,469 million, respectively.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

9. Derivatives

(a) The notional amounts of derivatives outstanding as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Foreign currency related:
Over the counter:
Currency forwards	W	206,287,776	186,552,883
Currency swaps		77,290,982	68,522,136
Currency options		4,439,022	3,410,253
		288,017,780	258,485,272
Exchange traded:
Currency futures		1,918,345	1,982,556
		289,936,125	260,467,828
Interest rate related:
Over the counter:
Interest rate forwards and swaps		70,122,115	65,847,009
Interest rate options		2,554,000	926,000
		72,676,115	66,773,009
Exchange traded:
Interest rate futures		4,583,436	3,962,031
Interest rate swaps (*)		206,113,088	175,593,544
		210,696,524	179,555,575
		283,372,639	246,328,584
Credit related:
Over the counter:
Credit swaps		5,939,631	5,079,897
Total return swaps		742,521	841,964
		6,682,152	5,921,861
Equity related:
Over the counter:
Equity swaps and forwards		5,021,096	2,811,480
Equity options		2,225,782	2,283,749
		7,246,878	5,095,229
Exchange traded:
Equity futures		1,972,544	1,357,692
Equity options		780,752	492,549
		2,753,296	1,850,241
		10,000,174	6,945,470
Commodity related:
Over the counter:
Commodity swaps and forwards		2,931,083	1,698,190

Exchange traded:
Commodity futures and options		494,868	249,235
		3,425,951	1,947,425
Hedge:
Currency forwards		3,825,907	3,713,759
Currency swaps		10,045,487	9,059,479
Interest rate forwards and swaps		13,120,811	13,612,757
		26,992,205	26,385,995
	W	620,409,246	547,997,163

(*) The notional amounts of derivatives outstanding that are to be settled in the ‘Central Counter Party (CCP)’system.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

9. Derivatives (continued)

(b) Fair values of derivatives as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026		December 31, 2025
		Assets	Liabilities	Assets	Liabilities
Foreign currency related:
Over the counter:
Currency forwards	W	6,037,077	3,884,611	3,384,263	2,215,089
Currency swaps		2,587,779	4,741,885	1,703,067	2,625,865
Currency options		35,547	39,695	9,043	18,497
		8,660,403	8,666,191	5,096,373	4,859,451
Exchange traded:
Currency futures		86	6,876	107	3,365
		8,660,489	8,673,067	5,096,480	4,862,816
Interest rate related:
Over the counter:
Interest rate forwards and swaps		1,496,266	1,103,426	817,433	754,732
Interest rate options		26,114	67,126	-	29,468
		1,522,380	1,170,552	817,433	784,200
Exchange traded:
Interest rate futures		4,588	1,477	1,605	808
		1,526,968	1,172,029	819,038	785,008
Credit related:
Over the counter:
Credit swaps		40,022	11,317	40,643	7,187
Total return swaps		431,450	5,874	458,469	6,510
		471,472	17,191	499,112	13,697
Equity related:
Over the counter:
Equity swap and forwards		298,822	300,721	43,121	48,500
Equity options		5,593	15,105	5,880	17,480
		304,415	315,826	49,001	65,980
Exchange traded:
Equity futures		3,643	18,663	10,401	663
Equity options		45,045	26,113	43,595	24,835
		48,688	44,776	53,996	25,498
		353,103	360,602	102,997	91,478
Commodity related:
Over the counter:
Commodity swaps and forwards		165,029	98,658	11,044	110,854
Exchange traded:
Commodity futures and options		14,206	60,629	8,188	8,550
		179,235	159,287	19,232	119,404
Hedge:
Currency forwards		5,211	291,063	18,997	176,304
Currency swaps		850,530	474,080	521,120	344,888
Interest rate forwards and swaps		54,963	838,618	76,974	627,251
		910,704	1,603,761	617,091	1,148,443
	W	12,101,971	11,985,937	7,153,950	7,020,846

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

9. Derivatives (continued)


		March 31, 2026	March 31, 2025
Foreign currency related:
Over the counter:
Currency forwards	W	1,220,463	196,874
Currency swaps		(1,363,039)	5,153
Currency options		10,887	874
		(131,689)	202,901
Exchange traded:
Currency futures		(3,491)	(2,400)
		(135,180)	200,501
Interest rate related:
Over the counter:
Interest rate forwards and swaps		309,101	(110,142)
Interest rate options		(8,090)	(696)
		301,011	(110,838)
Exchange traded:
Interest rate futures and others		2,320	(3,571)
		303,331	(114,409)
Credit related:
Over the counter:
Credit swaps		(8,651)	15,771
Total return swaps		(25,289)	-
		(33,940)	15,771

Equity related:
Over the counter:
Equity swap and forwards		8,501	84,566
Equity options		844	(390)
		9,345	84,176
Exchange traded:
Equity futures		(15,020)	(8,864)
Equity options		22,016	1,468
		6,996	(7,396)
		16,341	76,780
Commodity related:
Over the counter:
Commodity swaps and forwards		138,557	46,746

Exchange traded:
Commodity futures and options		(45,355)	(6,242)
		93,202	40,504

Hedge		(275,530)	107,812
	W	(31,776)	326,959

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

9. Derivatives (continued)

(d) The notional amounts and the average hedge ratios for hedging instruments as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		1 year or less	1~2 years	2~3 years	3~4 years	4~5 years	5 years or more	Total
Interest rate risk:
Notional values:	W	2,290,241	2,383,845	2,179,899	1,862,033	469,087	3,935,706	13,120,811
Average price condition (*1)		3.37%	4.39%	4.58%	3.94%	2.95%	3.94%	3.99%
Average hedge ratio:		100%	100%	100%	100%	100%	100%	100%

Exchange risk: (*2)
Notional values:	W	5,674,157	2,305,327	3,806,263	1,755,858	1,452,090	983,809	15,977,504
Average hedge ratio:		100%	100%	100%	100%	100%	100%	100%

(*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.

(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,336.20, JPY/KRW 9.41, EUR/KRW 1,518.85, GBP/KRW 1,480.94, AUD/KRW 900.95, CAD/KRW 1,057.94, SEK/KRW 131.64.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

9. Derivatives (continued)

(d) The notional amounts and the average hedge ratios for hedging instruments as of March 31, 2026 and December 31, 2025 are as follows (continued):


		December 31, 2025
		1 year or less	1~2 years	2~3 years	3~4 years	4~5 years	5 years or more	Total
Interest rate risk:
Notional values:	W	2,485,060	2,219,475	2,553,701	2,008,399	450,481	3,895,641	13,612,757
Average price condition (*1)		1.86%	1.60%	1.75%	1.73%	1.14%	0.42%	1.34%
Average hedge ratio:		100%	100%	100%	100%	100%	100%	100%

Exchange risk: (*2)
Notional values:	W	4,344,598	3,288,511	3,353,841	1,941,689	992,587	747,109	14,668,335
Average hedge ratio:		100%	100%	100%	100%	100%	100%	100%

(*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.

(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,307.41, JPY/KRW 9.43, EUR/KRW 1,487.33, GBP/KRW 1,568.02, AUD/KRW 896.37, CAD/KRW 999.37 and SEK/KRW 131.64.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

10. Securities at fair value through other comprehensive income and securities at amortized cost

(a) Details of securities at FVOCI and securities at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Securities at FVOCI:
Debt securities:
Government bonds	W	44,019,571	44,038,340
Financial institutions bonds		36,162,696	35,435,282
Corporate bonds and others		21,756,374	21,809,284
		101,938,641	101,282,906
Equity securities (*):
Stocks		2,054,991	1,830,922
Equity investments		594	594
Others		200,326	102,528
		2,255,911	1,934,044
		104,194,552	103,216,950
Securities at amortized cost:
Debt securities:
Government bonds		21,985,079	22,779,176
Financial institutions bonds		1,870,073	1,837,790
Corporate bonds and others		7,405,732	7,327,402
		31,260,884	31,944,368
	W	135,455,436	135,161,318

(*) The equity securities are designated as FVOCI, as the Group has exercised the FVOCI option for reasons including policy-driven holding requirements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)

(b) Changes in carrying amount of debt securities at fair value through other comprehensive income and securities at amortized cost for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Debt securities at FVOCI			Debt securities at amortized cost
		12-month expected credit losses	Lifetime expected credit losses	Total	12-month expected credit losses	Lifetime expected credit losses	Total

Beginning balance	W	101,256,075	26,831	101,282,906	31,953,059	-	31,953,059
Transfer (from) to lifetime expected credit losses		(18,669)	18,669	-	-	-	-
Net increase (decrease) (*)		664,415	(8,680)	655,735	(683,336)	-	(683,336)
Ending balance	W	101,901,821	36,820	101,938,641	31,269,723	-	31,269,723


		December 31, 2025
		Debt securities at FVOCI			Debt securities at amortized cost
		12-month expected credit losses	Lifetime expected credit losses	Total	12-month expected credit losses	Lifetime expected credit losses	Total

Beginning balance	W	91,955,452	60,758	92,016,210	33,322,543	3,644	33,326,187
Transfer (from) to 12-month expected credit losses		5,276	(5,276)	-	-	-	-
Transfer (from) to lifetime expected credit losses		(2,939)	2,939	-	-	-	-
Net increase (decrease) (*)		9,298,286	(31,590)	9,266,696	(1,369,484)	(3,644)	(1,373,128)
Ending balance	W	101,256,075	26,831	101,282,906	31,953,059	-	31,953,059

(*) Includes the effects of purchases, disposals, redemptions, valuations, changes in foreign exchange rates, and the amortization of fair value adjustments recognized through business combination accounting, among others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)

(c) Changes in allowance for credit losses of debt securities at fair value through other comprehensive income and securities at amortized cost for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Debt securities at FVOCI			Debt securities at amortized cost
		12-month expected credit losses	Lifetime expected credit losses	Total	12-month expected credit losses	Lifetime expected credit losses	Total

Beginning balance	W	57,762	2,539	60,301	8,691	-	8,691
Transfer (from) to lifetime expected credit losses		(8)	8	-	-	-	-
Provision (reversal)		1,468	(2,472)	(1,004)	157	-	157
Disposal and others (*)		(1,089)	46	(1,043)	(9)	-	(9)
Ending balance	W	58,133	121	58,254	8,839	-	8,839


		December 31, 2025
		Debt securities at FVOCI			Debt securities at amortized cost
		12-month expected credit losses	Lifetime expected credit losses	Total	12-month expected credit losses	Lifetime expected credit losses	Total

Beginning balance	W	38,250	96	38,346	10,137	51	10,188
Transfer (from) to 12-month expected credit losses		17	(17)	-	-	-	-
Transfer (from) to lifetime expected credit losses		(3)	3	-	-	-	-
Provision (reversal)		23,479	2,437	25,916	(1,196)	(47)	(1,243)
Disposal and others (*)		(3,981)	20	(3,961)	(250)	(4)	(254)
Ending balance	W	57,762	2,539	60,301	8,691	-	8,691

(*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

10. Securities at fair value through other comprehensive income and securities at amortized cost (continued)

(d) Gains and losses on disposal of securities at fair value through other comprehensive income and securities at amortized cost for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025

Gain on disposal of securities at FVOCI	W	39,891	101,757
Loss on disposal of securities at FVOCI		(18,825)	(27,214)
Gain on disposal of securities at amortized cost (*)		5	1
Loss on disposal of securities at amortized cost (*)		(19)	(28)
	W	21,052	74,516

(*) The reason for the disposal of securities measured at amortized cost includes partial repayment of the bonds, among others.

(e) Income or loss on equity securities at fair value through other comprehensive income

The Group recognized dividends, amounting to W 40,629 million and W 32,708 million, related to equity securities designated at fair value through other comprehensive income for the three-month periods ended March 31, 2026 and 2025, respectively.

The details of disposal of equity securities designated at fair value through other comprehensive income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		Fair value at the date of disposal		Cumulative net gain (loss) at the time of disposal
		March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025
Stocks	W	160,341	36,490	930	(645)
Contingent convertible bonds		1,687	1,687	11	11
	W	162,028	38,177	941	(634)

(*) The reason for the disposal of stocks at fair value through other comprehensive income includes the disposal of stocks acquired through debt-to-equity swaps, and the cumulative valuation gains and losses were reclassified to retained earnings.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

11. Loans at amortized cost, etc.

(a) The composition of loans at amortized cost by customer as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Retail loans	W	174,051,623	173,568,321
Corporate loans (*)		272,390,958	259,593,754
Public and other loans		4,745,326	4,845,465
Loans between banks		1,759,545	1,691,536
Credit card receivables		28,522,563	28,653,978
		481,470,015	468,353,054
Discount		(24,111)	(26,251)
Deferred loan origination costs		748,581	727,749
		482,194,485	469,054,552
Less: Allowance for credit losses		(4,441,847)	(4,280,672)
	W	477,752,638	464,773,880

(*) Includes SOHO loans, among others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

11. Loans at amortized cost, etc. (continued)

(b) Changes in carrying amounts of loans at amortized cost, etc. for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Loans at amortized cost			Due from banks at amortized cost and other financial assets			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning balance	W	400,019,377	65,209,460	3,825,715	80,303,547	219,944	181,787	549,759,830
Transfer (from) to 12 months expected credit losses		6,540,393	(6,495,361)	(45,032)	12,010	(9,837)	(2,173)	-
Transfer (from) to lifetime expected credit losses		(5,718,729)	5,800,600	(81,871)	(11,990)	12,333	(343)	-
Transfer (from) to credit- impaired financial assets		(294,703)	(908,679)	1,203,382	(3,975)	(5,845)	9,820	-
Net increase and decrease (*1)		11,953,418	1,746,098	21,382	11,241,619	11,906	21,865	24,996,288
Charge off (*2)		-	-	(368,224)	-	-	(20,471)	(388,695)
Disposal		-	(12,568)	(200,173)	-	(23)	(278)	(213,042)
Ending balance	W	412,499,756	65,339,550	4,355,179	91,541,211	228,478	190,207	574,154,381

(*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,835,703 million, which is written off as of March 31, 2026.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

11. Loans at amortized cost, etc. (continued)

(b) Changes in carrying amounts of loans at amortized cost, etc. for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
		Loans at amortized cost			Due from banks at amortized cost and other financial assets			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning balance	W	384,078,752	66,060,111	3,722,306	61,488,945	235,252	217,158	515,802,524
Transfer (from) to 12 months expected credit losses		17,609,453	(17,573,814)	(35,639)	33,235	(33,122)	(113)	-
Transfer (from) to lifetime expected credit losses		(21,713,358)	22,047,397	(334,039)	(50,051)	50,130	(79)	-
Transfer (from) to credit- impaired financial assets		(1,674,648)	(1,325,647)	3,000,295	(6,288)	(16,627)	22,915	-
Net increase and decrease (*1)		21,729,176	(3,938,393)	1,122,288	18,837,706	(14,525)	41,033	37,777,285
Charge off (*2)		-	-	(2,027,917)	-	-	(92,749)	(2,120,666)
Disposal		(9,998)	(60,194)	(1,621,579)	-	(1,164)	(6,378)	(1,699,313)
Ending balance	W	400,019,377	65,209,460	3,825,715	80,303,547	219,944	181,787	549,759,830

(*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,682,802 million, which is written off as of December 31, 2025.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

11. Loans at amortized cost, etc. (continued)

(c) Changes in allowances for credit losses of loans at amortized cost, etc. for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Loans at amortized cost			Due from banks at amortized cost and other financial assets			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning allowance	W	1,197,354	1,423,810	1,659,508	398,799	10,410	148,207	4,838,088
Transfer (from) to 12-months expected credit losses		129,259	(118,813)	(10,446)	806	(285)	(521)	-
Transfer (from) to lifetime expected credit losses		(54,724)	77,499	(22,774)	(132)	155	(24)	-
Transfer (from) to credit- impaired financial assets		(16,115)	(167,880)	183,995	(928)	(1,621)	2,549	-
Provision (reversal)		(48,373)	194,261	347,834	(1,535)	3,536	23,329	519,052
Charge off		-	-	(368,224)	-	-	(20,471)	(388,695)
Amortization of discount		-	-	(9,507)	-	-	-	(9,507)
Disposal		-	(6,415)	(74,185)	-	(1)	(8)	(80,609)
Collection		-	-	82,458	-	-	668	83,126
Others (*)		12,419	7,809	23,097	(8,406)	2	(668)	34,253
Ending allowance	W	1,219,820	1,410,271	1,811,756	388,604	12,196	153,061	4,995,708

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

11. Loans at amortized cost, etc. (continued)

(c) Changes in allowances for credit losses of loans at amortized cost, etc. for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
		Loans at amortized cost			Due from banks at amortized cost and other financial assets			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning allowance	W	1,270,300	1,531,751	1,763,880	394,484	14,752	186,410	5,161,577
Transfer (from) to 12-months expected credit losses		280,731	(277,432)	(3,299)	654	(613)	(41)	-
Transfer (from) to lifetime expected credit losses		(117,140)	161,670	(44,530)	(869)	891	(22)	-
Transfer (from) to credit- impaired financial assets		(35,152)	(215,919)	251,071	(1,957)	(5,084)	7,041	-
Provision (reversal)		(191,921)	235,264	1,970,794	4,759	507	64,769	2,084,172
Charge off		-	-	(2,027,917)	-	-	(92,749)	(2,120,666)
Amortization of discount		-	-	(39,119)				(39,119)
Disposal		-	(3,758)	(545,618)	-	(37)	(5,663)	(555,076)
Collection		-	-	343,795	-	-	2,688	346,483
Others (*)		(9,464)	(7,766)	(9,549)	1,728	(6)	(14,226)	(39,283)
Ending allowance	W	1,197,354	1,423,810	1,659,508	398,799	10,410	148,207	4,838,088

(*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows:


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
BNP Paribas Cardif Life Insurance (1), (7)	Korea	December 31, 2025	14.99	14.99
Shinhan-Neoplux Energy Newbiz Fund (*1)	Korea	December 31, 2025	31.66	31.66
Shinhan-Albatross Technology Investment Fund (*1)	Korea	December 31, 2025	50.00	50.00
Shinhan Praxis K-Growth Global Private Equity Fund (*7)	Korea	March 31, 2026	14.15	14.15
Kiwoom Milestone Professional Private Real Estate Trust 19	Korea	March 31, 2026	50.00	50.00
Shinhan Global Healthcare Fund 1 (*7)	Korea	March 31, 2026	4.41	4.41
Koramco Europe Core Private Placement Real Estate Fund No.2-2	Korea	March 31, 2026	44.02	44.02
Shinhan-Nvestor Liquidity Solution Fund	Korea	March 31, 2026	24.92	24.92
Nomura-Rifa Private Real Estate Investment Trust 19	Korea	March 31, 2026	31.20	31.20
Genesis North America Power Company No.1 PEF	Korea	March 31, 2026	39.91	43.84
Korea Finance Security Co., Ltd. (1), (7)	Korea	December 31, 2025	14.91	14.91
MIEL CO., LTD. (1), (2)	Korea	December 31, 2025	28.77	28.77
AIP Transportation Specialized Privately Placed Fund Trust #1	Korea	March 31, 2026	35.73	35.73
Kiwoom-Shinhan Innovation Fund I	Korea	March 31, 2026	50.00	50.00
Samchully Midstream Private Placement Special Asset Fund 5-4	Korea	March 31, 2026	41.67	41.67
MK Ventures-K Clavis Growth Capital Venture Fund 1	Korea	March 31, 2026	26.67	26.67
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 (*4)	Korea	March 31, 2026	60.00	60.00
Milestone Private Real Estate Fund 3	Korea	March 31, 2026	32.06	32.06
Nomura-Rifa Private Real Estate Investment Trust 31	Korea	March 31, 2026	31.31	31.31
FuturePlay-Shinhan TechInnovation Fund 1	Korea	March 31, 2026	50.00	50.00
Vogo Realty Partners Private Real Estate Fund V	Korea	March 31, 2026	21.64	21.64
Korea Credit Bureau (1), (7)	Korea	December 31, 2025	9.00	9.00
Goduck Gangil1 PFV Co., Ltd. (1), (7)	Korea	December 31, 2025	1.04	1.04
SBC PFV Co., Ltd. (1), (7), (*8)	Korea	December 31, 2025	25.00	25.00
NH-amundi global infra private fund 16	Korea	March 31, 2026	50.00	50.00
SH BNCT Professional Investment Type Private Special Asset Investment Trust (*9)	Korea	March 31, 2026	72.50	72.50
IGIS Real-estate Private Investment Trust No.33	Korea	March 31, 2026	24.18	24.18
Fidelis Global Private Real Estate Trust No.2 (*6)	Korea	March 31, 2026	79.63	79.63

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
AIP EURO PRIVATE REAL ESTATE TRUST No. 12	Korea	March 31, 2026	28.70	28.70
Shinhan Global Healthcare Fund 2 (*7)	Korea	March 31, 2026	13.68	13.68
Shinhan AIM Real Estate Fund No.1	Korea	March 31, 2026	21.01	21.01
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust	Korea	March 31, 2026	22.02	22.02
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust	Korea	March 31, 2026	29.19	29.19
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 (*6)	Korea	March 31, 2026	71.43	71.43
Korea Omega-Shinhan Project Fund I	Korea	March 31, 2026	50.00	50.00
Samsung SRA Real Estate Professional Private 45	Korea	March 31, 2026	25.00	25.00
IBK Global New Renewable Energy Special Asset Professional Private2	Korea	March 31, 2026	28.98	28.98
Kakao-Shinhan 1st TNYT Fund	Korea	March 31, 2026	48.62	48.62
Pacific Private Placement Real Estate Fund No.40	Korea	March 31, 2026	24.73	24.73
LB Scotland Amazon Fulfillment Center Fund 29 (*4)	Korea	March 31, 2026	65.00	65.00
JR AMC Hungary Budapest Office Fund 16	Korea	March 31, 2026	34.87	34.87
Gyeonggi-Neoplux Superman Fund	Korea	March 31, 2026	21.76	21.76
NewWave 6th Fund	Korea	March 31, 2026	30.00	30.00
Neoplux No.3 Private Equity Fund (*3)	Korea	March 31, 2026	10.00	10.00
PCC Amberstone Private Equity Fund I	Korea	March 31, 2026	21.67	21.67
KIAMCO POWERLOAN TRUST 4TH	Korea	March 31, 2026	47.37	47.37
Neoplux Market-Frontier Secondary Fund (*3)	Korea	March 31, 2026	19.74	19.74
KIAMCO Vietnam Solar Special Asset Private Investment Trust	Korea	March 31, 2026	50.00	50.00
SHINHAN-NEO Core Industrial Technology Fund	Korea	March 31, 2026	49.75	49.75
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2	Korea	March 31, 2026	30.00	30.00
Eum Private Equity Fund No.7	Korea	March 31, 2026	21.00	21.00
AJ-KOSNET Semicon One Venture Fund	Korea	March 31, 2026	22.22	22.22
Genesis Eco No.1 PEF	Korea	March 31, 2026	29.00	29.00
SHINHAN-NEO Market-Frontier 2nd Fund	Korea	March 31, 2026	42.7	42.70
Ulmus SHC innovation investment fund	Korea	March 31, 2026	24.04	24.04

