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6-K

Shinhan Financial Group Co Ltd (SHG)

6-K 2025-11-14 For: 2025-11-14
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Added on April 07, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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FORM 6-K

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REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of November 2025

Commission File Number: 001-31798

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SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

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

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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.<br><br>2. Summary of 3Q 2025 Business Report<br><br>Exhibit 99.1 Shinhan Financial Group Review Report for the 3Q 2025 (Separate)
3. Exhibit 99.2 Shinhan Financial Group Review Report for the 3Q 2025 (Consolidated)

Summary of 3Q 2025 Business Report

On November 14, 2025, Shinhan Financial Group (“SFG”) filed its 3Q 2025 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

  12. 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 FY2024 submitted on March 18, 2025 and 1H 2025 submitted on August 14, 2025 for your references.

Overview of the Business Group

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 1H 2025 submitted on August 14, 2025 for your references.

Credit Ratings

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 1H 2025 submitted on August 14, 2025 for your references.

Capital Structure

Number of Shares (as of Sept 30, 2025)

Types of Shares Number of Shares
Number of shares authorized<br><br>for issuance 1,000,000,000
Number of common shares issued (1)(3) 485,494,934
Number of preferred shares issued -
Total outstanding shares 481,594,934
Treasury stocks (2) 3,900,001
Total outstanding shares <br>with voting rights 485,494,933
Treasury stocks per<br><br>total outstanding shares ratio 0.80
1) SFG issued 8,232,906 shares of common stock in relation to a comprehensive stock exchange between SFG and Orange Life Insurance on January 28, 2020. On September 29, 2020, SFG had a paid-in capital increase and issued 39,130,000 common shares (third-party allocation). On December 30, 2020, SFG issued 72,719 shares of common stock in relation to a small-scale stock exchange between SFG and Neoplux.<br><br>2) SFG acquired treasury shares through the acquisition of 1 fractional shares as a result of a share exchange, acquisition of 3,900,000 treasury shares through trust agreement signed July 25, 2025.<br><br>3) SFG canceled treasury shares of 5,035,658 on June 01, 2020, 3,665,423 on April 25, 2022, 4,149,262 on November 23, 2022, 3,676,470 on March 28,2023, 4,243,281 on June 16, 2023, 2,842,929 on August 31, 2023, 2,744,718 on December 27, 2023, 3,366,257 on March 22, 2024, 5,947,889 on October 28, 2024, 7,603,260 on April 29, 2025, and 10,347,131 on June 26,2025 after completion of share repurchase program. Capital does not change due to the cancellation of acquired stocks within the range of dividend payable income.

Dividends

(KRW million)
Items 3Q FY2025<br><br>(Jan. 1 ~ Sept. 30) FY2024<br><br>(Jan. 1 ~ Dec. 31) FY 2023<br><br>(Jan. 1 ~ Dec. 31)
Par value per share (Won) 5,000 5,000 5,000
(Consolidated) Net Income 4,460,943 4,450,177 4,368,035
(Separate) Net Income 2,430,160 1,619,867 1,671,011
(Consolidated Earnings per share (Won) 8,829 8,441 8,048
Total Cash dividends 828,228 1,088,042 1,085,819
Total stock dividends - - -
(Consolidated) Cash dividend payout ratio (%) 18.57 24.45 24.87
Cash dividend yield (%) – common shares 2.32 4.26 4.87
Cash dividend yield (%) – preferred shares - - -
Stock dividend yield (%) - - -
Cash dividend per share (Won) 1,710 2,160 2,100
Stock dividend per share - - -
  1. Business Results

Operating Results

(KRW billion)
3Q FY 2025<br><br>(Jan. 1 ~ Sept. 30) FY 2024<br><br>(Jan. 1 ~ Dec. 31) FY 2023<br><br>(Jan. 1 ~ Dec. 31)
Net interest income 8,666 11,402 10,818
Interest income 20,938 29,209 27,579
Interest expense 12,271 17,807 16,761
Net fees and commission income 2,208 2,715 2,647
Fees and commission income 3,395 4,295 4,175
Fees and commission expense 1,187 1,581 1,528
Net insurance income 39 884 598
Insurance income 2,673 3,393 3,088
Insurance expense 2,634 2,509 2,490
Net gain(loss) on securities and FX trading/derivatives 2,504 2,038 2,485
Provision for credit loss and impairment loss -1,504 -2,104 -2,251
Net other operating income(expense) -1,581 -2,360 -2,300
General and administrative expenses 4,418 6,116 5,895
Net operating income 5,913 6,459 6,101
Equity method income 136 -24 125
Other non-operating income(expense), net -21 -406 -261
Profit before income taxes 6,028 6,029 5,965
Income tax expense 1,482 1,471 1,487
Consolidated net profit 4,547 4,558 4,478
Net profit attributable to equity holders of the Group 4,461 4,450 4,368
Net profit attributable to non-controlling interest 86 108 110
1) Some of the totals may not sum due to rounding numbers.

Source and Use of Funds

Consolidated Basis<br><br>(KRW billion, %) 3Q 2025 FY 2024 FY 2023
Jan. 01 ~ Sept. 30 Jan. 01 ~ Dec. 31 Jan. 01 ~ Dec. 31
Average<br><br>Balance1) Propor-tions<br><br>(%) Interest<br><br>Paid Interest<br><br>Rate<br><br>(%) Average<br><br>Balance1) Propor-tions<br><br>(%) Interest<br><br>Paid Interest<br><br>Rate<br><br>(%) Average<br><br>Balance1) Propor-tions<br><br>(%) Interest<br><br>Paid Interest<br><br>Rate<br><br>(%)
Source Deposits 426,128.3 56.4 6,954.4 2.18 403,986.6 55.9 10,220.8 2.53 383,064.0 56.3 9,790.8 2.56
Borrowings 51,711.2 6.9 1,151.8 2.98 54,754.3 7.6 1,862.4 3.40 53,259.8 7.8 1,895.9 3.56
Debt Securities Issued 91,370.5 12.1 2,513.5 3.68 87,474.4 12.1 3,422.0 3.91 76,797.0 11.3 2,735.4 3.56
Other Liabilities 126,459.1 16.7 - - 119,008.3 16.5 - - 111,158.7 16.4 - -
Total Liabilities 695,669.1 92.1 - - 665,223.6 92.0 - - 624,279.5 91.8 - -
Total Stockholder's Equity 59,735.5 7.9 - - 57,655.6 8.0 - - 55,597.4 8.2 - -
Total Liabilities & SE 755,404.6 100.0 - - 722,879.2 100.0 - - 679,876.9 100.0 - -
Use Cash & Due from Banks 43,106.7 5.7 573.5 1.78 38,020.3 5.3 780.2 2.05 34,892.3 5.1 590.8 1.
69
--- --- --- --- --- --- --- --- --- --- --- --- ---
Loans 453,027.1 60.0 16,054.1 4.74 434,102.2 60.1 22,542.6 5.19 410,463.6 60.4 21,823.8 5.32
Loans in KRW 354,000.7 46.9 11,578.7 4.37 339,139.5 46.9 16,520.0 4.87 317,950.0 46.8 16,093.6 5.06
Loans in Foreign Currency 49,038.9 6.5 1,827.2 4.98 44,188.9 6.1 2,402.3 5.44 40,341.7 5.9 2,160.6 5.36
Credit Card Accounts 28,497.5 3.8 1,742.9 8.18 27,982.2 3.9 2,256.0 8.06 27,965.4 4.1 2,162.1 7.73
Others 21,490.0 2.9 905.3 5.63 22,791.6 3.2 1,364.3 5.99 24,206.5 3.6 1,407.5 5.81
FVPL Financial Assets 44,617.3 5.9 1,126.5 3.38 44,711.6 6.2 1,693.1 3.79 38,184.2 5.6 1,396.4 3.66
FVOCI Financial Assets 94,099.3 12.5 2,133.1 3.03 88,378.8 12.2 2,744.1 3.10 84,680.8 12.5 2,357.1 2.78
AC Financial Assets 32,589.9 4.3 790.9 3.24 35,015.5 4.8 1,101.7 3.15 34,708.0 5.1 1,062.1 3.06
Other Assets 87,964.3 11.6 - - 82,650.8 11.4 - - 76,948.0 11.3 - -
Total Assets 755,404.6 100.0 - - 722,879.2 100.0 - - 679,876.9 100.0 - -

Notes :

  • Consolidated basis

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

.

  1. Other Financial Information

1) Capital Adequacy

Consolidated BIS Ratio (Shinhan Financial Group)

(KRW billion)
Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
Aggregate Amount of Equity Capital (A) 55,180.0 53,904.9 50,192.5
Risk-Weighted Assets (B) 340,595.0 342,375.3 314,180.7
BIS Ratio (A/B) 16.10% 15.74% 15.98%
Note:<br><ul><li><font>Calculated in accordance with Basel III</font></li><li><font>The figures as of Sept 30, 2025 are preliminary</font></li></ul>

Capital Adequacy Ratios (Subsidiaries)

(%)
Subsidiary Capital Adequacy Ratio Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
Shinhan Bank BIS Capital Adequacy Ratio 18.3 17.6 18.1
Shinhan Card Adjusted Equity Capital Ratio 20.0 20.0 19.7
Shinhan Securities Net Capital Ratio 1,965.8 1,345.0 926.6
Shinhan Life Insurance Risk Based Capital Ratio(K-ICS) 190.0 205.7 250.8
Shinhan Capital Adjusted Equity Capital Ratio 19.6 19.3 19.0
Shinhan Asset Management Equity Capital (KRW billion) 270.5 316.6 233.2
Minimum Capital Requirement (KRW billion) 54.1 50.1 49.1
Jeju Bank BIS Capital Adequacy Ratio 17.1 17.6 17.5
Shinhan Savings Bank BIS Capital Adequacy Ratio 20.5 20.1 17.6
Shinhan Asset Trust Net Capital Ratio 854.9 519.1 926.8
Shinhan EZ Gen. Insurance Risk Based Capital Ratio(K-ICS) 281.4 159.2 469.4
Notes :<br><ul><li><font>Basel III was applied in calculating Shinhan Bank and Jeju Bank’s BIS Capital Adequacy Ratio.</font></li><li><font>Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio.</font></li><li><font>The figures as of Sept 30, 2025 are preliminary</font></li><li><font>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 3Q Report in 2025, the above payment capacity ratio is preliminary calculated, and the finally confirmed ratio will be amended and disclosed in Shinhan Life's 3Q 2025 business report and Shinhan EZ General Insurance's 3Q 2025 management disclosure.</font></li></ul>

-

2) Liquidity

Won Liquidity Ratio

(KRW billion, %)
Company Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
Won Assets Won Liabilities Won Liquidity Ratio(%) Won Assets Won Liabilities Won Liquidity Ratio(%) Won Liabilities Won Liabilities Won Liquidity Ratio(%)
Shinhan Financial Group 1,559.1 382.0 408.1 1,051.7 56.4 1,865.9 721.2 235.9 305.8
Shinhan Card 22,243.1 7,175.8 310.0 21,546.6 6,077.3 354.5 21,732.0 5,970.0 364.0
Shinhan Securities 23,911.6 20,131.6 118.8 23,664.4 18,128.1 130.5 25,804.2 21,888.6 117.9
Shinhan Life Insurance 5,606.9 1,343.7 417.3 5,635.7 1,359.9 414.4 21,863.8 1,479.1 1,478.2
Shinhan Capital 1,766.1 967.0 182.6 2,143.6 1,084.1 197.7 2,760.2 1,064.9 259.2
Shinhan Savings Bank 641.5 586.7 109.3 608.4 480.2 126.7 721.7 602.2 119.8
Shinhan Asset Trust 140.0 10.9 1,288.5 186.3 11.0 1,686.2 185.2 21.2 872.0
Shinhan EZ General Insurance 148.8 15.9 933.1 73.1 9.9 736.3 135.3 2.0 6,286.4
Notes:<br><ul><li><font>Shinhan Financial Group: Due within 1 month</font></li><li><font>Shinhan Life Insurance and EZ General Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100</font></li><li><font>Shinhan Card, Shinhan Securities, Shinhan Capital, Shinhan Savings Bank and Shinhan Asset Trust : Due within 3 months</font></li><li><font>Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015 </font></li></ul><br>to reflect the recent amendments to detailed regulations on supervision of banking business.

Liquidity Coverage Ratio

(KRW billion, %)
Company Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
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 94,136.9 90,016.6 104.6 90,658.4 87,753.4 103.3 85,172.4 85,155.4 100.0
Jeju Bank 1,061.0 684.3 156.9 939.4 770.1 122.7 1,020.7 813.0 125.6
Notes:<br><ul><li><font>Liquidity Coverage Ratios are the arithmetic mean of daily LCRs.</font></li><li><font>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. </font></li></ul>

Foreign Currency (FC) Liquidity Ratio

( millions, %)
Company Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
FC<br><br>Assets FC Liabilities FC Liquidity Ratio(%) FC<br><br>Assets FC Liabilities FC Liquidity Ratio(%) FCAssets FC Liquidity Ratio(%)
Shinhan Financial Group 530.8 - NA 531.4 519.2 102.4 33.3 160.2
Shinhan Bank 77,457.7 71,833.3 107.8 63,127.9 56,347.0 112.0 67,956.7 107.6
Shinhan Life Insurance 2,658.7 192.9 1,378.2 2,074.0 163.0 1,272.3 2,598.7 1,490.1
Shinhan Securities 11,412.8 9,741.5 117.2 11,083.7 9,616.5 115.3 10,318.0 113.2
Shinhan Capital 66.7 1.3 5,141.0 79.7 0.6 13,743.7 55.6 13,556.1
Jeju Bank 9.3 4.4 210.7 10.1 0.8 1,295.2 13.4 605.7
Notes :<br><ul><li><font>Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months.</font></li><li><font>Jeju Bank’s foreign currency liquidity ratio is based on the application of the liquidity weight.</font></li></ul>

All values are in US Dollars.

Foreign Currency (FC) Liquidity Coverage Ratio

(%)
Company 3Q 2025 FY 2024 FY 2023
Jan. 1 ~ Sept. 30 Jan. 1 ~ Dec. 31 Jan. 1 ~ Dec. 31
Shinhan Bank 157.6 148.8 157.8

Notes :

  • Financial Services Commission temporarily eased the regulatory minimum from 80% to 70% by end of June 2022, in order to support the capacity of banks to provide funding to businesses affected by COVID-19. Starting from September 2022, the regulation will be reinstated to 80.0%.
  • Foreign Currency Liquidity Coverage Ratio started from January 2017, and is calculated by quarterly average.

3) Asset Quality

SFG Consolidated Basis

(KRW billion)
Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
Total Loans 470,855.6 452,826.9 413,664.8
Substandard & Below 3,631.0 3,562.4 2,668.4
Substandard & Below Ratio 0.77% 0.79% 0.65%
Non-Performing Loans 3,123.0 2,974.7 2,176.6
NPL Ratio 0.66% 0.66% 0.53%
Substandard & Below Coverage Ratio 123.61% 132.48% 165.61%
Loan Loss Allowance 4,488.3 4,719.3 4,419.1
Substandard & Below Loans 3,631.0 3,562.4 2,668.4

Separate Basis

(%) Sept. 30 2025 Dec. 31 2024 Dec. 31 2023
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 0.3 0.26 164 0.24 0.18 202 0.24 0.19 233
Shinhan Card 1.26 0.75 219 1.32 0.80 243 1.31 0.70 248
Shinhan Securites 10.85 10.85 79 18.30 18.30 70 12.86 12.86 62
Shinhan Life Insurance 0.59 0.43 215 0.32 0.32 393 0.21 0.21 510
Shinhan Capital 2.76 2.40 101 3.98 2.35 75 1.74 0.74 193
Jeju Bank 1.61 1.55 85 1.32 1.22 114 0.98 0.87 120
Shinhan Savings Bank 6.84 12.10 81 7.90 13.16 72 4.38 9.10 93
Shinhan Asset Trust 80.47 57.27 40 75.15 52.31 43 64.66 9.04 15

4) Debt to Equity Ratios

Shinhan Financial Group (Separate Basis)

(KRW billion)
Sept. 30, 2025 Dec. 31, 2024 Dec. 31, 2023
Debt 11,378.9 11,324.1 11,190.4
Equity 27,044.1 26,348.2 26,099.1
Debt to Equity Ratio 42.08% 42.98% 42.88%

Twenty Largest Exposures by Borrower

(KRW billion)
As of Sept 30, 2025<br><br>Consolidated basis Loans in Won Loans in Foreign Currency Securities Guarantees and Acceptances Others Total Exposures
Woori Bank 1,620.5 17.5 1,291.0 0.0 0.0 2,929.0
Korea Electric Power Corporation 0.3 85.7 2,703.9 80.0 0.0 2,869.8
KEB Hana Bank 1,333.5 82.5 1,390.1 38.4 0.0 2,844.4
Samsung Electronics 0.0 2,224.6 2.4 0.0 0.0 2,227.0
KB Bank 831.3 0.0 1,014.2 15.0 0.0 1,860.4
Nong Hyup Bank 371.1 3.7 1,294.8 48.0 0.0 1,717.6
LG Display 908.0 616.9 49.9 0.0 0.0 1,574.9
Lotte Hotel 100.6 603.3 90.7 684.4 0.0 1,478.9
Samsung Asset Management 170.5 0.0 1,158.6 0.0 0.0 1,329.1
S-Oil 531.7 364.5 368.8 13.4 0.0 1,278.4
KT 153.0 0.0 1,048.6 48.0 0.0 1,249.5
Lotte Chemical Corporation 290.0 168.8 79.8 625.0 0.0 1,163.5
Korea Hydro & Nuclear Power 0.0 0.0 567.6 567.5 0.0 1,135.1
Hanwha Corporation 650.7 181.0 220.6 63.7 0.0 1,116.1
LIG NEX1 Co.,Ltd 3.0 0.0 20.0 1,053.8 0.0 1,076.8
Mirae Asset Securities 0.0 0.0 1,055.3 0.0 0.0 1,055.3
National Agricultural Cooperative Federation 76.5 0.0 977.4 0.0 0.0 1,053.9
SK Hynix 425.3 0.0 573.9 35.4 0.0 1,034.6
HD Hyundai Heavy Industries Co.,Ltd 0.0 0.0 0.6 972.1 0.4 973.1
IBK Asset Management 0.0 0.0 939.0 0.0 0.0 939.0
Total 7,466.0 4,348.5 14,847.1 4,244.7 0.4 30,906.7
Note) Some of the totals may not sum due to rounding