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
T Core Industrial Technology 1st Venture PEF	Korea	March 31, 2026	31.47	31.47
Kiwoom-Shinhan Innovation Fund 2	Korea	March 31, 2026	42.86	42.86
ETRI Holdings-Shinhan 1st Unicorn Fund	Korea	March 31, 2026	50.00	50.00
AVES 1st Corporate Recovery Private Equity Fund (*4)	Korea	March 31, 2026	76.19	76.19
Reverent-Shinhan Vista Fund (*3)	Korea	March 31, 2026	13.41	13.41
JS Shinhan Private Equity Fund (*3)	Korea	March 31, 2026	3.85	3.85
META TB ESG Private Equity Fund I	Korea	March 31, 2026	27.40	27.40
Shinhan VC tomorrow venture fund 1	Korea	March 31, 2026	39.62	39.62
Stonebridge-Shinhan Unicorn Secondary Fund	Korea	March 31, 2026	26.01	26.01
Tres-Yujin Trust	Korea	March 31, 2026	50.00	50.00
Capstone REITs No.26	Korea	March 31, 2026	50.00	50.00
JB Incheon-Bucheon REITS No.54	Korea	March 31, 2026	39.31	39.31
KB Oaktree Trust No.3	Korea	March 31, 2026	33.33	33.33
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2	Korea	March 31, 2026	29.73	29.73
Shinhan JigaeNamsan Road Private Special Asset Investment Trust	Korea	March 31, 2026	24.85	24.85
KB Distribution Private Real Estate 3-1	Korea	March 31, 2026	37.50	37.50
Pacific Private Investment Trust No.49-1 (*5)	Korea	-	-	79.28
KIWOOM Real estate private placement fund for normal investors No. 31 (*6)	Korea	March 31, 2026	60.00	60.00
RIFA Real estate private placement fund for normal investors No. 51	Korea	March 31, 2026	40.00	40.00
Shinhan-Kunicorn first Fund	Korea	March 31, 2026	38.31	38.31
Shinhan-Quantum Startup Fund	Korea	March 31, 2026	49.18	49.18
Korea Investment develop seed Trust No.1	Korea	March 31, 2026	40.00	40.00
STIC ALT Global II Private Equity Fund	Korea	March 31, 2026	21.74	21.74
DDI LVC Master Real Estate Investment Trust Co., Ltd. (1), (7)	Korea	December 31, 2025	15.00	15.00
Find-Green New Deal 2nd Equity Fund	Korea	March 31, 2026	22.57	22.57
ShinhanFitrin 1st Technology Business Investment Association (*3)	Korea	March 31, 2026	16.17	16.17
Koramco Private Real Estate Fund 143	Korea	March 31, 2026	30.30	30.30
Korea Investment Top Mezzanine Private Real Estate Trust No.1	Korea	March 31, 2026	22.22	22.22
LB YoungNam Logistics Private Trust No.40	Korea	March 31, 2026	25.00	25.00
Shinhan-Cognitive Start-up Fund L.P.	Korea	March 31, 2026	32.79	32.77
Logisvalley Shinhan REIT Co., Ltd. (*1)	Korea	December 31, 2025	20.27	20.27

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
Shinhan-G.N.Tech Smart Innovation Fund	Korea	March 31, 2026	50.00	50.00
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st	Korea	March 31, 2026	50.00	50.00
Korea Investment Green Newdeal Infra Trust No.1	Korea	March 31, 2026	27.97	27.97
BTS 2nd Private Equity Fund (*1)	Korea	December 31, 2025	26.00	26.00
NH-J&-IBKC Label Technology Fund	Korea	March 31, 2026	27.81	27.81
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund	Korea	March 31, 2026	50.00	50.00
Shinhan-iSquare Venture PEF 1st	Korea	March 31, 2026	40.00	40.00
Nextrade Co., Ltd. (*7)	Korea	March 31, 2026	8.00	8.00
IBKC-Behigh Fund 1st	Korea	March 31, 2026	29.73	29.73
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 (*5)	Korea	-	-	20.83
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18	Korea	March 31, 2026	28.57	28.57
KORAMCO REITS Mezzanine Trust No.38 (*5)	Korea	-	-	75.00
TogetherKorea Private Investment Trust No. 6 (1), (6)	Korea	December 31, 2025	99.98	99.98
TogetherKorea Private Investment Trust No. 7 (1), (6)	Korea	December 31, 2025	99.98	99.98
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund	Korea	March 31, 2026	34.75	34.75
Penture K-Content Investment Fund (*7)	Korea	March 31, 2026	19.78	19.78
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund	Korea	March 31, 2026	30.00	30.00
Hana Alternative Investment Kosmes PCBO General PEF No. 1	Korea	March 31, 2026	37.04	37.04
Shinhan-Timefolio Bio Accelerator Fund	Korea	March 31, 2026	48.39	48.39
Shinhan M&A-ESG Fund	Korea	March 31, 2026	23.33	23.33
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.	Korea	March 31, 2026	28.43	28.43
Shinhan Time Secondary Blind Fund	Korea	March 31, 2026	47.50	47.50
Shinhan DS Secondary Investment Fund	Korea	March 31, 2026	49.83	49.83
Shinhan-OpenWater Pre-IPO Fund-1	Korea	March 31, 2026	50.00	50.00
Shinhan-CJ TechInnovation Fund 1st	Korea	March 31, 2026	40.00	40.00
Shinhan-Eco Venture Fund 2nd	Korea	March 31, 2026	40.00	40.00
Heungkuk-Shinhan The First Visionary Fund No.1	Korea	March 31, 2026	40.00	40.00
Koreainvestment-Shinhan-LEP K beauty	Korea	March 31, 2026	22.96	22.96
Shinhan HB Wellness 1st Fund	Korea	March 31, 2026	48.54	48.54

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
Korea real Asset Fund No.3	Korea	March 31, 2026	28.57	28.57
Timefolio Tech Fund I	Korea	March 31, 2026	21.18	21.18
PineStreet Global Corporate FoF XIII-2 (*6)	Korea	March 31, 2026	100.00	100.00
IGIS Yongsan Office General Private Real Estate Investment Trust 518	Korea	March 31, 2026	26.22	26.22
SH K-REITs Infra Real Estate Investment Trust (FoFs)	Korea	March 31, 2026	23.30	23.30
Samsung-Dunamu Innovation IT Fund No.1	Korea	March 31, 2026	22.99	22.99
Time Robotics fund	Korea	March 31, 2026	29.86	29.86
Ascent-Welcome Fund2	Korea	March 31, 2026	27.65	27.65
Igis General PE Real Estate Investment Trust 517-1 (*6)	Korea	March 31, 2026	96.77	96.71
SH Ulmus M.P.E. Innovative Venture Fund 7	Korea	March 31, 2026	28.57	28.57
Consus Osansegyo No.2	Korea	March 31, 2026	50.00	50.00
Shinhan AIM Private Fund of Fund 9-B	Korea	March 31, 2026	25.00	25.00
Shinhan General Private Real Estate Investment Trust No.3	Korea	March 31, 2026	20.75	20.75
Paros Kosdaq Venture General Private Investment Trust No. 5	Korea	March 31, 2026	29.45	29.45
Shinhan-soo secondary Fund (*6)	Korea	March 31, 2026	77.61	77.61
TECHFIN RATINGS Co., Ltd. (*1)	Korea	December 31, 2025	45.00	45.00
Songpa biz cluster PFV Co., Ltd. (1), (7), (*10)	Korea	December 31, 2025	27.40	27.40
Planeta PTE LTD	Singapore	March 31, 2026	33.33	33.33
The E&Shinhan New Growth Up Fund	Korea	March 31, 2026	50.00	50.00
HHR Special Situation Real Estate Private Investment Trust No. 13	Korea	March 31, 2026	20.00	20.00
Shinhan-GB FutureFlow Fund L.P.	Korea	March 31, 2026	50.00	50.00
Credila Financial Services (1), (7)	India	December 31, 2025	10.06	10.06
Shinhan-DS Mezzanine Fund 1 (*7)	Korea	March 31, 2026	15.09	15.09
Shinhan Time BM sobujang Fund	Korea	March 31, 2026	29.41	29.41
Tigris Fund No. 58	Korea	March 31, 2026	20.83	20.83
Shinhan Market-Frontier Fund Ⅲ	Korea	March 31, 2026	44.02	44.02
Fine North America Credit Private Mixed Asset Investment Trust 22 (*6)	Korea	March 31, 2026	58.82	58.82
IGIS Private Real Estate Investment No.454	Korea	March 31, 2026	24.04	24.04
IGIS Private Real Estate Investment No.462 (*6)	Korea	March 31, 2026	69.20	69.20
XSKONA Battery Alliance Fund	Korea	March 31, 2026	27.00	27.00
BNW Recharge Private Equity Fund	Korea	March 31, 2026	21.13	21.13
United Partners Realasset Fund No.14	Korea	March 31, 2026	33.33	33.33

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):


Investees	Country	Reporting date	Ownership (%)
Investees	Country	Reporting date			March 31, 2026	December 31, 2025
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 (*7)	Korea	March 31, 2026	7.67	7.67
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 (*7)	Korea	March 31, 2026	7.79	7.79
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 (*7)	Korea	March 31, 2026	7.67	7.67
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 (*7)	Korea	March 31, 2026	7.40	7.40
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 (*7)	Korea	March 31, 2026	6.39	6.39
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 (*7)	Korea	March 31, 2026	6.55	6.55
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] (*7)	Korea	March 31, 2026	19.91	19.91
SH Prestige High Dividend Security Feeder No.1[Equity]	Korea	March 31, 2026	23.92	23.92
IGIS Real Estate General Private Feeder Investment Company No.562 (*6)	Korea	March 31, 2026	88.46	88.46
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 (*7)	Korea	March 31, 2026	4.80	4.97
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 (*7)	Korea	March 31, 2026	4.80	4.97
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 (*7)	Korea	March 31, 2026	4.80	4.97
Finflow (*7)	Korea	March 31, 2026	15.00	15.00
Fireant Media and Digital Service Joint Stock Company (*7)	Korea	March 31, 2026	17.66	17.66
Newmain 13 Fund	Korea	March 31, 2026	20.00	20.00
PharosBH Fund	Korea	March 31, 2026	23.08	23.08
ST EIP Holdings Inc.	Korea	March 31, 2026	49.00	49.00
AMP Capital Global Infrastructure Fund II B L (*5)	Korea	-	-	1.50
Post CR REITS No.1 (*6)	Korea	March 31, 2026	70.00	70.00
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs]	Korea	March 31, 2026	23.30	23.30
CSQUARED Venture Investment Private No.19	Korea	March 31, 2026	21.43	-
Atomos Specialty No.1 Private Equity Fund (*7)	Korea	March 31, 2026	10.00	-
ShinhanHelio Black Private Equity Eund (*3)	Korea	March 31, 2026	19.67	-
CSQUAED Venture Fund 20th	Korea	March 31, 2026	46.67	-

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(a) Investments in associates as of March 31, 2026 and December 31, 2025 are as follows (continued):

(*1) As the financial statements as of March 31, 2026 were not available, the most recent financial statements available after the reporting date were used in applying the equity method. Significant transactions and events that occurred during the period have been appropriately reflected.

(*2) Shares were acquired through a debt-to-equity swap during the rehabilitation process. Although voting rights could not be exercised during the rehabilitation process, normal voting rights became exercisable as the rehabilitation process ended before March 31, 2026. Therefore, it has been reclassified from financial assets measured at fair value through profit or loss (FVTPL) to investments in associates.

(*3) As a managing partner, the Group has a significant influence over the investees.

(*4) As a limited partner, the Group does not have an ability to participate in policy-making processes to obtain economic benefit from the investees that would allow the Group to control the entity.

(*5) Excluded from the investments in associates due to full or partial disposal of shares, or loss of significant influence during the current period.

(*6) Although the Group has a significant influence with ownership percentage more than 50%, the Group classifies these investments as investments in associates, as it lacks the practical ability to direct the financial and operating policy-making processes, thereby not having de facto control.

(*7) Although the ownership percentages are less than 20%, the Group applies the equity method accounting since it participates in policy-making processes and therefore can exercise significant influence on investees.

(*8) The rate of Group’s voting rights is 4.65%.

(*9) Although the Group has a significant influence with ownership percentage more than 50%, the contribution was classified as investments in associates as the Group is not exposed to variable returns due to the payment guarantee for the entire investment amount.

(*10) The rate of Group’s voting rights is 19.86%.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
BNP Paribas Cardif Life Insurance	W	36,477	-	(2,472)	(81)	-	33,924
Shinhan-Neoplux Energy Newbiz Fund		13,022	-	660	-	-	13,682
Shinhan-Albatross Technology Investment Fund		5,666	(3)	(2,115)	-	-	3,548
Shinhan Praxis K-Growth Global Private Equity Fund		3,690	(4,929)	1,460	-	-	221
Kiwoom Milestone Professional Private Real Estate Trust 19 (*)		-	-	-	-	-	-
Shinhan Global Healthcare Fund 1 (*)		-	-	-	-	-	-
Koramco Europe Core Private Placement Real Estate Fund No.2-2 (*)		5,426	-	(352)	-	-	5,074
Shinhan-Nvestor Liquidity Solution Fund		3,729	-	85	-	-	3,814
Nomura-Rifa Private Real Estate Investment Trust 19 (*)		-	(47)	47	-	-	-
Genesis North America Power Company No.1 PEF		6,071	(6,072)	514	-	-	513
Korea Finance Security Co., Ltd.		3,849	-	(52)	-	-	3,797
MIEL CO., LTD. (*)		-	-	-	-	-	-
AIP Transportation Specialized Privately Placed Fund Trust #1		62,771	-	1,218	-	-	63,989
Kiwoom-Shinhan Innovation Fund I		7,754	-	60	-	-	7,814
Samchully Midstream Private Placement Special Asset Fund 5-4		34,947	-	5	-	-	34,952
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*)		2	-	(1)	-	-	1
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		32,087	-	(332)	-	-	31,755
Milestone Private Real Estate Fund 3		21,276	-	(508)	-	-	20,768
Nomura-Rifa Private Real Estate Investment Trust 31 (*)		6,086	-	-	-	(6,086)	-
FuturePlay-Shinhan TechInnovation Fund 1		6,302	(908)	(141)	-	-	5,253
Vogo Realty Partners Private Real Estate Fund V		10,271	542	(542)	-	-	10,271
Korea Credit Bureau		10,138	-	513	-	-	10,651
Goduck Gangil1 PFV Co., Ltd. (*)		63	-	(2)	-	-	61
SBC PFV Co., Ltd.		34,954	-	(7,730)	-	-	27,224
NH-amundi global infra private fund 16 (*)		27,800	-	-	-	-	27,800

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
SH BNCT Professional Investment Type Private Special Asset Investment Trust	W	206,003	(7,023)	2,323	-	-	201,303
IGIS Real-estate Private Investment Trust No.33		6,764	(233)	114	-	-	6,645
Fidelis Global Private Real Estate Trust No.2 (*)		551	-	-	-	-	551
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 (*)		16,852	-	-	-	-	16,852
Shinhan Global Healthcare Fund 2 (*)		-	-	-	-	-	-
Shinhan AIM Real Estate Fund No.1		6,504	(6,476)	(4)	-	-	24
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust		39,273	(228)	450	-	-	39,495
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		19,782	-	(345)	-	-	19,437
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2		15,672	(90)	871	-	-	16,453
Korea Omega-Shinhan Project Fund I		5,363	-	(27)	-	-	5,336
Samsung SRA Real Estate Professional Private 45		29,031	-	305	-	-	29,336
IBK Global New Renewable Energy Special Asset Professional Private2		28,048	-	88	-	-	28,136
Kakao-Shinhan 1st TNYT Fund		23,806	-	(1,534)	-	-	22,272
Pacific Private Placement Real Estate Fund No.40		19,052	-	184	-	-	19,236
LB Scotland Amazon Fulfillment Center Fund 29		22,937	-	245	-	-	23,182
JR AMC Hungary Budapest Office Fund 16		14,357	783	1,236	-	-	16,376
Gyeonggi-Neoplux Superman Fund		4,208	-	(724)	-	-	3,484
NewWave 6th Fund		9,836	-	5,655	-	-	15,491
Neoplux No.3 Private Equity Fund		10,209	(210)	478	-	-	10,477
PCC Amberstone Private Equity Fund I		8,017	(1,620)	(253)	-	-	6,144
KIAMCO POWERLOAN TRUST 4TH		46,800	(1,126)	221	-	-	45,895

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Neoplux Market-Frontier Secondary Fund	W	5,562	-	510	-	-	6,072
KIAMCO Vietnam Solar Special Asset Private Investment Trust		6,902	-	373	-	-	7,275
SHINHAN-NEO Core Industrial Technology Fund		7,100	-	(69)	-	-	7,031
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		20,158	(805)	209	-	-	19,562
Eum Private Equity Fund No.7		9,534	-	425	-	-	9,959
AJ-KOSNET Semicon One Venture Fund		3,161	-	(13)	-	-	3,148
Genesis Eco No.1 PEF		8,772	-	(37)	-	-	8,735
SHINHAN-NEO Market-Frontier 2nd Fund		24,618	-	(577)	-	-	24,041
Ulmus SHC innovation investment fund		5,607	-	(119)	-	-	5,488
T Core Industrial Technology 1st Venture PEF		3,056	-	111	-	-	3,167
Kiwoom-Shinhan Innovation Fund 2		12,679	(6,453)	1,439	-	-	7,665
ETRI Holdings-Shinhan 1st Unicorn Fund		4,124	-	(21)	-	-	4,103
AVES 1st Corporate Recovery Private Equity Fund		4,498	-	19	-	-	4,517
Reverent-Shinhan Vista Fund		3,763	-	6	-	-	3,769
JS Shinhan Private Equity Fund		6,262	(2,970)	(275)	-	-	3,017
Meta TB ESG Private Equity Fund I		5,592	-	(46)	-	-	5,546
Shinhan VC tomorrow venture fund 1		102,540	(5,012)	18,810	-	-	116,338
Stonebridge-Shinhan Unicorn Secondary Fund		13,082	-	(142)	-	-	12,940
Tres-Yujin Trust		13,146	-	103	-	-	13,249
Capstone REITs No.26		5,069	-	-	-	-	5,069
JB Incheon-Bucheon REITS No.54		5,785	-	137	-	-	5,922

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
KB Oaktree Trust No.3	W	9,314	(1,710)	158	-	-	7,762
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2		31,548	(14,854)	841	-	-	17,535
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		40,296	(226)	381	-	-	40,451
KB Distribution Private Real Estate 3-1 (*)		-	-	-	-	-	-
Pacific Private Investment Trust No.49-1		36,678	(36,678)	-	-	-	-
KIWOOM Real estate private placement fund for normal investors No. 31 (*)		-	-	-	-	-	-
RIFA Real estate private placement fund for normal investors No. 51 (*)		-	-	-	-	-	-
Shinhan-Kunicorn first Fund		7,701	-	(54)	-	-	7,647
Shinhan-Quantum Startup Fund		5,548	-	(1,355)	-	-	4,193
Korea Investment develop seed Trust No.1		10,730	-	(37)	-	-	10,693
STIC ALT Global II Private Equity Fund		9,793	-	50	-	-	9,843
DDI LVC Master Real Estate Investment Trust Co., Ltd.		4,659	-	(173)	-	-	4,486
Find-Green New Deal 2nd Equity Fund		4,726	-	(57)	-	-	4,669
ShinhanFitrin 1st Technology Business Investment Association		3,934	-	36	-	-	3,970
Koramco Private Real Estate Fund 143		8,092	(1,413)	(5)	-	-	6,674
Korea Investment Top Mezzanine Private Real Estate Trust No.1		3,040	-	(171)	-	-	2,869
LB YoungNam Logistics Private Trust No.40		9,712	-	152	-	-	9,864
Shinhan-Cognitive Start-up Fund L.P.		4,147	(720)	(295)	-	-	3,132
Logisvalley Shinhan REIT Co., Ltd.		3,245	-	(23)	-	-	3,222
Shinhan-G.N.Tech Smart Innovation Fund		10,974	(4,290)	1,296	-	-	7,980
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st		8,192	(900)	(40)	-	-	7,252
Korea Investment Green Newdeal Infra Trust No.1		17,439	-	(19)	-	-	17,420
BTS 2nd Private Equity Fund		10,938	1,375	557	-	-	12,870

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
NH-J&-IBKC Label Technology Fund	W	8,281	-	(436)	-	-	7,845
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund		3,953	-	(87)	-	-	3,866
Shinhan-iSquare Venture PEF 1st		3,301	50	(144)	-	-	3,207
Nextrade Co., Ltd.		9,700	-	-	-	-	9,700
IBKC-Behigh Fund 1st		3,096	-	(18)	-	-	3,078
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1		7,160	(7,552)	392	-	-	-
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18		10,153	(633)	240	-	-	9,760
KORAMCO REITS Mezzanine Trust No.38		3,533	(3,460)	(73)	-	-	-
TogetherKorea Private Investment Trust No. 6		5,540	-	28	-	-	5,568
TogetherKorea Private Investment Trust No. 7		5,540	-	28	-	-	5,568
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund		4,175	(1,564)	472	-	-	3,083
Penture K-Content Investment Fund		16,080	-	(37)	-	-	16,043
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund		10,733	-	812	-	-	11,545
Hana Alternative Investment Kosmes PCBO General PEF No. 1		5,283	(132)	(83)	-	-	5,068
Shinhan-Timefolio Bio Accelerator Fund		17,112	(5,700)	8,891	-	-	20,303
Shinhan M&A-ESG Fund		9,053	-	(51)	-	-	9,002
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd.		19,548	(272)	377	-	-	19,653
Shinhan Time Secondary Blind Fund		11,138	(1,805)	542	-	-	9,875
Shinhan DS Secondary Investment Fund		31,178	1,240	(2,594)	-	-	29,824
Shinhan-OpenWater Pre-IPO Fund-1		6,566	-	646	-	-	7,212
Shinhan-CJ TechInnovation Fund 1st		4,421	-	(444)	-	-	3,977
Shinhan-Eco Venture Fund 2nd		3,584	-	(89)	-	-	3,495

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Heungkuk-Shinhan The First Visionary Fund No.1	W	7,055	-	(51)	-	-	7,004
Koreainvestment-Shinhan-LEP K beauty		7,074	(1,639)	895	-	-	6,330
Shinhan HB Wellness 1st Fund		5,690	-	93	-	-	5,783
Korea real Asset Fund No.3		18,680	-	703	-	-	19,383
Timefolio Tech Fund I		3,039	-	22	-	-	3,061
PineStreet Global Corporate FoF XIII-2		8,142	492	389	-	-	9,023
IGIS Yongsan Office General Private Real Estate Investment Trust 518		14,006	-	(619)	-	-	13,387
SH K-REITs Infra Real Estate Investment Trust (FoFs)		3,182	(262)	109	-	-	3,029
Samsung-Dunamu Innovation IT Fund No.1		4,005	-	56	-	-	4,061
Time Robotics fund		3,630	-	189	-	-	3,819
Ascent-Welcome Fund2		7,103	-	176	-	-	7,279
Igis General PE Real Estate Investment Trust 517-1		54,975	-	(603)	-	-	54,372
SH Ulmus M.P.E. Innovative Venture Fund 7		2,933	-	95	-	-	3,028
Consus Osansegyo No.2		8,009	-	1	-	-	8,010
Shinhan AIM Private Fund of Fund 9-B		43,596	(973)	1,247	-	-	43,870
Shinhan General Private Real Estate Investment Trust No.3		29,389	(1,702)	869	-	-	28,556
Paros Kosdaq Venture General Private Investment Trust No. 5		3,638	(1,362)	(307)	-	-	1,969
Shinhan-soo secondary Fund		17,442	-	(71)	-	-	17,371
TECHFIN RATINGS Co., Ltd.		23,040	-	(1,031)	-	-	22,009
Songpa biz cluster PFV Co., Ltd.		12,927	-	(117)	-	-	12,810
Planeta PTE LTD		12,239	-	670	-	-	12,909
The E&Shinhan New Growth Up Fund		7,496	-	(376)	-	-	7,120
HHR Special Situation Real Estate Private Investment Trust No. 13		3,216	(111)	12	-	-	3,117
Shinhan-GB FutureFlow Fund L.P.		8,082	95	(162)	255	-	8,270

100

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Credila Financial Services	W	265,814	-	5,442	1,320	-	272,576
Shinhan-DS Mezzanine Fund 1		3,643	-	59	-	-	3,702
Shinhan Time BM sobujang Fund		3,371	-	102	-	-	3,473
Tigris Fund No. 58		3,809	(2,315)	79	-	-	1,573
Shinhan Market-Frontier Fund Ⅲ		22,476	-	732	-	-	23,208
Fine North America Credit Private Mixed Asset Investment Trust 22		5,883	(54)	(105)	-	-	5,724
IGIS Private Real Estate Investment No.454		3,362	-	(2)	-	-	3,360
IGIS Private Real Estate Investment No.462		4,377	-	(15)	-	-	4,362
XSKONA Battery Alliance Fund		2,913	-	1,337	-	-	4,250
BNW Recharge Private Equity Fund		4,482	-	(214)	-	-	4,268
United Partners Realasset Fund No.14		10,068	(60)	(6)	-	-	10,002
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14		16,396	-	427	-	-	16,823
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15		15,854	-	150	-	-	16,004
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16		15,977	-	251	-	-	16,228
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17		7,225	-	108	-	-	7,333
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18		14,873	-	(256)	-	-	14,617
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19		7,567	-	(18)	-	-	7,549
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity]		4,388	-	(220)	-	-	4,168
SH Prestige High Dividend Security Feeder No.1[Equity]		6,770	-	1,450	-	-	8,220
IGIS Real Estate General Private Feeder Investment Company No.562		21,218	-	(389)	-	-	20,829
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21		14,689	-	(3,665)	-	-	11,024
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22		15,439	-	(3,843)	-	-	11,596
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23		14,554	-	(4,438)	-	-	10,116

101

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		March 31, 2026
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Finflow	W	7,038	-	(114)	(44)	-	6,880
Fireant Media and Digital Service Joint Stock Company		4,721	-	382	-	-	5,103
ST EIP Holdings Inc.		1,295	-	2,022	-	-	3,317
PharosBH Fund		2,925	-	660	-	-	3,585
ST EIP Holdings Inc.		53,138	(720)	2,886	-	-	55,304
AMP Capital Global Infrastructure Fund II B L		23,072	(23,072)	-	-	-	-
Post CR REITS No.1		3,500	-	-	-	-	3,500
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs]		4,733	-	(66)	-	-	4,667
CSQUARED Venture Investment Private No.19		-	3,000	4	-	-	3,004
Atomos Specialty No.1 Private Equity Fund		-	4,900	34	-	-	4,934
ShinhanHelio Black Private Equity Eund		-	6,000	(12)	-	-	5,988
CSQUAED Venture Fund 20th		-	7,000	-	-	-	7,000
Others		168,754	(20,807)	13,833	-	-	161,780
	W	2,639,202	(153,714)	48,839	1,450	(6,086)	2,529,691

(*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.

102

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
BNP Paribas Cardif Life Insurance	W	36,436	-	(2,105)	2,146	-	36,477
Shinhan-Neoplux Energy Newbiz Fund		14,612	-	(1,590)	-	-	13,022
Shinhan-Albatross Technology Investment Fund		8,672	(2,017)	(989)	-	-	5,666
VOGO Debt Strategy Qualified IV Private		3,713	(1,863)	(12)	-	-	1,838
Shinhan-Midas Donga Secondary Fund		3,152	(915)	(528)	-	-	1,709
ShinHan – Soo Young Entrepreneur Investment Fund		3,381	(1,340)	(297)	-	-	1,744
Shinhan Praxis K-Growth Global Private Equity Fund		3,690	-	-	-	-	3,690
Kiwoom Milestone Professional Private Real Estate Trust 19 (*)		-	-	-	-	-	-
Shinhan Global Healthcare Fund 1 (*)		-	-	-	-	-	-
KB NA Hickory Private Special Asset Fund		17,493	(17,628)	135	-	-	-
Koramco Europe Core Private Placement Real Estate Fund No.2-2 (*)		6,815	-	(618)	-	(771)	5,426
Shinhan-Nvestor Liquidity Solution Fund		5,126	(1,250)	(147)	-	-	3,729
Shinhan AIM FoF Fund 1-A		9,804	(9,813)	10	-	-	1
IGIS Global Credit Fund 150-1		4,989	(2,979)	(1,017)	-	-	993
Nomura-Rifa Private Real Estate Investment Trust 19 (*)		1,939	(13)	80	-	(2,006)	-
Genesis North America Power Company No.1 PEF		6,802	(1,254)	523	-	-	6,071
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3		9,402	(11,201)	1,799	-	-	-
Korea Finance Security Co., Ltd.		3,542	-	307	-	-	3,849
MIEL CO., LTD. (*)		-	-	-	-	-	-
AIP Transportation Specialized Privately Placed Fund Trust #1		58,807	1,505	2,459	-	-	62,771
Kiwoom-Shinhan Innovation Fund I		7,979	-	(225)	-	-	7,754
Samchully Midstream Private Placement Special Asset Fund 5-4		39,484	(1,871)	(2,666)	-	-	34,947
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*)		3	-	(1)	-	-	2
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37		35,413	(1,678)	(1,648)	-	-	32,087
Milestone Private Real Estate Fund 3		19,120	1,789	367	-	-	21,276

103

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Nomura-Rifa Private Real Estate Investment Trust 31	W	6,343	(98)	(159)	-	-	6,086
FuturePlay-Shinhan TechInnovation Fund 1		5,785	-	517	-	-	6,302
Stonebridge Corporate 1st Fund		3,977	(3,367)	(610)	-	-	-
Vogo Realty Partners Private Real Estate Fund V		10,662	(225)	(166)	-	-	10,271
Korea Credit Bureau		7,574	(90)	2,654	-	-	10,138
Goduck Gangil1 PFV Co., Ltd. (*)		96	(25)	(8)	-	-	63
SBC PFV Co., Ltd.		37,616	-	(2,662)	-	-	34,954
NH-amundi global infra private fund 16 (*)		32,968	6,422	(9,385)	-	(2,205)	27,800
SH BNCT Professional Investment Type Private Special Asset Investment Trust		225,708	(29,542)	9,837	-	-	206,003
IGIS Real-estate Private Investment Trust No.33		15,632	(9,746)	878	-	-	6,764
Goduck Gangil10 PFV Co., Ltd.		6,165	(1,030)	(379)	(4,756)	-	-
Fidelis Global Private Real Estate Trust No.2 (*)		551	-	-	-	-	551
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 (*)		24,644	-	-	-	(7,792)	16,852
Shinhan Global Healthcare Fund 2 (*)		-	-	-	-	-	-
Shinhan AIM Real Estate Fund No.1		2,884	-	3,620	-	-	6,504
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust		39,491	(858)	640	-	-	39,273
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust		21,947	11	(2,176)	-	-	19,782
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2		15,770	(521)	423	-	-	15,672
Korea Omega-Shinhan Project Fund I		19,473	(31,903)	17,793	-	-	5,363
Samsung SRA Real Estate Professional Private 45		30,276	(2,887)	1,642	-	-	29,031
IBK Global New Renewable Energy Special Asset Professional Private2		33,098	(5,805)	755	-	-	28,048
VS Cornerstone Fund		3,225	(3,618)	393	-	-	-
Kakao-Shinhan 1st TNYT Fund		23,678	-	128	-	-	23,806
Pacific Private Placement Real Estate Fund No.40		11,623	(747)	8,176	-	-	19,052

104

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
LB Scotland Amazon Fulfillment Center Fund 29	W	18,848	6,351	(2,262)	-	-	22,937
JR AMC Hungary Budapest Office Fund 16		13,187	1,127	43	-	-	14,357
Gyeonggi-Neoplux Superman Fund		4,138	-	70	-	-	4,208
NewWave 6th Fund		10,708	-	(872)	-	-	9,836
Neoplux No.3 Private Equity Fund		12,152	(20)	(1,923)	-	-	10,209
PCC Amberstone Private Equity Fund I		14,540	(6,457)	(66)	-	-	8,017
KIAMCO POWERLOAN TRUST 4TH		48,703	(2,796)	893	-	-	46,800
Mastern Opportunity Seeking Real Estate Fund II		5,272	(4,873)	749	-	-	1,148
Neoplux Market-Frontier Secondary Fund		8,175	-	(2,613)	-	-	5,562
Synergy Green New Deal 1st New Technology Business Investment Fund		10,857	(10,841)	(16)	-	-	-
KIAMCO Vietnam Solar Special Asset Private Investment Trust		7,103	-	(201)	-	-	6,902
SHINHAN-NEO Core Industrial Technology Fund		8,111	-	(1,011)	-	-	7,100
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2		21,710	(2,514)	962	-	-	20,158
Eum Private Equity Fund No.7		9,156	(405)	783	-	-	9,534
Kiwoom Hero No.4 Private Equity Fund		4,197	(9,523)	5,326	-	-	-
AJ-KOSNET Semicon One Venture Fund		3,212	-	(51)	-	-	3,161
Shinhan Smilegate Global PEF I		3,882	(3,882)	-	-	-	-
Genesis Eco No.1 PEF		11,077	-	(2,305)	-	-	8,772
SHINHAN-NEO Market-Frontier 2nd Fund		27,499	(4,014)	1,133	-	-	24,618
J& Moorim Jade Investment Fund		5,353	(7,579)	2,226	-	-	-
Ulmus SHC innovation investment fund		4,305	-	1,302	-	-	5,607
T Core Industrial Technology 1st Venture PEF		2,995	-	61	-	-	3,056
TI First Property Private Investment Trust 1		3,102	(4,248)	2,046	-	-	900
Kiwoom-Shinhan Innovation Fund 2		10,227	(3,771)	6,223	-	-	12,679

105

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
ETRI Holdings-Shinhan 1st Unicorn Fund	W	4,696	(500)	(72)	-	-	4,124
SJ ESG Innovative Growth Fund		3,115	(2,458)	(657)	-	-	-
AVES 1st Corporate Recovery Private Equity Fund		4,523	-	(25)	-	-	4,498
Reverent-Shinhan Vista Fund		3,409	54	300	-	-	3,763
JS Shinhan Private Equity Fund		6,381	-	(119)	-	-	6,262
Meta TB ESG Private Equity Fund I		5,683	-	(91)	-	-	5,592
Shinhan VC tomorrow venture fund 1		70,633	2,214	29,693	-	-	102,540
H-IOTA Fund		9,377	(9,615)	238	-	-	-
Stonebridge-Shinhan Unicorn Secondary Fund		13,587	(2,002)	1,497	-	-	13,082
Tres-Yujin Trust		13,031	-	115	-	-	13,146
Shinhan-Time mezzanine blind Fund		16,426	(16,504)	78	-	-	-
Capstone REITs No.26		5,369	-	(300)	-	-	5,069
JB Incheon-Bucheon REITS No.54		4,967	-	818	-	-	5,785
Hankook Smart Real Asset Investment Trust No.3		6,006	(1,515)	(2,408)	-	-	2,083
JB Hwaseong-Hadong REITs No.53		4,974	(5,195)	1,014	-	-	793
KB Oaktree Trust No.3		9,888	(1,118)	544	-	-	9,314
KAI-The Square Fund 1 (*)		125	-	30	-	(144)	11
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2		52,797	(24,390)	3,141	-	-	31,548
Shinhan JigaeNamsan Road Private Special Asset Investment Trust		39,645	(901)	1,552	-	-	40,296
KB Distribution Private Real Estate 3-1 (*)		24,079	-	(939)	-	(23,140)	-
Pacific Private Investment Trust No.49-1		28,000	-	8,678	-	-	36,678
KIWOOM Real estate private placement fund for normal investors No. 31 (*)		8,032	-	14	-	(8,046)	-
RIFA Real estate private placement fund for normal investors No. 51 (*)		5,371	-	9	-	(5,380)	-
Shinhan-Kunicorn first Fund		9,424	-	(1,723)	-	-	7,701
Shinhan-Quantum Startup Fund		5,665	-	(117)	-	-	5,548
Shinhan Simone Fund Ⅰ		3,422	(1,962)	36	-	-	1,496
Korea Investment develop seed Trust No.1		10,145	(527)	1,112	-	-	10,730

106

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
Tiger Green alpha Trust No.29	W	29,992	(31,100)	1,108	-	-	-
STIC ALT Global II Private Equity Fund		9,841	(217)	169	-	-	9,793
DDI LVC Master Real Estate Investment Trust Co., Ltd.		5,800	-	(1,141)	-	-	4,659
Find-Green New Deal 2nd Equity Fund		4,324	-	402	-	-	4,726
ShinhanFitrin 1st Technology Business Investment Association		4,232	-	(298)	-	-	3,934
Koramco Private Real Estate Fund 143		6,669	-	1,423	-	-	8,092
Korea Investment Top Mezzanine Private Real Estate Trust No.1		9,876	(5,701)	(1,135)	-	-	3,040
LB YoungNam Logistics Private Trust No.40		9,625	(600)	687	-	-	9,712
Shinhan-Cognitive Start-up Fund L.P.		4,209	-	(62)	-	-	4,147
Cornerstone J&M Fund I		3,414	(4,109)	695	-	-	-
Logisvalley Shinhan REIT Co., Ltd.		3,389	-	(144)	-	-	3,245
Shinhan-G.N.Tech Smart Innovation Fund		13,004	(4,160)	2,130	-	-	10,974
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st		6,758	1,800	(366)	-	-	8,192
Korea Investment Green Newdeal Infra Trust No.1		16,096	1,418	(75)	-	-	17,439
BTS 2nd Private Equity Fund		10,159	806	(27)	-	-	10,938
NH-J&-IBKC Label Technology Fund		9,646	(5,396)	4,031	-	-	8,281
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund		3,916	(1,150)	1,187	-	-	3,953
Shinhan-iSquare Venture PEF 1st		4,237	(874)	(62)	-	-	3,301
Aurum Goldrush ESG Private Fund No. 1		3,007	-	(438)	-	-	2,569
Capstone Develop Frontier Trust		8,049	(7,607)	(442)	-	-	-
Nextrade Co., Ltd.		9,700	-	-	-	-	9,700
IBKC-Behigh Fund 1st		3,160	-	(64)	-	-	3,096
ON No.1 Private Equity Fund		5,712	(6,020)	308	-	-	-
Digital New Deal Kappa Private Equity Fund		4,747	(5,534)	787	-	-	-
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1		9,646	(4,304)	1,818	-	-	7,160

107

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)


	December 31, 2025
Investees	Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18	11,324	(1,916)	745	-	-	10,153

108

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
KORAMCO REITS Mezzanine Trust No.38	W	3,278	(87)	342	-	-	3,533
TogetherKorea Private Investment Trust No. 6		5,423	-	117	-	-	5,540
TogetherKorea Private Investment Trust No. 7		5,423	-	117	-	-	5,540
Kiwoom Materials, Parts and Equipment 3 New Technology Business Investment Fund		4,219	-	(44)	-	-	4,175
Penture K-Content Investment Fund		11,319	8,000	(3,239)	-	-	16,080
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund		13,468	(5,790)	3,055	-	-	10,733
Hana Alternative Investment Kosmes PCBO General PEF No. 1		5,125	(528)	686	-	-	5,283
Shinhan-Timefolio Bio Accelerator Fund		11,707	(6,060)	11,465	-	-	17,112
Shinhan M&A-ESG Fund		6,454	1,946	653	-	-	9,053
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd.		18,804	(472)	1,216	-	-	19,548
KDBC meta-enter New Technology investment fund		6,797	(7,000)	203	-	-	-
Shinhan Time Secondary Blind Fund		4,637	2,375	4,126	-	-	11,138
Shinhan DS Secondary Investment Fund		2,439	7,087	21,652	-	-	31,178
Shinhan-OpenWater Pre-IPO Fund-1		5,666	(2,450)	3,350	-	-	6,566
Shinhan-CJ TechInnovation Fund 1st		4,595	-	(174)	-	-	4,421
Shinhan-Eco Venture Fund 2nd		3,957	(330)	(43)	-	-	3,584
Heungkuk-Shinhan The First Visionary Fund No.1		6,497	505	53	-	-	7,055
Koreainvestment-Shinhan-LEP K beauty		10,264	(2,938)	(252)	-	-	7,074
Shinhan HB Wellness 1st Fund		5,326	-	364	-	-	5,690
Korea real Asset Fund No.3		16,552	1,046	1,082	-	-	18,680
Timefolio Tech Fund I		2,990	-	49	-	-	3,039
PineStreet Global Corporate FoF XIII-2		3,743	3,273	1,126	-	-	8,142
IGIS Yongsan Office General Private Real Estate Investment Trust 518		17,144	(726)	(2,412)	-	-	14,006

109

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
SH K-REITs Infra Real Estate Investment Trust (FoFs)	W	2,813	(176)	545	-	-	3,182
Samsung-Dunamu Innovation IT Fund No.1		3,750	-	255	-	-	4,005
Time Robotics fund		3,778	(72)	(76)	-	-	3,630
Ascent-Welcome Fund2		8,460	(1,659)	302	-	-	7,103
Newmain I funds		9,364	(9,254)	(110)	-	-	-
Igis General PE Real Estate Investment Trust 517-1		54,902	3,000	(2,927)	-	-	54,975
SH Ulmus M.P.E. Innovative Venture Fund 7		3,032	-	(99)	-	-	2,933
Consus Osansegyo No.2		8,009	-	-	-	-	8,009
Shinhan AIM Private Fund of Fund 9-B		36,741	5,053	1,802	-	-	43,596
Shinhan General Private Real Estate Investment Trust No.3		26,706	660	2,023	-	-	29,389
Paros Kosdaq Venture General Private Investment Trust No. 5		6,590	(3,062)	110	-	-	3,638
Shinhan-soo secondary Fund		16,737	-	705	-	-	17,442
TECHFIN RATINGS Co., Ltd.		25,610	-	(2,570)	-	-	23,040
Songpa biz cluster PFV Co., Ltd.		13,364	-	(437)	-	-	12,927
Planeta PTE LTD		11,341	-	898	-	-	12,239
The E&Shinhan New Growth Up Fund		3,518	2,580	1,398	-	-	7,496
HHR Special Situation Real Estate Private Investment Trust No. 13		2,749	(224)	691	-	-	3,216
Shinhan-GB FutureFlow Fund L.P.		5,150	2,996	(313)	249	-	8,082
Credila Financial Services		263,116	3,240	20,059	(20,601)	-	265,814
Shinhan-DS Mezzanine Fund 1		2,869	-	774	-	-	3,643
Shinhan Time BM sobujang Fund		1,405	1,750	216	-	-	3,371
Tigris Fund No. 58		1,977	(1,420)	3,252	-	-	3,809
Shinhan Market-Frontier Fund Ⅲ		12,791	8,804	881	-	-	22,476
DB IPO HighYield Fund 1		4,278	(4,342)	64	-	-	-
Exponential SQUARE Private Investment Trust No.1		5,208	(5,668)	460	-	-	-
Fine North America Credit Private Mixed Asset Investment Trust 22		4,613	807	463	-	-	5,883
IGIS Private Real Estate Investment No.454		3,368	-	(6)	-	-	3,362
IGIS Private Real Estate Investment No.462		4,433	-	(56)	-	-	4,377

110

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

12. Investments in associates (continued)

(b) Changes in investments in associates for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
Investees		Beginning balance	Investment And dividend	Equity method Income (loss)	Change in other comprehensive income	Impairment loss	Ending balance
BNW Recharge Private Equity Fund	W	7,138	-	(2,656)	-	-	4,482
United Partners Realasset Fund No.14		9,998	(65)	135	-	-	10,068
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12		17,977	(17,977)	-	-	-	-
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13		12,035	(12,035)	-	-	-	-
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14		13,711	-	2,685	-	-	16,396
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15		13,738	-	2,116	-	-	15,854
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16		13,290	-	2,687	-	-	15,977
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17		5,378	-	1,847	-	-	7,225
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18		10,925	-	3,948	-	-	14,873
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19		5,052	-	2,515	-	-	7,567
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity]		4,197	(326)	517	-	-	4,388
SH Prestige High Dividend Security Feeder No.1[Equity]		2,579	1,962	2,229	-	-	6,770
IGIS Real Estate General Private Feeder Investment Company No.562		-	23,000	(1,782)	-	-	21,218
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21		-	15,700	(1,011)	-	-	14,689
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22		-	15,700	(261)	-	-	15,439
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23		-	15,700	(1,146)	-	-	14,554
Finflow		-	7,058	(20)	-	-	7,038
Fireant Media and Digital Service Joint Stock Company		-	4,925	(204)	-	-	4,721
ST EIP Holdings Inc.		-	51,873	1,265	-	-	53,138
AMP Capital Global Infrastructure Fund II B L		-	24,243	(1,171)	-	-	23,072
Post CR REITS No.1		-	3,500	-	-	-	3,500
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs]		-	4,781	(48)	-	-	4,733
Others		187,092	(74,374)	47,885	-	(1)	160,602
	W	2,752,980	(262,556)	221,225	(22,962)	(49,485)	2,639,202

(*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.

111

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

13. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Securities sold:
Stocks	W	15,695	11,360
Bonds		1,245,642	779,056
		1,261,337	790,416
Gold/silver deposits		1,697,594	1,522,071
	W	2,958,931	2,312,487

14. Financial liabilities designated at fair value through profit or loss

(a) Financial liabilities designated at fair value through profit or loss as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025	Reason for designation
Derivative-linked securities sold	W	6,336,553	6,090,215	Compound financial instrument
Debt securities issued		268,686	287,849	Fair value measurement and management
	W	6,605,239	6,378,064

(*) The Group designated the financial liabilities at the initial recognition (or subsequently) in accordance with paragraph 6.7.1 of K-IFRS No. 1109 as financial liabilities at fair value through profit or loss.

Maximum credit risk exposure of the financial liabilities designated at fair value through profit or loss amounts to W 6,605,239 million as of March 31, 2026. Decrease in values of the liability due to credit risk changes is W 2,290 million for the three-month period ended March 31, 2026 and the accumulated changes in values are W (-) 7,215 million as of March 31, 2026.

(b) The difference between the carrying value of financial liabilities designated at fair value through profit or loss and the amount required to be paid at contractual maturity as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Expiration payment	W	6,075,196	6,140,775
Carrying amount		6,605,239	6,378,064
Difference from carrying amount	W	(530,043)	(237,289)

112

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

15. Debt securities issued

Debt securities issued as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026			December 31, 2025
	Interest rate (%)		Amount	Interest rate (%)		Amount
Debt securities issued in Korean won:
Debt securities issued	0.00~12.50	W	67,272,988	0.00~9.50	W	72,212,922
Subordinated debt securities issued	2.20~5.20		3,000,073	2.20~5.20		3,014,773
Gain on fair value hedges	-		(273,574)	-		(195,980)
Discount on debt securities issued	-		(72,399)	-		(94,499)
			69,927,088			74,937,216
Debt securities issued in foreign currencies:
Debt securities issued	1.23~5.40		14,173,772	0.98~5.40		14,012,181
Subordinated debt securities issued	3.75~5.75		3,668,178	3.75~5.75		4,186,893
Gain on fair value hedges	-		(108,643)	-		(87,714)
Discount on debt securities issued	-		(56,973)	-		(57,154)
			17,676,334			18,054,206
		W	87,603,422		W	92,991,422

113

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

16. Defined benefit plans

The Group has operated a defined benefit plan and calculates defined benefit obligations based on the employee’s pension compensation benefits and service period.