Exposure to ten Main Debtor Groups

(KRW billion)
As of Sept. 30, 2025<br><br>Consolidated basis Loans in Won Loans in Foreign Currency Securities Guarantees and Acceptances Others Total<br><br>Exposures
Samsung 442.8 3,479.4 1,712.1 1,680.7 0.1 7,315.0
Lotte 2,565.0 1,211.1 881.3 1,664.8 0.0 6,322.2
SK 1,833.5 854.4 2,254.6 453.4 0.0 5,395.9
Hyundai Motor Company 1,044.0 1,179.6 1,405.3 517.8 0.0 4,146.7
Hanwha 1,478.2 612.2 1,229.7 737.7 0.0 4,057.8
LG 1,169.3 861.7 931.9 239.4 0.0 3,202.3
Hyundai Heavy Industries 486.4 44.2 205.1 2,250.0 0.4 2,986.1
LS 233.9 1,211.0 189.0 1,103.0 0.0 2,736.9
KT 213.8 90.8 1,219.6 139.5 0.0 1,663.7
POSCO 821.5 486.9 292.8 57.2 0.0 1,658.5
Total 10,288.4 10,031.1 10,321.5 8,843.5 0.5 39,485.1
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. 151.8 151.8 51.2
B Cable boradcasting 64.9 64.9 64.9
C Development and subdividing of other real estate 56.5 56.5 56.5
D Development and subdividing of non-residential building 49.4 47.4 37.0
E Other financial service activities n.e.c. 47.1 47.1 47.1
F Electronic commerce via internet 31.5 31.5 61.9
G Development and subdividing of non-residential building 30.4 30.4 0.4
H Other financial service activities n.e.c. 20.3 20.3 20.3
I Development and subdividing of non-residential building 49.0 20.0 29.0
J Museum activities 20.0 20.0 0.0
K Other financial service activities n.e.c. 19.0 19.0 19.0
L Development and subdividing of non-residential building 19.0 19.0 0.0
M Trust and collective investment businesses 17.3 17.3 6.3
N Other financial service activities n.e.c. 15.5 15.5 2.7
O Development and subdividing of other real estate 30.0 15.0 15.1
P Trust and collective investment businesses 15.0 15.0 5.4
Q Development and subdividing of non-residential building 14.0 14.0 14.0
R Development and subdividing of residential buildings 13.7 13.7 13.6
S Other financial service activities n.e.c. 13.0 13.0 11.6
T Research and experimental development on physics, chemistry and biology 12.7 12.7 6.5
Total 690.0 644.0 462.5
Notes :<br><ul><li><font>Consolidated basis as of Sept. 30, 2025</font></li><li><font>Some of the totals may not sum due to rounding.</font></li></ul>
  1. Independent Auditor

Audit Opinion for the last 3 years

3Q 2025 FY 2024 FY 2023
Independent Auditor KPMG Samjong<br><br>Accounting Corp. KPMG Samjong<br><br>Accounting Corp. KPMG Samjong<br><br>Accounting Corp.
Audit Opinion - Unqualified Unqualified
Note) The review of the 3rd quarter of 2025 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) <br>(KRW mil.) Details Working hours
3Q 2025 KPMG Samjong<br><br>Accounting Corp. 1,025<br><br>(annualized basis) Review/Audit of Financial Statements 5,255<br><br>Hours
KPMG Samjong<br><br>Accounting Corp. 135<br><br>(annualized basis) K-IFRS Report Package Audit for Shinhan Savings Bank 512<br><br>Hours
FY 2024 KPMG Samjong<br><br>Accounting Corp. 1,025<br><br>(annualized basis) Review/Audit of Financial Statements 9,071<br><br>Hours
KPMG Samjong<br><br>Accounting Corp. 135<br><br>(annualized basis) K-IFRS Report Package Audit for Shinhan Savings Bank 1,144<br><br>Hours
FY 2023 KPMG Samjong<br><br>Accounting Corp. 1,187<br><br>(annualized basis) Review/Audit of Financial Statements 11,311<br><br>Hours
KPMG Samjong<br><br>Accounting Corp. 133<br><br>(annualized basis) K-IFRS Report Package Audit for Shinhan Savings Bank 1,207<br><br>Hours
1) Excluding value-added taxes.

Change of External Auditor

Financial<br>Year Changed Company Previous Auditor Changed Auditor Detail
FY2023 Shinhan Financial Group Co., Ltd. PWC Samil<br><br>Accounting Corp. KPMG Samjong<br><br>Accounting Corp. Expiration of the audit contract term

Note) Pursuant to the Act on External Audit of Stock Companies, etc. and its enforcement decree, the audit contract term of PWC Samil, designated as the external auditor for Shinhan Financial Group for the 20th to 22nd fiscal year has expired. Accordingly, the external auditor for the 23rd fiscal year of Shinhan Financial Group and its subsidiaries has been changed from PWC Samil to KPMG Samjong.

  1. Corporate Governance

Board of Directors and committees of the Board of Directors

Not required to be disclosed in quarterly reports. Please refer to the business report for 1H FY2025 submitted on August 14th, 2025 for your reference.

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

Major Shareholders of Shinhan Financial Group (as of Sept. 30, 2025)

Name No. of Common Shares owned2) Ownership%1)
National Pension Service 44,311,470 9.13%
1) Ownership% is based on rounding numbers of third decimal place<br><br>2) The number of common shares owned and ownership is based on shareholder registry as of end of September 2025<br><br>Note) As of the record date for the 3Q 2025 dividend (November 12, 2025), the National Pension Service's shareholding has been updated to 44,159,384 shares, representing a 9.10% ownership based on the shareholder registry.

Common Shares Traded on the Korea Exchange

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 1H FY2025 submitted on August 14th, 2025 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 FY2024 submitted on March 18, 2025 and 1H FY2025 submitted on August 14th, 2025 for your reference.

  1. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Director

Name Date of Birth Position Executive<br><br>Director Since Date Term Ends(1)
Jin Okdong Feb. 21, 1961 Chief Executive Officer March 23, 2023 March 2026

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 being elected to his current position on March 23, 2023, 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 requirements set forth under the Financial Investment Services and Capital Markets Act to be independent of our major shareholders, affiliates and management. Our non-executive directors and outside directors are selected based on the candidates’ talents and skills in diverse areas, such as law, finance, economics, management and accounting. Currently, 1 non-executive director and 9 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)
Yoon Jaewon Aug. 29, 1970 Outside Director<br>(Chair of BOD) March 26, 2020 March 2026
Bae Hoon Mar. 30, 1953 Outside Director March 25, 2021 March 2026
Lee Yong Guk May 11, 1964 Outside Director March 25, 2021 March 2026
Kim Jo Seol Dec. 5, 1957 Outside Director March 24, 2022 March 2026
Kwak Su Keun Aug. 16, 1953 Outside Director March 25, 2021 March 2026
Song Seongjoo Mar. 26, 1971 Outside Director March 26, 2024 March 2026
Choi Young-Gwon Jul. 16, 1964 Outside Director March 26, 2024 March 2026
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
Jung Sang Hyuk Nov. 26, 1964 Non-Executive Director March 23, 2023 March 2027

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

Yoon Jaewon has been our outside director since March 26, 2020. Ms. Yoon is currently a professor at Hongik University College of Business Administration and member of the committee for National Tax Service as well as the committee on national accounting policy of the Ministry of Economy and Finance and Korea Custom Service. Ms. Yoon previously served as a non-executive judge at the Tax Tribunal from 2013 to 2019. Ms. Yoon received a Ph.D. in accounting from Korea University.

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.

Lee Yong Guk has been our outside director since March 25, 2021. Mr. Lee is a clinical professor at Seoul National University, School of Law. Mr. Lee currently serves as Senior Counsel at Cleary Gottlieb Steen & Hamilton LLP. Mr. Lee received a J.D. from Harvard University Law School.

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 economist with a high awareness of Northeast Asian economics. Ms. Kim received a Ph.D. in economics from Osaka City University.

Kwak Su Keun has been our outside director since March 25, 2021. 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 Ph.D. in business administration from University of North Carolina Chapel Hill.

Song Seongjoo has been newly appointed as our outside director since March 26, 2024. Ms. Song currently serves as a professor of statistics at Korea University since 2012 and Director of the Korea Risk Management Society. Ms. Song was previously an Advisory Professor, Economic Statistics Division, Bank of Korea. Ms. Song received a Ph. D in Statistics from University of Chicago.

Choi Young-Gwon has been newly appointed as our outside director since March 26, 2024. Mr. Choi currently serves as an Adjunct Professor, Graduate School of Business Administration, Sogang University and Adjunct Professor, College of Business Administration, Soongsil University. Mr. Choi was previously served the chief executive officer of Woori Asset Management in 2019-2023. Mr. Choi received a Ph.D. in Financial Management from Soongsil University.

Yang In Jip has been newly appointed as our outside director since March 26, 2025. Mr. Yang currently serves as a CEO of ONYCOME Co., Ltd. Mr. Yang was previously served Head of Global Business at HITEJINRO Co., Ltd. And CEO at Ssangyong Fire & Marine Insurance Co., Ltd. Mr. Yang received a Ph.D from Waseda University School of Commerce and MBA from University of Southern California.

Chun Myo Sang has been newly appointed as our outside director since March 26, 2025. Ms. Chun currently serves as a Head of Planning & Administration of SmartNews, Inc. Ms. Chun was previously a researcher and accounting advisor at Development Bank of Japan Inc. and Manager at KPMG. Ms. Chun received MBA from University of Southern California and BA from Kyoto University School of Economics.

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.

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
Chun Sang Yung Jul. 25, 1969 Deputy President and Chief Financial Officer
Lee Een-kyoon Apr. 1, 1967 Deputy President and Chief Operation Officer
Name Date of Birth Position
--- --- --- ---
Park Hyun Joo Apr. 22, 1965 Deputy President and Chief Customer Protection Part
Lee Young Ho Oct. 17, 1970 Executive Director and Chief Compliance Officer
Bang Dong-kwon Feb. 10, 1966 Deputy President and Chief Risk Officer
Kim Jion May. 12, 1968 Executive Director and Chief Audit Officer
Kim Junhwan Jun. 23, 1972 Executive Director and Chief Digital Officer

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

Koh Seogheon has been our executive director 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.

Chun Sang Yung has been our deputy president and chief finance officer since January 1, 2024. Mr. Chun previously served as the head of group synergy division and business management division of Shinhan Financial Group. Mr. Chun received a bachelor’s degree in business management from Yonsei University.

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

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

Lee Young Ho, has been our executive director and Chief Compliance Officer since January 1, 2025. Mr. Lee previously served as Chief Compliance Officer at 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 PRM marketing team at Shinhan Bank. Ms. Kim received a bachelor’s degree in economics from Yonsei University.

Bang Dong-kwon has been our chief risk officer since January 1, 2020. Mr. Bang previously served as the head of risk management department of Shinhan Bank. Mr. Bang received a bachelor’s degree in English language and literature from Sung Kyun Kwan University.

Kim Junhwan has been our executive director and head of digital part since January 1, 2024. Mr. Kim previously served as the head of digital innovation team at Shinhan Bank. Mr. Kim received a master’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 FY2024 submitted on March 18, 2025 and 3Q FY2025 submitted on August 14th, 2025 for your reference.

Compensation to Non-registered directors

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 3Q FY2025 submitted on August 14th, 2025 for your reference.

Stock Options

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 3Q FY2025 submitted on August 14th, 2025 for your reference.

Employees

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 3Q FY2025 submitted on August 14th, 2025 for your reference.

  1. Related Party Transactions

Loans to Subsidiaries

(KRW billion)
Loans to Subsidiaries<br>(in KRW bil.) Type Origination<br><br>Date Maturity<br><br>Date Lending<br><br>Rate Beginning Balance<br><br>(Jan. 1, 2025) Decrease Increase Others Ending Balance<br><br>(Sept. 30, 2025)
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 2020-09-17 2025-09-17 1.48% 200 200 - - -
Loan 2020-10-29 2025-10-29 1.46% 150 - - - 150
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 2022-04-20 2025-06-20 3.71% 100 100 - - -
Loan 2022-07-18 2025-07-18 4.21% 100 100 - - -
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 2019-11-19 2025-02-04 2.79% 588 588 - - -
Loan 2021-05-26 2026-05-12 1.53% 44 - - -2 42
Financial assets at FVPL 2022-03-17 2052-03-17 4.01% 404 - - 2 406
Financial assets at FVPL 2023-02-14 2053-02-14 5.28% 314 - - - 314
Shinhan Securities Loan 2019-11-19 2025-02-04 2.79% 132 132 - - -
Loan 2020-08-20 2025-08-20 2.55% 731 731 - - -
Loan 2025-07-29 2030-07-29 5.13% - - 676 11 687
Financial assets at FVPL 2021-06-14 Perpetual Bond 2.93% 368 - - - 368
Shinhan<br><br>Capital Loan 2020-04-10 2025-04-10 1.75% 200 200 - - -
Loan 2020-12-23 2025-12-23 1.57% 160 - - - 160
Loan 2021-03-16 2026-03-16 1.83% 150 - - - 150
Loan 2025-04-22 2028-04-22 2.77% - - 100 - 100
Loan 2021-05-13 2026-05-12 1.53% 294 - - -14 280
Financial assets at FVPL 2020-04-22 2050-04-22 3.56% 99 99 - - -
Financial assets at FVPL 2021-07-28 2051-07-28 3.38% 147 - - 2 149
Financial assets at FVPL 2025-04-22 2055-04-22 3.78% - - 100 - 100
Shinhan Savings Bank Loan 2020-05-28 2025-05-28 1.52% 50 50 - - -
Loan 2021-04-26 2026-04-26 1.85% 50 - - - 50
Loan 2021-05-28 2026-05-28 1.99% 50 - - - 50
Shinhan DS Loan 2024-02-01 2025-01-30 3.78% 10 10 - - -
--- --- --- --- --- --- --- --- --- ---
Loan 2025-01-31 2026-01-30 3.08% - - 10 - 10
Shinhan Venture Loan 2024-02-26 2025-02-26 3.84% 50 50 - - -
Loan 2024-10-11 2025-02-26 3.60% 10 10 - - -
Loan 2025-02-26 2026-02-26 3.02% - - 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% 100 - - -3 97
Financial assets at FVPL 2024-10-29 2054-10-29 4.10% 51 - - - 51
Total 5,322 2,270 1,466 -4 4,514
  1. Internal Control

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2024 submitted on March 18, 2025 and 1H FY2025 submitted on August 14th, 2025 for your reference.

  1. Contingencies

Please refer to attached Exhibit 99.2 Shinhan Financial Group Review Report for the 3Q 2025(Consolidated), note 29. commitments and contingencies.

  1. Material Information after the reporting period

1) Shinhan Financial Group resolved to pay quarterly cash dividends

On October 28, 2025, the Board of Directors of Shinhan Financial Group made a resolution to pay quarterly cash dividends.

  • Dividend Amount : KRW 570 per share

  • Record date : November 4, 2025

  • Expected payment date : November 28, 2025

Please refer to Form 6-K submitted to Edgar system on October 28, 2025.

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: November 14, 2025 By: /s/ CHUN Sang Yung
Name: CHUN Sang Yung
Title: Chief Financial Officer

EX-99.1

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Financial Statements

September 30, 2025 and 2024

(Unaudited)

Contents

Page
Independent Auditors’ Review Report 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 7
Notes to the Condensed Separate Interim Financial Statements 9

Independent Auditors’ Review Report

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Shinhan Financial Group Co., Ltd.:

Reviewed Financial Statements

We have reviewed the accompanying separate interim financial statements of Shinhan Financial Group Co., Ltd. (the “Company”), which comprise the condensed separate interim statement of financial position as of September 30, 2025, the condensed separate interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2025 and 2024, the condensed separate interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2025 and 2024, and notes, comprising a summary of material accounting policy information and other explanatory information.

Management's Responsibility

Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Review Responsibility

Our responsibility is to issue a report on these condensed separate interim financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 that the accompanying condensed separate interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No. 1034 Interim Financial Reporting.

Other Matters

The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.

The separate statement of financial position of the Company as of December 31, 2024, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended (not presented herein) were audited by us in accordance with Korean Standards on Auditing and their report thereon, dated March 4, 2025, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2024, presented for comparative purposes, is consistent, in all material respects, with the audited separate statement of financial position from which it has been derived.

KPMG Samjong Accounting Corp.

November 14, 2025

Seoul, Korea

This report is effective as of November 14, 2025, 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 September 30, 2025 and December 31, 2024

(In millions of won) Notes September 30,<br><br>2025 (Unaudited) December 31,<br><br>2024
Assets
Cash and due from banks at amortized cost 4, 5, 24 W 337,663 151,143
Financial assets at fair value through profit or loss 4, 6, 24 3,506,010 2,552,750
Loans at amortized cost 4, 7, 24 3,028,215 3,837,298
Property and equipment 24 5,431 6,509
Intangible assets 7,240 6,488
Investments in subsidiaries 8 30,723,705 30,623,651
Net defined benefit assets 11 - 5,622
Deferred tax assets 6,813 -
Other assets 4, 7, 24 807,900 488,842
Total assets W 38,422,977 37,672,303
Liabilities
Borrowings 4, 9 9,899 19,914
Debt securities issued 4, 10, 24 10,517,579 10,731,336
Net defined benefit liabilities 11 2,377 -
Deferred tax liabilities - 20,518
Other liabilities 4, 24 849,040 552,360
Total liabilities 11,378,895 11,324,128
Equity 12
Capital stock 2,969,641 2,969,641
Hybrid bonds 4,749,837 4,600,121
Capital surplus 11,350,744 11,350,744
Capital adjustments (311,285) (296,024)
Accumulated other comprehensive loss (11,375) (9,307)
Retained earnings 8,296,520 7,733,000
Total equity 27,044,082 26,348,175
Total liabilities and equity W 38,422,977 37,672,303

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 and nine-month periods ended September 30, 2025 and 2024

(In millions of won, except earnings per share data) Notes September 30, 2025<br><br>(Unaudited) September 30, 2024<br><br>(Unaudited)
Three-month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Interest income 21, 24 W 23,731 64,957 23,845 74,667
Interest expense 24 (84,985) (248,339) (84,169) (248,998)
Net interest expense 13 (61,254) (183,382) (60,324) (174,331)
Fees and commission income 21, 24 17,760 53,279 17,763 53,291
Fees and commission expense 24 (118) (698) (337) (530)
Net fees and commission income 14 17,642 52,581 17,426 52,761
Dividend income 15, 21, 24 14,638 2,589,309 14,018 1,861,460
Net gain on financial instruments at fair value through profit or loss 21 21,817 57,657 28,458 72,064
Net foreign currency transaction gain (loss) 21 73 (510) 52 (1,025)
Reversal of (provision for) credit loss allowance 16, 21 (236) 132 29 (6)
General and administrative expense 17, 24 (39,395) (107,447) (37,658) (105,991)
Operating income (expenses) (46,715) 2,408,340 (37,999) 1,704,932
Non-operating expenses (360) (3,833) (95,318) (98,589)
Profit (loss) before income taxes (47,075) 2,404,507 (133,317) 1,606,343
Income tax expense (benefit) 19 (25,665) (25,653) 5,583 8,362
Profit (loss) for the period (21,410) 2,430,160 (138,900) 1,597,981
Other comprehensive income (loss) for the period, net of income tax<br><br>Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities (assets) - (2,068) - (1,537)
Total comprehensive income (loss) for the period W (21,410) 2,428,092 (138,900) 1,596,444
Basic and diluted earnings (loss) per share in won 20 W (136) 4,676 (352) 2,901

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 nine-month periods ended September 30, 2025 and 2024