(a) Defined benefit obligations and plan assets as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Present value of defined benefit obligations	W	2,192,651	2,313,168
Fair value of plan assets		(2,578,518)	(2,648,445)
Recognized liability (asset) for defined benefit obligations (*)	W	(385,867)	(335,277)

(*) The asset for defined benefit obligation of W 385,867 million as of March 31, 2026 is the net defined benefit assets of W 403,661 million less the net defined liabilities of W 17,794 million. In addition, the asset for defined benefit obligation of W 335,277 million as of December 31, 2025 is the net defined benefit assets of W 353,097 million less the net defined liabilities of W 17,820 million.

(b) Net income relating to defined benefit liabilities for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Current service cost	W	39,364	41,520
Net interest income		(5,786)	(4,533)
Settlement		(194)	59
	W	33,384	37,046

114

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

17. Provisions

(a) Provisions as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Asset retirement obligations	W	107,120	106,125
Expected loss related to litigation		83,972	144,173
Unused lines of credit		308,949	305,955
Guarantee contracts issued		114,483	111,307
Financial guarantee contracts issued		96,573	93,693
Non-financial guarantee contracts issued		17,910	17,614
Others (1), (2)		655,352	695,785
	W	1,269,876	1,363,345

(*1) As of March 31, 2026 and December 31, 2025, the Group recognizes a provision of W 285,056 million and W 305,237 million, respectively, an estimated amount which is highly probable to be paid for customer losses expected due to delays in redemption of Lime CI funds, etc.

(*2) As of March 31, 2026 and December 31, 2025, the Group recognizes a provision of W 7,622 million and W 8,643 million for the estimated customer compensation amount related to equity-linked products based on the Hong Kong H-Index (Hang Seng China Enterprises Index).

115

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

17. Provisions (continued)

(b) Changes in provision for unused lines of credit and financial guarantee contracts issued for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows:


		March 31, 2026
		Unused lines of credit			Financial guarantee contracts issued			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning balance	W	209,890	92,942	3,123	82,138	11,554	1	399,648
Transfer (from) to 12-month expected credit losses		27,923	(27,847)	(76)	546	(546)	-	-
Transfer (from) to lifetime expected credit losses		(8,580)	8,610	(30)	(197)	197	-	-
Transfer (from) to impaired financial asset		(288)	(803)	1,091	-	-	-	-
Provided (reversed)		(21,245)	23,945	(1,140)	311	36	-	1,907
Change in foreign exchange rate		1,104	287	-	1,321	92	-	2,804
Other (*)		42	1	-	2,424	(1,303)	(1)	1,163
Ending balance	W	208,846	97,135	2,968	86,543	10,030	-	405,522

116

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

17. Provisions (continued)

(b) Changes in provision for unused lines of credit and financial guarantee contracts issued for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
		Unused lines of credit			Financial guarantee contracts issued			Total
		12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Impaired financial asset	Total

Beginning balance	W	229,415	88,843	93,017	80,780	6,296	12	498,363
Transfer (from) to 12-month expected credit losses		48,121	(47,999)	(122)	1,420	(1,420)	-	-
Transfer (from) to lifetime expected credit losses		(13,183)	13,237	(54)	(3,336)	3,336	-	-
Transfer (from) to impaired financial asset		(767)	(972)	1,739	-	-	-	-
Provided (reversed)		(50,312)	40,278	(91,457)	(3,308)	(1,077)	(3)	(105,879)
Change in foreign exchange rate		(3,089)	(445)	-	(333)	(154)	1	(4,020)
Other (*)		(295)	-	-	6,915	4,573	(9)	11,184
Ending balance	W	209,890	92,942	3,123	82,138	11,554	1	399,648

(*) Includes the effects of new financial guarantee contracts initially measured at fair value, expirations of such contracts, and changes in discount rates, among others.

117

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

18. Insurance contracts liabilities and others

(a) Insurance contract liabilities as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Insurance contract assets	W	(885)	(760)
Insurance contract liabilities		47,988,453	50,471,303
Net insurance contract liabilities (assets)	W	47,987,568	50,470,543
Reinsurance contract assets	W	455,260	603,442
Reinsurance contract liabilities		(31,144)	(56,378)
Net reinsurance contract assets (liabilities)	W	424,116	547,064

118

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

18. Insurance contracts liabilities and others (continued)

(b) Details of insurance profits and losses for the three-month periods ended March 31, 2026 and 2025 are as follows:


			March 31, 2026
			Retroactive modification method	Fair value method	Other	Total
Unapplied premium allocation approach	Expected insurance claims and other expected insurance service expenses	W	186,752	163,294	119,243	469,289
	Change in risk adjustment		10,934	9,119	18,598	38,651
	Amortization of contractual service margin		83,239	63,529	83,128	229,896
	Recoveries of insurance acquisition cash flows		21,631	63	100,240	121,934
	Other		(2,528)	500	(3,868)	(5,896)
			300,028	236,505	317,341	853,874
Premium allocation approach			6,654	-	21,056	27,710
Insurance income subtotal			306,682	236,505	338,397	881,584

Unapplied premium allocation approach	Incurred claims and other incurred insurance service expenses		182,667	87,378	112,617	382,662
	Changes in fulfilment cash flows for incurred claims		6,074	56,009	34,600	96,683
	Losses on onerous contracts		(375)	(42,369)	12,561	(30,183)
	Amortization of insurance acquisition cash flows		21,631	63	100,240	121,934
	Other		(2,518)	947	7,854	6,283
			207,479	102,028	267,872	577,379
Premium allocation approach			8,103	-	24,646	32,749
Insurance service expenses subtotal			215,582	102,028	292,518	610,128

119

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

18. Insurance contracts liabilities and others (continued)

(b) Details of insurance profits and losses for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


			March 31, 2026
			Retroactive modification method	Fair value method	Other	Total
Unapplied premium allocation approach	Incurred reinsurance claims	W	-	19,511	31,047	50,558
	Changes in fulfilment cash flows for incurred claims		-	(7,115)	(1,936)	(9,051)
	Other		-	313	306	619
			-	12,709	29,417	42,126
Premium allocation approach			3,487	-	6,581	10,068
Reinsurance income subtotal			3,487	12,709	35,998	52,194

Unapplied premium allocation approach	Expected reinsurance claims		-	9,037	16,842	25,879
	Change in risk adjustment		-	553	1,190	1,743
	Amortization of contractual service margin		-	1,763	8,366	10,129
	Other		-	(203)	(1,046)	(1,249)
			-	11,150	25,352	36,502
Premium allocation approach			2,681	-	8,070	10,751
Reinsurance service expenses subtotal			2,681	11,150	33,422	47,253
		W	91,906	136,036	48,455	276,397

120

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

18. Insurance contracts liabilities and others (continued)

(b) Details of insurance profits and losses for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


			March 31, 2025
			Retroactive modification method	Fair value method	Other	Total
Unapplied premium allocation approach	Expected insurance claims and other expected insurance service expenses	W	189,825	165,785	69,492	425,102
	Change in risk adjustment		15,194	10,923	17,882	43,999
	Amortization of contractual service margin		93,140	65,245	70,472	228,857
	Recoveries of insurance acquisition cash flows		24,455	85	74,489	99,029
	Other (*)		(2,973)	29	(2,094)	(5,038)
			319,641	242,067	230,241	791,949
Premium allocation approach			24,061	-	58	24,119
Insurance income subtotal			343,702	242,067	230,299	816,068

Unapplied premium allocation approach	Incurred claims and other incurred insurance service expenses		184,263	87,093	64,495	335,851
	Changes in fulfilment cash flows for incurred claims		9,906	68,213	21,184	99,303
	Losses on onerous contracts		3,983	(7,814)	11,184	7,353
	Amortization of insurance acquisition cash flows		24,526	85	74,418	99,029
	Other (*)		(2,752)	254	(7,145)	(9,643)
			219,926	147,831	164,136	531,893
Premium allocation approach			23,499	-	(887)	22,612
Insurance service expenses subtotal			243,425	147,831	163,249	554,505

121

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

18. Insurance contracts liabilities and others (continued)

(b) Details of insurance profits and losses for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


			March 31, 2025
			Retroactive modification method	Fair value method	Other	Total
Unapplied premium allocation approach	Incurred reinsurance claims	W	34	14,673	10,970	25,677
	Changes in fulfilment cash flows for incurred claims		21	(5,793)	904	(4,868)
	Other (*)		(10)	105	(172)	(77)
			45	8,985	11,702	20,732
Premium allocation approach			5,769	-	-	5,769
Reinsurance income subtotal			5,814	8,985	11,702	26,501

Unapplied premium allocation approach	Expected reinsurance claims		-	9,267	8,505	17,772
	Change in risk adjustment		-	948	652	1,600
	Amortization of contractual service margin		-	2,695	3,809	6,504
	Other (*)		-	55	(185)	(130)
			-	12,965	12,781	25,746
Premium allocation approach			8,012	-	-	8,012
Reinsurance service expenses subtotal			8,012	12,965	12,781	33,758
		W	98,079	90,256	65,971	254,306

(*) Other includes allocations of loss components, among others.

122

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

19. Insurance finance income and expense

Insurance finance income or expense for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026		March 31, 2025
Insurance finance income
Insurance contract
Effect of foreign exchange rate changes	W	66		676
Other		18,811		19,910
		18,877		20,586
Reinsurance contract
The change in non-performance risk by reinsurer		84		(7)
Other		-		139
		84	132
		18,961		20,718
Insurance finance expense
Insurance contract
Effect of foreign exchange rate changes		24,657		37
Other		417,885		75,237
		442,542		75,274
Insurance finance income (expense)	W	(423,581)		(54,556)

123

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity

(a) Equity as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Share Capital:
Ordinary shares (*1)	W	2,695,586	2,695,586
Preferred shares (1), (2)		274,055	274,055
		2,969,641	2,969,641

Hybrid bond		4,719,886	4,749,837

Capital surplus:
Share premium		1,486,821	11,352,744
Others		745,960	745,814
		2,232,781	12,098,558

Capital adjustments		(772,638)	(1,180,080)

Accumulated other comprehensive income, net of tax:
Loss on financial assets at FVOCI		(5,547,875)	(3,752,987)
Equity in other comprehensive loss of associates		(9,983)	(11,035)
Foreign currency translation adjustments for foreign operations		490,428	152,539
Net loss from cash flow hedges		(296,827)	(169,697)
Remeasurement of net defined benefit liabilities (assets)		(348,918)	(348,506)
Changes in own credit risk on financial liabilities designated under fair value option		(5,230)	(4,468)
Net finance income on insurance contract assets (liabilities)		3,831,763	1,801,274
Net finance income on reinsurance contract assets (liabilities)		(220,554)	(141,933)
		(2,107,196)	(2,474,813)

Retained earnings		52,016,605	41,796,129

Non-controlling interest		2,415,284	2,413,052
	W	61,474,363	60,372,324

(*1) Due to the retirement of shares using retained earnings, etc., the Group’s share capital differs from the aggregate par value of its issued shares.

(*2) All redeemable convertible preferred shares previously issued by the Group have been redeemed from earnings, and therefore, although preferred share capital exists, no preferred shares are outstanding.

124

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(b) Hybrid bonds

Hybrid bonds classified as other equity instruments of March 31, 2026 and December 31, 2025 are as follows:


	Issue date	Maturity date	Interest rate (%)		March 31, 2026	December 31, 2025
Hybrid bonds in KRW	September 15, 2017	Perpetual bond	4.25	W	89,783	89,783
	April 13, 2018	Perpetual bond	4.56		14,955	14,955
	March 16, 2021	Perpetual bond	2.94		-	429,009
	March 16, 2021	Perpetual bond	3.30		169,581	169,581
	January 25, 2022	Perpetual bond	3.90		560,438	560,438
	January 25, 2022	Perpetual bond	4.00		37,853	37,853
	August 26, 2022	Perpetual bond	4.93		343,026	343,026
	August 26, 2022	Perpetual bond	5.15		55,803	55,803
	January 30, 2023	Perpetual bond	5.14		398,831	398,831
	July 13, 2023	Perpetual bond	5.40		498,815	498,815
	January 31, 2024	Perpetual bond	4.49		398,833	398,833
	September 12, 2024	Perpetual bond	4.00		399,033	399,033
	February 13, 2025	Perpetual bond	3.90		398,835	398,835
	September 9, 2025	Perpetual bond	3.26		399,035	399,035
	March 16, 2026	Perpetual bond	4.20		399,058	-
Hybrid bonds in USD	May 12, 2021	Perpetual bond	2.88		556,007	556,007
				W	4,719,886	4,749,837

(*) For the three-month period ended March 31, 2026, the deduction for capital related to hybrid bonds issued is W 942 million.

The hybrid bonds above can be repaid early after 5 or 10 years from the date of issuance, and the Group has an unconditional right to extend the maturity under the same condition or change them to perpetual bonds.

125

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

Changes in treasury shares for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


	March 31, 2026			December 31, 2025
	The number of shares		Carrying amount	The number of shares		Carrying amount
Beginning balance	8,337,535	W	600,001	4,585,561	W	250,000
Acquisition	4,573,039		395,618	21,702,365		1,250,001
Retirement (*)	(10,840,573)		(800,000)	(17,950,391)		(900,000)
Ending balance	2,070,001	W	195,619	8,337,535	W	600,001

(*) For the three-month period ended March 31, 2026, the Group acquired treasury shares for retirement and completed the retirement of 10,840,573 shares on February 6, 2026. For the year ended December 31, 2025, the Group acquired treasury shares for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively.

126

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows:


		March 31, 2026
		Items that are or may be reclassified to profit or loss						Items that will not be reclassified to profit or loss				Total
		Valuation gains (losses) on securities at FVOCI	Equity in other comprehensive income (expense) of associates	Foreign currency translation adjustments for foreign operations	Net gain (loss) from cash flow hedges	Net finance income (expense) on insurance contract assets (liabilities)	Net finance Income (expense) on reinsurance contract assets (liabilities)	Remeasurements of the defined benefit plans	Equity in other comprehensive income (expense) of associates	Valuation gains (losses) on securities at FVOCI	Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk	Total
Beginning balance	W	(4,081,244)	(11,044)	152,539	(169,697)	1,801,274	(141,933)	(348,506)	9	328,257	(4,468)	(2,474,813)
Change due to fair value		(2,626,813)	(42)	-	-	2,800,884	(108,441)	-	(4)	189,308	(2,290)	252,602
Reclassification:
Change due to impairment or disposal		(55,207)	-	-	-	-	-	-	-	-	-	(55,207)
Effect of hedge accounting		-	-	-	(299,626)	-	-	-	-	-	-	(299,626)
Hedging		13,686	-	(115,764)	125,583	-	-	-	-	-	-	23,505
Effects from changes in foreign exchange rate		-	1,497	446,845	-	-	-	-	-	5,983	-	454,325

127

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows:


	March 31, 2026
	Items that are or may be reclassified to profit or loss						Items that will not be reclassified to profit or loss				Total
	Valuation gains (losses) on securities at FVOCI	Equity in other comprehensive income (expense) of associates	Foreign currency translation adjustments for foreign operations	Net gain (loss) from cash flow hedges	Net finance income (expense) on insurance contract assets (liabilities)	Net finance Income (expense) on reinsurance contract assets (liabilities)	Remeasurements of the defined benefit plans	Equity in other comprehensive income (expense) of associates	Valuation gains (losses) on securities at FVOCI	Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk	Total
Remeasurements of the net defined benefit plans	-	-	-	-	-	-	(561)	-	-	-	(561)
Deferred income taxes	734,369	(400)	9,548	46,913	(770,395)	29,820	149	1	(57,326)	630	(6,691)
Amount transferred to retained earnings due to disposal	-	-	-	-	-	-	-	-	(683)	898	215
Non-controlling interests	1,795	-	(2,740)	-	-	-	-	-	-	-	(945)

128

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)


Ending balance	W	(6,013,414)		(9,989)		490,428		(296,827)		3,831,763		(220,554)		(348,918)		6		465,539		(5,230)		(2,107,196)

129

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
		Items that are or may be reclassified to profit or loss						Items that will not be reclassified to profit or loss				Total
		Gain (loss) on securities at FVOCI	Equity in other comprehensive income (expense) of associates	Foreign currency translation adjustments for foreign operations	Net gain (loss) from cash flow hedges	Net finance income (expense) on insurance contract assets (liabilities)	Net finance Income (expense) on reinsurance contract assets (liabilities)	Remeasurements of the defined benefit plans	Equity in other comprehensive income (expense) of associates	Valuation gains (losses) on securities at FVOCI	Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk	Total
Beginning balance	W	(2,482,668)	5,692	296,489	3,406	532,388	11,750	(354,087)	9	168,150	(5,569)	(1,824,440)
Change due to fair value		(2,181,955)	(24,731)	-	-	1,748,614	(211,730)	-	-	225,514	(4,163)	(448,451)
Reclassification:
Change due to impairment or disposal		(47,293)	662	-	-	-	-	-	-	-	-	(46,631)
Effect of hedge accounting		-	-	-	(27,149)	-	-	-	-	-	-	(27,149)
Hedging		(19,262)	-	59,096	(216,152)	-	-	-	-	-	-	(176,318)
Effects from changes in foreign exchange rate		-	1,107	(199,597)	-	-	-	-	-	(696)	-	(199,186)

130

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows (continued):


		December 31, 2025
		Items that are or may be reclassified to profit or loss						Items that will not be reclassified to profit or loss				Total
		Gain (loss) on securities at FVOCI	Equity in other comprehensive income (expense) of associates	Foreign currency translation adjustments for foreign operations	Net gain (loss) from cash flow hedges	Net finance income (expense) on insurance contract assets (liabilities)	Net finance Income (expense) on reinsurance contract assets (liabilities)	Remeasurements of the defined benefit plans	Equity in other comprehensive income (expense) of associates	Gain (loss) on securities at FVOCI	Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk	Total
Remeasurements of the net defined benefit plans		-	-	-	-	-	-	(181)	-	-	-	(181)
Deferred income taxes		648,218	6,226	(3,787)	70,198	(479,728)	58,047	5,505	-	(61,788)	1,511	244,402
Amount transferred to retained earnings due to disposal		-	-	-	-	-	-	-	-	(2,923)	3,753	830
Non-controlling interests		1,716	-	338	-	-	-	257	-	-	-	2,311
Ending balance	W	(4,081,244)	(11,044)	152,539	(169,697)	1,801,274	(141,933)	(348,506)	9	328,257	(4,468)	(2,474,813)

131

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

132

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(e) Regulatory reserve for loan losses

In accordance with Regulations for the Supervision of Financial Institutions, the Group reserves the difference between allowance for credit losses by K-IFRS and that as required by the Regulations at the account of regulatory reserve for loan losses in retained earnings.

i) Changes in regulatory reserve for loan losses including non-controlling interests as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Beginning balance	W	4,243,565	3,969,339
Expected regulatory reserve for loan losses		165,488	274,226
Ending balance	W	4,409,053	4,243,565

ii) Profit attributable to equity holders of Shinhan Financial Group and earnings per share after factoring in regulatory reserve for loan losses for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Profit for the period	W	1,622,594	1,488,346
Provision for regulatory reserve for loan losses		(165,068)	(64,833)
Profit adjusted for regulatory reserve	W	1,457,526	1,423,513
Basic and diluted earnings per share adjusted for regulatory reserve (*)		2,979	2,872

(*) Dividends for hybrid bonds are deducted.

133

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

20. Equity (continued)

(f) Dividends

By resolutions of the 25th general meeting of stockholders, the annual dividends declared to be paid by the Parent Company to the shareholders of the Company in respect of the year ended December 31, 2025 are as follows:


		Total dividends
Ordinary shares (W 880 per share)	W	417,502

21. Operating revenue

Operating revenue for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Interest income	W	7,072,131	7,067,924
Fees and commission income		1,361,879	1,053,432
Insurance income		881,584	816,068
Reinsurance income		52,194	26,501
Insurance finance income		18,961	20,718
Dividend income		70,861	71,411
Net gain on financial instruments measured at fair value through profit or loss		2,113,004	1,077,599
Gain on trading derivatives measured at fair value through profit or loss		11,516,059	4,476,904
Net gain on financial instruments designated at fair value through profit or loss		222,920	62,711
Net gain on foreign currency transaction		4,343,869	864,468
Net gain on disposal of securities at fair value through other comprehensive income		39,891	101,757
Net gain on disposal of securities at amortized cost		5	1
Reversal of credit losses		1,004	11,435
Gain related to hedging derivates		534,790	195,244
Other operating income		263,280	269,866
	W	28,492,432	16,116,039

134

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

22. Net interest income

Net interest income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Interest income:
Cash and due from banks at amortized cost	W	207,613	189,060
Deposit at FVTPL		391	135
Securities at FVTPL		418,184	391,405
Securities at FVOCI		774,471	701,233
Securities at amortized cost		250,247	264,413
Loans at amortized cost		5,301,064	5,409,245
Loans at FVTPL		22,825	27,606
Insurance finance interest income		61,657	49,342
Others		35,679	35,485
		7,072,131	7,067,924
Interest expense:
Deposits		2,258,891	2,408,680
Financial liabilities designated at FVTPL		3,916	3,328
Borrowings		396,964	399,121
Debt securities issued		818,770	850,430
Insurance finance interest expenses		477,181	464,680
Others		92,266	86,797
		4,047,988	4,213,036

Net interest income	W	3,024,143	2,854,888

135

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

23. Net fees and commission income

Net fees and commission income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Fees and commission income:
Credit placement fees	W	14,562	15,441
Commission received as electronic charge receipt		37,174	37,351
Brokerage fees		312,254	91,518
Commission received as agency		50,321	44,289
Investment banking fees		29,357	63,333
Commission received in foreign exchange activities		116,461	94,552
Trust management fees		75,771	58,602
Credit card fees		324,811	277,059
Operating lease fees		155,124	170,242
Others		246,044	201,045
		1,361,879	1,053,432
Fees and commission expense:
Credit-related fees		11,323	10,832
Credit card fees		254,087	240,966
Others		155,643	123,488
		421,053	375,286

Net fees and commission income	W	940,826	678,146

136

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Provision for credit losses

Provision for credit losses on financial assets for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Allowance provided:
Loans at amortized cost	W	(493,722)	(418,538)
Other financial assets at amortized cost		(25,330)	(31,357)
Securities at fair value through other comprehensive income		-	(891)
Unused lines of credit and financial guarantee		(1,907)	-
Securities at amortized cost		(157)	-
		(521,116)	(450,786)
Allowance reversed:
Securities at fair value through other comprehensive income		1,004	-
Securities at amortized cost		-	72
Unused lines of credit and financial guarantee		-	11,363
		1,004	11,435
	W	(520,112)	(439,351)

25. General and administrative expenses

General and administrative expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Employee benefits:
Salaries	W	882,344	821,332
Severance benefits:
Defined contribution		14,463	11,569
Defined benefit		29,751	32,354
		44,214	43,923
Termination benefits		30,464	1,944
		957,022	867,199

Entertainment		9,830	9,817
Depreciation		137,042	136,897
Amortization		77,944	75,962
Taxes and utility bills		109,790	56,412
Advertising		48,619	50,857
Research		6,818	6,763
Others		198,340	210,051
	W	1,545,405	1,413,958

137

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

26. Share-based payments

(a) Performance shares granted as of March 31, 2026 are as follows:


	Expired	Not expired
Type	Cash-settled share-based payment

Performance conditions	Relative stock price linked (20.0%), management index (80.0%)

Exercising period	4 years from the commencement date of the year to which the grant date belongs

Estimated number of shares vested at March 31, 2026	186,576 shares	2,142,112 shares

Fair value per share in Korean won (*)	W 37,387, W 37,081, W 38,156, W 50,444 and W 77,757 for the expiration of exercising period from 2021 to 2025	W 87,700

(*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two months, the past one month, and the past one week from the day before the base date) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock price to be paid in the future is assessed as the closing price of the settlement.