(In millions of won) Capital<br><br>stock Hybrid<br><br>Bonds Capital<br><br>surplus Capital adjust-ments Accumulated other<br><br>comprehe-nsive loss Retained earnings Total
Balance at January 1, 2024 W 2,969,641 4,001,731 11,350,744 (148,464) (6,642) 7,932,131 26,099,141
Total comprehensive income for the period:
Profit for the period - - - - - 1,597,981 1,597,981
Other comprehensive loss - - - - (1,537) - (1,537)
Remeasurements of the net defined benefit liabilities (assets) - - - - (1,537) - (1,537)
- - - - (1,537) 1,597,981 1,596,444
Transactions with owners:
Annual dividends - - - - - (268,697) (268,697)
Quarterly dividends - - - - - (548,427) (548,427)
Dividends to hybrid bonds - - - - - (124,397) (124,397)
Redemption of hybrid bonds - (199,476) - (524) - - (200,000)
Transfer to retained earnings of redemption loss of hybrid bonds - - - 102,667 - (102,667) -
Issuance of hybrid bonds - 797,866 - - - - 797,866
Acquisition of treasury stock - - - (450,426) - - (450,426)
Disposal of treasury stock - - - 296 - - 296
Retirement of treasury stock - - - 150,300 - (150,356) (56)
- 598,390 - (197,687) - (1,194,544) (793,841)
Balance at September 30, 2024 (Unaudited) W 2,969,641 4,600,121 11,350,744 (346,151) (8,179) 8,335,568 26,901,744

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Changes in Equity (Continued)

For the nine-month periods ended September 30, 2025 and 2024

(In millions of won) Capital<br><br>stock Hybrid<br><br>Bonds Capital<br><br>surplus Capital adjust-ments Accumulated other<br><br>comprehe-nsive loss Retained earnings Total
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 - - - - - 2,430,160 2,430,160
Other comprehensive loss - - - - (2,068) - (2,068)
Remeasurements of the net defined benefit liabilities (assets) - - - - (2,068) - (2,068)
(2,068) 2,430,160 2,428,092
Transactions with owners:
Annual dividends - - - - - (267,755) (267,755)
Quarterly dividends - - - - - (554,859) (554,859)
Dividend to hybrid bonds - - - - - (143,433) (143,433)
Redemption of hybrid bonds - (648,154) - (1,846) - - (650,000)
Transfer to retained earnings of redemption loss of hybrid bonds - - - 524 - (524) -
Issuance of hybrid bonds - 797,870 - - - - 797,870
Acquisition of treasury stock - - - (913,939) - - (913,939)
Retirement of treasury stock - - - 900,000 - (900,069) (69)
- 149,716 - (15,261) - (1,866,640) (1,732,185)
Balance at September 30, 2025 (Unaudited) W 2,969,641 4,749,837 11,350,744 (311,285) (11,375) 8,296,520 27,044,082

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2025 and 2024

Nine-month periods<br><br>ended September 30
(In millions of Won) Notes 2025 (Unaudited) 2024 (Unaudited)
Cash flows from operating activities
Profit for the period W 2,430,160 1,597,981
Adjustments for:
Interest income 13, 21 (64,957) (74,667)
Interest expense 13 248,339 248,998
Dividend income 15, 21 (2,589,309) (1,861,460)
Income tax expense (benefit) 19 (25,653) 8,362
Net gain on financial instruments at fair value through profit or loss (24,192) (32,189)
Provision for (reversal of) credit loss allowance 16, 21 (132) 6
Employee benefits 9,533 7,867
Depreciation and amortization 17 3,202 3,817
Net foreign currency translation loss (gain) (37,631) 2,722
Other non-operating expense, net 2,265 98,223
(2,478,535) (1,598,321)
Changes in assets and liabilities:
Financial instruments at fair value through profit or loss (941,248) (913,025)
Other assets 1,670 668
Net defined benefit assets (1,042) (997)
Other liabilities (7,987) (10,328)
(948,607) (923,682)
Interest received 72,426 80,887
Interest paid (261,906) (258,703)
Dividends received 2,586,361 1,858,400
Income tax paid 496 1,608
Net cash inflow from operating activities 1,400,395 758,170
Cash flows from investing activities
Acquisition of financial assets at fair value through profit or loss (100,000) (100,000)
Decrease in financial assets at fair value through profit or loss 100,000 -
Lending of loans at amortized cost (1,365,697) (169,440)
Collection of loans at amortized cost 2,170,890 395,000
Acquisition of property and equipment (120) (2,097)
Disposal of property and equipment - (10)
Acquisition of intangible assets (1,506) (1,133)
Disposal of intangible assets - 2,300
Increase in other assets (8,225) (619)
Decrease in other assets - 71
Acquisition of investments in subsidiaries (100,054) -
Disposal of investments in subsidiaries - 32,794
Net cash inflow from investing activities W 695,288 156,866

SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Statements of Cash Flows (Continued)

For the nine-month periods ended September 30, 2025 and 2024

Nine-month periods<br><br>ended September 30
(In millions of won) Note 2025 (Unaudited) 2024 (Unaudited)
Cash flows from financing activities
Issuance of hybrid bonds W 797,869 797,866
Redemption of hybrid bonds (650,000) (200,000)
Issuance of debt securities 2,278,962 1,537,440
Redemption of debt securities issued (2,445,000) (1,450,000)
Increase in borrowings 109,700 19,450
Decrease in borrowings (120,000) (225,000)
Dividends paid (966,071) (941,075)
Acquisition of treasury stock (913,938) (450,427)
Disposal of treasury stock - 296
Costs for retirement of treasury stock (69) (56)
Repayments of leased liabilities (538) (1,202)
Net cash outflow from financing activities (1,909,085) (912,708)
Net increase in cash and cash equivalents 186,598 2,328
Cash and cash equivalents at the beginning of the period 23 151,203 19
Cash and cash equivalents at the end of the period 23 W 337,801 2,347

See accompanying notes to the condensed separate interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Reporting entity

Shinhan Financial Group Co., Ltd. (hereinafter referred to as "the Company") was established on September 1, 2001 for the main business purposes such as control and management of companies operating in the financial industry, and financial support for subsidiaries. In addition, the stocks were listed on the Korea Exchange on September 10, 2001, and the Company was registered with the Securities and Exchange Commission (SEC) on September 16, 2003, and on the same date, ADS (American Depositary Shares) was listed on the New York Stock Exchange (NYSE).

  1. Basis of preparation
  • 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 condensed 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 condensed separate interim 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. 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 Company since the last annual financial statements as of and for the year ended December 31, 2024.

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 presented on the basis of direct equity investments, not on that the controlling company, equity interests in associates and joint ventures does not base the investment on 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, 2024 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Significant accounting policies

(a) The Company applies the same accounting policies applied as when preparing the annual separate financial statements for the year ended December 31, 2024, except for the following amendments that have been applied for the first time since January 1, 2025 and as described in Note 2(b).

i) Amendment to K-IFRS No. 1021 'Effects of Changes in Foreign Exchange Rates' and No. 1101 ‘First-time adoption of K-IFRS’ – Lack of Exchangeability

These amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists. If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. There is no significant impact on the separate financial statements from these amendments.

  • As of September 30, 2025, the newly enacted and disclosed but not yet effective new K-IFRS are as follows:

i) K-IFRS No. 1109 ‘Financial Instruments and K-IFRS No. 1107 Financial Instruments: Disclosures’ – Classification and measurement requirements of financial instruments

The amendments clarify the conditions related to the discharge of a financial liability before the settlement date when settling such financial liabilities using an electronic payment system. They further specify an interest feature, a contingent feature, financial assets with non-recourse features and contractually linked instruments which should be considered in assessing whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. Furthermore, the amendments include additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the timing or amount of contractual cash flows. The amendments are applied retrospectively for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Company is currently assessing the impacts of these amendments on the separate financial statements.

ii) Annual Improvements to Korean International Financial Reporting Standards (K-IFRS)

The amendments are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Company expects there is no significant impact on the separate financial statements from these amendments.

  • 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. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – hedge accounting adoption

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

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

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management

(a) Overview

Shinhan Financial Group Co., Ltd. (hereinafter referred to as the “Group”) manages various risks that may arise within 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 controlling company level and at 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 controlling 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 basic policies are established by the Board of Directors of the controlling company, while the Group’s risk management strategies are formulated by the Risk Management Committee (hereinafter referred to as the "Group Risk Management Committee") under the 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 Management 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 management policies and strategies of the subsidiary. The risk management team of the controlling company assists the Group's Chief Risk Management Officer for risk management and supervision.

Shinhan Financial 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 affordable by the Group and each subsidiary, while the Risk Management Committee and the Committee of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

ii-1) Group Risk Management Committee

The Group has established the risk management system for the controlling company and its subsidiaries, and comprehensively manages group-wide risk-related matters, including the establishment of risk management policies and strategies, and the approval of limits. The Committee consists of directors of the controlling 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

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(a) Overview (continued)

ii-1) Group Risk Management Committee(continued)

  • 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
  • Analysis of crisis situation, 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 Chairperson

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 management officer and shall be 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 controlling 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 Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Group on key issues that affect risk management at the Group level. The Company prepares weekly, monthly and occasional monitoring reports to report to 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 review

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 Group.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(a) Overview (continued)

iii-4) Crisis management

The Group maintains a group-wide risk management system to detect the signals of any risk crisis 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 controlling company level, the Company maintains and installs 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

i) Credit risk management

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.

< 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 consider 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.

① 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.

② 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

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management (continued)
  • Credit risk (continued)

i) Credit risk management(continued)

default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

③ 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.

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 contract 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 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 incurred, and the extent thereof may vary.

i-3) Reflection of forward-looking information

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

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management (continued)
  • Credit risk (continued)

i) Credit risk management(continued)

The Company analyzed data from its past experienced, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected forward-looking information through a regression estimation.

Key macroeconomic variables Correlation with credit risk
GDP growth rate (-)
Private consumption index growth rate (-)
Index of 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 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(b) Credit risk (continued)

i) Credit risk management (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 and the statistical techniques developed internally 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 would be adjusted, and the PD by grade is estimated by considering contract expiration of the exposure.

LGD refers to the expected loss if a borrower defaults. 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 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 Company uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed by considering 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 classifying groups is periodically reviewed to maintain the homogeneity of the group and adjusted if necessary. The Company uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from past experience.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(b) Credit risk (continued)

i) Credit risk management (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. The decision to write off follows the internal regulations of the Company and, if necessary, is carried out after obtaining approval from external institutions. Apart from write-off, 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 Company’s maximum exposure to credit risk for financial instruments, excluding equity securities, as of September 30, 2025 and December 31, 2024, is as follows:

September 30, 2025 December 31, 2024
Due from banks and loans at amortized cost (*1): Banks W 337,663 151,143
Corporations 3,028,215 3,837,298
3,365,878 3,988,441
Financial assets at fair value through profit or loss 2,021,893 1,069,628
Other financial assets at amortized cost (*1), (*2) 807,757 488,756
W 6,195,528 5,546,825

(*1) The maximum exposure amounts for due from banks, loans and other financial assets are measured as net of allowances.

(*2) It is comprised of accounts receivable, accrued income, and guarantee deposits.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(b) Credit risk (continued)

iii) Impairment information of financial assets by credit risk

Detailed information of financial assets at amortized costs on impairment as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
12-months<br><br>ECL Lifetime<br><br>ECL Gross<br><br>amount Allowance Total, net
Due from banks and loans at amortized cost (*):
Banks W 337,804 - 337,804 (141) 337,663
Corporations 3,029,481 - 3,029,481 (1,266) 3,028,215
3,367,285 - 3,367,285 (1,407) 3,365,878
Other financial assets at amortized cost 808,084 - 808,084 (327) 807,757
W 4,175,369 - 4,175,369 (1,734) 4,173,635
December 31, 2024
--- --- --- --- --- --- ---
12-months<br><br>ECL Lifetime<br><br>ECL Gross<br><br>amount Allowance Total, net
Due from banks and loans at amortized cost (*):
Banks W 151,206 - 151,206 (63) 151,143
Corporations 3,838,903 - 3,838,903 (1,605) 3,837,298
3,990,109 - 3,990,109 (1,668) 3,988,441
Other financial assets at amortized cost 488,954 - 488,954 (198) 488,756
W 4,479,063 - 4,479,063 (1,866) 4,477,197

(*) Credit quality of due from banks and loans is divided into Prime and Normal. Credit quality of due from banks and loans as of September 30, 2025, and December 31, 2024 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(c) Liquidity risk

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

According to the Financial Holding Companies Act, the Company manages liquidity so that the total amount of assets with a residual maturity of less than one month in financial statements exceeds the total amount of liabilities with a residual maturity of less than one month as of the end of each month.

Contractual maturities for non-derivative financial liabilities as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Less than 1 month 1 ~ 3<br><br>months 3 ~ 6<br><br>months 6 months<br><br>~ 1 year 1 ~ 5<br><br>years More than<br><br>5 years Total
Non-derivative<br><br>financial liabilities (*)
Borrowings W - - 10,000 - - - 10,000
Debt securities issued 252,462 384,369 1,451,209 1,216,422 7,981,840 149,883 11,436,185
Other financial liabilities 86,714 131 4,815 155,471 135,932 - 383,063
W 339,176 384,500 1,466,024 1,371,893 8,117,772 149,883 11,829,248
December 31, 2024
--- --- --- --- --- --- --- --- ---
Less than 1 month 1 ~ 3 months 3 ~ 6<br><br>months 6 months<br><br>~ 1 year 1 ~ 5<br><br>years More than<br><br>5 years Total
Non-derivative<br><br>financial liabilities (*)
Borrowings W 10,000 10,000 - - - - 20,000
Debt securities issued 47,194 1,341,073 824,623 1,108,604 8,046,442 214,183 11,582,119
Other financial liabilities 26,469 7,221 198,009 16,128 105,779 - 353,606
W 83,663 1,358,294 1,022,632 1,124,732 8,152,221 214,183 11,955,725

(*) The amounts include both principal and interest cash flows of financial liabilities.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. 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 a variety of evaluation methods and makes rational assumptions based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined using valuation techniques; such as, a method of using recent transactions between independent parties with reasonable judgement 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.

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 which are presented at their fair value in the statements of financial position as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Level 1 Level 2 Level 3 Total
Assets
Financial assets at fair value through profit or loss W - 2,021,893 1,484,117 3,506,010
December 31, 2024
--- --- --- --- --- ---
Level 1 Level 2 Level 3 Total
Assets
Financial assets at fair value through profit or loss W - 1,069,628 1,483,122 2,552,750

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-2) Changes in level 3 of the fair value hierarchy

  • Changes in level 3 of the fair value hierarchy for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:
September 30, 2025
Financial assets
at FVTPL
Beginning balance W 1,483,122
Recognized in profit or loss 995
Purchases 100,000
Settlement (100,000)
Ending balance W 1,484,117
December 31, 2024
--- --- ---
Financial assets
at FVTPL
Beginning balance W 1,250,605
Recognized in profit or loss 82,517
Purchases 150,000
Ending balance W 1,483,122

i-3) Valuation techniques and input variables unobservable in markets

i-3-1) The valuation techniques and the fair value measurement input variables of financial instruments classified as level 2 as of September 30, 2025 and December 31, 2024 are as follows:

Classification Valuation techniques Type Book Value Inputs
2025 Financial assets at FVTPL Net asset valuation approach Beneficiary certificates 2,021,893 Prices of underlying assets such as bonds
2024 Financial assets at FVTPL Net asset valuation approach Beneficiary certificates 1,069,628 Prices of underlying assets such as bonds

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i-3-2) Information about valuation techniques and significant unobservable inputs in measuring financial instruments categorized as level 3 as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Valuation<br><br>technique Type of financial instrument Book value Significant<br><br>unobservable<br><br>input Range of estimates for unobservable input
Financial assets
Financial assets<br><br>at FVTPL Option model (*) Hybrid bonds W 1,484,117 Volatility of<br><br>interest rate 0.45%~0.88%

(*) It is calculated by applying the Hull-White model method.

December 31, 2024
Valuation<br><br>technique Type of financial instrument Book value Significant<br><br>unobservable<br><br>input Range of estimates for unobservable input
Financial assets
Financial assets<br><br>at FVTPL Option model (*) Hybrid bonds W 1,483,122 Volatility of<br><br>interest rate 0.47%~1.13%

(*) It is calculated by applying the Hull-White model method.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. 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 measurement, changing one or more of the unobservable inputs used to reasonably possible alternative assumptions would have the following effect on profit (loss), and other comprehensive income (loss) as of September 30, 2025 and December 31, 2024 are as follows:
September 30, 2025
Type of financial instrument Profit (loss) for the year
Favorable<br><br>change Unfavorable<br><br>change
Financial assets at FVTPL (*) Financial assets<br><br>at FVTPL W 262 (284)
December 31, 2024
--- --- --- --- --- ---
Type of financial instrument Profit (loss) for the year
Favorable<br><br>change Unfavorable<br><br>change
Financial assets at FVTPL (*) Financial assets<br><br>at FVTPL W 493 (524)

(*) A sensitivity analysis was performed by increasing or decreasing the volatility of interest rates, which is a major unobservable input, by 10% in the fair value measurement.

ii) The financial instruments measured at amortized cost

ii-1) The methods of measuring the fair value of financial instruments measured at amortized cost are as follows:

Type Measurement methods of fair value
Due from banks The carrying amount and the fair value for cash are identical and most deposits are either floating interest rate deposits or next-day deposits of short-term instruments. For this reason, the carrying value approximates fair value.
Loans The fair value of the loans is measured by discounting the expected cash flow at the market interest rate and credit risk of the borrower, etc.
Borrowings and debt securities issued The fair value of borrowings and debt securities issued 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.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

ii) The financial instruments measured at amortized cost (continued)

ii-2) The carrying value and fair value of the financial instruments measured at amortized cost as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Carrying value Fair value Carrying value Fair value
Assets:
Due from banks at amortized cost W 337,663 337,663 151,143 151,143
Loans at amortized cost 3,028,215 3,200,625 3,837,298 3,814,558
Other financial assets at amortized cost 807,757 807,757 488,756 488,756
W 4,173,635 4,346,045 4,477,197 4,454,457
Liabilities:
Borrowings W 9,899 9,914 19,914 19,922
Debt securities issued 10,517,579 10,625,840 10,731,336 10,761,924
Other financial liabilities 429,494 429,494 418,727 418,727
W 10,956,972 11,065,248 11,169,977 11,200,573

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 values as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Level 1 Level 2 Level 3 Total
Assets:
Due from banks at amortized cost W 337,660 3 - 337,663
Loans at amortized cost - - 3,200,625 3,200,625
Other financial assets at amortized cost - - 807,757 807,757
W 337,660 3 4,008,382 4,346,045
Liabilities:
Borrowings W - 9,914 - 9,914
Debt securities issued - 10,625,840 - 10,625,840
Other financial liabilities - - 429,494 429,494
W - 10,635,754 429,494 11,065,248
December 31, 2024
--- --- --- --- --- ---
Level 1 Level 2 Level 3 Total
Assets:
Due from banks at amortized cost W 151,140 3 - 151,143
Loans at amortized cost - - 3,814,558 3,814,558
Other financial assets - - 488,756 488,756
W 151,140 3 4,303,314 4,454,457
Liabilities:
Borrowings W - 19,922 - 19,922
Debt securities issued - 10,761,924 - 10,761,924
Other financial liabilities - - 418,727 418,727
W - 10,781,846 418,727 11,200,573