138

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

26. Share-based payments (continued)

(b) Share-based compensation costs for the three-month periods ended March 31, 2026 and 2025 are as follows:

(c) Accrued expenses recognized related to share-based payment transactions as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Parent Company	Subsidiaries	Total
Performance share	W	19,196	176,793	195,989


		December 31, 2025
		Parent Company	Subsidiaries	Total
Performance share	W	22,537	197,518	220,055

139

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

27. Income tax expense

(a) Income tax expense for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Current income tax expense	W	205,705	298,010
Temporary differences (*)		371,779	(16,104)
Income tax recognized in other comprehensive income (*)		(5,250)	206,606
Income tax expense	W	572,234	488,512

Effective tax rate	%	25.76	24.36

(*) Due to the implementation of the global minimum tax law, the current income tax expense as of March 31, 2026, and December 31, 2025, is W 613 million and W 936 million, respectively. The Group does not recognize deferred tax assets and liabilities related to global minimum tax laws by applying the temporary exception provision for deferred tax in K-IFRS No. 1012.

140

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

28. Earnings per share

Basic and diluted earnings per share for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Profit attributable to equity holders of Shinhan Financial Group	W	1,622,594	1,488,346
Less:
Dividends to hybrid bonds		(44,051)	(42,590)
Profit attributable to ordinary shareholders	W	1,578,543	1,445,756

Weighted average number of ordinary shares outstanding (*)		474,460,127	495,588,643

Basic and diluted earnings per share in won	W	3,327	2,917

(*) As of March 31, 2026, the number of ordinary shares issued by the Group is 474,654,361 shares, and the weighted average number of outstanding shares reflects changes such as the acquisition and retirement of treasury shares for the three-month periods ended March 31, 2026 and 2025.

141

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

29. Commitments and contingencies

(a) Guarantees, acceptances and lines of credit as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Guarantees and purchase agreements:
Outstanding guarantees	W	19,318,998	18,642,539
Contingent guarantees		4,973,278	4,917,473
ABS and ABCP purchase agreements		3,039,844	2,649,382
		27,332,120	26,209,394
Commitments to extend credit:
Loan commitments in won		97,236,711	95,042,772
Loan commitments in foreign currency		26,390,949	25,559,545
Unused lines of credit		94,257,480	93,230,869
Other agreements		6,579,835	6,483,867
		224,464,975	220,317,053
Endorsed bills:
Secured endorsed bills		13,422	12,574
Unsecured endorsed bills		11,970,924	10,560,935
		11,984,346	10,573,509
	W	263,781,441	257,099,956

(b) Legal contingencies

As of March 31, 2026, the Group is involved with 1,262 pending lawsuits as a defendant with total litigation fee of W 1,250,417 million.

As of March 31, 2026, the Group has recorded W 83,972 million and W 5,763 million, respectively, as other provisions and insurance contract liabilities for litigations, etc., which have been decided to lose at the first trial. The outcome of the remaining litigations other than those accounted for provisions, etc. are not expected to have a material impact on the consolidated financial statements, but additional losses may result from future litigation.

142

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

29. Commitments and contingencies (continued)

(c) As a Prime Brokerage Service (PBS) provider, Shinhan Securities Co., Ltd. entered into a total return swap (TRS) agreement, derivatives that exchange profits and losses from underlying assets such as stocks, bonds, and funds, with a fund managed by Lime Asset Management (the “Lime Fund”). Through the TRS agreement with Shinhan Securities Co., Ltd., the Lime Fund invested approximately USD 200 million in the IIG Global Trade Finance Fund, IIG Trade Finance Fund, and IIG Trade Finance Fund–FX Hedge (hereinafter referred to as the “IIG Fund”) between May and September 2017. In 2019, under the management instructions of Lime Asset Management, Shinhan Securities Co., Ltd. made an in-kind investment of the IIG Fund into LAM Enhanced Finance III L.P. (the “LAM III Fund”) and acquired beneficiary certificates of the LAM III Fund. The recoverable value of the LAM III Fund’s beneficiary certificates is dependent on the recoverable value of the IIG Fund previously invested in kind. In November 2019, the IIG Fund was subject to a registration cancellation and asset freeze by the U.S. Securities and Exchange Commission (SEC).

In its interim inspection report issued in February 2020, the Financial Supervisory Service (FSS) stated that Shinhan Securities Co., Ltd. was involved in concealing losses and committing fraud in connection with the Lime Fund while operating TRS agreements, and a related prosecution investigation has since been ongoing. On November 12, 2021, the Financial Services Commission (FSC) finalized institutional sanctions against Shinhan Securities Co., Ltd., including a six-month ban on the sale of new private equity funds. In addition, the former director of Prime Brokerage Services at Shinhan Securities Co., Ltd. was arrested and indicted on charges of fraud and violation of the Financial Investment Services and Capital Markets Act. The director was subsequently found guilty.

On January 22, 2021, the prosecution indicted Shinhan Securities Co., Ltd. for violations of the Financial Investment Services and Capital Markets Act arising from the actions of the former director of its Prime Brokerage Services (PBS) division. Subsequently, on March 15, 2023, the court imposed a fine of W 50 million on Shinhan Securities for breach of its supervisory duties.

Taking into consideration the resolutions of the Board of Directors and the results of the dispute settlement committee of the Financial Supervisory Service, Shinhan Securities Co., Ltd. has completed, or plans to carry out, compensation and liquidity support for certain products, including the Lime Trade Finance Fund.

(d) From May 2014 to November 2019, Shinhan Securities Co., Ltd. sold trust instruments related to the Gen2 project. As of December 31, 2025, redemptions for the entire outstanding balance of approximately W 420 billion have been suspended, and repayments have been delayed. In accordance with a resolution of the Board of Directors dated September 28, 2021, Shinhan Securities Co., Ltd. decided to compensate customers who agreed to the suspension of redemption by paying 40% of their invested principal, with the remaining balance to be settled upon recovery of the underlying investments. On August 29, 2023, the Board of Directors resolved to proceed with a private settlement under a post-settlement arrangement. Furthermore, on December 8, 2023, the Board resolved to proceed with private settlements under a post-settlement arrangement for the NH-UK Peterborough Power Plant Trust product, and on September 2, 2025, the Complaints Review Committee resolved to apply the same approach to the Lime M360 Fund and other related trust products.

143

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

29. Commitments and contingencies (continued)

(e) Shinhan Asset Trust Co., Ltd. is engaged in completion-guaranteed land trust projects, under which the company assumes responsibility for ensuring project completion in the event the contractor fails to do so. If Shinhan Asset Trust Co., Ltd. fails to fulfill this obligation, it is liable to compensate financial institutions for any losses incurred. For the period ended March 31, 2026, Shinhan Asset Trust Co., Ltd. had entered into agreements for a total of 5 projects (including those already completed), such as a studio apartment development in Sincheon-dong, Siheung-si, Gyeonggi Province, under a management-type land trust with a guaranteed completion clause. As of March 31, 2026, the total project financing (PF) commitment amount from financial institutions related to these projects was W 228,100 million, and the outstanding PF loan balance amounted to W 191,396 million.

As of March 31, 2026, the guaranteed completion deadlines for 3 project sites (including completed ones) have passed. The total project financing (PF) loan commitment limits for these sites amount to W 90,600 million, with loan balances of W 64,796 million.

Shinhan Asset Trust Co., Ltd. continuously assesses the impact of off-balance sheet commitments to ensure that they are appropriately reflected in the financial statements, if necessary.

(f) As of March 31, 2026, Shinhan Asset Trust Co., Ltd. may lend a portion of the total project cost to the trust account in relation to loan-type land trust agreements, etc., and the maximum commitment amount of PF loans (unused limit) is W 244,850 million. Regarding the project, Shinhan Asset Trust Co., Ltd. is not unconditionally obligated to provide trust account loans. Instead, such decisions are made after comprehensively considering factors such as the proprietary account and the cash flow plans of each trust project.

(g) As of March 31, 2026, Shinhan Securities Co., Ltd. is under investigation by the Korea Fair Trade Commission regarding alleged unfair collusion among financial institutions.

(h) Shinhan Bank, in accordance with the Dual Recourse Bonds Act and the covered bond issuance program agreement, separately registers and manages a cover pool to secure the repayment of covered bonds. To maintain the eligibility of the cover pool, Shinhan Bank performs a collateral maintenance ratio test on each calculation date to ensure that the adjusted total collateral amount remains at or above a specified percentage (minimum collateral ratio) of the outstanding issuance balance. In addition, from 12 months prior to the maturity of covered bonds, Shinhan Bank conducts a pre-maturity liquidity test and has agreed to pre-accumulate liquidity assets necessary for repayment at maturity upon the occurrence of certain events, such as a credit rating downgrade.

As of March 31, 2026 and December 31, 2025, the carrying amounts of covered bonds issued by Shinhan Bank are W 1,972,045 million and W 1,916,820 million, respectively. The carrying amounts of the cover pools (including residential mortgage loans and liquidity assets) established to comply with the above agreements are W 3,456,793 million and W 3,647,109 million, respectively.

(i) Shinhan Card Co., Ltd. is currently subject to an investigation by the supervisory authorities in connection with the leakage of personal information of merchant representatives that occurred between March 2022 and May 2025. The outcome of the investigation cannot be reasonably estimated as of March 31, 2026.

144

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

30. Statement of cash flows

Cash and cash equivalents in the consolidated statements of cash flows as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Cash and due from banks at amortized cost	W	40,224,820	39,758,705
Adjustments:
Due from banks with a maturity over three months from date of acquisition		(847,091)	(966,755)
Restricted due from banks		(3,184,594)	(3,496,827)
		(4,031,685)	(4,463,582)
	W	36,193,135	35,295,123

145

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties

Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. In accordance with K-IFRS No. 1024, the Group defines the retirement benefit plans of the associates, key management and their families, the consolidation group and related parties as the scope of related parties. The amount of profit and loss, receivable balance and payable balance between the Group and the related parties are disclosed. For details of the associates and joint ventures, refer to ‘Note 12’.

(a) Balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows:


Related party	Account		March 31, 2026	December 31, 2025
Investments in associates:
BNP Paribas Cardif Life Insurance	Credit card loans	W	192	190
〃	ACL		(1)	(1)
〃	Accrued income		12	14
〃	Deposits		4,058	3,855
〃	Allowance for Undrawn Commitment		1	1
ICSF (The Korea’s Information Center for Savings & Finance)	Credit card loans		2	1
〃	Deposits		9	4
Nomura-Rifa Private Real Estate Investment Trust 19	Loans		11,400	11,400
〃	ACL		(3,778)	(3,781)
〃	Accrued income		44	47
Korea Finance Security Co., Ltd.	Deposits		121	123
〃	Credit card loans		5	7
Korea Credit Bureau	Deposits		1,002	1,671
〃	Credit card loans		671	907
SBC PFV Co., Ltd.	Loans		538,400	519,800
〃	ACL		(4,227)	(3,990)
〃	Accrued income		95	93
〃	Allowance for Undrawn Commitment		761	771
〃	Deposits		1	1
〃	Unearned revenue		351	-
Goduck Gangil10 PFV Co., Ltd.	Deposits		182	340
Shinhan Global Healthcare Fund 2	Deposits		1	1
Future-Creation Neoplux Venture Capital Fund	Account receivables		3,600	3,600
Shinhan-Neoplux Energy Newbiz Fund	Account receivables		643	643
SHINHAN-NEO Core Industrial Technology Fund	Account receivables		63	288
Neoplux No.3 Private Equity Fund	Account receivables		-	9,240
Wave Technology	Deposits		39	106
SHINHAN-NEO Market-Frontier 2nd Fund	Account receivables		332	1,485
iPIXEL Co., Ltd.	Credit card loans		18	10
〃	Deposits		1	74
NewWave 6th Fund	Account receivables		165	791
DDI LVC Master Real Estate Investment Trust Co., Ltd.	Deposits		766	784
Logisvalley Shinhan REIT Co., Ltd.	Loans		33,000	33,000
〃	ACL		(29)	(29)
〃	Accrued income		38	75
〃	Deposits		1,097	932

146

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(a) Balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows (continued):


Related party	Account		March 31, 2026	December 31, 2025
Investments in associates (continued):
Shinhan-Albatross Technology Investment Fund	Deposits	W	4,081	2,331
Shinhan VC tomorrow venture fund 1	Account receivables		795	2,992
JS Shinhan Private Equity Fund	Accrued income		-	289
NH-J&-IBKC Label Technology Fund	Deposits		44	44
SH K-REITs Infra Real Estate Investment Trust (FoFs)	Accrued income		5	5
Shinhan-CJ TechInnovation Fund 1st	Deposits		1,500	3,500
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity]	Accrued income		12	14
SH Prestige High Dividend Security Feeder No.1[Equity]	Accrued income		50	34
Shinhan General Private Real Estate Investment Trust No.3	Accrued income		48	50
Capstone REITs No.26	Loans		20,000	20,000
〃	ACL		(21)	(21)
〃	Accrued income		90	93
Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd.	Accrued income		227	146
PineStreet Global Corporate FoF XIII-2	Derivative assets		600	469
〃	Derivative liabilities		4	17
CASCADETECH INC	Deposits		13	11
Songpa biz cluster PFV Co., Ltd.	Loans		1,405,103	70,272
〃	ACL		(2,050)	(521)
〃	Accrued income		80	129
〃	Deposits		436	-
〃	Unearned revenue		289	-
STIC ALT Global II Private Equity Fund	Deposits		546	805
TECHFIN RATINGS Co., Ltd.	Credit card loans		36	28
〃	ACL		(1)	-
〃	Deposits		7,508	13,548
〃	Allowance for Undrawn Commitment		2	1
Nomura-Rifa Private Real Estate Investment Trust 31	Loans		13,860	13,860
〃	ACL		(56)	(54)
Pacific Private Placement Real Estate Fund No.40	Loans		14,000	14,000
〃	ACL		(99)	(99)
〃	Accrued income		147	152
Shinhan-DS Mezzanine Fund 1	Unearned revenue		22	88
Shinhan-Csquared Mezzanine Fund 1	Unearned revenue		9	19
KR Seocho Co., Ltd.	Loans		11,871	11,871
〃	ACL		(232)	(228)
〃	Accrued income		1,967	1,691
Shinhan-Dev healthcare Fund I	Unearned revenue		64	8
Credila Financial Services	Loans		17,484	19,895
〃	ACL		(68)	(78)
〃	Deposits		2,406	3,196

31. Related parties (continued)

147

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

(a) Balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows (continued):


Related party	Account		March 31, 2026	December 31, 2025
Investments in associates (continued):
Shinhan Rio Green Private Equity Fund	Account receivables	W	-	79
〃	Deposits		650	-
D2U 12th Fund	Deposits		400	400
Finflow	Deposits		329	574
Fireant Media and Digital Service Joint Stock Company	Deposits		3	4
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs]	Accrued income		3	4
IGIS Yongsan Office General Private Real Estate Investment Trust 518	Loans		20,000	20,000
〃	ACL		(141)	(141)
〃	Accrued income		134	140
Shinhan-BNK Global Fund I	Unearned revenue		33	44
IGIS No. 574 Real Estate General Private Investment Company	Loans		9,000	-
〃	ACL		(151)	-
〃	Unearned revenue		433	-
Key management personnel and their immediate relatives:
	Loans		4,066	4,558
	Assets		2,097,404	753,419
	Liabilities	W	27,162	33,253

148

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(b) Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows:


Related party	Account		March 31, 2026	March 31, 2025
Investments in associates:
BNP Paribas Cardif Life Insurance	Fees and commission income	W	820	329
〃	Interest expense		(2)	(3)
Shinhan-Albatross Technology Investment Fund	Fees and commission income		-	274
〃	Interest expense		(2)	(3)
Shinhan-Nvestor Liquidity Solution Fund	Fees and commission income		-	174
Shinhan-PS Investment Fund No.1	Fees and commission income		-	5
Nomura-Rifa Private Real Estate Investment Trust 19	Interest income		137	103
	Reversal of credit losses		3	-
SHBNPP MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 (*1)	Fees and commission income		-	57
Korea Finance Security Co., Ltd.	Fees and commission income		1	1
〃	Other administrative expense		(36)	(36)
ShinHan – Soo Young Entrepreneur Investment Fund	Fees and commission income		54	77
Kiwoom-Shinhan Innovation Fund I	Fees and commission income		-	28
FuturePlay-Shinhan TechInnovation Fund 1	Fees and commission income		150	179
Korea Credit Bureau	Fees and commission income		1,406	595
〃	Fees and commission expense		(1,265)	(1,066)
〃	Other administrative expense		(131)	(47)
〃	Interest expense		(6)	-
SBC PFV Co., Ltd.	Interest income		8,801	15,091
〃	Reversal of (provision for) credit losses		(238)	474
〃	Reversal of allowance for undrawn commitments		10	-
Goduck Gangil10 PFV Co., Ltd.	Interest expense		-	(61)
Korea Omega-Shinhan Project Fund I	Fees and commission income		27	35
Sparklabs-Shinhan Opportunity Fund 1	Fees and commission income		-	1
EDNCENTRAL Co., Ltd. (*1)	Interest income		-	217
〃	Fees and commission income		-	9
〃	Interest expense		-	(7)
〃	Provision for credit losses		-	(1)
Kakao-Shinhan 1st TNYT Fund	Fees and commission income		52	72
Future-Creation Neoplux Venture Capital Fund	Interest income		46	19
Gyeonggi-Neoplux Superman Fund	Fees and commission income		-	120
Shinhan-Neoplux Energy Newbiz Fund	Fees and commission income		-	169
NewWave 6th Fund	Fees and commission income		3,935	202
SHINHAN-NEO Core Industrial Technology Fund	Fees and commission income		63	75
Neoplux No.3 Private Equity Fund	Fees and commission income		-	613
SHINHAN-NEO Market-Frontier 2nd Fund	Fees and commission income		332	384

149

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(b) Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


	Related party	Account		March 31, 2026	March 31, 2025
	Investments in associates (continued):
	SWK-Shinhan New Technology Investment Fund 1st	Fees and commission income	W	5	15
	Ulmus SHC innovation investment fund	Fees and commission income		16	16
	Shinhan Praxis K-Growth Global Private Equity Fund	Fees and commission income		4,354	-
	Kiwoom-Shinhan Innovation Fund 2	Fees and commission income		168	96
	ETRI Holdings-Shinhan 1st Unicorn Fund	Fees and commission income		19	19
	Shinhan VC tomorrow venture fund 1	Fees and commission income		795	677
	JS Shinhan Private Equity Fund	Fees and commission income		170	148
	Shinhan-Kunicorn first Fund	Fees and commission income		261	261
	Shinhan-Quantum Startup Fund	Fees and commission income		20	35
	ShinhanFitrin 1st Technology Business Investment Association	Fees and commission income		-	19
	Logisvalley Shinhan REIT Co., Ltd.	Interest income		391	420
	〃	Fees and commission income		38	38
	Shinhan-Dev healthcare Fund I	Fees and commission income		18	11
	Shinhan-Cognitive Start-up Fund L.P.	Fees and commission income		130	120
	Global Commerce New Technology Investment Fund	Fees and commission income		-	7
	Shinhan WWG Energy Fund New Technology Investment Fund	Fees and commission income		-	11
	Shinhan-G.N.Tech Smart Innovation Fund	Fees and commission income		65	65
	Shinhan Time 1st Investment fund	Fees and commission income		26	26
	Shinhan SGC ESG Investment Fund 1st	Fees and commission income		2	28
	Shinhan-iSquare Venture PEF 1st	Fees and commission income		25	25
	Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st	Fees and commission income		-	207
	DS-Shinhan-JBWoori New Media New Tehcnology Investment Fund No.1 (*2)	Fees and commission income		6	216
2023 shinhan-JB Woori-Daishin Listed enterprise Mezzanine New Technology Investment Fund		Fees and commission income		23	53
Shinhan M&A-ESG Fund		Fees and commission income		285	285
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity]		Fees and commission income		20	18
SH Prestige High Dividend Security Feeder No.1[Equity]		Fees and commission income		69	18
Shinhan Time Secondary Blind Fund		Fees and commission income		23	49
Shinhan-OpenWater Pre-IPO Fund-1		Fees and commission income		100	100
Shinhan-CJ TechInnovation Fund 1st		Fees and commission income		49	49
〃		Interest expense		(19)	(12)
Shinhan-Eco Venture Fund 2nd		Fees and commission income		25	25
Heungkuk-Shinhan The First Visionary Fund No.1		Fees and commission income		200	200
Shinhan HB Wellness 1st Fund		Fees and commission income		19	19
Shinhan JN Wave Investment fund		Fees and commission income		-	4

150

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(b) Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


Related party	Account		March 31, 2026	March 31, 2025
Investments in associates (continued):
Shinhan General Private Real Estate Investment Trust No.3	Fees and commission income	W	53	49
Shinhan-Timefolio Bio Accelerator Fund	Fees and commission income		307	-
Fortress-Shinhan Investment fund No.1	Fees and commission income		1	1
SH Ulmus M.P.E. Innovative Venture Fund 7	Fees and commission income		23	23
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd.	Fees and commission income		21	21
Shinhan-GB FutureFlow Fund L.P.	Fees and commission income		-	74
LB Scotland Amazon Fulfillment Center Fund 29	Derivative-related income		-	190
Shinhan AIM FoF Fund 1-A	Derivative-related income		-	150
PineStreet Global Corporate FoF XIII-2	Derivative-related income		172	111
〃	Derivative-related expense		(4)	-
Shinhan Regent investment fund No.1	Fees and commission income		84	-
Shinhan-soo secondary Fund	Fees and commission income		56	56
The E&Shinhan New Growth Up Fund	Fees and commission income		40	40
TECHFIN RATINGS Co., Ltd.	Fees and commission income		1	1
〃	Interest expense		(79)	(170)
〃	Provision for credit losses		(1)	-
〃	Provision for allowance for undrawn commitments		(1)	-
Songpa Biz-Cluster PFV Co., Ltd.	Interest income		9,313	385
〃	Fees and commission income		523	-
〃	Provision for credit losses		(1,528)	-
Nomura-Rifa Private Real Estate Investment Trust 31	Interest income		178	-
〃	Provision for credit losses		(1)	-
Pacific Private Placement Real Estate Fund No.40	Interest income		363	297
Shinhan-DS Mezzanine Fund 1	Fees and commission income		65	65
Shinhan-Csquared Mezzanine Fund 1	Fees and commission income		10	10
KR Seocho Co., Ltd.	Interest income		276	334
〃	Provision for credit losses		(5)	-
Shinhan Market-Frontier Fund Ⅲ	Fees and commission income		395	390
SH K-REITs Infra Real Estate Investment Trust (FoFs)	Fees and commission income		16	16
KB Distribution Private Real Estate 3-1	Interest income		-	21
Capstone REITs No.26	Interest income		247	247
Credila Financial Services	Interest income		344	552
〃	Fees and commission income		-	9
〃	Reversal of (provision for) credit losses		9	(105)
〃	Interest expense		(35)	-

151

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(b) Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


Related party	Account		March 31, 2026	March 31, 2025
Investments in associates (continued):
Shinhan Rio Green Private Equity Fund	Interest expense	W	-	(7)
Startup Korea Vision 2024 Fund	Fees and commission income		214	173
Shinhan-Soo Investment Green Wiz Investment Association	Fees and commission income		125	162
Finflow	Fees and commission expense		(500)	-
〃	Other administrative expense		(162)	-
D2U 12th Fund	Interest expense		(3)	-
SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs]	Fees and commission income		9	-
IGIS Yongsan Office General Private Real Estate Investment Trust 518	Interest income		299	-
IGIS No. 574 Real Estate General Private Investment Company	Interest income		198	-
〃	Fees and commission income		251	-
〃	Provision for credit losses		(151)	-
Shinhan-BNK Global Fund I	Fees and commission income		11	-
Key management personnel and their close family members
	Interest income		44	100
		W	32,638	24,542

(*1) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2025.