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

ii) The financial instruments measured at amortized cost (continued)

ii-4) Information on valuation technique and inputs used as of September 30, 2025 and December 31, 2024 in measuring financial instruments not measured at fair value classified as level 2 or 3 is as follows:

September 30, 2025
Valuation technique Fair value Inputs
Assets:
Due from banks at amortized cost - W 3 -
Loans at amortized cost DCF 3,200,625 Discount rate
Other financial assets at amortized cost DCF 807,757 Discount rate
W 4,008,385
Liabilities:
Borrowings DCF W 9,914 Discount rate
Debt securities issued DCF 10,625,840 Discount rate
Other financial liabilities DCF 429,494 Discount rate
W 11,065,248
December 31, 2024
--- --- --- --- ---
Valuation technique Fair value Inputs
Assets:
Due from banks at amortized cost - W 3 -
Loans at amortized cost DCF 3,814,558 Discount rate
Other financial assets DCF 488,756 Discount rate
W 4,303,317
Liabilities:
Borrowings DCF W 19,922 Discount rate
Debt securities issued DCF 10,761,924 Discount rate
Other financial liabilities DCF 418,727 Discount rate
W 11,200,573

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Financial assets at fair value through profit or loss Financial assets<br><br>at amortized cost Financial liabilities<br><br>at amortized cost
Assets:
Cash and due from banks at amortized cost W - 337,663 -
Financial assets at fair value through profit or loss 3,506,010 - -
Loans at amortized cost - 3,028,215 -
Other financial assets - 807,757 -
W 3,506,010 4,173,635 -
Liabilities:
Borrowings W - - 9,899
Debt securities issued - - 10,517,579
Other financial liabilities - - 429,494
W - - 10,956,972
December 31, 2024
--- --- --- --- ---
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 - 151,143 -
Financial assets at fair value through profit or loss 2,552,750 - -
Loans at amortized cost - 3,837,298 -
Other financial assets - 488,756 -
W 2,552,750 4,477,197 -
Liabilities:
Borrowings W - - 19,914
Debt securities issued - - 10,731,336
Other financial liabilities - - 418,727
W - - 11,169,977

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Restricted due from banks

Guaranteed deposits on bank accounts that are subject to restriction according to the Banking Act and other related enforcement decree as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Margin deposit for current account W 3 3
  1. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss as of September 30, 2025 and December 31, 2024 are as follows:

September 30,<br><br>2025 December 31, 2024
Beneficiary certificates
Beneficiary certificates in Korean won W 1,282,712 1,023,281
Beneficiary certificates in foreign currency 739,181 46,347
2,021,893 1,069,628
Hybrid Bonds
Hybrid Bonds in Korean won 1,115,869 1,114,676
Hybrid Bonds in foreign currency 368,248 368,446
1,484,117 1,483,122
W 3,506,010 2,552,750
  1. Loans at amortized cost

(a) Loans at amortized cost as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Corporate loans W 3,029,481 3,838,903
Less: allowance (1,266) (1,605)
W 3,028,215 3,837,298

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Loans at amortized cost (continued)

(b) Changes in financial assets at amortized cost and other assets for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Loans at amortized cost Due from banks at amortized cost and other financial assets
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 3,838,903 - - 640,160 - - 4,479,063
Transfer to 12-month expected credit losses - - - - - - -
Transfer to lifetime expected credit losses - - - - - - -
Transfer to impaired financial asset - - - - - - -
Origination 1,366,004 - - - - - 1,366,004
Collection (2,170,890) - - - - - (2,170,890)
Others (*) (4,536) - - 505,728 - - 501,192
Ending balance W 3,029,481 - - 1,145,888 - - 4,175,369

(*) Other changes are due to dividends receivables from subsidiaries, consolidation tax receivables, accrued income, changes in foreign exchange rate, etc.

December 31, 2024
Loans at amortized cost Due from banks at amortized cost and other financial assets
12-month<br><br>expected credit<br><br>losses Lifetime expected credit losses Impaired financial asset 12-month expected credit losses Lifetime expected credit losses Impaired financial asset Total
Beginning balance W 4,052,900 - - 507,378 - - 4,560,278
Transfer to 12-month expected credit losses - - - - - - -
Transfer to lifetime expected credit losses - - - - - - -
Transfer to impaired financial asset - - - - - - -
Origination 180,000 - - - - - 180,000
Collection (615,000) - - - - - (615,000)
Others (*) 221,003 - - 132,782 - - 353,785
Ending balance W 3,838,903 - - 640,160 - - 4,479,063

(*) 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Loans at amortized cost (continued)

(c) Changes in credit loss allowance of financial assets at amortized cost and other assets for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Loans at amortized cost Due from banks at amortized cost and other financial assets
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 1,605 - - 261 - - 1,866
Transfer to 12-month expected credit losses - - - - - - -
Transfer to lifetime expected credit losses - - - - - - -
Transfer to impaired financial asset - - - - - - -
Provision (reversal) (339) - - 207 - - (132)
Ending allowance W 1,266 - - 468 - - 1,734
December 31, 2024
--- --- --- --- --- --- --- --- ---
Loans at amortized cost Due from banks at amortized cost and other financial assets
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 1,896 - - 185 - - 2,081
Transfer to 12-month expected credit losses - - - - - - -
Transfer to lifetime expected credit losses - - - - - - -
Transfer to impaired financial asset - - - - - - -
Provision (reversal) (291) - - 76 - - (215)
Ending allowance W 1,605 - - 261 - - 1,866

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in subsidiaries

Investments in subsidiaries as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Investees Ownership<br><br>percentage<br><br>(%) Carrying<br><br>value Ownership<br><br>percentage<br><br>(%) Carrying<br><br>value
Shinhan Bank 100.0 13,617,579 100.0 13,617,579
Shinhan Card Co., Ltd. 100.0 7,919,672 100.0 7,919,672
Shinhan Securities Co., Ltd. 100.0 3,001,420 100.0 3,001,420
Shinhan Life Insurance Co., Ltd. 100.0 4,204,526 100.0 4,204,533
Shinhan Capital Co., Ltd. 100.0 558,921 100.0 558,921
Shinhan Asset Management Co., Ltd. 100.0 326,206 100.0 326,206
Jeju Bank (*1) 64.0 179,643 75.3 179,643
Shinhan Savings Bank 100.0 157,065 100.0 157,065
Shinhan Asset Trust Co., Ltd. 100.0 364,789 100.0 364,789
Shinhan DS 100.0 23,026 100.0 23,026
Shinhan Fund Partners Co., Ltd. 99.8 50,092 99.8 50,092
Shinhan REITs Management Co., Ltd. 100.0 30,000 100.0 30,000
Shinhan Venture Investment Co., Ltd. 100.0 75,840 100.0 75,840
Shinhan EZ General Insurance Co., Ltd. (*2) 91.7 206,271 85.1 106,210
SHC Management Co., Ltd. 100.0 8,655 100.0 8,655
W 30,723,705 W 30,623,651

(*1) The decrease in ownership interest during the current interim period was due to a third-party share issuance amounting to W 57,010 million (5,669,783 shares), in which the Company did not participate.

(*2) The Company participated in a common share issuance amounting to W 100,000 million (16,983,695 shares) during the current interim period.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Borrowings

Borrowings as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Lender Period Interest<br><br>rate (%) Amount Interest<br><br>rate (%) Amount
Borrowings<br><br>in Korean won DB Financial Investment Co., LTD. 2024.02.01<br><br>~2025.01.30 3.71 - 3.71 9,969
2025.01.31<br><br>~2026.01.30 3.01 9,899 - -
Kyobo Securities Co., Ltd 2024.10.11<br><br>~2025.02.26 3.54 - 3.54 9,945
9,899 W 19,914
  1. Debt securities issued

Debt securities issued as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Interest<br><br>rate (%) Amount Interest<br><br>rate (%) Amount
Debt securities issued in Korean won:
Debt securities issued 1.40 ~ 6.17 W 8,430,000 1.40 ~ 6.17 W 8,540,000
Discount (6,740) (6,551)
8,423,260 8,533,449
Debt securities issued in foreign currency:
Debt securities issued 1.37 ~ 5.06 2,103,300 1.37 ~ 5.06 1,470,000
Subordinated debt securities issued - - 3.34 735,000
Discount (8,981) (7,113)
2,094,319 2,197,887
W 10,517,579 W 10,731,336

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Defined benefit assets and liabilities

(a) Defined benefit obligations and plan assets as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Present value of defined benefit obligations W 30,600 23,895
Fair value of plan assets (28,223) (29,517)
Recognized liabilities (assets) for defined benefit obligations W 2,377 (5,622)

(b) Net income relating to defined benefit liabilities (assets) for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Current service costs W 521 1,565 442 1,326
Net interest income (expense) (60) (181) (88) (265)
W 461 1,384 354 1,061

(*) Profit or loss arising from defined benefit plans is included in general and administrative expenses.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Equity

(a) Equity as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Capital stock (*1)
Common stock W 2,695,586 2,695,586
Preferred stock 274,055 274,055
2,969,641 2,969,641
Hybrid bonds 4,749,837 4,600,121
Capital surplus
Share premium 11,350,744 11,350,744
Capital adjustments (311,285) (296,024)
Accumulated other comprehensive loss (11,375) (9,307)
Retained earnings
Legal reserve (*2) 2,969,641 2,865,461
Regulatory reserve for loan losses 20,462 20,656
Other legal reserves 2,000 2,000
Unappropriated retained earnings 5,304,417 4,844,883
8,296,520 7,733,000
W 27,044,082 26,348,175

(*1) Due to the retirement of earned surplus reserve, the capital is different from the total face value of the issued stock.

(*2) Legal reserve is restricted for the dividend to stockholders by law or legislation. According to the article 53 of the Financial Holding Companies Act, the Company is required to appropriate a legal reserve in an amount equal to at least 10% of cash dividends for each accounting period until the reserve equals 100% of stated capital. The legal reserve may only be used to reduce a deficit or to transfer capital.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Equity (continued)

(b) Hybrid bonds

Hybrid bonds classified as other equity instruments as of September 30, 2025 and December 31, 2024 are as follows:

Maturity date Interest rate (%) September 30, 2025 December 31, 2024
Hybrid bonds in KRW June 25, 2015 June 25, 2045 4.38 - 199,455
Perpetual bond 4.25 89,783 89,783
Perpetual bond 4.56 14,955 14,955
Perpetual bond 3.12 - 448,699
Perpetual bond 2.94 429,009 429,009
Perpetual bond 3.30 169,581 169,581
Perpetual bond 3.90 560,438 560,438
Perpetual bond 4.00 37,853 37,853
Perpetual bond 4.93 343,026 343,026
Perpetual bond 5.15 55,803 55,803
Perpetual bond 5.14 398,831 398,831
Perpetual bond 5.40 498,815 498,815
Perpetual bond 4.49 398,833 398,833
Perpetual bond 4.00 399,033 399,033
Perpetual bond 3.90 398,835 -
Perpetual bond 3.26 399,035 -
Hybrid bonds in May 12, 2021 Perpetual bond 2.88 556,007 556,007
W 4,749,837 4,600,121

All values are in US Dollars.

(*) For the nine-month period ended September 30, 2025, the deduction for capital related to hybrid bond issued is W 2,131 million.

The Company can make early redemption for the above bonds, after 5 or 10 years from the issue date; and has the rights to extend the maturity under the same condition.

(c) Capital adjustments

i) Changes in accumulated capital adjustments for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

September 30, 2025 December 31, 2024
Beginning balance W (296,024) (148,464)
Disposal of retained earnings 524 102,667
Redemption of hybrid bonds (1,846) (524)
Acquisition of treasury stock (913,939) (700,300)
Disposal of treasury stock - 297
Retirement of treasury stock 900,000 450,300
Ending balance W (311,285) (296,024)

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Equity (continued)

(c) Capital adjustments (continued)

ii) Changes in treasury stocks for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Beginning balance Acquisition Disposal Retirement (*) Ending balance
The number of shares 4,585,561 17,264,831 - (17,950,391) 3,900,001
Book value W 250,000 913,939 - (900,000) 263,939

(*) For the nine-month period ended September 30, 2025, the Company acquired treasury stocks 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.

December 31, 2024
Beginning balance Acquisition Disposal Retirement (*) Ending balance
The number of shares 6,352 13,899,708 (6,353) (9,314,146) 4,585,561
Book value W 227 700,300 (227) (450,300) 250,000

(*) For the year ended December 31, 2024, the Company acquired treasury stocks for retirement and completed the retirement of 3,366,257 shares and 5,947,889 shares on March 22, 2024 and November 1, 2024, respectively.

(d) Changes in accumulated other comprehensive loss for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Beginning balance W (9,307) (6,642)
Remeasurement of the defined benefit liabilities (assets) (2,810) (3,621)
Tax effect 742 956
Ending balance W (11,375) (9,307)

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Equity (continued)

(e) Regulatory reserve for loan losses

In accordance with Supervisory Regulations on Financial Holding Companies (the “Regulations”), the Company reserves the difference between allowance for credit losses under K-IFRS and that as required by the Regulations at the account of regulatory reserve for loan losses.

i) Changes in regulatory reserve for loan losses as of September 30, 2025 and December 31, 2024 are as follows

September 30, 2025 December 31, 2024
Beginning balance W 20,462 20,656
Planned regulatory reserve for loan losses (1,427) (194)
Ending balance W 19,035 20,462

ii) Profit for the period and earnings per share after adjusted for regulatory reserve for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Profit for the period W 2,430,160 1,597,981
Provision for regulatory reserve for loan losses 1,427 281
Profit for the period adjusted for regulatory reserve W 2,431,587 1,598,262
Basic and diluted earnings per share in won factoring in regulatory reserve (*) W 4,679 2,902

(*) Dividends for hybrid bonds are deducted.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Net interest expense

Net interest expense for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Interest income:
Cash and due from banks at amortized cost W 1,791 4,660 455 1,986
Loans at amortized cost 21,784 59,840 23,278 71,911
Others 156 457 112 770
23,731 64,957 23,845 74,667
Interest expense:
Borrowings (76) (376) (184) (3,260)
Debt securities issued (84,901) (247,938) (83,971) (245,685)
Others (8) (25) (14) (53)
(84,985) (248,339) (84,169) (248,998)
Net interest expense W (61,254) (183,382) (60,324) (174,331)
  1. Net fees and commission income

Net fees and commission income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Fees and commission income:
Royalty W 17,759 53,278 17,760 53,279
Others 1 1 3 12
17,760 53,279 17,763 53,291
Fees and commission expense:
Others (118) (698) (337) (530)
Net Fees and commission income: W 17,642 52,581 17,426 52,761
  1. Dividend income

Dividends income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Dividends from subsidiaries W - 2,545,456 - 1,821,424
Dividends from hybrid bonds 14,638 43,853 14,018 40,036
W 14,638 2,589,309 14,018 1,861,460

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Provision for (reversal of) credit loss allowance

Provision for (reversal of) credit loss allowance for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Provision for (reversal of) credit loss allowance W 236 (132) (29) 6
  1. General and administrative expenses

General and administrative expenses for the nine-month periods ended September 30, 2025 and 202 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-month Three-month Nine-month
Salaries:
Salary expenses and bonuses W 14,568 40,623 13,398 35,820
Severance benefits 461 1,384 354 1,061
Rent 387 1,493 511 1,445
Lease 998 1,061 407 531
Entertainment 488 1,328 465 1,371
Depreciation 828 2,494 1,127 3,374
Amortization 264 708 167 443
Taxes and dues 170 707 142 618
Advertising 15,138 37,081 13,551 40,746
Others 6,093 20,568 7,536 20,582
W 39,395 107,447 37,658 105,991

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Share-based payments

(a) Performance shares granted as of September 30, 2025 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 September 30, 2025 193,735 2,599,317
Fair value per share in Korean won (*) W 33,122, W 37,387,<br><br>W 37,081, W 38,156 and<br><br>W 50,444 for the expiration of the exercising period from 2020 to 2024 W 70,800

(*) 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

Based on the share-based payment arrangements held by the Company, the share-based compensation costs for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025
Employees of
Shinhan Financial<br><br>Group Subsidiaries Total
Performance shares W 8,149 69,470 77,619
September 30, 2024
--- --- --- --- ---
Employees of
Shinhan Financial<br><br>Group Subsidiaries Total
Performance shares W 6,807 55,655 62,462

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Share-based payments (continued)

(c) Share-based compensation payable

In accordance with the share-based compensation agreements by the Company, the share-based compensation payable as of September 30, 2025 and December 31, 2024 are as follows.

September 30, 2025
Accrued expense
Shinhan Financial<br><br>Group Subsidiaries (*) Total
Performance shares W 19,707 171,825 191,532

(*) As of September 30,2025, the Company recognizes W 171,825 million to be preserved from the subsidiary as the amount to be paid to the executives and employees of the subsidiary.

December 31, 2024
Accrued expense
Shinhan Financial<br><br>Group Subsidiaries (*) Total
Performance shares W 16,396 135,356 151,752

(*) As of December 31, 2024, the Company recognizes W 135,356 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won, except per share data)

  1. Income taxes

Income tax expense for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Current income tax expense (*) W - 936 3 -
Temporary differences (*) (25,665) (27,331) 5,580 7,811
Income tax recognized directly in equity - 742 - 551
Income tax expense (benefit) W (25,665) (25,653) 5,583 8,362

(*) Due to the application of the Global Minimum Corporate Tax, the income tax expense recognized for the current interim period is W 936 million. 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.

  1. Earnings per share

Basic and diluted earnings per share for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Net profit (loss) for the period W (21,410) 2,430,160 (138,900) 1,597,981
Less:
Dividends to hybrid bonds (44,300) (143,433) (38,591) (124,397)
Net profit (loss) available for common stock W (65,710) 2,286,727 (177,491) 1,473,584
Weighted average number of common stocks outstanding (*1), (*2) 484,176,455 489,018,087 503,986,567 507,942,592
Basic and diluted earnings (loss) per share in Korean won W (136) 4,676 (352) 2,901

(*1) The number of common shares issued by the Company is 485,494,934 shares as of the end of September 30, 2025. The above weighted average number of outstanding common shares is calculated by including treasury stocks that are acquired and retired during the current and previous interim periods.

(*2) The redeemable convertible preferred shares previously issued by the Company were fully redeemed with profits during the prior period. As a result, while preferred share capital remains, there are no outstanding preferred shares as of the end of the period.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Operating income

Operating income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Dividend income W 14,638 2,589,309 14,018 1,861,460
Fees and commission income 17,760 53,279 17,763 53,291
Interest income 23,731 64,957 23,845 74,667
Gain on financial instruments at FVTPL 26,139 62,361 27,881 72,064
Gain on foreign currency transaction (25,398) 89,673 (102,798) 46,817
Reversal of (provision for) credit loss allowance (236) 132 - -
W 56,634 2,859,711 (19,291) 2,108,299
  1. Commitments and contingencies

(a) The commitments with financial institutions as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Financial institutions Borrowing Limit Balance after Execution Borrowing Limit Balance after Execution
Borrowing agreement<br><br>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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Statement of cash flows

(a) Cash and cash equivalents in the separate statements of cash flows as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Due from financial institutions with a maturity less than three months from date of acquisition W 337,801 151,203

(b) Changes in liabilities arising from financing activities for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 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) (166,038) (538) (176,876)
Changes from non-cash flows:
Amortization of discount on debentures 285 4,999 25 5,309
Foreign currency difference - (54,991) - (54,991)
Other changes - 2,273 650 2,923
Balance at September 30, 2025 W 9,899 10,517,579 980 10,528,458
September 30, 2024
--- --- --- --- --- ---
Borrowings Debentures Lease liabilities Total
Balance at January 1, 2024 W 223,722 10,389,276 1,933 10,614,931
Changes from cash flows (205,550) 87,440 (1,202) (119,312)
Changes from non-cash flows:
Amortization of discount on debentures 1,693 3,910 53 5,656
Foreign currency difference - 45,043 - 45,043
Other changes: - - 476 476
Balance at September 30, 2024 W 19,865 10,525,669 1,260 10,546,794

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. 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 nine-month periods ended September 30, 2025 and 2024 are as follows:

Related party Account September 30, 2025 September 30, 2024
Revenue:
Shinhan Bank Interest income W 457 312
〃 Fees and commission income 34,831 34,831
〃 Dividend income 1,662,952 1,196,396
Shinhan Card Co., Ltd. Interest income 26,474 40,552
〃 Fees and commission income 10,005 10,005
〃 Dividend income 309,955 334,284
〃 Reversal of credit losses 192 102
Shinhan Securities Co., Ltd. Interest income 18,163 15,793
〃 Fees and commission income 2,643 2,643
〃 Dividend income 97,933 48,365
〃 Reversal of credit losses 60 -
Shinhan Life Insurance Co., Ltd. Fees and commission income 3,659 3,659
〃 Dividend income 378,307 165,338
Shinhan Capital Co., Ltd. Interest income 9,352 9,899
〃 Fees and commission income 1,495 1,495
〃 Dividend income 35,806 82,498
〃 Reversal of credit losses 44 27
Jeju Bank Fees and commission income 30 30
〃 Dividend income 2,420 2,420
Shinhan Asset Management Co., Ltd. Fees and commission income 123 123
〃 Dividend income 79,200 24,400
〃 Reversal of credit losses 1 -
Shinhan DS Interest income 235 302
〃 Fees and commission income 12 16
〃 Reversal of credit losses - 3
Shinhan Fund Partners Co., Ltd. Fees and commission income 78 78
〃 Dividend income 7,669 6,083
Shinhan Savings Bank Interest income 1,749 2,009
〃 Fees and commission income 242 250
〃 Dividend income 10,000 -
〃 Reversal of credit losses 22 -
Shinhan REITS management Fees and commission income 57 57
〃 Reversal of credit losses 1 -
Shinhan Asset Trust Interest income 2,810 1,942
〃 Fees and commission income 72 72
〃 Dividend income 5,068 1,676
Shinhan Venture Investment Co., Ltd. Interest income 1,432 1,793
〃 Fees and commission income 31 31
W 2,703,580 1,987,484

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(a) Significant transactions with the related parties for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2025 September 30, 2024
Expense:
Shinhan Bank Interest expenses W - 23
〃 General and administrative expenses 981 1,805
〃 Provision for credit losses 110 71
Shinhan Card Co., Ltd. Interest expenses 2 3
〃 General and administrative expenses 42 47
Shinhan Securities Co., Ltd. Interest expenses 130 114
〃 Fees and commission expense (*1) 150 584
〃 General and administrative expenses 3 3
〃 Provision for credit losses - 9
Shinhan Life Insurance Co., Ltd. Interest expenses 31 655
〃 Provision for credit losses - 2
Shinhan Asset Management Co., Ltd. Provision for credit losses - 7
Shinhan DS General and administrative expenses 1,712 1,451
Shinhan Fund Partners Co., Ltd. Provision for credit losses - 2
Shinhan Savings Bank Provision for credit losses - 2
Shinhan Asset Trust Co. Ltd. Provision for credit losses - 44
Shinhan REITs Management Co., Ltd. Provision for credit losses - 1
Shinhan Venture Investment Co., Ltd. Provision for credit losses - 1
W 3,161 4,824

(*) 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

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(b) Significant balances with the related parties as of September 30, 2025 and December 31, 2024 are as follows:

Creditor Debtor Account September 30,<br><br>2025 December 31,<br><br>2024
Assets:
Shinhan Financial Group Co., Ltd. Shinhan Bank Cash and due from banks W 17 12
〃 〃 Property and equipment 153 -
〃 〃 Other assets 543,013 270,791
〃 Shinhan Card Co., Ltd. Financial assets at fair value through profit or loss (*1) 720,604 718,491
〃 Loans 1,382,066 1,852,100
〃 〃 Reserve for loan losses (578) (774)
〃 〃 Property and equipment 58 101
〃 〃 Other assets 115,258 105,040
〃 Shinhan Securities Co., Ltd Financial assets at fair value through profit or loss (*2) 368,248 368,446
〃 〃 Loans 687,078 862,890
〃 〃 Reserve for loan losses (287) (361)
〃 〃 Other assets 60,285 27,406
〃 Shinhan Life Insurance Co., Ltd. Other assets 17,112 16,704
〃 Shinhan Capital Co., Ltd. Financial assets at fair value through profit or loss (*3) 248,922 245,460
〃 〃 Loans 690,440 804,000
〃 〃 Reserve for loan losses (289) (336)
〃 〃 Other assets 28,087 20,470
〃 Shinhan Asset Management<br><br>Co., Ltd. Other assets 13,650 15,400
〃 Jeju Bank Other assets 3,311 3,421
〃 Shinhan DS Loans 9,897 9,969
〃 〃 Reserve for loan losses (4) (4)
〃 〃 Property and equipment 150 235
〃 〃 Intangible assets 131 112
〃 〃 Other assets 2,517 3,296
〃 Shinhan Fund Partners Co., Ltd. Other assets 4,370 4,293

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(b) Significant balances with the related parties September 30, 2025, and December 31, 2024, are as follows (continued):

Creditor Debtor Account September 30,<br><br>2025 December 31,<br><br>2024
Assets:
Shinhan Financial Group Co., Ltd. Shinhan Savings Bank Loans 100,000 150,000
〃 〃 Reserve for loan losses (42) (63)
〃 〃 Other assets 8,515 11,826
〃 Shinhan Asset Trust Co., Ltd. Financial assets at fair value through profit or loss (*4) 146,343 150,725
〃 〃 Loans 100,000 100,000
〃 〃 Reserve for loan losses (42) (42)
〃 〃 Other assets 3,857 3,160
〃 Shinhan REITS management Other assets 835 2,531
〃 Shinhan Venture Investment<br><br>Co., Ltd. Loans 60,000 59,944
〃 〃 Reserve for loan losses (25) (25)
〃 〃 Other assets 1,722 2,410
〃 Shinhan EZ General Insurance Ltd Other assets 300 167
W 5,315,672 5,807,795
Liabilities:
Shinhan Bank. Shinhan Financial Group<br><br>Co., Ltd. Other liabilities W 1,679 1,103
Shinhan Card Co., Ltd. 〃 Other liabilities 477 643
Shinhan Securities Co., Ltd 〃 Other liabilities 37,979 91,463
Shinhan Life<br><br>Insurance Co., Ltd. 〃 Debt security issued in won - 30,000
〃 〃 Other liabilities 127,304 82,649
Shinhan Capital Co., Ltd. 〃 Other liabilities 25 14
Shinhan Asset Management<br><br>Co., Ltd 〃 Other liabilities 4,347 -
Shinhan DS 〃 Other liabilities 49 43
Shinhan Savings Bank 〃 Other liabilities 5 -
Shinhan REITs Management<br><br>Co., Ltd 〃 Other liabilities 302 -
Shinhan Venture Investment<br><br>Co., Ltd. 〃 Other liabilities 681 -
W 172,848 205,915

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(b) Significant balances with the related parties September 30, 2025, and December 31, 2024, are as follows (continued):

(*1) The amount represents the book value of the hybrid bonds purchased and includes gains of W 2,113 million and W 18,704 million on financial assets at fair value through profit or loss, recognized for the period ended September 30, 2025, and the year ended December 31, 2024, respectively.

(*2) The amount represents the book value of the hybrid bonds purchased and includes gains of W 16,796 million and W 8,541 million on financial assets at fair value through profit or loss, recognized for the period ended September 30, 2025, and the year ended December 31, 2024, respectively.

(*3) The amount represents the book value of the hybrid bonds purchased and includes gains of W 3,086 million and W 10,330 million on financial assets at fair value through profit or loss, recognized for the period ended September 30, 2025, and the year ended December 31, 2024, respectively.

(*4) The amount represents the book value of the hybrid bonds purchased and includes gains of W 4,382 million and W 725 million on financial assets at fair value through profit or loss, recognized for the period ended September 30, 2025, and the year ended December 31, 2024, respectively.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(c) Right-of-use assets and lease liabilities recognize through lease transactions with related parties as of September 30, 2025, and December 31, 2024, are as follows:

Related parties September 30, 2025 December 31, 2024
Right-of-use assets
Shinhan Bank W 153 -
Shinhan Card Co., Ltd. 58 101
W 211 101
Lease liabilities
Shinhan Card Co., Ltd. 64 109
W 64 109

(d) Financing transaction

Major financing transactions with related parties for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Beginning balance Lending Acquisition (*1) Collection Others (*2) Ending balance
Shinhan Card Co., Ltd. W 2,570,590 520,000 - (988,000) 79 2,102,669
Shinhan Securities Co., Ltd. 1,231,335 676,004 - (862,890) 10,876 1,055,325
Shinhan Capital Co., Ltd. 1,049,461 100,000 100,000 (300,000) (10,098) 939,363
Shinhan Asset Trust Co., Ltd. 250,725 - - - (4,382) 246,343
Shinhan Savings Bank 150,000 - - (50,000) - 100,000
Shinhan DS 9,970 10,000 - (10,000) (71) 9,899
Shinhan Venture Investment Co., Ltd. 59,944 60,000 - (60,000) 56 60,000
W 5,322,025 1,366,004 100,000 (2,270,890) (3,540) 4,513,599
December 31, 2024
--- --- --- --- --- --- --- ---
Beginning balance Lending Acquisition (*1) Collection Others (*2) Ending balance
Shinhan Card Co., Ltd. W 2,933,452 - - (460,000) 97,138 2,570,590
Shinhan Securities Co., Ltd. 1,072,565 - - - 158,770 1,231,335
Shinhan Capital Co., Ltd. 1,073,011 - - (70,000) 46,450 1,049,461
Shinhan Asset Trust Co., Ltd. - 100,000 150,000 - 725 250,725
Shinhan Savings Bank 150,000 - - - - 150,000
Shinhan DS 14,949 10,000 - (15,000) 21 9,970
Shinhan Venture Investment Co., Ltd. 59,528 70,000 - (70,000) 416 59,944
W 5,303,505 180,000 150,000 (615,000) 303,520 5,322,025

(*1) The purchase amount of hybrid bonds issued by subsidiaries.

(*2) Other transactions are the amount due to financial asset evaluation and foreign currency conversion.

SHINHAN FINANCIAL GROUP CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

(In millions of won)

  1. Related party transactions (continued)

(e) Management Compensation

Compensation for key management executives for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Short-term employee benefits W 3,330 3,488
Severance benefits 95 96
Share-based payment expenses (*) 4,191 3,439
W 7,616 7,023

(*) Expenses recognized during the vesting period under the agreement on share-based payments.

(f) Shinhan Securities Co., Ltd., a subsidiary, acquired debt securities and hybrid bonds of W 270 billion and W 231 billion issued by the Company for the nine-month periods ended September 30, 2025 and 2024, respectively.

(g) As of the nine-month periods ended September 30, 2025, the deposit of credit card use provided by Shinhan Card Co., Ltd., a subsidiary company, is W 4,000 million.

  1. Events after the reporting period

(a) Quarterly dividend resolution

The Company resolved to pay a quarterly dividend of W 570 per common share by a resolution of the Board of Directors on October 28, 2025. The total amount of dividends is W 273,369 million, and the record date is November 4, 2025.

EX-99.2

SHINHAN FINANCIAL GROUP CO., LTD.

AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024

(Unaudited)

Contents

Page
Independent Auditors’ Review Report 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 8
Notes to the Condensed Consolidated Interim Financial Statements 10

Independent Auditors’ Review Report

Based on a report originally issued in Korean

The Board of Directors and Stockholders

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 (hereinafter referred to as the “Group”), which comprise the condensed consolidated interim statement of financial position as of September 30, 2025, the condensed consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2025 and 2024, the condensed consolidated interim statements of changes in equity and cash flows for the nine-month periods ended September 30, 2025 and 2024, and notes, comprising a summary of material accounting policy information and other explanatory information.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of the condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Review Responsibility

Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above do not present fairly, in all material respects, in accordance with K-IFRS No. 1034 Interim Financial Reporting.

Other Matters

The consolidated statement of financial position of the Group as of December 31, 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 4, 2025, expressed an unqualified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2024, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.

The procedures and practices utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those generally accepted and applied in other countries.

KPMG Samjong Accounting Corp.

Seoul, Korea

November 14, 2025

This report is effective as of November 14, 2025, 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 the above review report has not been updated 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 September 30, 2025 and December 31, 2024

(In millions of won) Note September 30, 2025<br><br>(Unaudited) December 31, 2024
Assets
Cash and due from banks at amortized cost 4, 7 W 47,218,057 40,525,712
Financial assets at fair value through profit or loss 4, 8 77,445,145 72,146,845
Derivative assets 4, 9 5,804,621 10,279,257
Securities at fair value through other comprehensive income 4, 10 99,788,930 93,805,369
Securities at amortized cost 4, 10 31,672,897 33,315,999
Loans at amortized cost 4, 11 458,895,705 449,295,238
Property and equipment 3,979,390 4,157,592
Intangible assets 5,906,408 6,120,133
Investments in associates 12 2,620,818 2,752,980
Current tax assets 37,063 54,658
Deferred tax assets 207,991 205,506
Investment property 436,939 327,696
Net defined benefit assets 16 297,394 155,697
Insurance contract assets 18 2,327 5,639
Reinsurance contract assets 18 736,510 184,754
Other assets 4, 11 47,822,733 26,401,598
Assets held for sale 67,385 29,583
Total assets W 782,940,313 739,764,256
Liabilities
Deposits 4 W 437,880,353 422,781,045
Financial liabilities at fair value through profit or loss 4, 13 1,785,737 954,899
Financial liabilities designated at fair value through profit or loss 4, 14 6,798,410 8,220,475
Derivative liabilities 4, 9 5,301,247 10,058,532
Borrowings 4 51,964,046 49,920,373
Debt securities issued 4, 15 91,686,182 93,765,854
Net defined benefit liabilities 16 111,477 38,974
Provisions 17 1,143,063 1,308,896
Current tax liabilities 514,163 203,131
Deferred tax liabilities 600,170 423,821
Insurance contract liabilities 18 52,396,931 51,124,629
Reinsurance contract liabilities 18 107,019 98,063
Investment contract liabilities 4 772,528 1,165,022
Other liabilities 4 71,301,370 40,879,509
Total liabilities 722,362,696 680,943,223
Equity 20
Capital stock 2,969,641 2,969,641
Hybrid bonds 4,749,837 4,600,121
Capital surplus 12,102,048 12,094,968
Capital adjustments (843,306) (807,114)
Accumulated other comprehensive loss (2,723,342) (1,824,440)
Retained earnings 41,615,684 39,020,580
Total equity attributable to equity holders of Shinhan Financial Group Co., Ltd. 57,870,562 56,053,756
Non-controlling interests 2,707,055 2,767,277
Total equity 60,577,617 58,821,033
Total liabilities and equity W 782,940,313 739,764,256

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 Nine-month periods ended September 30, 2025 and 2024

September 30, 2025<br><br>(Unaudited) September 30, 2024<br><br>(Unaudited)
(In millions of won) Notes Three-month Nine-<br><br>month Three-month Nine-<br><br>month
Interest income W 6,902,736 20,937,846 7,402,644 21,838,101
Interest expense (3,955,183) (12,271,453) (4,547,657) (13,345,401)
Net interest income 22 2,947,553 8,666,393 2,854,987 8,492,700
Fees and commission income 1,194,707 3,395,250 1,081,702 3,267,780
Fees and commission expense (426,647) (1,187,069) (391,135) (1,157,904)
Net fees and commission income 23 768,060 2,208,181 690,567 2,109,876
Insurance income 848,209 2,487,883 794,618 2,338,542
Reinsurance income 60,035 142,401 15,538 38,497
Insurance service expenses (596,104) (1,706,846) (531,813) (1,499,275)
Reinsurance service expenses (52,838) (144,205) (11,506) (50,212)
Net insurance income 18 259,302 779,233 266,837 827,552
Insurance finance income 1,650 42,879 112,769 129,519
Insurance finance expense (324,564) (783,170) 4,715 (271,826)
Net insurance finance expense 19 (322,914) (740,291) 117,484 (142,307)
Dividend income 40,236 173,779 41,257 194,811
Net gain on financial instruments at fair value through profit or loss 687,274 2,053,836 479,504 1,513,587
Net loss on financial instruments designated at fair value through profit or loss (135,892) (356,868) (42,497) (273,750)
Net gain (loss) on foreign currency transaction 121,381 515,556 (140,470) 201,276
Net gain on disposal of financial securities at fair value through other comprehensive income 10 59,596 205,602 38,793 66,073
Net loss on disposal of securities at amortized cost 10 (6) (44) (23,133) (23,137)
Provision for credit loss allowance 24 (430,899) (1,488,103) (422,259) (1,399,739)
General and administrative expenses 25 (1,518,222) (4,418,280) (1,489,244) (4,333,095)
Other operating expenses, net (520,846) (1,685,900) (501,929) (1,443,171)
Operating income 1,954,623 5,913,094 1,869,897 5,790,676
Equity method income (expense) 12 21,652 136,330 (7,841) (22,799)
Other non-operating expenses, net (25,652) (21,119) (96,688) (340,565)
Profit before income taxes 1,950,623 6,028,305 1,765,368 5,427,312
Income tax expense 27 498,433 1,481,835 439,919 1,303,048
Profit for the period W 1,452,190 4,546,470 1,325,449 4,124,264

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 Nine-month periods ended September 30, 2025 and 2024