(*2) Excluded from the associates due to disposal and liquidation for the three-month period ended March 31, 2026.

152

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

Key management personnel compensation for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Short-term employee benefits	W	6,333	5,778
Severance benefits		164	183
Share-based payments (*)		6,423	1,520
	W	12,920	7,481

(*) The above share-based compensation expenses are costs related to share-based compensation arrangements that are still within the vesting period.

(d) The guarantees and purchase agreement provided between the related parties as of March 31, 2026 and December 31, 2025 are as follows:


			Amount of guarantees
Guarantor	Guaranteed Parties		March 31, 2026		December 31, 2025		Account
Shinhan Bank	SBC PFV Co., Ltd.	W	1,211,600		1,226,300		Unused lines of credit for loans
〃	Key Management Personnel		1,295		989		Unused lines of credit for loans
Shinhan Life Insurance Co., Ltd.	SBC PFV Co., Ltd.		169,600		171,700		Unused lines of credit for loans
Shinhan Securities Co., Ltd.	SBC PFV Co., Ltd.		4,000		4,100		Unused lines of credit for loans
〃	Songpa biz cluster PFV Co., Ltd.		17,300		30,000		Unused lines of credit for loans
Shinhan Capital	SBC PFV Co., Ltd.		60,600		61,300		Unused lines of credit for loans
Shinhan Card Co., Ltd.	BNP Paribas Cardif Life Insurance		808		810		Unused lines of credit for credit card
The Group	Structured entities		114,646		131,704		Purchase agreement
The Group	Structured entities			6,914		6,286		Derivatives agreement
		W	1,586,763		1,633,189

153

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(e) Details of collaterals provided by the related parties as of March 31, 2026 and December 31, 2025 are as follows:


				Amount of assets pledged
Provided to	Provided by	Pledged assets		March 31, 2026	December 31, 2025
Shinhan Bank	Logisvalley Shinhan REIT Co., Ltd.	Collateral trust	W	39,600	39,600
	Nomura-Rifa Private Real Estate Investment Trust 31	Collateral trust		16,632	16,632
	SBC PFV Co., Ltd.	Collateral trust		1,440,000	1,440,000
	〃	Shares		7,529	7,529
				1,447,529	1,447,529
	Key Management Personnel	Properties		7,778	9,103
	〃	Deposits, etc.		1,688	1,783
	〃	Guarantee		809	980
				10,275	11,866
			W	1,514,036	1,515,627

154

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(f) Significant loans and financing transactions with related parties

i) Details of significant loan transactions with related parties for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


			March 31, 2026
Classification	Company		Beginning	Loan	Collection	Others	Ending
Investments in associates	Nomura-Rifa Private Real Estate Investment Trust 19	W	11,400	-	-	-	11,400
	SBC PFV Co., Ltd.		519,800	73,300	(54,700)	-	538,400
	Logisvalley Shinhan REIT Co., Ltd.		33,000	-	-	-	33,000
	Nomura-Rifa Private Real Estate Investment Trust 31		13,860	53	(53)	-	13,860
	Pacific Private Placement Real Estate Fund No.40		14,000	-	-	-	14,000
	KR Seocho Co., Ltd.		11,871	-	-	-	11,871
	Songpa biz cluster PFV Co., Ltd.		70,272	1,334,831	-	-	1,405,103
	Capstone REITs No.26		20,000	-	-	-	20,000
	Credila Financial Services		19,895	-	(2,411)	-	17,484
	IGIS Yongsan Office General Private Real Estate Investment Trust 518		20,000	-	-	-	20,000
	IGIS No. 574 Real Estate General Private Investment Company		-	9,000	-	-	9,000
Key Management Personnel			4,559	870	(1,362)	-	4,067
Total		W	738,657	1,418,054	(58,526)	-	2,098,185

155

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(f) Significant loans and financing transactions with related parties (continued)


			December 31, 2025
Classification	Company		Beginning	Loan	Collection	Others	Ending
Investments in associates	Nomura-Rifa Private Real Estate Investment Trust 19	W	11,700	-	(300)	-	11,400
	SBC PFV Co., Ltd.		984,600	1,270,300	(1,735,100)	-	519,800
	Logisvalley Shinhan REIT Co., Ltd.		33,000	-	-	-	33,000
	Nomura-Rifa Private Real Estate Investment Trust 31		14,000	-	(140)	-	13,860
	Pacific Private Placement Real Estate Fund No.40		14,000	-	-	-	14,000
	KR Seocho Co., Ltd.		11,871	-	-	-	11,871
	Songpa biz cluster PFV Co., Ltd.		22,424	47,848	-	-	70,272
	KB Distribution Private Real Estate 3-1		2,000	-	(2,000)	-	-
	Capstone REITs No.26		20,000	-	-	-	20,000
	EDNCENTRAL Co., Ltd. (*)		25,400	7,930	-	(33,330)	-
	Credila Financial Services		-	26,567	(6,672)	-	19,895
	IGIS Yongsan Office General Private Real Estate Investment Trust 518		20,000	-	-	-	20,000
Key Management Personnel			3,403	3,747	(2,591)	-	4,559
Total		W	1,162,398	1,356,392	(1,746,803)	(33,330)	738,657

(*) Excluded from associates due to the loss of significant influence during the year ended December 31, 2025, and the year-end balance has been reclassified under 'Others'.

156

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

31. Related parties (continued)

(f) Significant loans and financing transactions with related parties (continued)

ii) Details of significant borrowing and repayment transactions with related parties for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


				March 31, 2026
Liabilities	Classification	Company		Beginning	Borrowing	Repayment	Ending
Deposits (*)	Investments in associates	Shinhan Rio Green Private Equity Fund	W	-	650	-	650
		TECHFIN RATINGS Co., Ltd.		13,500	7,500	(13,500)	7,500
		Shinhan-CJ TechInnovati-on Fund 1st		3,500	1,500	(3,500)	1,500
		D2U 12th Fund		400	-	-	400
		Korea Credit Bureau		1,000	-	-	1,000
		Korea Finance Security Co., Ltd.		-	100	-	100
Total			W	18,400	9,750	(17,000)	11,150


				December 31, 2025
Liabilities	Classification	Company		Beginning	Borrowing	Repayment	Ending
Deposits (*)	Investments in associates	NH-J&-IBKC Label Technology Fund	W	59	-	(59)	-
		Shinhan Rio Green Private Equity Fund		-	4,600	(4,600)	-
		TECHFIN RATINGS Co., Ltd.		18,000	24,500	(29,000)	13,500
		Shinhan-CJ TechInnovati-on Fund 1st		3,100	14,500	(14,100)	3,500
		D2U 12th Fund		-	900	(500)	400
		Meta TB ESG Private Equity Fund I		-	300	(300)	-
		Korea Credit Bureau		-	1,000	-	1,000
Total			W	21,159	45,800	(48,559)	18,400

(*) Settlement balances between related parties and payable deposits with frequent movements are excluded.

157

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

32. Subsequent events

The Parent Company decided to pay a quarterly dividend of W 740 per share for ordinary shares by a resolution of the board of directors on April 23, 2026. The total amount of dividends is W 348,750 million, and the record date for the dividend is April 30, 2026.

158

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Financial Statements

March 31, 2026 and 2025

(Unaudited)

Contents


		Page

Report on Review of Condensed Separate Interim Financial Statements		1

Condensed Separate Interim Statements of Financial Position		3

Condensed Separate Interim Statements of Comprehensive Income		4

Condensed Separate Interim Statements of Changes in Equity		5

Condensed Separate Interim Statements of Cash Flows		6

Notes to the Condensed Separate Interim Financial Statements		8

Report on Review of Condensed Separate Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

Shinhan Financial Group Co., Ltd.:

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Shinhan Financial Group Co., Ltd. (the “Company”). These condensed separate interim financial statements consist of the condensed separate interim statement of financial position of the Company as at March 31, 2026, and the related condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed separate interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed separate interim financial statements based on our review.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed separate interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

The condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2025, presented herein for comparative purposes, were reviewed by another auditor whose report dated May 15, 2025. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed separate interim financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

The separate statement of financial position as at December 31, 2025, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 3, 2026. The separate statement of financial position as at December 31, 2025, presented herein for comparative purposes, is consistent, in all material respects, with the above audited separate statement of financial position as at December 31, 2025.

/s/ Samil PricewaterhouseCoopers

May 15, 2026

Seoul, Korea

     This report is effective as of May 15, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed  separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

    

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Financial Position

As of March 31, 2026 and December 31, 2025


(In millions of won)	Note		March 31, 2026 (Unaudited)	December 31, 2025

Assets
Cash and due from banks at amortized cost	4, 5, 24	W	54,928	2,589
Financial assets at fair value through profit or loss	4, 6, 24		4,692,373	3,160,174
Loans at amortized cost	4, 7, 24		2,708,344	2,951,878
Property and equipment	24		4,905	4,833
Intangible assets	24		6,906	7,114
Investments in subsidiaries	8		30,723,705	30,723,705
Net defined benefit assets	11		5,077	9,676
Deferred tax assets			-	6,388
Other assets	4, 7, 24		951,563	927,470
Total assets		W	39,147,801	37,793,827

Liabilities
Borrowings	4, 9		9,823	9,975
Debt securities issued	4, 10, 24		9,918,030	10,457,205
Deferred tax liabilities			18,829	-
Other liabilities	4, 24		1,393,456	991,187
Total liabilities			11,340,138	11,458,367

Equity	12
Share capital			2,969,641	2,969,641
Hybrid bonds			4,719,886	4,749,837
Capital surplus			1,484,821	11,350,744
Capital adjustments			(242,110)	(647,347)
Accumulated other comprehensive loss			(11,363)	(11,363)
Retained earnings			18,886,788	7,923,948
Total equity			27,807,663	26,335,460

Total liabilities and equity		W	39,147,801	37,793,827

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Comprehensive Income

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won, except earnings per share data)	Note		2026 (Unaudited)	2025 (Unaudited)

Interest income	21, 24	W	23,686	21,581
Interest expense	24		(85,017)	(83,318)
Net interest expense	13		(61,331)	(61,737)

Fees and commission income	21, 24		17,759	17,759
Fees and commission expense	24		(231)	(147)
Net fees and commission income	14		17,528	17,612

Dividend income	15, 21, 24		2,462,513	2,560,051
Net gain (loss) on financial assets at fair value through profit or loss	21		(141)	17,297
Net gain (loss) on foreign currency transaction	21		1,643	366
Reversal of credit losses	16, 21,24		77	73
General and administrative expenses	17, 24		(33,773)	(29,687)

Operating income			2,386,516	2,503,975

Non-operating expenses			(370)	(3,102)

Profit before income tax			2,386,146	2,500,873

Income tax expense	19		25,830	1,592
Profit for the period			2,360,316	2,499,281

Other comprehensive income (loss) for the period, net of income tax			-	-
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit asset			-	-
Total comprehensive income for the period		W	2,360,316	2,499,281

Earnings per share:	20
Basic and diluted earnings per share in won		W	4,882	4,957

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2026 and 2025


		Share Capital	Hybrid Bonds	Capital surplus	Capital adjustments	Accumulated other comprehensive loss	Retained earnings	Total equity
Balance at January 1, 2025	W	2,969,641	4,600,121	11,350,744	(296,024)	(9,307)	7,733,000	26,348,175
Total comprehensive income for the period:
Profit for the period		-	-	-	-	-	2,499,281	2,499,281
		-	-	-	-	-	2,499,281	2,499,281
Transactions with owners:
Dividends		-	-	-	-	-	(267,755)	(267,755)
Dividend to hybrid bonds		-	-	-	-	-	(42,590)	(42,590)
Transfer to retained earnings of redemption loss of hybrid bonds		-	-	-	524	-	(524)	-
Issuance of hybrid bonds		-	398,835	-	-	-	-	398,835
Acquisition of treasury shares		-	-	-	(276,260)	-	-	(276,260)
Retirement of treasury shares		-	-	-	-	-	(3)	(3)
		-	398,835	-	(275,736)	-	(310,872)	(187,773)
Balance at March 31, 2025 (Unaudited)	W	2,969,641	4,998,956	11,350,744	(571,760)	(9,307)	9,921,409	28,659,683

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Changes in Equity (continued)

For the three-month periods ended March 31, 2026 and 2025


		Share Capital	Hybrid Bonds	Capital surplus	Capital adjustments	Accumulated other comprehensive loss	Retained earnings	Total equity
Balance at January 1, 2026	W	2,969,641	4,749,837	11,350,744	(647,347)	(11,363)	7,923,948	26,335,460
Total comprehensive income for the period:
Profit for the period		-	-	-	-	-	2,360,316	2,360,316
		-	-	-	-	-	2,360,316	2,360,316
Transactions with owners:
Dividends		-	-	-	-	-	(417,502)	(417,502)
Dividend to hybrid bonds		-	-	-	-	-	(44,051)	(44,051)
Redemption of hybrid bonds		-	(429,009)	-	(991)	-	-	(430,000)
Transfer to retained earnings of redemption loss of hybrid bonds		-	-	-	1,846	-	(1,846)	-
Issuance of hybrid bonds		-	399,058	-	-	-	-	399,058
Acquisition of treasury shares		-	-	-	(395,618)	-	-	(395,618)
Retirement of treasury shares		-	-	-	800,000	-	(800,000)	-
Reclassification of share premium to retained earnings		-	-	(9,865,923)	-	-	9,865,923	-
		-	(29,951)	(9,865,923)	405,237	-	8,602,524	(888,113)
Balance at March 31, 2026 (Unaudited)	W	2,969,641	4,719,886	1,484,821	(242,110)	(11,363)	18,886,788	27,807,663

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Cash Flows

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won)	Note		2026 (Unaudited)		2025 (Unaudited)

Cash flows from operating activities
Profit for the period		W	2,360,316		2,499,281
Adjustments for:
Interest income	13, 21			(23,686)		(21,581)
Interest expense	13		85,017		83,318
Dividend income	15, 21		(2,462,513)		(2,560,051)
Income tax expense	19		25,830		1,592
Net loss (gain) on financial assets at fair value through profit or loss			4,639		(9,872)
Reversal of credit losses	16, 21		(77)		(73)
Employee benefits			3,844		690
Depreciation and amortization	17		1,083		1,043
Net gain on foreign currency transaction			(8,141)		(28)
Non-operating expenses			(11)		2,270
			(2,374,015)		(2,502,692)
Changes in assets and liabilities:
Financial assets at fair value through profit or loss			(1,406,731)		(2,034,449)
Other assets			160		(751)
Net defined benefit asset			(721)		(235)
Other liabilities			(9,441)		(7,557)
			(1,416,733)		(2,042,992)

Income tax paid			(1,832)		(1,820)
Interest received			31,459		32,335
Interest paid			(104,856)		(102,764)
Dividend received			2,456,589		2,554,854
Net cash inflow from operating activities			950,928		436,202

Cash flows from investing activities
Acquisition of financial assets at fair value through profit or loss			(100,000)		-
Lending of loans at amortized cost			(219,769)		(269,693)
Collection of loans at amortized cost			520,000		790,300
Acquisition of property and equipment			(184)		(53)
Acquisition of intangible assets			(70)		(377)
Increase in other assets			-		(8,225)
Acquisition of investments in subsidiaries			-		(100,054)
Net cash inflow from investing activities		W	199,977		411,898

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Cash Flows (Continued)

For the three-month periods ended March 31, 2026 and 2025


			Three-month periods ended March 31
(In millions of won)	Note		2026 (Unaudited)	2025 (Unaudited)

Cash flows from financing activities
Issuance of hybrid bonds		W	399,058	398,835
Redemption of hybrid bonds			(430,000)	-
Issuance of debt securities			748,652	599,030
Redemption of debt securities issued			(1,367,450)	(1,285,000)
Increase in borrowings			109,774	9,700
Decrease in borrowings			(110,000)	(20,000)
Dividends paid			(52,771)	(48,668)
Acquisition of treasury shares			(395,618)	(276,260)
Retirement of treasury shares			-	(3)
Repayments of leased liabilities			(189)	(171)
Net cash inflow from financing activities			(1,098,544)	(622,537)

Net increase (decrease) in cash and cash equivalents			52,361	225,563

Cash and cash equivalents at the beginning of the period	23		2,587	151,204

Cash and cash equivalents at the end of the period	23	W	54,948	376,767

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

1. Reporting entity

Shinhan Financial Group Co., Ltd. (the “Company”) was incorporated on September 1, 2001 for the purpose of controlling and managing companies operating in the financial industry and providing financial support to its subsidiaries.

In addition, the shares have been listed on the Korea Exchange since September 10, 2001, and the Company was registered with the Securities and Exchange Commission (SEC) on September 16, 2003, and on the same date, its American Depositary Shares (ADS) were listed on the New York Stock Exchange (NYSE).

2. Basis of preparation

(a)

Statement of compliance

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying separate interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

The condensed separate interim financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”), as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. These financial statements were prepared in accordance with K-IFRS No.1034, ‘Interim Financial Reporting’ as part of the period covered by the Company’s K-IFRS annual financial statements and contain less information than required in the annual separate financial statements. Selective comments include a description of transactions or events that are significant in understanding the changes in the financial position and management performance of the Company that occurred after December 31, 2025.

The condensed separate interim financial statements of the Company are separate financial statements prepared in accordance with K-IFRS No.1027 ‘Separate Financial Statements’, in which a parent, an investor in an associate or participant in a joint venture account for its investment on the basis of direct equity interest rather than on the basis of the investee’s reported performance and net assets.

(b) Use of estimates and judgments

The preparation of the condensed separate interim financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions about estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Income tax expense in the interim period is measured by applying the expected annual income tax rate, i.e. the estimated average annual effective income tax rate.

In preparing the condensed separate interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2025 except for the method of estimation used to determine the income tax expense for the interim period.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

3. Material accounting policies

(a) The Company applies the same accounting policies as in the preparation of the annual separate financial statements for the year ended December 31, 2025, except for the following amendments first applied from January 1, 2026, as described in Note 2(b).

i) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’

To address questions raised in practice and incorporate new requirements, Korean IFRS No. 1109 ‘Financial Instruments’ and No. 1107 ‘Financial Instruments: Disclosures’ have been amended. There is no significant impact on the separate financial statements from these amendments.

- Permit a financial liability to be regarded as settled (derecognized) through an electronic payment system before the settlement date, provided that specified criteria are met.

- Clarify and add further guidance for assessing whether financial assets meet the criterion of consisting solely of payments of principal and interest (SPPI).

- Require additional disclosures for equity instruments designated at FVOCI.

ii) Annual Improvements to K-IFRS Volume 11

Annual Improvements to K-IFRS Volume 11 are effective for annual reporting periods beginning on or after January 1, 2026. There is no significant impact on the separate financial statements from these amendments.

- K-IFRS No. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – Hedge accounting by a first-time adopter

- K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ – Gain or loss on derecognition

and Guidance on implementing K-IFRS No. 1107

- K-IFRS No. 1109 ‘Financial Instruments’ – Derecognition of lease liabilities and transaction price

- K-IFRS No. 1110 ‘Consolidated Financial Statements’ – Determination of ‘de facto agent’

- K-IFRS No. 1007 ‘Statement of Cash Flows’ – Cost method

iii) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ - Contracts referencing nature-dependent electricity

Contracts referencing nature-dependent electricity were defined as contracts in which an entity is exposed to variability in the underlying volume of electricity because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). It was also clarified that contracts to purchase or sell nature-dependent electricity are subject to assessment for the own-use exemption. In addition, the hedge accounting requirements were amended to allow the variable nominal amount of forecast nature-dependent electricity transactions to be designated as a hedged item, and related disclosure requirements were added. There is no significant impact on the separate financial statements from these amendments.

(b)

As of March 31, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows:

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

3. Material accounting policies (continued)

(b) As of March 31, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’(continued)

When the Company prepares its financial statements in accordance with K-IFRS No. 1118, the principal accounting policies that may result in significant differences from the current financial statements are as follows. These matters do not include all possible differences that may arise and are subject to change based on further analysis.

K-IFRS No. 1118 requires all income and expenses included in the statement of profit or loss to be classified into one of five categories: operating, investing, financing, income tax, and discontinued operations. The Standard classifies all income and expenses not included in the investing, financing, income tax, or discontinued operations categories as operating, and defines operating profit or loss as a residual measure.

The Company is required to assess its main business activities in order to classify income and expenses into categories. If the Company’s main business activities include investing in a particular type of asset or providing financing to customers, certain income and expenses that would otherwise have been classified in the investing or financing categories are classified in the operating category.

Accordingly, operating profit or loss under K-IFRS No. 1118 may differ significantly from operating profit or loss as defined under K-IFRS No. 1001, which is generally calculated as operating revenue less operating expenses. K-IFRS No. 1118 requires disclosure in the notes of operating profit or loss as determined under K-IFRS No. 1001, as well as a reconciliation of the differences between operating profit or loss under K-IFRS No. 1118 and that under K-IFRS No. 1001.

In addition, K-IFRS No. 1118 requires the presentation of the following subtotals in the statement of profit or loss: ‘operating profit or loss’, comprising all income and expenses classified in the operating category; ‘profit or loss before financing and income tax’, comprising operating profit or loss and all income and expenses classified in the investing category; and ‘profit or loss’. However, if the Company’s main business activity is to provide financing to customers, the presentation of ‘profit or loss before financing and income tax’ may not be required, depending on the accounting policy elected.

If MPMs are used, the Company is required to disclose the reasons for using such measures, how they are calculated, a reconciliation to the most directly comparable subtotal specified by K-IFRS No. 1118, the tax effects of each reconciling item, and the effects on non-controlling interests.

The Company has not applied K-IFRS No. 1118 as its mandatory effective date has not yet been reached, and it plans to present its first interim financial statements for the period ending March 31, 2027 in accordance with K-IFRS No. 1118. Based on information available as of March 31, 2026, the Company is conducting a preliminary overall assessment of the impact of adopting K-IFRS No. 1118.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management

(a) Overview

The Company manages various risks that may arise within the business sector of Shinhan Financial Group Co., Ltd. (the “Group”) and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with risk management guidelines established at the parent company level and the subsidiary level.

i) Risk management principles

The risk management principles of the Group are as follows:

- All business activities take into account the balance of risks and profits within a predetermined risk appetite.

- The parent company shall present the Group Risk Management Model Standard, supervise their compliance, and have responsibility and authority for group-level monitoring.

- Operate a risk-related decision-making system that enhances management's involvement.

- Organize and operate risk management organizations independent of the business sector.

- Operate a performance management system that clearly considers risks when making business decisions.

- Aim for preemptive and practical risk management functions.

- Share a cautious view to prepare for possible deterioration of the situation.

ii) Risk management organization

The fundamental policies for risk management of the Group are established by the Board of Directors of the parent company, while the basic risk management strategies are established by the Risk Management Committee (the “Group Risk Management Committee”) within the parent company’s Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiaries implement the risk management policies and strategies of the Group through their risk management committees, risk-related committees, and risk management organizations, and consistently establish and implement the detailed risk management policies and strategies. The risk management department of the Company assists the Group's Chief Risk Officer for risk management and supervision.

The Company has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Committees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

ii-1) Group Risk Management Committee

The Committee establishes the risk management framework for the Company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group’s fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the parent company.