(In millions of won, except earnings per share data) September 30, 2025<br><br>(Unaudited) September 30, 2024<br><br>(Unaudited)
Notes Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
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 (404,569) 3,319 1,233,192 1,147,554
Equity in other comprehensive income (loss) of associates (7,824) (12,831) 255 218
Foreign currency translation adjustments for foreign operations 123,660 (310,897) (58,023) 55,220
Net change in unrealized fair value of cash flow hedges (20,794) (42,944) 25,986 4,473
Net finance income (expense) on insurance contract assets (liabilities) 272,179 (520,658) (1,221,725) (2,233,942)
Net finance expense on reinsurance contract assets (liabilities) (35,325) (60,947) (7,052) (7,547)
(72,673) (944,958) (27,367) (1,034,024)
Items that will never be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities (assets) (452) (56,058) 450 61,513
Valuation gain (loss) on securities at fair value through other comprehensive income (35,986) 96,888 (44,390) 9,164
Gain on disposal of securities at fair value through other comprehensive income 2,432 4,572 3,245 737
Changes in own credit risk on financial liabilities designated at fair value through profit or loss (311) (1,854) (1,494) (4,793)
(34,317) 43,548 (42,189) 66,621
Total other comprehensive loss, net of income tax (106,990) (901,410) (69,556) (967,403)
Total comprehensive income for the period W 1,345,200 3,645,060 1,255,893 3,156,861
Profit attributable to:
Equity holders of Shinhan Financial Group Co., Ltd. W 1,423,544 4,460,943 1,297,068 4,044,079
Non-controlling interests 28,646 85,527 28,381 80,185
W 1,452,190 4,546,470 1,325,449 4,124,264
Total comprehensive income attributable to:
Equity holders of Shinhan Financial Group Co., Ltd. W 1,317,119 3,563,515 1,227,475 3,076,239
Non-controlling interests 28,081 81,545 28,418 80,622
W 1,345,200 3,645,060 1,255,893 3,156,861
Earnings per share: 28
Basic and diluted earnings per share in won W 2,849 8,829 2,497 7,717

See accompanying notes to the condensed consolidated interim financial statements.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity (Continued)

For the Nine-month period ended September 30, 2024444

(In millions of won) September 30, 2024
Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
Capital<br><br>stock Hybrid<br><br>bonds Capital<br><br>surplus Capital<br><br>adjustments Accumulated<br><br>other compre-hensive income (loss) Retained earnings Sub-total Non-controlling interests Total
Balance at January 1, 2024 W 2,969,641 4,001,731 12,094,968 (658,664) (1,074,453) 36,387,314 53,720,537 2,601,328 56,321,865
Total comprehensive income
Profit for the period - - - - - - - - - 4,044,079 4,044,079 80,185 4,124,264
Other comprehensive income (loss), net of income tax:
Gain on valuation and disposal of securities at fair value through other comprehensive income - - - - - - - 1,156,578 - 1,156,578 877 1,157,455
Equity in other comprehensive income of associates - - - - - - - 218 - 218 - 218
Foreign currency translation adjustments for foreign operations - - - - - - - 55,843 - 55,843 (623) 55,220
Net change in unrealized fair value of cash flow hedges - - - - - - - 4,473 - 4,473 - 4,473
Net finance expense on insurance contract assets (liabilities) - - - - - - - (2,233,942) - (2,233,942) - (2,233,942)
Net finance expense on reinsurance contract assets (liabilities) - - - - - - - (7,547) - (7,547) - (7,547)
Remeasurements of the net defined benefit liabilities (assets) - - - - - - - 61,330 - 61,330 183 61,513
Changes in own credit risk on financial liabilities designated at fair value through profit or loss - - - - - - - (4,793) - (4,793) - (4,793)
Total other comprehensive income (loss) - - - - - - - (967,840) - (967,840) 437 (967,403)
Total comprehensive income (loss) - - - - - - - (967,840) 4,044,079 3,076,239 80,622 3,156,861
Other changes in equity
Annual dividends - - - - - - - - - (268,697) (268,697) - (268,697)
Quarterly dividends - - - - - - - - - (548,427) (548,427) - (548,427)
Dividends to hybrid bonds - - - - - - - - - (124,397) (124,397) - (124,397)
Issuance of hybrid bonds - 797,866 - - - - 797,866 - 797,866
Redemption of hybrid bonds - (199,476) - (524) - - (200,000) - (200,000)
Transfer to retained earnings of redemption loss of hybrid bonds - - - 102,667 - (102,667) - - -
Acquisition of treasury stock (Note 20) - - - (450,126) - - (450,126) - (450,126)
Disposal of treasury stock (Note 20) - - - 296 - - 296 - 296
Retirement of treasury stock (Note 20) - - - 150,000 - (150,056) (56) - (56)
Change in other capital adjustments - - - (864) - (886) (1,750) - (1,750)
Change in other non-controlling interests - - - - - - - 83,604 83,604
- 598,390 - (198,551) - (1,195,130) (795,291) 83,604 (711,687)
Reclassification between OCI and retained earnings - - - - 3,156 (3,156) - - -
Balance at September 30, 2024 (Unaudited) W 2,969,641 4,600,121 12,094,968 (857,215) (2,039,137) 39,233,107 56,001,485 2,765,554 58,767,039

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity (Continued)

For the Nine-month period ended September 30, 2024444

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 (Continued)

For the Nine-month period ended September 30, 2025

(In millions of won) September 30, 2025
Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
Capital<br><br>stock Hybrid<br><br>bonds Capital<br><br>surplus Capital<br><br>adjustments Accumulated<br><br>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 - - - - - 4,460,943 4,460,943 85,527 4,546,470
Other comprehensive income (loss), net of income tax:
Gain (loss) on valuation and disposal of securities at fair value through other comprehensive income - - - - 105,215 - 105,215 (436) 104,779
Equity in other comprehensive loss of associates - - - - (12,831) - (12,831) - (12,831)
Foreign currency translation adjustments for foreign operations - - - - (307,640) - (307,640) (3,257) (310,897)
Net change in unrealized fair value of cash flow hedges - - - - (42,944) - (42,944) - (42,944)
Net finance expense on insurance contract assets (liabilities) - - - - (520,658) - (520,658) - (520,658)
Net finance expense on reinsurance contract assets (liabilities) - - - - (60,947) - (60,947) - (60,947)
Remeasurements of the net defined benefit liabilities (assets) - - - - (55,769) - (55,769) (289) (56,058)
Changes in own credit risk on financial liabilities designated at fair value through profit or loss - - - - (1,854) - (1,854) - (1,854)
Total other comprehensive loss - - - - (897,428) - (897,428) (3,982) (901,410)
Total comprehensive income (loss) - - - - (897,428) 4,460,943 3,563,515 81,545 3,645,060
Other changes in equity
Annual dividends - - - - - (267,755) (267,755) - (267,755)
Quarterly dividends - - - - - (554,859) (554,859) - (554,859)
Dividends to hybrid bonds - - - - - (143,433) (143,433) - (143,433)
Issuance of hybrid bonds - 797,870 - - - - 797,870 - 797,870
Redemption of hybrid bonds - (648,154) - (1,846) - - (650,000) - (650,000)
Transfer to retained earnings of redemption loss of hybrid bonds - - - 524 - (524) - - -
Acquisition of treasury stock (Note 20) - - - (913,939) - - (913,939) - (913,939)
Retirement of treasury stock (Note 20) - - - 900,000 - (900,069) (69) - (69)
Change in other capital adjustments - - 7,080 (20,931) - (673) (14,524) - (14,524)
Change in other non-controlling interests - - - - - - - (141,767) (141,767)
- 149,716 7,080 (36,192) - (1,867,313) (1,746,709) (141,767) (1,888,476)
Reclassification between OCI and retained earnings - - - - (1,474) 1,474 - - -
Balance at September 30, 2025 (Unaudited) W 2,969,641 4,749,837 12,102,048 (843,306) (2,723,342) 41,615,684 57,870,562 2,707,055 60,577,617

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 Nine-month periods ended September 30, 2025 and 2024

Nine-month periods ended September 30
(In millions of won) Notes 2025 (Unaudited) 2024 (Unaudited)
Cash flows from operating activities
Profit for the interim period W 4,546,470 4,124,264
Adjustments for:
Interest income 22 (20,937,846) (21,838,101)
Interest expense 22 12,271,453 13,345,401
Dividend income (173,779) (194,811)
Income tax expense 1,481,835 1,303,048
Net fees and commission expense 281,709 231,028
Net insurance income (779,233) (827,552)
Net insurance finance expense 740,291 142,307
Net gain on financial instruments at fair value through profit or loss (913,591) (672,810)
Net gain on derivatives (540,159) (242,321)
Net gain on foreign currency translation (141,841) (13,025)
Net loss on financial instruments designated at fair value through profit or loss 55,378 67,310
Net gain on disposal of securities at fair value through other comprehensive income 10 (205,602) (66,073)
Net loss on disposal of securities at amortized cost 10 44 23,137
Provision for credit loss allowance 24 1,488,103 1,399,739
Employee benefits 178,123 155,356
Depreciation and other amortization 25 970,862 947,392
Other operating expense, net 556,449 490,641
Equity method expense (income) 12 (136,330) 22,799
Other non-operating expense, net 54,917 287,682
(5,749,217) (5,438,853)
Changes in assets and liabilities:
Due from banks at amortized cost 831,261 (624,944)
Securities at fair value through profit or loss (2,678,672) (4,381,191)
Due from banks at fair value through profit or loss 2,033 -
Loans at fair value through profit or loss 21,112 (471,852)
Financial instruments designated at fair value through profit or loss (1,530,092) 1,046,951
Derivative instruments 266,184 (234,416)
Loans at amortized cost (11,401,831) (31,015,319)
Insurance contract assets 3,312 2,116
Reinsurance contract assets (551,756) (63,964)
Other assets (22,103,525) (7,554,358)
Deposits 14,819,991 34,024,780
Net defined benefit liabilities (assets) (268,786) (40,672)
Provisions (154,560) (451,633)
Insurance contract liabilities (462,600) (618,063)
Reinsurance contract liabilities (66,662) 1,122
Investment contract liabilities (422,571) (256,830)
Other liabilities 30,437,270 6,026,064
6,740,108 (4,612,209)
Income taxes paid (770,849) (692,345)
Interest received 20,376,236 21,529,146
Interest paid (10,645,585) (10,979,150)
Dividends received 167,122 186,758
Net cash inflow from operating activities W 14,664,285 4,117,611

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Statements of Cash Flows (Continued)

For the Nine-month periods ended September 30, 2025 and 2024

Nine-month periods ended September 30
(In millions of won) Notes 2025 (Unaudited) 2024 (Unaudited)
Cash flows from investing activities
Decrease in financial instruments at fair value through profit or loss W 3,336,867 3,336,040
Acquisition of financial instruments at fair value through profit or loss (3,516,515) (4,373,233)
Decrease in financial securities at fair value through other comprehensive income 40,238,343 33,221,502
Acquisition of securities at fair value through other comprehensive income (45,881,639) (31,689,749)
Proceeds from disposal of securities at amortized cost 5,882,331 5,380,769
Acquisition of securities at amortized cost (4,137,061) (4,076,830)
Proceeds from disposal of property and equipment 6,893 5,962
Acquisition of property and equipment (158,278) (164,171)
Proceeds from disposal of intangible assets 9,091 5,814
Acquisition of intangible assets (299,565) (414,886)
Proceeds from disposal of investments in associates 426,294 241,996
Acquisition of investments in associates (203,683) (560,192)
Net cash inflow from loss of control 94,727 -
Net cash outflow from acquisition of control (851,919) -
Proceeds from disposal of investment property - 5,281
Acquisition of investment property (3,257) (2,291)
Disposal of assets held-for-sale 43,278 -
Change in other assets (481) 40,074
Change in other liabilities (68) -
Proceeds from settlement of hedging derivative financial<br><br>instruments 46,134 30,526
Payment of settlement of hedging derivative financial instruments (128,471) (101,693)
Net cash inflow (outflow) from investing activities W (5,096,979) 884,919
Cash flows from financing activities
Issuance of hybrid bonds W 797,870 797,866
Redemption of hybrid bonds (650,000) (200,000)
Net change in borrowings 2,175,230 (2,096,338)
Proceeds from debt securities issued 31,697,674 33,388,400
Redemption of debt securities issued (33,333,633) (26,235,357)
Increase in financial liabilities designated at fair value through profit or loss 99,985 -
Decrease in financial liabilities designated at fair value through profit or loss (50,000) -
Changes in other liabilities (53,159) (56,703)
Dividends paid (966,071) (941,075)
Proceeds from settlement of hedging derivative financial instruments 1,902,404 2,201,235
Payments of settlement of hedging derivative financial instruments (1,851,733) (2,154,056)
Acquisition of treasury stock (913,939) (450,126)
Disposal of treasury stock - 296
Costs for retirement of treasury stock (69) (56)
Increase (decrease) in non-controlling interests (221,042) 82,007
Repayments of lease liabilities (203,132) (207,206)
Net cash inflow (outflow) from financing activities (1,569,615) 4,128,887
Effect of exchange rate changes on cash and cash equivalents held (45,495) 25,804
Increase in cash and cash equivalents 7,952,196 9,157,221
Cash and cash equivalents at the beginning of the period 30 35,247,543 30,416,884
Cash and cash equivalents at the end of the period 30 W 43,199,739 39,574,105

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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Reporting entity

Shinhan Financial Group Co., Ltd., the controlling company, and its subsidiaries included in consolidation (Hereinafter referred to as the “Group”) are summarized as follows:

(a) Controlling company

Shinhan Financial Group Co., Ltd. (the “Shinhan Financial Group” or the “Company”), the controlling company, is 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 Asset Management Co., Ltd. by way of share transfers. The total capital stock amounted to W1,461,721 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 September 30, 2025 and December 31, 2024 are as follows:

Date of financial information Ownership (%)
Investor Investee (*1) Location September 30, 2025 December 31, 2024
Shinhan Financial Group Co., Ltd. Shinhan Bank Korea September 30 100.0 100.0
〃 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 (*2) 〃 〃 64.0 75.3
〃 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. (*3) 〃 〃 91.7 85.1
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 Ltd. Vietnam 〃 100.0 100.0
〃 Banco Shinhan de Mexico Mexico 〃 99.9 99.9
〃 PT Bank Shinhan Indonesia Indonesia 〃 99.0 99.0
Shinhan Bank Japan SBJDNX Japan 〃 100.0 100.0

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Reporting entity (continued)

(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of September 30, 2025 and December 31, 2024 are as follows (continued):

Date of financial information Ownership (%)
Investor Investee (*1) Location September 30,<br><br>2025 December 31, 2024
Shinhan Card Co., Ltd. Shinhan Credit Information Co., Ltd. Korea September 30 100.0 100.0
〃 LLP MFO Shinhan Finance (*4) Kazakhstan 〃 72.1 75.0
〃 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. 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 trust, beneficiary certificate, special purpose company, partnerships and private equity fund which are not actually operating their own business are excluded.

(*2) During the current interim period, a third-party share issuance resulted in a decrease in the Group’s ownership interest from 75.3% to 64.0%.

(*3) During the current interim period, the Group participated in a capital increase of W 100.0 billion conducted by Shinhan EZ General Insurance Co., Ltd., resulting in an increase in its ownership interest from 85.1% to 91.7%.

(*4) During the current interim period, a third-party share issuance resulted in a decrease in the Group’s ownership interest from 75.0% to 72.1%.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Reporting entity (continued)

(c) Consolidated structured entities

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 principle 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 157 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 the Group has the greatest credit 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 183 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Reporting entity (continued)

(d) Summarized financial information of the subsidiaries

i) The summarized financial information of the controlling company and the Group’s major consolidated subsidiaries as of September 30, 2025 and December 31, 2024 is as follows:

September 30, 2025 December 31, 2024
Investees (*1), (*2) Total<br><br>Assets Total<br><br>Liabilities Total<br><br>Equity Total<br><br>Assets Total<br><br>Liabilities Total<br><br>Equity
Shinhan Financial Group (separate) W 38,422,977 11,378,895 27,044,082 37,672,303 11,324,128 26,348,175
Shinhan Bank 594,517,315 556,153,695 38,363,620 556,691,161 519,926,426 36,764,735
Shinhan Card Co., Ltd. 44,201,489 35,863,617 8,337,872 44,137,094 35,860,198 8,276,896
Shinhan Securities Co., Ltd. 51,773,770 46,038,162 5,735,608 49,026,790 43,532,326 5,494,464
Shinhan Life Insurance Co., Ltd. 60,379,334 54,260,845 6,118,489 59,843,268 52,802,301 7,040,967
Shinhan Capital Co., Ltd. 12,422,507 10,121,465 2,301,042 12,512,659 10,259,146 2,253,513
Jeju Bank 7,724,004 7,074,075 649,929 7,444,771 6,854,663 590,108
Shinhan Asset Management Co., Ltd. 436,583 162,991 273,592 503,319 186,991 316,328
SHC Management Co., Ltd. 10,479 - 10,479 10,325 - 10,325
Shinhan DS 133,263 67,559 65,704 139,322 76,603 62,719
Shinhan Savings Bank 3,041,931 2,667,351 374,580 2,879,145 2,512,348 366,797
Shinhan Asset Trust Co., Ltd. 824,212 505,995 318,217 775,844 471,890 303,954
Shinhan Fund Partners 126,136 21,265 104,871 122,507 22,580 99,927
Shinhan REITs Management Co., Ltd. 82,162 6,879 75,283 82,781 12,640 70,141
Shinhan Venture Investment Co., Ltd. 187,323 102,516 84,807 176,165 90,967 85,198
Shinhan EZ General Insurance Co., Ltd. 369,058 185,855 183,203 289,867 178,573 111,294

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

(*2) Subsidiaries such as trust, beneficiary certificate, special purpose company, partnerships and private equity fund 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Reporting entity (continued)

ii) the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Investees (*1), (*2) Operating<br><br>income Net<br><br>income<br><br>(loss) (*3) Com-<br><br>prehensive<br><br>income<br><br>(loss) (*3) Operating<br><br>income Net<br><br>income (loss)<br><br>(*3) Com-<br><br>prehensive<br><br>income<br><br>(loss) (*3)
Shinhan Financial Group<br><br>(separate) W 2,859,711 2,430,160 2,428,092 2,108,299 1,597,981 1,596,444
Shinhan Bank 29,835,564 3,356,650 3,167,854 29,792,206 3,103,237 3,527,706
Shinhan Card Co., Ltd. 4,532,472 383,389 369,344 4,322,578 555,085 529,256
Shinhan Securities Co., Ltd. 7,214,817 359,357 338,844 8,490,525 248,838 245,546
Shinhan Life Insurance<br><br>Co., Ltd. 5,696,594 514,515 (237,531) 5,010,639 467,107 (1,010,904)
Shinhan Capital Co., Ltd. 827,024 91,972 87,385 916,880 152,626 149,139
Jeju Bank 278,457 12,271 10,536 287,747 9,378 13,793
Shinhan Asset Management Co., Ltd. 143,764 36,463 36,463 196,619 54,638 54,643
SHC Management Co., Ltd. - 155 155 - 206 206
Shinhan DS 239,707 5,731 2,977 231,993 6,267 7,829
Shinhan Savings Bank 185,098 17,882 17,757 194,930 21,761 22,348
Shinhan Asset Trust Co., Ltd. 157,404 19,402 19,330 80,151 (178,507) (178,760)
Shinhan Fund Partners 53,649 12,630 12,630 50,656 11,420 11,420
Shinhan REITs Management<br>Co., Ltd. 15,134 5,144 5,142 23,328 10,518 10,515
Shinhan AI Co., Ltd. (*4) - - - - (1,927) (1,928)
Shinhan Venture Investment Co, Ltd. 25,528 (190) (391) 40,889 9,116 9,241
Shinhan EZ General Insurance Co., Ltd. 111,934 (27,221) (27,660) 66,074 (13,990) (14,282)

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

(*2) Subsidiaries such as trust, beneficiary certificate, special purpose company, partnerships and private equity fund which are not actually operating their own business are excluded.

(*3) It includes non-controlling interest.

(*4) Shinhan AI Co., Ltd. was liquidated for the period ended December 31, 2024, and the amount as of September 30, 2024 reflects figures incurred before the liquidation.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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 condensed 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 condensed consolidated interim financial statements are prepared under K-IFRS No.1034, ‘Interim Financial Reporting’ and contains 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, 2024.

(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 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 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, 2024 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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, 2024, except for the following amendments first applied from January 1, 2025, as described in Note 2(b).

i) Amendment to K-IFRS No. 1021 'Effects of Changes in Foreign Exchange Rates' and No. 1101 ‘First-time adoption of K-IFRS’ – Lack of Exchangeability

These amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists. If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. There is no significant impact on the consolidated financial statements from these amendments.

(b) As of September 30, 2025, the newly enacted and disclosed but not yet effective new K-IFRS are as follows:

i) K-IFRS No. 1109 ‘Financial Instruments and K-IFRS No. 1107 Financial Instruments: Disclosures’ – Classification and measurement requirements of financial instruments

The amendments clarify the conditions related to the discharge of a financial liability before the settlement date when settling such financial liabilities using an electronic payment system. They further specify an interest feature, a contingent feature, financial assets with non-recourse features and contractually linked instruments which should be considered in assessing whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. Furthermore, the amendments include additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the timing or amount of contractual cash flows. The amendments are applied retrospectively for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Group is assessing the impact of the amendment on the consolidated financial statements.

ii) Annual Improvements to Korean International Financial Reporting Standards (K-IFRS)

K-IFRS annual improvements are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Group believes that there will be no material impact on the consolidated financial statement.

  • 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. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – hedge accounting adoption

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

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

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Financial risk management

(a) Overview

Shinhan Financial Group Co., Ltd. (hereinafter referred to as the “Group”) manages various risks that may arise within 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 controlling company level and at 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 controlling 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 basic policies are established by the Board of Directors of the controlling company, while the Group’s risk management strategies are formulated by the Risk Management Committee (hereinafter referred to as the "Group Risk Management Committee") under the 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 Management 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 management policies and strategies of the subsidiary. The risk management team of the controlling company assists the Group's Chief Risk Management 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 affordable by the Group and each subsidiary, while the Risk Management Committee and the Committee 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(a) Overview (continued)

ii) Risk management organization (continued)

ii-1) Group risk management committee

The Group has established the risk management system for the controlling company and each of its subsidiaries, and comprehensively manages group-wide risk-related matters, including the establishment of risk management policies and strategies, and the approval of limits. The Committee consists of directors of the controlling 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
  • Analysis of crisis situation, 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 management officer and shall be 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 controlling 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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 Group on key issues that affect risk management at the Group level. The Group prepares weekly, monthly and occasional monitoring reports to report to 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 Group.

iii-4) Crisis management

The Group maintains a group wide risk management system to detect the signals of any risk crisis 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 controlling company level, the Group maintains and installs 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 Group 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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 chairman, the CCO, 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 the 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 Deliberation 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'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, and is composed of the heads of each business group and supporting group and the heads of related departments. 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’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 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,

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

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 it to monitor member and portfolio risk.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(b) Credit 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 rating is a key input variable for determining term structure of probability 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions, and input variables used to measure impairment (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 precautionary or below
Borrower with early warning signals Borrower with early warning signals Specific delinquent 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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 experienced, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio and then reflected forward-looking information through a regression estimation. To reflect external and internal economic uncertainties, the Group has incorporated the 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 index growth rate (-)
Index of 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

  1. 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 value 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 by considering 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 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 deems 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.

The details of the maximum exposure to credit risk for financial instruments held as of September 30, 2025 and December 31, 2024 periods are as follows:

September 30, 2025 December 31, 2024
Due from banks and loans at amortized cost (*1), (*3):
Banks W 14,499,349 14,058,051
Retail 207,602,185 199,809,576
Government/Public sector/Central bank 33,767,119 27,228,308
Corporations 220,256,521 218,713,457
Card receivables 27,288,151 27,714,596
503,413,325 487,523,988
Due from banks and loans at FVTPL (*3):
Banks 138,530 134,609
Corporations 1,748,441 1,780,787
1,886,971 1,915,396
Securities at FVTPL 71,311,385 67,134,121
Securities at FVOCI 97,954,134 92,016,210
Securities at amortized cost (*1) 31,672,897 33,315,999
Derivative assets 5,804,621 10,279,257
Other financial assets (*1), (*2) 44,587,090 23,116,960
Guarantee contracts 22,802,122 22,509,195
Loan commitments and other credit liabilities 219,662,948 218,980,794
W 999,095,493 956,791,920

(*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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
12-month expected credit losses Lifetime expected credit losses Total Allowances Net Mitigation of credit risk<br><br>due to collateral
Grade 1 (*) Grade 2 (*) Grade 1 (*) Grade 2 (*) Impaired
Due from banks and loans at amortized cost:
Banks W 12,103,497 2,238,980 171,763 285 - 14,514,525 (15,176) 14,499,349 16,271
Retail 187,480,484 7,009,027 8,503,020 4,377,481 1,283,071 208,653,083 (1,050,898) 207,602,185 161,696,955
Government/Public sector/<br><br>Central bank 31,548,093 1,936,725 292,718 4 - 33,777,540 (10,421) 33,767,119 2,621
Corporations 114,975,109 54,596,535 23,064,609 27,828,442 2,153,041 222,617,736 (2,361,215) 220,256,521 124,333,760
Card receivable 19,889,378 4,503,832 1,057,864 2,281,118 496,424 28,228,616 (940,465) 27,288,151 17,700
365,996,561 70,285,099 33,089,974 34,487,330 3,932,536 507,791,500 (4,378,175) 503,413,325 286,067,307
Securities at FVOCI (*) 88,769,026 9,153,037 - 32,071 - 97,954,134 - 97,954,134 -
Securities at amortized cost 29,898,820 1,783,462 - - - 31,682,282 (9,385) 31,672,897 -
W 484,664,407 81,221,598 33,089,974 34,519,401 3,932,536 637,427,916 (4,387,560) 633,040,356 286,067,307

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
12-month expected credit losses Lifetime expected credit losses Total Allowances Net Mitigation of credit risk<br><br>due to collateral
Grade 1 (*) Grade 2 (*) Grade 1 (*) Grade 2 (*) Impaired
Due from banks and loans at amortized cost:
Banks W 11,740,875 2,027,427 254,625 60,114 - 14,083,041 (24,990) 14,058,051 27,874
Retail 177,166,099 6,397,386 11,714,193 4,387,929 1,198,594 200,864,201 (1,054,625) 199,809,576 151,610,129
Government/Public sector/<br><br>Central bank 25,118,226 2,030,126 83,783 49 - 27,232,184 (3,876) 27,228,308 2,500
Corporations 117,893,181 55,345,067 20,324,015 25,633,821 1,880,868 221,076,952 (2,363,495) 218,713,457 117,575,757
Card receivable 21,631,071 2,974,287 1,170,078 2,436,456 642,991 28,854,883 (1,140,287) 27,714,596 18,881
353,549,452 68,774,293 33,546,694 32,518,369 3,722,453 492,111,261 (4,587,273) 487,523,988 269,235,141
Securities at FVOCI (*) 83,218,889 8,736,563 10,034 50,724 - 92,016,210 - 92,016,210 -
Securities at amortized cost 31,103,200 2,219,343 - 3,644 - 33,326,187 (10,188) 33,315,999 -
W 467,871,541 79,730,199 33,556,728 32,572,737 3,722,453 617,453,658 (4,597,461) 612,856,197 269,235,141

(*) Credit loss allowance recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 40,557 million and W 38,346 million as of September 30, 2025 and December 31, 2024.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Grade 1 Grade 2 Impaired Total
Financial guarantee:
12-month expected credit losses W 18,250,353 3,387,984 - 21,638,337
Lifetime expected credit losses 957,140 195,448 - 1,152,588
Impaired - - 11,197 11,197
19,207,493 3,583,432 11,197 22,802,122
Loan commitment and <br>other credit line
12-month expected credit losses 186,048,506 22,850,593 - 208,899,099
Lifetime expected credit losses 7,865,315 2,829,741 - 10,695,056
Impaired - - 68,793 68,793
193,913,821 25,680,334 68,793 219,662,948
W 213,121,314 29,263,766 79,990 242,465,070
December 31, 2024
--- --- --- --- --- ---
Grade 1 Grade 2 Impaired Total
Financial guarantee:
12-month expected credit losses W 19,212,434 2,786,804 - 21,999,238
Lifetime expected credit losses 361,440 127,153 - 488,593
Impaired - - 21,364 21,364
19,573,874 2,913,957 21,364 22,509,195
Loan commitment and <br>other credit line
12-month expected credit losses 183,928,715 21,687,932 - 205,616,647
Lifetime expected credit losses 10,370,570 2,988,286 - 13,358,856
Impaired - - 5,291 5,291
194,299,285 24,676,218 5,291 218,980,794
W 213,873,159 27,590,175 26,655 241,489,989

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 sector/Central bank OECD sovereign credit rating of 6 or above OECD sovereign credit rating of below 6
Banks and Corporations<br><br>(including credit card bond) 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Classification (*) Finance and insurance Manu<br><br>-facturing Retail and wholesale Real estate and business Construction service Lodging and Restaurant Other Retail<br><br>customers Total
Due from banks and loans at amortized cost:
Banks W 14,219,497 - - - - - 279,852 - 14,499,349
Retail - - - - - - - 207,602,185 207,602,185
Government/Public sector/Central bank 33,683,461 - - - - - 83,658 - 33,767,119
Corporations 20,411,865 61,644,731 23,907,475 47,500,302 5,240,730 7,231,247 54,320,171 - 220,256,521
Card receivable 88,613 356,896 272,025 75,423 52,149 27,338 1,335,403 25,080,304 27,288,151
68,403,436 62,001,627 24,179,500 47,575,725 5,292,879 7,258,585 56,019,084 232,682,489 503,413,325
Due from banks and loans at FVTPL
Banks 39,196 - - - 99,334 - - - 138,530
Corporations 938,298 501,876 53,015 157,616 - - 97,636 - 1,748,441
977,494 501,876 53,015 157,616 99,334 - 97,636 - 1,886,971
Securities at FVTPL 33,029,397 4,145,464 1,279,205 2,952,259 273,337 86,602 29,545,121 - 71,311,385
Securities at FVOCI 42,762,355 2,385,179 516,325 1,773,153 861,622 22,036 49,633,464 - 97,954,134
Securities at amortized cost 7,043,852 - - 715,631 290,817 - 23,622,597 - 31,672,897
152,216,534 69,034,146 26,028,045 53,174,384 6,817,989 7,367,223 158,917,902 232,682,489 706,238,712
Off-balance sheet items
Guarantees 4,860,518 10,433,819 3,554,667 293,027 246,260 71,162 3,340,303 2,366 22,802,122
Loan commitments and other liabilities related to credit 18,142,804 32,248,304 10,160,107 6,014,596 2,126,215 447,980 19,606,295 130,916,647 219,662,948
W 23,003,322 42,682,123 13,714,774 6,307,623 2,372,475 519,142 22,946,598 130,919,013 242,465,070

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Classification (*) Finance and insurance Manu<br><br>-facturing Retail and wholesale Real estate and business Construction service Lodging and Restaurant Other Retail<br><br>customers Total
Due from banks and loans at amortized cost:
Banks W 13,495,577 - - - - - 562,474 - 14,058,051
Retail - - - - - - - 199,809,576 199,809,576
Government/Public sector/Central bank 27,042,097 - - - - - 186,211 - 27,228,308
Corporations 22,485,184 62,200,259 23,447,863 47,109,684 5,409,739 6,735,852 51,324,876 - 218,713,457
Card receivable 81,613 323,992 288,452 65,256 51,107 20,277 1,189,255 25,694,644 27,714,596
63,104,471 62,524,251 23,736,315 47,174,940 5,460,846 6,756,129 53,262,816 225,504,220 487,523,988
Due from banks and loans at FVTPL
Banks 35,450 - - - 99,159 - - - 134,609
Corporations 859,295 391,667 301,658 149,652 10,000 - 68,515 - 1,780,787
894,745 391,667 301,658 149,652 109,159 - 68,515 - 1,915,396
Securities at FVTPL 34,194,979 3,634,273 1,286,997 2,149,229 304,020 136,364 25,428,259 - 67,134,121
Securities at FVOCI 35,854,914 2,636,678 712,936 1,790,042 1,056,603 12,160 49,952,877 - 92,016,210
Securities at amortized cost 9,761,249 19,984 - 539,416 260,379 - 22,734,971 - 33,315,999
143,810,358 69,206,853 26,037,906 51,803,279 7,191,007 6,904,653 151,447,438 225,504,220 681,905,714
Off-balance sheet items
Guarantees 3,733,957 11,712,348 3,548,909 92,172 179,255 115,827 3,113,748 12,979 22,509,195
Loan commitments and other liabilities related to credit 18,218,204 34,199,306 10,324,128 4,325,044 2,408,759 531,832 20,644,317 128,329,204 218,980,794
W 21,952,161 45,911,654 13,873,037 4,417,216 2,588,014 647,659 23,758,065 128,342,183 241,489,989

(*) 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(c) Market risk

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. A structural foreign exchange position refers to a foreign exchange position that foreign currency investments such as capital contributions and long-term equity investments in overseas branches is excluded from the calculation of market risk regulatory capital, with the approval of the supervisory authority.

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 holding for short-term resale, arbitrage through short-term price changes, risk-free arbitrage, and risk hedging. Securities, foreign exchange position, and derivatives are included mainly as trading position. 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 standard method market risk using the Group Market Risk Measurement System, and Shinhan Bank calculates the standard method market risk using its own model market risk calculation system. The Group and Shinhan Bank exclude structural foreign exchange positions approved by the supervisory authority when calculating standard method market risk. Shinhan Securities Co., Ltd. uses its own market risk calculation system to calculate historical simulation VaR and the Group market risk system to calculate standard method 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 standard methods. 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 standard approach is a risk calculation method proposed by Basel Board of Banking Supervisors (BCBS) of Bank for International Settlements (BIS), Korea has reflected the Basel III standards of market risk sector to the detailed regulations on supervision of bank business from FY23 and followed these regulations. The standard approach of the Basel III standards calculates and aggregates sensitivity risk, default risk, and residual risk. Sensitivity risk measures coverage of general interest rates, credit spreads, stocks, commodity, and delta and vega of foreign exchange. 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.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(c) Market risk (continued)

i) Market risk management from trading positions (continued)

i-2) Market risk management method (continued)

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 standard methods 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(c) Market risk (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 net interest income or changes in 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 in Regulations for Supervision of Financial Holding Companies, the Group measures the interest rate risk using the standardized approach of IRRBB under Basel III, which measures the interest rate risk more precisely than the existing BIS standard framework by segmenting maturities of interest rates, 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 ± 300bp, Short Term ± 400bp, Long Term ± 200bp, (USD) Parallel ± 200bp, Short Term ± 300bp, Long Term ± 150bp). 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(c) Market risk (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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Classifications (*1) Less than<br><br>1 month (*3) 1~3<br><br>months 3~6<br><br>months 6 months<br><br>~ 1 year 1~5<br><br>years More than 5 years Total
Non-derivative financial liabilities:
Liabilities:
Deposits (*2) W 228,921,777 66,909,904 53,735,496 62,739,273 32,534,693 2,022,756 446,863,899
Financial liabilities at FVTPL 1,785,737 - - - - - 1,785,737
Borrowings 14,914,263 5,604,148 5,174,909 9,338,382 12,035,481 5,828,648 52,895,831
Debt securities issued 4,986,531 9,242,560 9,070,343 15,796,036 55,234,260 3,591,068 97,920,798
Financial liabilities designated at FVTPL 611,737 2,257,791 842,713 581,495 953,309 1,580,256 6,827,301
Investment contract liabilities 40,438 278,683 163,212 96,018 194,177 - 772,528
Other financial liabilities 55,793,206 123,418 76,534 585,573 1,431,600 6,643,622 64,653,953
W 307,053,689 84,416,504 69,063,207 89,136,777 102,383,520 19,666,350 671,720,047
Off-balance sheet items (*3):
Guarantee contracts W 22,802,122 - - - - - 22,802,122
Other liabilities related to loan commitments 219,662,948 - - - - - 219,662,948
W 242,465,070 - - - - - 242,465,070
Derivatives:
Derivatives W 860,045 (26,853) (986,116) (79,569) (2,789,884) (108,700) (3,131,077)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Classifications (*1) Less than<br><br>1 month (*3) 1~3<br><br>months 3~6<br><br>months 6 months<br><br>~ 1 year 1~5<br><br>years More than 5 years Total
Non-derivative financial liabilities:
Liabilities:
Deposits (*2) W 217,170,450 49,309,656 56,540,309 77,227,315 30,221,968 1,261,816 431,731,514
Financial liabilities at FVTPL 954,899 - - - - - 954,899
Borrowings 12,862,532 4,757,090 6,901,957 9,990,468 11,464,431 4,896,426 50,872,904
Debt securities issued 4,859,511 8,927,081 9,122,810 17,273,392 56,429,636 4,046,575 100,659,005
Financial liabilities designated at FVTPL 439,367 861,277 991,871 1,963,789 2,473,275 1,513,662 8,243,241
Investment contract liabilities 106,106 105,788 248,954 375,300 328,874 - 1,165,022
Other financial liabilities 32,314,670 174,388 257,115 587,834 1,351,145 140,254 34,825,406
W 268,707,535 64,135,280 74,063,016 107,418,098 102,269,329 11,858,733 628,451,991
Off-balance sheet items (*3):
Guarantee contracts W 22,509,195 - - - - - 22,509,195
Other liabilities related to loan commitments 218,980,794 - - - - - 218,980,794
W 241,489,989 - - - - - 241,489,989
Derivatives:
Derivatives W 453,751 (12,670) (68,634) 6,511 (1,847,862) (165,170) (1,634,074)

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

(*2) Demand deposits amounting to W 168,318,205 million and W 160,031,759 million as of September 30, 2025 and December 31, 2024 are included in the ‘Less than 1 month’ category, respectively.