The resolution of the Committee is as follows:

- Establish risk management basic policy in line with management strategy

- Determine the level of risk that can be assumed by the Group and each subsidiary

- Approve the appropriate investment limits or loss allowance limit

- Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations

- Matters concerning risk management organizational structure and division of duties

- Matters concerning the operation of the risk management system

- Matters concerning the establishment of various limits and approval of limits

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(a) Overview (continued)

ii-1) Group Risk Management Committee(continued)

- Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems

- Matters concerning risk disclosure policy

- Crisis situation analysis results and related capital management plans and financing plans

- Matters deemed necessary by the Board of Directors

- Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines

- Matters deemed necessary by the Chairman

ii-2) Group Risk Management Council

In order to maintain the Group's risk management policies and strategies consistently, the Company resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group’s Chief Risk Officer and shall consist of the Chief Risk Officers of major subsidiaries.

iii) Group Risk Management System

iii-1) Management of the Risk Capital

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Company and its subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management and establish a risk limit management system to control risk to an appropriate level.

iii-2) Risk monitoring

In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Company has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Company on key issues that affect risk management at the Group level. The Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Company takes preemptive risk management to establish and implement countermeasures.

iii-3) Risk reviewing

When promoting new products and businesses or implementing major policy changes, risk factors are reviewed using a pre-defined checklist to prevent the promotion of businesses where risks are difficult to assess and to support rational decision-making.

The risk management departments of subsidiaries conduct prior reviews of new products, services, and business initiatives and monitor associated risks on an ongoing basis after implementation. In cases involving multiple subsidiaries or joint initiatives, the relevant risk management departments are required to consult with the risk management function of the parent company prior to conducting risk reviews.

iii-4) Crisis management

The Company maintains a groupwide crisis management system to detect the signals of any risk crisis preemptively and, in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the Group’s survival as a going concern. Each subsidiary maintains crisis planning for four levels of contingencies, namely, ‘cautious’, ‘alert’, ‘imminent crisis’ and ‘crisis’, determination of which is made based on quantitative and qualitative monitoring and consequence analysis, and upon the

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(a) Overview (continued)

iii-4) Crisis management (continued)

happening of any such contingency, is required to respond according to a prescribed contingency plan. At the parent company level, the Company maintains and installs a crisis detection and response system which is applied consistently group-wide, and upon the happening of any contingency at two or more subsidiary levels, the Company directly takes charge of the situation so that the Company manages it on a concerted group wide basis.

(b) Credit risk

Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Company faces. The Company’s credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.

i) Techniques, assumptions and input variables used to measure impairment

i-1) Determining significant increases in credit risk since initial recognition

At the end of each reporting period, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make the assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Company and analysis by an internal credit rating expert.

Measuring the risk of default

The Company assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.

Measuring term structure of probability of default

Internal credit rating is a key input variable for determining term structure of probability of default. The Company accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Company uses information obtained from external credit rating agencies when performing these analyses. The Company applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

Significant increases in credit risk

The Company uses the indicators defined as per portfolio to determine the significant increase in credit risk, and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-2) Risk of default

The Company considers a financial asset to be in default if it meets one or more of the following conditions:

- If a borrower is overdue by 90 days or more from the contractual payment date,

- If the Company judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The Company uses the following indicators when determining whether a borrower is in default:

- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Company, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Company uses the number of days past due for each financial instrument)

- Internal observation data and external data

The definition of default applied by the Company generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred and the extent thereof may vary.

i-3) Reflection of forward-looking information

The Company reflects forward-looking information presented by internal experts based on a variety of information when measuring expected credit losses. For the purpose of estimating this forward-looking information, the Company utilizes the economic outlook published by domestic and overseas research institutes or government and public agencies.

The Company analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation.


Key macroeconomic variables		Correlation between credit risks
GDP growth rate		(-)
Private consumption index growth rate		(-)
Index of equipment investment growth rate		(-)
Consumer price index growth rate		(+)
Balance on current account ($0.1 billion)		(-)

The predicted correlations between the macroeconomic variables and the risk of default, used by the Company, are derived based on long-term data over the past ten years.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-4) Measurement of expected credit losses

Key variables used in measuring expected credit losses are as follows:

- Probability of default (“PD”)

- Loss given default (“LGD”)

- Exposure at default (“EAD”)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Company and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.

LGD refers to the expected loss in the event of a default. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the assets, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

In measuring expected credit losses on financial assets, the Company uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.

Risk factors of PD, LGD and EAD are collectively estimated according to the following criteria:

- Type of products

- Internal credit risk rating

- Type of collateral

- Loan to value (“LTV”)

- Industry that the borrower belongs to

- Location of the borrower or collateral

- Days of delinquency

The criteria for classifying groups are periodically reviewed to maintain homogeneity within groups and adjusted if necessary. The Company uses external benchmark information to supplement internal data for portfolios where sufficient historical data is not available internally.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-5) Write-off of financial assets

The Company writes off a portion of or entire loan or debt security for which the Company does not expect to receive its principal and interest. In general, the Company writes off the balance when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of the Financial Supervisory Service, if necessary. The Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

ii) Maximum exposure to credit risk

The maximum exposure to credit risk of financial instruments, excluding equity instruments, as of March 31, 2026 and December 31, 2025 is as follows:


			March 31, 2026	December 31, 2025
Due from banks and loans at amortized cost (*1):	Banks	W	54,928	2,589
	Corporations		2,708,344	2,951,878
			2,763,272	2,954,467
Financial assets at fair value through profit or loss			3,084,940	1,667,654
Other financial assets at amortized cost (1), (2)			951,163	927,158
		W	6,799,375	5,549,279

(*1) The maximum exposure amounts for due from banks, loans, and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.

(*2) Other financial assets mainly comprise accounts receivable, accrued income, and guarantee deposits.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(b) Credit risk (continued)

iii) Impairment information by credit risk of financial assets

Details of impairment of financial assets measured at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		12-month ECL	Lifetime ECL	Gross amount	Allowance	Total, net
Due from banks and loans at amortized cost (*):
Banks	W	54,951	-	54,951	(23)	54,928
Corporations		2,709,468	-	2,709,468	(1,124)	2,708,344
		2,764,419	-	2,764,419	(1,147)	2,763,272
Other financial assets at amortized cost		951,539	-	951,539	(376)	951,163
	W	3,715,958	-	3,715,958	(1,523)	3,714,435


		December 31, 2025
		12-month ECL	Lifetime ECL	Gross amount	Allowance	Total, net
Due from banks and loans at amortized cost (*):
Banks	W	2,590	-	2,590	(1)	2,589
Corporations		2,953,103	-	2,953,103	(1,225)	2,951,878
		2,955,693	-	2,955,693	(1,226)	2,954,467
Other financial assets at amortized cost		927,532	-	927,532	(374)	927,158
	W	3,883,225	-	3,883,225	(1,600)	3,881,625

(*) Credit quality of due from banks and loans is divided into Prime and Normal. Credit quality of due from banks and loans as of March 31, 2026 and December 31, 2025 is classified as Prime. The distinction between Prime grade and Normal grade is as follows:


Type of Borrower		Corporations and banks
Grade: 1. Prime		Internal credit rating of BBB+ or above
Grade: 2. Normal		Internal credit rating of below BBB+

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

In accordance with the Financial Holding Companies Act, the Company manages liquidity such that, at each month-end, the total amount of assets with a residual maturity of one month or less in the statement of financial position exceeds the total amount of liabilities with a residual maturity of one month or less.

The maturity analysis of non-derivative financial liabilities as of March 31, 2026 and December 31, 2025 is as follows:


		March 31, 2026
		1 month or less	1 month ~ 3 months	3 months ~ 6 months	6 months ~ 1 year	1 year ~ 5 years	More than 5 years	Total
Non-derivative financial liabilities (*)
Liabilities:
Borrowings	W	-	-	5,000	5,000	-	-	10,000
Debt securities issued		256,792	391,036	650,093	725,788	8,635,499	147,196	10,806,404
Other financial liabilities		430,460	9,684	78,143	68,645	129,622	-	716,554
	W	687,252	400,720	733,236	799,433	8,765,121	147,196	11,532,958


		December 31, 2025
		1 month or less	1 month ~ 3 months	3 months ~ 6 months	6 months ~ 1 year	1 year ~ 5 years	More than 5 years	Total
Non-derivative financial liabilities (*)
Liabilities:
Borrowings	W	10,000	-	-	-	-	-	10,000
Debt securities issued		880,482	591,353	581,788	816,521	8,337,526	148,540	11,356,210
Other financial liabilities		27,733	64,960	7,235	4,987	159,489	-	264,404
	W	918,215	656,313	589,023	821,508	8,497,015	148,540	11,630,614

(*) These amounts include both principal and interest cash flows of financial liabilities.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments

The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Company are based on the trading agencies’ notifications.

If the market for a financial instrument is not active, such as OTC (Over-The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Company uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined using various valuation techniques, including recent transactions between independent parties conducted on an arm’s length basis, reference to the current fair value of other substantially identical financial instruments where available, discounted cash flow methods, and option pricing models.

The Company classifies and discloses fair value of financial instruments into the following three-level hierarchy:



Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level 1.



Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.



Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

i) Financial instruments measured at fair value

i-1) The fair value hierarchy of financial assets measured at fair value as of March 31, 2026 and December 31, 2025 is as follows:


		March 31, 2026
		Level 1	Level 2	Level 3	Total
Assets
Financial assets at fair value through profit or loss	W	-	3,084,940	1,607,433	4,692,373


		December 31, 2025
		Level 1	Level 2	Level 3	Total
Assets
Financial assets at fair value through profit or loss	W	-	1,667,654	1,492,520	3,160,174

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-2) Classification of financial instruments as fair value level 3

Changes in carrying amounts of financial instruments classified as Level 3 for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Financial assets at FVTPL
Beginning balance	W	1,492,520
Recognized in profit or loss		14,913
Purchases		100,000
Settlement		-
Ending balance	W	1,607,433


		December 31, 2025
		Financial assets at FVTPL
Beginning balance	W	1,483,122
Recognized in profit or loss		9,398
Purchases		100,000
Settlement		(100,000)
Ending balance	W	1,492,520

i-3) Valuation techniques and input variables unobservable in markets

i-3-1) Valuation techniques and input variables used in measuring the fair value of financial instruments classified as level 2 as of March 31, 2026 and December 31, 2025 are as follows:


	Type of financial instrument	Valuation techniques	Type	Carrying amount	Inputs
2026	Financial assets at fair value through profit or loss	Net asset valuation approach	Beneficiary certificates	3,084,940	Prices of underlying assets such as bonds
2025	Financial assets at fair value through profit or loss	Net asset valuation approach	Beneficiary certificates	1,667,654	Prices of underlying assets such as bonds

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and input variables unobservable in markets (continued)

i-3-2) Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of March 31, 2026 and December 31, 2025 are as follows:

      
     March 31, 2026

      
     Valuation
technique

     Type of financial instrument

     Carrying amount

     Significant unobservable
input

     Range of estimates for unobservable input

     Financial assets

     Financial assets at fair value through profit or loss

     Option model (*)

     Hybrid bonds

     W

     1,607,433

     Volatility of
interest rate

     0.51%~1.43%

      
     December 31, 2025

      
     Valuation
technique

     Type of financial instrument

     Carrying amount

     Significant unobservable
input

     Range of estimates for unobservable input

     Financial assets

     Financial assets at fair value through profit or loss

     Option model (*)

     Hybrid bonds

     W

     1,492,520

     Volatility of
interest rate

     0.46%~0.86%

(*) It is calculated by applying the Hull-White model method.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-4) Sensitivity to changes in unobservable inputs

For Level 3 fair value measurements, the effects on profit or loss of changes in unobservable inputs to reasonably possible alternative assumptions as of March 31, 2026 and December 31, 2025 are as follows:


			March 31, 2026
			Profit (loss) for the period
			Favorable change	Unfavorable change
Recognized in profit or loss (*)	Financial assets at fair value through profit or loss	W	372	(342)


			December 31, 2025
			Profit (loss) for the year
			Favorable change	Unfavorable change
Recognized in profit or loss (*)	Financial assets at fair value through profit or loss	W	207	(233)

(*) Fair value changes are calculated based on a 10% increase or decrease in interest rate volatility, which is a significant unobservable input.

ii) Financial instruments measured at amortized cost

ii-1) Methods for determining the fair value of financial instruments measured at amortized cost


Type		Measurement methods of fair value
Due from banks		The carrying amount and fair value of cash are identical. Most due from banks are floating-rate deposits or overnight deposits with very short maturities; accordingly, the carrying amount is used as a proxy for fair value.
Loans		The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower.
Borrowings and debt securities issued		The fair value is based on quoted prices in active markets. Where such prices are not available, fair value is determined as the present value of contractual cash flows discounted using a market interest rate adjusted for residual risk.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

ii) financial instruments measured at amortized cost (continued)

ii-2) The carrying amounts and fair value of the financial instruments measured at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026		December 31, 2025
		Carrying amount	Fair value	Carrying amount	Fair value
Assets:
Due from banks at amortized cost	W	54,928	54,928	2,589	2,589
Loans at amortized cost		2,708,344	2,851,842	2,951,878	3,109,700
Other financial assets		951,163	951,163	927,158	927,158
	W	3,714,435	3,857,933	3,881,625	4,039,447
Liabilities:
Borrowings	W	9,823	9,824	9,975	9,976
Debt securities issued		9,918,030	9,837,931	10,457,205	10,492,523
Other financial liabilities		761,241	761,241	329,942	329,942
	W	10,689,094	10,608,996	10,797,122	10,832,441

ii-3) The fair value hierarchy of financial instruments that are not measured at fair value in the statement of financial position but for which fair values are disclosed as of March 31, 2026 and December 31, 2025 is as follows:


		March 31, 2026
		Level 1	Level 2	Level 3	Total
Assets:
Due from banks at amortized cost	W	54,925	3	-	54,928
Loans at amortized cost		-	-	2,851,842	2,851,842
Other financial assets		-	-	951,163	951,163
	W	54,925	3	3,803,005	3,857,933
Liabilities:
Borrowings	W	-	9,824	-	9,824
Debt securities issued		-	9,837,931	-	9,837,931
Other financial liabilities		-	-	761,241	761,241
	W	-	9,847,755	761,241	10,608,996


		December 31, 2025
		Level 1	Level 2	Level 3	Total
Assets:
Due from banks at amortized cost	W	2,586	3	-	2,589
Loans at amortized cost		-	-	3,109,700	3,109,700
Other financial assets		-	-	927,158	927,158
	W	2,586	3	4,036,858	4,039,447
Liabilities:
Borrowings	W	-	9,976	-	9,976
Debt securities issued		-	10,492,523	-	10,492,523
Other financial liabilities		-	-	329,942	329,942
	W	-	10,502,499	329,942	10,832,441

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

ii) financial instruments measured at amortized cost (continued)

ii-4) Valuation techniques and inputs used in measuring the fair value of financial instruments not measured at fair value but classified as Level 2 or Level 3 for fair value disclosures as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026
	Valuation technique		Fair value	Inputs
Assets:
Due from banks at amortized cost	-	W	3	-
Loans at amortized cost	DCF		2,851,842	Discount rate
Other financial assets	DCF		951,163	Discount rate
		W	3,803,008
Liabilities:
Borrowings	DCF	W	9,824	Discount rate
Debt securities issued	DCF		9,837,931	Discount rate
Other financial liabilities	DCF		761,241	Discount rate
		W	10,608,996


	December 31, 2025
	Valuation technique		Fair value	Inputs
Assets:
Due from banks at amortized cost	-	W	3	-
Loans at amortized cost	DCF		3,109,700	Discount rate
Other financial assets	DCF		927,158	Discount rate
		W	4,036,861
Liabilities:
Borrowings	DCF	W	9,976	Discount rate
Debt securities issued	DCF		10,492,523	Discount rate
Other financial liabilities	DCF		329,942	Discount rate
		W	10,832,441

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

4. Financial risk management (continued)

(e) Classification by categories of financial instruments

Financial assets and liabilities are measured at fair value or amortized cost. The carrying amounts of each category of financial assets and financial liabilities as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026
		Financial assets at fair value through profit or loss	Financial assets at amortized cost	Financial liabilities at amortized cost
Assets:
Cash and due from banks at amortized cost	W	-	54,928	-
Financial assets at fair value through profit or loss		4,692,373	-	-
Loans at amortized cost		-	2,708,344	-
Other financial assets at amortized cost		-	951,163	-
	W	4,692,373	3,714,435	-
Liabilities:
Borrowings	W	-	-	9,823
Debt securities issued		-	-	9,918,030
Other financial liabilities		-	-	761,241
	W	-	-	10,689,094


		December 31, 2025
		Financial assets at fair value through profit or loss	Financial assets at amortized cost	Financial liabilities at amortized cost
Assets:
Cash and due from banks at amortized cost	W	-	2,589	-
Financial assets at fair value through profit or loss		3,160,174	-	-
Loans at amortized cost		-	2,951,878	-
Other financial assets at amortized cost		-	927,158	-
	W	3,160,174	3,881,625	-
Liabilities:
Borrowings	W	-	-	9,975
Debt securities issued		-	-	10,457,205
Other financial liabilities		-	-	329,942
	W	-	-	10,797,122

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

5. Cash and due from banks

(a) Cash and due from banks by type

Details of cash and due from banks by type as of March 31, 2026 and December 31, 2025, are as follows:


		March 31, 2026	December 31, 2025
Due from banks at amortized cost	W	54,951	2,590
Less: allowance		(23)	(1)
	W	54,928	2,589

(b) Details of restricted due from banks in accordance with the Banking Act and other relevant laws and regulations as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Checking account guarantee deposit	W	3	3

6. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Beneficiary certificates
Beneficiary certificates in Korean won	W	2,941,796	907,013
Beneficiary certificates in foreign currency		143,144	760,641
		3,084,940	1,667,654
Hybrid Bonds
Hybrid Bonds in Korean won		1,200,173	1,108,884
Hybrid Bonds in foreign currency		407,260	383,636
	W	1,607,433	1,492,520
		4,692,373	3,160,174

7. Loans at amortized cost

(a) Loans at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Corporate loans (Working Capital loan)	W	2,709,468	2,953,103
Less: allowance		(1,124)	(1,225)
	W	2,708,344	2,951,878

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

7. Loans at amortized cost (continued)

(b) Changes in loans at amortized cost and other assets for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Loans at amortized cost			Due from banks at amortized cost and other financial assets
		12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	Total
Beginning balance	W	2,953,103	-	-	930,122	-	-	3,883,225
Transfer (from) to 12-month expected credit losses		-	-	-	-	-	-	-
Transfer (from) to lifetime expected credit losses		-	-	-	-	-	-	-
Transfer (from) to credit- impaired financial assets		-	-	-	-	-	-	-
Origination		220,000	-	-	-	-	-	220,000
Collection		(520,000)	-	-	-	-	-	(520,000)
Others (*)		56,365	-	-	76,368	-	-	132,733
Ending balance	W	2,709,468	-	-	1,006,490	-	-	3,715,958


		December 31, 2025
		Loans at amortized cost			Due from banks at amortized cost and other financial assets
		12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	Total
Beginning balance	W	3,838,903	-	-	640,160	-	-	4,479,063
Transfer (from) to 12-month expected credit losses		-	-	-	-	-	-	-
Transfer (from) to lifetime expected credit losses		-	-	-	-	-	-	-
Transfer (from) to credit- impaired financial assets		-	-	-	-	-	-	-
Origination		1,576,004	-	-	-	-	-	1,576,004
Collection		(2,480,890)	-	-	-	-	-	(2,480,890)
Others (*)		19,086	-	-	289,962	-	-	309,048
Ending balance	W	2,953,103	-	-	930,122	-	-	3,883,225

(*) Other changes are due to dividends receivables from subsidiaries, consolidation tax receivables, accrued income, changes in foreign exchange rate, etc.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

7. Loans at amortized cost (continued)

(c) Changes in the allowance for credit losses on loans at amortized cost and other assets for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Loans at amortized cost			Due from banks at amortized cost and other financial assets
		12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	Total
Beginning balance	W	1,225	-	-	375	-	-	1,600
Transfer (from) to 12-month expected credit losses		-	-	-	-	-	-	-
Transfer (from) to lifetime expected credit losses		-	-	-	-	-	-	-
Transfer (from) to credit- impaired financial assets		-	-	-	-	-	-	-
Provision (reversal)		(101)	-	-	24	-	-	(77)
Ending balance	W	1,124	-	-	399	-	-	1,523


		December 31, 2025
		Loans at amortized cost			Due from banks at amortized cost and other financial assets
		12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	12-month expected credit losses	Lifetime expected credit losses	Credit-impaired financial asset	Total
Beginning balance	W	1,605	-	-	261	-	-	1,866
Transfer (from) to 12-month expected credit losses		-	-	-	-	-	-	-
Transfer (from) to lifetime expected credit losses		-	-	-	-	-	-	-
Transfer (from) to credit- impaired financial assets		-	-	-	-	-	-	-
Provision (reversal)		(380)	-	-	114	-	-	(266)
Ending balance	W	1,225	-	-	375	-	-	1,600

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

8. Investments in subsidiaries

Investments in subsidiaries as of March 31, 2026 and December 31, 2025 are as follows:


			March 31, 2026			December 31, 2025
Investees	Location	Reporting month	Ownership Interest (%)		Carrying amount	Ownership Interest (%)		Carrying amount
Shinhan Bank	Korea	December	100.0		13,617,579	100.0		13,617,579
Shinhan Card Co., Ltd.	Korea	December	100.0		7,919,672	100.0		7,919,672
Shinhan Securities Co., Ltd.	Korea	December	100.0		3,001,420	100.0		3,001,420
Shinhan Life Insurance Co., Ltd.	Korea	December	100.0		4,204,526	100.0		4,204,526
Shinhan Capital Co., Ltd.	Korea	December	100.0		558,921	100.0		558,921
Shinhan Asset Management Co., Ltd.	Korea	December	100.0		326,206	100.0		326,206
Jeju Bank	Korea	December	64.0		179,643	64.0		179,643
Shinhan Savings Bank	Korea	December	100.0		157,065	100.0		157,065
Shinhan Asset Trust Co., Ltd.	Korea	December	100.0		364,789	100.0		364,789
Shinhan DS	Korea	December	100.0		23,026	100.0		23,026
Shinhan Fund Partners Co., Ltd.	Korea	December	99.8		50,092	99.8		50,092
Shinhan REITs Management Co., Ltd.	Korea	December	100.0		30,000	100.0		30,000
Shinhan Venture Investment Co., Ltd.	Korea	December	100.0		75,840	100.0		75,840
Shinhan EZ General Insurance Co., Ltd.	Korea	December	91.7		206,271	91.7		206,271
SHC Management Co., Ltd.	Korea	December	100.0		8,655	100.0		8,655
				W	30,723,705		W	30,723,705

9. Borrowings

Borrowings as of March 31, 2026 and December 31, 2025 are as follows:


	Lender	Period	Interest rate (%)		March 31, 2026	December 31, 2025
Borrowings in Korean won	DB Financial Investment Co., LTD.	2025.01.31 ~2026.01.30	3.01	W	-	9,975
	Kyobo Securities Co., Ltd.	2026.01.30 ~2026.07.31	2.99		4,950	-
	〃	2026.01.30 ~2027.01.29	3.04		4,873	-
				W	9,823	9,975

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

10. Debt securities issued

Debt securities issued as of March 31, 2026 and December 31, 2025 are as follows:


	March 31, 2026			December 31, 2025
	Interest rate (%)		Amount	Interest rate (%)		Amount
Debt securities issued in Korean won:
Debt securities issued	1.43 ~ 6.17	W	8,420,000	1.43 ~ 6.17	W	8,320,000
Discount			(7,012)			(6,665)
			8,412,988			8,313,335
Debt securities issued in foreign currency:
Debt securities issued	4.60 ~ 5.06		1,513,400	1.37 ~ 5.06		2,152,350
Discount			(8,358)			(8,480)
			1,505,042			2,143,870
		W	9,918,030		W	10,457,205

11. Net defined benefit assets and liabilities

(a) Defined benefit obligations and plan assets as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Present value of defined benefit obligations	W	30,778	26,483
Fair value of plan assets		(35,855)	(36,159)
Net defined benefit liability (asset)	W	(5,077)	(9,676)

(b) Profit or loss related to defined benefit plans for the three-month periods ended March 31, 2026 and 2025 is as follows:


		March 31, 2026	March 31, 2025
Current service costs	W	522	442
Net interest income		(61)	(89)
	W	461	353

(*) Profit or loss related to defined benefit plans is included in general and administrative expenses.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

12. Equity

(a) Equity as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Share Capital
Ordinary shares (*1)	W	2,695,586	2,695,586
Preferred shares (1), (2)		274,055	274,055
		2,969,641	2,969,641

Hybrid bonds		4,719,886	4,749,837

Capital surplus
Share premium		1,484,821	11,350,744

Capital adjustments		(242,110)	(647,347)

Accumulated other comprehensive loss		(11,363)	(11,363)
Retained earnings
Legal reserve (*3)		2,969,641	2,969,641
Regulatory reserve for loan losses		17,708	20,462
Other legal reserves		2,000	2,000
Unappropriated retained earnings		15,897,439	4,931,845
		18,886,788	7,923,948
	W	27,807,663	26,335,460

(*1) Due to the retirement of shares using retained earnings, etc., the Company’s capital differs from the aggregate par value of its issued shares.

(*2) All redeemable convertible preferred shares and similar instruments previously issued by the Company have been redeemed through retained earnings. Accordingly, although preferred share capital remains outstanding, there are no preferred shares currently issued and outstanding.

(*3) As of March 31, 2026, retained earnings include a legal reserve that is restricted from being distributed as dividends under applicable laws and regulations. In accordance with Article 53 of the Financial Holding Companies Act, the Company is required to appropriate at least 10% of net income as a legal reserve each time dividends are declared, until such reserve equals 100% of its share capital. This reserve may only be used to offset accumulated deficits or to be capitalized.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

12. Equity (continued)

(b) Hybrid bonds

Hybrid bonds classified as other equity instruments as of March 31, 2026 and December 31, 2025 are as follows:


	Issue date	Maturity date	Interest rate (%)		March 31, 2026	December 31, 2025
Hybrid bonds in KRW	September 15, 2017	Perpetual bond	4.25	W	89,783	89,783
	April 13, 2018	Perpetual bond	4.56		14,955	14,955
	March 16, 2021	Perpetual bond	2.94		-	429,009
	March 16, 2021	Perpetual bond	3.30		169,581	169,581
	January 25, 2022	Perpetual bond	3.90		560,438	560,438
	January 25, 2022	Perpetual bond	4.00		37,853	37,853
	August 26, 2022	Perpetual bond	4.93		343,026	343,026
	August 26, 2022	Perpetual bond	5.15		55,803	55,803
	January 30, 2023	Perpetual bond	5.14		398,831	398,831
	July 13, 2023	Perpetual bond	5.40		498,815	498,815
	January 31, 2024	Perpetual bond	4.49		398,833	398,833
	September 12, 2024	Perpetual bond	4.00		399,033	399,033
	February 13, 2025	Perpetual bond	3.90		398,835	398,835
	September 9, 2025	Perpetual bond	3.26		399,035	399,035
	March 16, 2026	Perpetual bond	4.20		399,058	-
Hybrid bonds in USD	May 12, 2021	Perpetual bond	2.88		556,007	556,007
				W	4,719,886	4,749,837

(*) For the period ended March 31, 2026, the deduction for capital related to hybrid bond issued is W 942 million.

The hybrid bonds may be redeemed early after 5 or 10 years from the date of issuance, and are either perpetual in nature or may have their maturity extended under the same terms.

i) Changes in accumulated capital adjustments for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Beginning balance	W	(647,347)	(296,024)
Disposal of retained earnings		1,846	524
Redemption of hybrid bonds		(991)	(1,846)
Acquisition of treasury shares		(395,618)	(1,250,001)
Retirement of treasury shares		800,000	900,000
Ending balance	W	(242,110)	(647,347)

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

12. Equity (continued)

ii) Changes in treasury shares for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Beginning balance	Acquisition	Disposal	Retirement (*)	Ending balance
The number of shares		8,337,535	4,573,039	-	(10,840,573)	2,070,001
Carrying amount	W	600,001	395,618	-	(800,000)	195,619

(*) For the period ended March 31, 2026, the Company acquired treasury shares for retirement and completed the retirement of 10,840,573 shares on February 6, 2026.


		December 31, 2025
		Beginning balance	Acquisition	Disposal	Retirement (*)	Ending balance
The number of shares		4,585,561	21,702,365	-	(17,950,391)	8,337,535
Carrying amount	W	250,000	1,250,001	-	(900,000)	600,001

(*) For the year ended December 31, 2025, the Company acquired treasury shares for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively.

(d) Accumulated other comprehensive income (loss)

Changes in accumulated other comprehensive income (loss) for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Beginning balance	W	(11,363)	(9,307)
Remeasurements of net defined benefit liability (asset)		-	(3,028)
Tax effect		-	972
Ending balance	W	(11,363)	(11,363)

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

12. Equity (continued)

(e) Regulatory reserve for loan losses

In accordance with the Supervisory Regulations on Financial Holding Companies (the “Regulations”), when the allowance for credit losses under K-IFRS is less than the minimum required under the Regulations, the Company appropriates the shortfall as a regulatory reserve for loan losses at each reporting date.

i) Regulatory reserve for loan losses as of March 31, 2026 and December 31, 2025 is as follows:


		March 31, 2026	December 31, 2025
Beginning balance	W	17,708	20,462
Expected regulatory reserve for loan losses		(757)	(2,754)
Ending balance	W	16,951	17,708

ii) Profit and earnings per share after adjustment for the regulatory reserve for loan losses for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Profit for the period	W	2,360,316	2,499,281
Provision for regulatory reserve for loan losses		757	803
Profit adjusted for regulatory reserve	W	2,361,073	2,500,084
Basic and diluted earnings per share adjusted for regulatory reserve (*)	W	4,883	4,959

(*) Dividends for hybrid bonds are deducted.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

13. Net interest expense

Net interest expense for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Interest income:
Cash and due from banks at amortized cost	W	769	1,870
Loans at amortized cost		22,774	19,564
Others		143	147
		23,686	21,581
Interest expense:
Borrowings		(142)	(134)
Debt securities issued		(84,869)	(83,176)
Others		(6)	(8)
		(85,017)	(83,318)
Net interest expense	W	(61,331)	(61,737)

14. Net fees and commission income

Net fees and commission income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Fees and commission income:
Royalty	W	17,759	17,759
Others		-	-
		17,759	17,759
Fees and commission expense:
Others		(231)	(147)
Net fees and commission income	W	17,528	17,612

15. Dividend income

Dividend income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Dividend from subsidiaries	W	2,447,136	2,545,456
Dividend to hybrid bonds		15,377	14,595
	W	2,462,513	2,560,051

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

16. Reversal of credit losses

Reversal of credit losses for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Reversal of credit losses	W	77	73

17. General and administrative expenses

General and administrative expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Salaries:
Salary expenses and bonuses	W	15,803	10,831
Severance benefits		461	353
Rent		647	501
Lease		37	37
Entertainment		476	388
Depreciation		807	832
Amortization		276	211
Taxes and dues		310	339
Advertising		10,597	9,533
Others		4,359	6,662
	W	33,773	29,687

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

18. Share-based payments

(a) Performance shares granted as of March 31, 2026 are as follows:


	Expired	Not expired
Type	Cash-settled share-based payment

Performance conditions	Relative stock price linked (20.0%), management index (80.0%)

Exercising period	4 years from the commencement date of the year to which the grant date belongs

Estimated number of shares vested at March 31, 2026	186,576	2,142,112

Fair value per share in Korean won (*)	W 37,387, W 37,081, W 38,156, W 50,444 and W 77,757 for the expiration of the exercising period from 2021 to 2025	W 87,700

(*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two months, the previous one month, and the past one week) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock to be paid in the future is assessed as the closing price of the settlement.

(b) Share-based compensation costs

The share-based compensation costs for the three-month periods ended March 31, 2026 and 2025 are as follows:

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won, except per share data)

18. Share-based payments (continued)

In accordance with the share-based compensation agreements by the Company, the share-based compensation payable as of March 31, 2026 and December 31, 2025 are as follows.

(*) The Company recognizes W 176,793 million to be preserved from the subsidiary as the amount to be paid to the executives and employees of the subsidiary.

(*) The Company recognizes W 197,518 million to be preserved from the subsidiary as the amount to be paid to the executives and employees of the subsidiary.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

19. Income taxes

Income tax expense for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Current income tax expense (*)	W	613	936
Temporary differences (*)		25,217	656
Income tax recognized directly in equity		-	-
Income tax expense	W	25,830	1,592

(*) Due to the application of the global minimum tax, income tax expense of W 613 million and W 936 million was recognized for the current and prior quarters, respectively. The Company does not recognize deferred tax assets and liabilities associated with the Global Minimum Corporate Tax Act by applying the temporary exception to deferred tax in K-IFRS No.1012.

20. Earnings per share

Basic and diluted earnings per share for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Net profit for the period	W	2,360,316	2,499,281
Less:
Dividends to hybrid bond		(44,051)	(42,590)
Profit attributable to ordinary shareholders	W	2,316,265	2,456,691
Weighted average number of ordinary shares outstanding (*)		474,460,127	495,588,643
Basic and diluted earnings per share in Korean won	W	4,882	4,957

(*) The number of ordinary shares issued by the Company is 474,654,361 shares as of March 31, 2026. The above weighted average number of ordinary shares outstanding is calculated by reflecting changes in treasury shares that are acquired and retired, etc., during the current and prior quarters.

21. Operating income

Operating income for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Dividend income	W	2,462,513	2,560,051
Fees and commission income		17,759	17,759
Interest income		23,686	21,581
Gains on financial instruments at FVTPL		9,029	17,297
Gains on foreign currency transaction		87,885	4,575
Reversal of credit losses		77	73
	W	2,600,949	2,621,336

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

22. Commitments and contingencies

The commitments with financial institutions for the three-month periods ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


			March 31, 2026		December 31, 2025
	Financial institutions		Borrowing Limit	Balance after Execution	Borrowing Limit	Balance after Execution
Borrowing agreement in Korean won	Korea Development Bank	W	100,000	-	100,000	-
	Kookmin Bank		200,000	-	200,000	-
	Hana Bank		200,000	-	200,000	-
		W	500,000	-	500,000	-

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

23. Statement of cash flows

(a) Cash and cash equivalents in the condensed separate statement of cash flows as of March 31, 2026 and December 31, 2025 are as follows:


		March 31, 2026	December 31, 2025
Due from banks with a maturity less than three months from date of acquisition	W	54,948	2,587

(b) Changes in liabilities arising from financing activities for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026
		Borrowings	Debentures	Lease liabilities	Total
Balance at January 1, 2026	W	9,975	10,457,205	855	10,468,035
Changes from cash flows		(226)	(618,798)	(189)	(619,213)
Changes from non-cash flows:
Amortization of discount on debentures		74	1,716	6	1,796
Foreign currency difference		-	77,907	-	77,907
Other changes:		-	-	106	106
Balance at March 31, 2026	W	9,823	9,918,030	778	9,928,631


		March 31, 2025
		Borrowings	Debentures	Lease liabilities	Total
Balance at January 1, 2025	W	19,914	10,731,336	843	10,752,093
Changes from cash flows		(10,300)	(685,970)	(171)	(696,441)
Changes from non-cash flows:
Amortization of discount on debentures		134	2,295	7	2,436
Foreign currency difference		-	(4,479)	-	(4,479)
Other changes:		-	2,273	123	2,396
Balance at March 31, 2025	W	9,748	10,045,455	802	10,056,005

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions

The Company defines subsidiaries, key managements, and their families as a range of related parties in accordance with K-IFRS No.1024, and discloses the amount of transactions between the Company and related parties and the balance of receivables and payables. For details of subsidiaries, refer to 'Note 8'.

(a) Significant transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows:


Related party	Account		March 31, 2026	March 31, 2025
Revenue:
Shinhan Bank	Interest income	W	142	147
〃	Fees and commission income		11,610	11,610
〃	Dividend income		1,887,383	1,662,952
〃	Reversal of credit losses		3	-
Shinhan Card Co., Ltd.	Interest income		8,606	9,194
〃	Fees and commission income		3,335	3,335
〃	Dividend income		246,390	294,030
〃	Reversal of credit losses		125	537
〃	Other non-operating income		6	-
Shinhan Securities Co., Ltd.	Interest income		9,172	4,931
〃	Fees and commission income		881	881
〃	Dividend income		193,670	92,415
〃	Reversal of credit losses		-	367
Shinhan Life Insurance Co., Ltd.	Fees and commission income		1,220	1,220
〃	Dividend income		-	378,307
〃	Reversal of credit losses		1	2
Shinhan Capital Co., Ltd.	Interest income		3,109	3,290
〃	Fees and commission income		498	498
〃	Dividend income		56,335	31,382
〃	Reversal of credit losses		-	185
Jeju Bank	Fees and commission income		10	10
〃	Dividend income		2,420	2,420
〃	Reversal of credit losses		-	1
Shinhan Asset Management Co., Ltd.	Fees and commission income		41	41
〃	Dividend income		50,400	79,200
Shinhan DS	Interest income		76	81
〃	Fees and commission income		4	4
Shinhan Fund Partners Co., Ltd.	Fees and commission income		26	26
〃	Dividend income		8,536	7,669
Shinhan Savings Bank	Interest income		476	664
〃	Fees and commission income		81	81
〃	Dividend income		15,000	10,000
Shinhan REITs Management Co., Ltd.	Fees and commission income		19	19
Shinhan Asset Trust Co., Ltd.	Interest income		939	939
〃	Fees and commission income		24	24
〃	Dividend income		2,380	1,676
Shinhan Venture Investment Co., Ltd.	Interest income		462	522
〃	Fees and commission income		10	10
〃	Reversal of credit losses		-	25
		W	2,503,390	2,598,695

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions (continued)

(a) Significant transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows (continued):


Related party	Account		March 31, 2026	March 31, 2025
Expense:
Shinhan Bank	General and administrative expenses	W	336	335
〃	Provision for credit losses		-	44
Shinhan Card Co., Ltd.	Interest expenses		1	1
〃	General and administrative expenses		19	14
Shinhan Securities Co., Ltd.	Interest expenses		49	46
〃	Fees and commission expense (*)		105	150
〃	Provision for credit losses		20	-
Shinhan Life Insurance Co., Ltd.	Interest expenses		-	110
Shinhan Capital Co., Ltd.	Provision for credit losses		8	-
Shinhan Asset Management Co., Ltd.	Provision for credit losses		1	63
Shinhan DS	General and administrative expenses		620	468
〃	Provision for credit losses		-	2
Shinhan Fund Partners Co., Ltd.	Provision for credit losses		1	1
Shinhan Savings Bank	Provision for credit losses		-	535
Shinhan Asset Trust Co., Ltd.	Provision for credit losses		-	304
		W	1,160	2,073

(*) It consists of commissions paid for acquisitions of hybrid bonds, and was directly deducted from the equity.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions (continued)

(b) Significant balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows:


Creditor	Debtor	Account		March 31, 2026	December 31, 2025
Assets:
Shinhan Financial Group Co., Ltd.	Shinhan Bank	Cash and due from banks	W	63	17
〃	〃	Property and equipment		433	-
〃	〃	Other assets		629,033	637,533
〃	Shinhan Card Co., Ltd.	Financial assets at fair value through profit or loss (*1)		706,658	713,983
	〃	Loans		1,085,402	1,383,047
〃	〃	Reserve for loan losses		(450)	(574)
〃	〃	Property and equipment		118	44
〃	〃	Other assets		112,721	115,259
〃	Shinhan Securities Co., Ltd.	Financial assets at fair value through profit or loss (*2)		407,261	383,636
〃	〃	Loans		741,566	703,101
〃	〃	Reserve for loan losses		(308)	(292)
〃	〃	Other assets		70,557	60,923
〃	Shinhan Life Insurance Co., Ltd.	Other assets		29,695	33,116
〃	Shinhan Capital Co., Ltd.	Financial assets at fair value through profit or loss (*3)		246,838	247,939
〃	〃	Loans		612,680	596,980
〃	〃	Reserve for loan losses		(254)	(248)
〃	〃	Other assets		38,837	35,563
〃	Shinhan Asset Management Co., Ltd.	Other assets		12,639	10,430
〃	Jeju Bank	Other assets		6,136	3,879
〃	Shinhan DS	Loans		9,820	9,975
〃	〃	Reserve for loan losses		(4)	(4)
〃	〃	Property and equipment		142	158
〃	〃	Intangible assets		174	126
〃	〃	Other assets		2,690	1,965

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions (continued)

(b) Significant balances with the related parties March 31, 2026 and December 31, 2025 are as follows (continued):


Creditor	Debtor	Account		March 31, 2026	December 31, 2025
Assets:
Shinhan Financial Group Co., Ltd.	Shinhan Fund Partners Co., Ltd.	Other assets	W	7,338	5,141
〃	Shinhan Savings Bank	Loans		100,000	100,000
〃	〃	Reserve for loan losses		(41)	(41)
〃	〃	Other assets		11,685	11,402
〃	Shinhan Asset Trust Co., Ltd..	Financial assets at fair value through profit or loss (*4)		246,677	146,962
〃	〃	Loans		100,000	100,000
〃	〃	Reserve for loan losses		(41)	(41)
〃	〃	Other assets		4,741	4,291
〃	Shinhan REITs Management Co., Ltd.	Other assets		1,091	994
〃	Shinhan Venture Investment Co., Ltd.	Loans		60,000	60,000
〃	〃	Reserve for loan losses		(25)	(25)
〃	〃	Other assets		1,080	813
〃	Shinhan EZ General Insurance, Co., Ltd.	Other assets		343	348
			W	5,245,295	5,366,400
Liabilities:
Shinhan Bank.	Shinhan Financial Group Co., Ltd.	Other liabilities	W	1,868	1,707
Shinhan Card Co., Ltd.	〃	Other liabilities		485	610
Shinhan Securities Co., Ltd	〃	Other liabilities		24,235	6,403
Shinhan Life Insurance Co., Ltd.	〃	Other liabilities		68,467	6,460
Shinhan Capital Co., Ltd.	〃	Other liabilities		23	25
Shinhan Asset Management Co., Ltd.	〃	Other liabilities		3	3
Shinhan DS	〃	Other liabilities		2	108
Shinhan Savings Bank	〃	Other liabilities		-	5
Shinhan REITs Management Co., Ltd.	〃	Other liabilities		238	87
Shinhan Venture Investment Co., Ltd.	〃	Other liabilities		1,434	1,434
Shinhan EZ General Insurance Co., Ltd	〃	Other liabilities		53	-
			W	96,808	16,842

24. Related party transactions (continued)

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

(b) Significant balances with the related parties March 31, 2026 and December 31, 2025 are as follows (continued):

(*1) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 7,325 million and W 4,508 million for the period ended March 31, 2026 and for the year ended December 31, 2025, respectively.

(*2) The amount represents the carrying amount of hybrid bonds purchased and includes fair value gains recognized in profit or loss of W 2,636 million and W 23,998 million for the period ended March 31, 2026 and for the year ended December 31, 2025, respectively.

(*3) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 1,101 million and gains recognized in profit or loss of W 2,103 million for the period ended March 31, 2026 and for the year ended December 31, 2025, respectively.

(*4) The amount represents the carrying amount of hybrid bonds purchased and includes fair value losses recognized in profit or loss of W 285 million and W 3,764 million for the period ended March 31, 2026 and for the year ended December 31, 2025, respectively.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions (continued)

(c) Right-of-use assets and lease liabilities recognised through lease transactions with related parties as of March 31, 2026 and December 31, 2025 are as follows:


Related parties		March 31, 2026	December 31, 2025
Right-of-use assets
Shinhan Bank	W	433	-
Shinhan Card Co., Ltd.		118	44
	W	551	44
Lease liabilities
Shinhan Card Co., Ltd.		125	49
	W	125	49

(d) Financing transaction

Major financing transactions with related parties for the three-month periods ended March 31, 2026 and for the year ended December 31, 2025 are as follows:


		March 31, 2026
		Beginning balance	Loan	Acquisition (*1)	Collection	Others (*2)	Ending balance
Shinhan Card Co., Ltd.	W	2,097,029	-	-	(300,000)	(4,970)	1,792,059
Shinhan Securities Co., Ltd.		1,086,736	-	-	-	62,089	1,148,825
Shinhan Capital Co., Ltd.		844,920	150,000	-	(150,000)	14,599	859,519
Shinhan Asset Trust Co., Ltd.		246,961	-	100,000	-	(285)	346,676
Shinhan Savings Bank		100,000	-	-	-	-	100,000
Shinhan DS		9,977	10,000	-	(10,000)	(155)	9,822
Shinhan Venture Investment Co., Ltd.		60,000	60,000	-	(60,000)	-	60,000
	W	4,445,623	220,000	100,000	(520,000)	71,278	4,316,901

(*1) The purchase amount of hybrid bonds issued by subsidiaries.

(*2) Other transactions are amounts resulting from financial asset valuation and disposal, foreign currency translation, among others.


		December 31, 2025
		Beginning balance	Loan	Acquisition (*1)	Collection	Others (*2)	Ending balance
Shinhan Card Co., Ltd.	W	2,570,590	670,000	-	(1,138,000)	(5,561)	2,097,029
Shinhan Securities Co., Ltd.		1,231,335	676,004	-	(862,890)	42,287	1,086,736
Shinhan Capital Co., Ltd.		1,049,461	160,000	100,000	(460,000)	(4,541)	844,920
Shinhan Asset Trust Co., Ltd.		250,725	-	-	-	(3,764)	246,961
Shinhan Savings Bank		150,000	-	-	(50,000)	-	100,000
Shinhan DS		9,970	10,000	-	(10,000)	7	9,977
Shinhan Venture Investment Co., Ltd.		59,944	60,000	-	(60,000)	56	60,000
	W	5,322,025	1,576,004	100,000	(2,580,890)	28,484	4,445,623

(*1) The purchase amount of hybrid bonds issued by subsidiaries.

(*2) Other transactions are amounts resulting from financial asset valuation and foreign currency translation, among others.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

March 31, 2026 and 2025 (Unaudited), and December 31, 2025

(In millions of won)

24. Related party transactions (continued)

(e) Management Compensation

Compensation for key management executives for the three-month periods ended March 31, 2026 and 2025 are as follows:


		March 31, 2026	March 31, 2025
Short-term employee benefits	W	1,139	1,076
Severance benefits		13	32
Share-based payment expenses (*)		1,638	340
	W	2,790	1,448

(*) Expenses recognized during the vesting period under the agreement on share-based payments.

(f) Shinhan Securities Co., Ltd., the subsidiary, acquired debt securities and hybrid bonds of W 130 billion and W 145 billion issued by the Company for the three-month periods ended March 31, 2026 and 2025, respectively.

(g) As of March 31, 2026, the deposit of credit card use provided by Shinhan Card Co., Ltd., a subsidiary company, is W 4,000 million.

25. Subsequent events

At the Board of Directors meeting held on April 23, 2026, the Company resolved to pay a quarterly cash dividend of W 740 per ordinary share. The total amount of dividends is W 348,750 million, and the dividend record date is April 30, 2026.

Source: View Original Filing on SEC EDGAR

2 documents

March 31, 2026

Employees of

Parent Company

Subsidiaries

Performance share