(*3) Although the Group’s guarantees, loan commitments, and other credit facilities have contractual maturities, the Group is required to fulfill its obligations immediately upon request by the counterparty. Accordingly, these exposures are classified into the earliest time band in which they could be drawn.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial risk management (continued)

(e) Capital risk management

The Group must comply with the capital adequacy criteria of 8.0%. In addition, the minimum regulatory BIS capital ratio, which should be maintained additionally to increase the capability to absorb losses, has been raised up to 14% as the capital regulation based on the Basel III standard has been in effect since 2016. This is based on the addition of capital conservation capital (2.5%p) and domestic system-critical banks (D-SIB) capital (1.0%p) and economic response capital (2.5%p) to the existing minimum common equity capital ratio. The countercyclical capital buffer can be charged up to 2.5%p during credit expansion and required level of the capital in Korea was increased from 0% to 1%, as of May 1,2024. As of September 30, 2025, the minimum regulatory BIS capital ratio is 12.5%, which is the standard for applying capital conservation buffer (2.5%p), D-SIB capital (1.0%p), and countercyclical capital buffer (1.0%p).

Basel III capital ratio is the concept of 'International Agreement on the Measurement and Standards of Equity Capital' of the Basel Bank Supervisory Commission of BIS (International Settlement Bank). It is calculated as '(common stock capital (after deduction of deductions) + other basic capital + supplementary capital) ÷ risk weighted assets'.

The capital of common stock can be the first to make up for the loss of the financial holding company. The capital of common stock consists of capital stock, capital reserve, retained earnings and others, which will not be redeemed until the liquidation and will be redeemed at the last during the liquidation. Other basic capital consists of capital securities of a permanent nature that meet certain requirements. Complementary capital is capital that can compensate for losses of financial holding companies during liquidation, and consists of capital securities, etc. that meet certain requirements. The deduction items are those held by the Group as assets or capital items, but do not contribute to the ability to absorb losses. Unless otherwise noted, it will be deducted from common stock capital.

As of September 30, 2025, 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 forwarding 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Level 1 Level 2 Level 3 Total
Financial assets:
Due from banks measured at FVTPL W - 39,196 - 39,196
Loans at FVTPL - 883,572 964,203 1,847,775
Securities at FVTPL:
Debt securities 13,601,447 39,684,962 17,054,967 70,341,376
Equity securities 2,406,949 352,159 1,487,681 4,246,789
Gold/silver deposits 970,009 - - 970,009
16,978,405 40,037,121 18,542,648 75,558,174
Derivative assets:
Trading 40,646 4,566,983 656,567 5,264,196
Hedging - 540,425 - 540,425
40,646 5,107,408 656,567 5,804,621
Securities measured at FVOCI:
Debt securities 35,782,137 62,162,857 9,140 97,954,134
Equity securities 963,231 - 871,565 1,834,796
36,745,368 62,162,857 880,705 99,788,930
W 53,764,419 108,230,154 21,044,123 183,038,696
Financial liabilities:
Financial liabilities measured at FVTPL:
Debt securities W 702,618 - - 702,618
Gold/silver deposits 1,083,119 - - 1,083,119
1,785,737 - - 1,785,737
Financial liabilities designated at FVTPL
Derivatives-linked securities sold - 267,525 6,229,589 6,497,114
Debt securities issued - 301,296 - 301,296
- 568,821 6,229,589 6,798,410
Derivative liabilities:
Trading 27,086 4,214,131 269,913 4,511,130
Hedging - 655,150 134,967 790,117
27,086 4,869,281 404,880 5,301,247
W 1,812,823 5,438,102 6,634,469 13,885,394

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Level 1 Level 2 Level 3 Total
Financial assets:
Due from banks measured at FVTPL W - 35,450 - 35,450
Loans at FVTPL - 745,412 1,134,534 1,879,946
Securities at FVTPL:
Debt securities 11,870,768 39,052,189 16,082,867 67,005,824
Equity securities 1,618,125 64,277 1,414,926 3,097,328
Gold/silver deposits 128,297 - - 128,297
13,617,190 39,116,466 17,497,793 70,231,449
Derivative assets:
Trading 85,439 8,772,280 719,177 9,576,896
Hedging - 702,361 - 702,361
85,439 9,474,641 719,177 10,279,257
Securities measured at FVOCI:
Debt securities 35,984,894 56,031,316 - 92,016,210
Equity securities 866,968 - 922,191 1,789,159
36,851,862 56,031,316 922,191 93,805,369
W 50,554,491 105,403,285 20,273,695 176,231,471
Financial liabilities:
Financial liabilities measured at FVTPL:
Debt securities W 357,841 - - 357,841
Gold/silver deposits 597,058 - - 597,058
954,899 - - 954,899
Financial liabilities designated at FVTPL
Derivatives-linked securities sold - 819,919 7,139,257 7,959,176
Debt securities issued - 261,299 - 261,299
- 1,081,218 7,139,257 8,220,475
Derivative liabilities:
Trading 22,721 8,476,885 536,855 9,036,461
Hedging - 814,374 207,697 1,022,071
22,721 9,291,259 744,552 10,058,532
W 977,620 10,372,477 7,883,809 19,233,906

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 provided by external, independent, and qualified appraisers or the value from internal valuation models to determine the fair value of the Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows:

September 30, 2025
Financial<br>asset<br>at FVTPL Securities<br>at FVOCI Financial liabilities designated at FVTPL Held for trading Held for hedging
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) (100,391) - (190,059) 104,519 176,614 - 54,857
Recognized in other comprehensive income (loss) for the year (295) 11,127 (2,525) - - - -
(100,686) 11,127 (192,584) 104,519 176,614 - 54,857
Purchase 4,131,536 139 - 84,850 (23,955) - (13,580)
Issue - - (4,026,873) - - - -
Settlement (3,158,085) (61,892) 5,129,125 (251,994) 114,283 - 31,453
Transfer to level3 (*2) 62,201 9,140 - 17 - - -
Transfer out of level3 (*2) (60,442) - - (2) - - -
Ending balance W 19,506,851 880,705 (6,229,589) 656,567 (269,913) - (134,967)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

(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 provided by external, independent, and qualified appraisers or the value from internal valuation models to determine the fair value of the Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Financial<br>asset<br>at FVTPL Securities<br>at FVOCI Financial liabilities designated at FVTPL Held for trading Held for hedging
Derivative assets Derivative liabilities Derivative assets Derivative liabilities
Beginning balance W 17,327,888 949,183 (6,725,252) 632,213 (783,587) - (224,195)
Recognized in total comprehensive income for the year:
Recognized in profit (loss) for the period (*1) 355,895 - (74,680) 64,091 (307,946) - 16,498
Recognized in other comprehensive income (loss) for the year 3,287 (77,241) (8,614) - - - -
359,182 (77,241) (83,294) 64,091 (307,946) - 16,498
Purchase 7,120,860 55,431 - 1,318,715 (11,529) - -
Issue - - (7,993,276) - - - -
Settlement (5,798,938) (5,153) 7,662,565 (1,299,773) 566,207 - -
Transfer to level3 (*2) 17,407 - - 3,931 - - -
Transfer out of level3 (*2) (394,072) (29) - - - - -
Ending balance W 18,632,327 922,191 (7,139,257) 719,177 (536,855) - (207,697)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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)

(*1) Recognized profit or loss of the changes in carrying amount of financial instruments classified as Level 3 for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are included in the accounts of the consolidated statements of comprehensive income, of which the amounts and the related accounts are as follows:

September 30, 2025
Amounts recognized in profit or loss Recognized profit or loss from the financial instruments held as of<br><br>September 30
Net gain on financial assets at FVTPL W 180,742 216,840
Net loss on financial liabilities designated at FVTPL (190,059) (83,140)
Net other operating income 54,857 62,712
W 45,540 196,412
December 31, 2024
--- --- --- ---
Amounts recognized in profit or loss Recognized profit or loss from the financial instruments held as of December 31
Net loss on financial assets at FVTPL W 112,040 443,935
Net gain on financial liabilities designated at FVTPL (74,680) 102,961
Net other operating expenses 16,498 16,497
W 53,858 563,393

(*2) A transfer between levels occurred due to a change in the availability of observable market data for the financial instrument. The Group recognizes transfers between levels at the end of the reporting period in which the event or change in circumstances that caused the transfer occurred.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:
September 30, 2025
Type of financial instrument Valuation technique Carrying<br><br>value Significant inputs
Assets
Financial assets at FVTPL
Debt securities DCF, NAV,<br><br>Option model (*) W 40,607,730 Discount rate, interest rate, stock price, etc.
Equity securities NAV,<br><br>Option model (*) 352,159 Price of underlying assets such as stocks, bonds, etc.
40,959,889
Derivative assets
Trading Option model (*), Implied forward interest rate,<br><br>DCF 4,566,983 Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging 540,425
5,107,408
Securities at FVTPL
Debt securities DCF,<br><br>Option model (*) 62,162,857 Discount rate, interest rate, etc.
W 108,230,154
Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold Option model (*), NAV 267,525 Underlying asset price
Debt securities issued W 301,296 Discount rate, volatility
568,821
Derivative liabilities
Trading Option model (*),<br><br>Implied forward interest rate,<br><br>DCF 4,214,131 Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging 655,150
4,869,281
W 5,438,102

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):
December 31, 2024
Type of financial instrument Valuation technique Carrying<br><br>value Significant inputs
Assets
Financial assets at FVTPL
Debt securities DCF, NAV,<br><br>Option model (*) W 39,833,051 Discount rate, interest rate, stock price and etc.
Equity securities NAV 64,277 Price of underlying assets such as stocks, bonds, etc.
39,897,328
Derivative assets
Trading Option model (*), Implied forward interest rate,<br><br>DCF 8,772,280 Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging 702,361
9,474,641
Securities at FVTPL
Debt securities DCF,<br><br>Option model (*) 56,031,316 Discount rate, interest rate, etc.
W 105,403,285
Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold Option model (*), NAV 819,919 Underlying asset price
Debt securities issued W 261,299 Discount rate, volatility
1,081,218
Derivative liabilities
Trading Option model (*),<br><br>Implied forward interest rate,<br><br>DCF 8,476,885 Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging 814,374
9,291,259
W 10,372,477

(*) Option models applied to measure fair value include the Black-Scholes model and 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:
September 30, 2025
Type of financial instrument Valuation technique Carrying<br><br>value (*2) Significant unobservable inputs Range
Financial assets
Financial assets at FVTPL
Debt securities DCF, NAV, Option model (*1), Income approach W 18,019,170 The volatility of the underlying asset,<br><br>Discount rate,<br><br>Correlations,<br><br>Growth rate,<br><br>Interest rate volatility,<br><br>Liquidation value 0.48~68.19%<br><br>3.87~12.98%<br><br>31.11~69.16%<br><br>0.00%<br><br>0.45~0.59%<br><br>0.00
Equity securities DCF, NAV, Option model (*1),<br><br>Comparable company analysis, Comparable Transaction Price,<br><br>DDM, Cost method 1,487,681 The volatility of the underlying asset,<br><br>Discount rate,<br><br>Growth rate,<br><br>Interest rate volatility,<br><br>Liquidation value 28.23~39.93%<br><br>2.53~45.00%<br><br>0.00%<br><br>0.45~0.59%<br><br>0.00
19,506,851
Derivative assets
Equity and foreign exchange related Option model (*1) 78,624 The volatility of the underlying asset and<br><br>Correlations 13.26~31.64%<br><br>30.33~73.24%
Interest rates related 79,617 The volatility of the underlying asset and<br><br>Correlations 0.48~1.57%<br><br>-70.00~61.85%
Credit and commodity related 498,326 The volatility of the underlying asset, Correlations<br><br>and Hazard Rate 31.68~32.11%<br><br>99.47~99.77%<br><br>0.04~9.51%
656,567
Securities at FVOCI
Debt securities Option model (*1) 9,140 Discount rate, and<br><br>Interest rate volatility 6.23%<br><br>7.92%
Equity securities DCF, NAV, Option model (*1),<br><br>Comparable company analysis 871,565 The volatility of the underlying asset, Discount rate,<br><br>Growth rate,<br><br>Interest rate volatility,<br><br>Liquidation value 24.72%<br><br>4.23~16.50%<br><br>-1.00~1.00%<br><br>0.45~0.59%<br><br>0.00
880,705
W 21,044,123

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:
September 30, 2025
Type of financial instrument Valuation technique Carrying<br><br>value (*2) Significant unobservable inputs Range (%)
Financial liabilities
Financial liabilities designated at FVTPL
Equity related Option model (*1) W 6,229,589 The volatility of the underlying asset and<br><br>Correlations 0.48~61.32%<br><br>-70.00~82.07%
Derivative liabilities
Equity and foreign<br><br>exchange related Option model (*1) 36,426 The volatility of the underlying asset and<br><br>Correlations 8.20~61.32%<br><br>17.07~82.07%
Interest rates related 286,903 The volatility of the underlying asset,<br><br>Regression coefficient and<br><br>Correlations 0.48~1.57%<br><br>0.29~1.82%<br><br>-70.00~90.34%
Credit and commodity<br><br>related 81,551 The volatility of the underlying asset, Correlations<br><br>and Hazard Rate 0.67~32.11%<br><br>-70.00~99.77%<br><br>0.11~9.51%
404,880
W 6,634,469

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:
December 31, 2024
Type of financial instrument Valuation technique Carrying<br><br>Value (*2) Significant unobservable inputs Range
Financial assets
Financial assets at FVTPL
Debt securities, loans DCF, NAV, Option model (*1), Income approach W 17,217,401 The volatility of the underlying asset,<br><br>Discount rate,<br><br>Correlations<br><br>Growth rate,<br><br>and Liquidation Value 0.56~81.72%<br><br>2.74~11.07%<br><br>4.74~82.57%<br><br>0.00%<br><br>0.00%
Equity securities DCF, NAV, Option model (*1),<br><br>Comparable company analysis, Comparable Transaction Price, Dividend discount model (DDM),<br><br>Cost method 1,414,926 The volatility of the underlying asset,<br><br>Discount rate,<br><br>Growth rate<br><br>And Interest rate volatility 25.58~53.67%<br><br>3.60~15.44%<br><br>0.00%<br><br>0.46~0.73%
18,632,327
Derivative assets
Equity and foreign exchange related Option model (*1) 125,445 The volatility of the underlying asset and<br><br>Correlations 10.35~41.28%<br><br>41.60~73.24%
Interest rates related 85,141 The volatility of the underlying asset and<br><br>Correlations 0.46~0.66%<br><br>-38.28~69.59%
Credit and commodity related 508,591 The volatility of the underlying asset, Correlations<br><br>and Hazard Rate 30.92~31.36%<br><br>99.88~99.96%<br><br>0.16~8.90%
719,177
Securities at FVOCI
Equity securities DCF, NAV, Option model (*1),<br><br>Comparable company analysis 922,191 The volatility of the underlying asset, Discount rate,<br><br>Growth rate and<br><br>Interest rate volatility 22.95%<br><br>4.75~14.03%<br><br>-1.00~1.00%<br><br>0.41~67.91%
W 20,273,695

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:
December 31, 2024
Type of financial instrument Valuation technique Carrying<br><br>Value (*2) Significant unobservable inputs Range
Financial liabilities
Financial liabilities designated at FVTPL
Equity related Option model (*1) W 7,139,257 The volatility of the underlying asset and<br><br>Correlations 0.46~57.68%<br><br>-46.56~83.10%
Derivative liabilities
Equity and foreign<br><br>exchange related Option model (*1) 181,858 The volatility of the underlying asset and<br><br>Correlations 7.86~57.68%<br><br>-46.56~83.10%
Interest rates related 428,049 The volatility of the underlying asset,<br><br>Regression coefficient and<br><br>Correlations 0.46~1.09%<br><br>0.00~2.32%<br><br>-38.28~90.34%
Credit and commodity<br><br>related 134,645 The volatility of the underlying asset, Correlations<br><br>and Hazard Rate 6.98%<br><br>0.00%<br><br>0.29~6.05%
744,552
W 7,883,809

(*1) The option pricing models used by the Group for valuation purposes include the Black-Scholes model, the Hull-White model, and Monte Carlo simulation, among others.

(*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 Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024.

September 30, 2025
Favorable<br><br>changes Unfavorable<br><br>changes
Financial assets:
Effects on profit or loss for the period (*1), (*2):
Financial assets at FVTPL W 42,253 (38,776)
Derivative assets 13,972 (13,207)
Securities at FVOCI (*2) 62,930 (39,388)
W 119,155 (91,371)
Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL W 14,793 (15,163)
Derivative liabilities 10,629 (10,951)
W 25,422 (26,114)
December 31, 2024
--- --- --- ---
Favorable<br><br>changes Unfavorable<br><br>changes
Financial assets:
Effects on profit or loss for the period (*1), (*2):
Financial assets at FVTPL W 38,489 (33,351)
Derivative assets 14,813 (14,777)
Securities at FVOCI (*2) 74,482 (49,291)
W 127,784 (97,419)
Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL W 19,782 (20,339)
Derivative liabilities 25,420 (21,955)
W 45,202 (42,294)

(*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 a significant unobservable inputs, from -1%p to 1%p.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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<br><br>due from banks The carrying amount and the fair value for cash are identical and most of deposits are floating interest rate deposits or overnight deposits of a short-term instrument. 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 book value of retirement pension contract reserves as prescribed by the Insurance Business Act and Insurance Business Supervision Regulations was used as a proxy for fair value because of the difficulty of calculating reliable expected cash flows.
Other financial assets and<br><br>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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Carrying amount Fair value Carrying amount Fair value
Assets:
Deposits measured at amortized cost (*) W 44,517,620 44,470,188 38,228,750 38,159,135
Loans measured at amortized cost 458,895,705 462,406,567 449,295,238 452,724,752
Securities measured at amortized cost:
Government bonds 22,626,604 22,531,714 21,808,057 21,625,666
Financial institution bonds 2,170,303 2,193,127 3,787,661 3,828,599
Corporation bonds 6,875,990 6,885,499 7,720,281 7,694,086
31,672,897 31,610,340 33,315,999 33,148,351
Other financial assets 44,587,090 44,940,600 23,116,960 23,469,322
W 579,673,312 583,427,695 543,956,947 547,501,560
Liabilities:
Deposit liabilities:
Demand deposits W 168,318,205 168,318,205 160,031,759 160,031,759
Time deposits 237,268,228 237,576,719 236,527,490 236,878,216
Certificate of deposits 13,148,812 13,158,437 10,409,701 10,481,318
Issued bill deposits 8,746,396 8,745,634 7,624,787 7,624,245
CMA deposits 5,345,327 5,345,327 4,451,561 4,451,561
Others 5,053,385 5,053,449 3,735,747 3,735,726
437,880,353 438,197,771 422,781,045 423,202,825
Borrowing debts:
Call-money 1,392,431 1,392,431 1,197,823 1,197,823
Bills sold 11,039 10,984 8,872 8,831
Bonds sold under repurchase agreements 12,759,946 12,759,946 11,542,956 11,542,956
Borrowings 37,800,630 37,879,463 37,170,722 37,236,104
51,964,046 52,042,824 49,920,373 49,985,714
Debt securities issued:
Borrowings in Korean won 73,555,435 73,829,002 75,106,885 75,610,971
Borrowings in foreign currency 18,130,747 18,318,417 18,658,969 18,759,433
91,686,182 92,147,419 93,765,854 94,370,404
Investment contract liabilities 772,528 772,528 1,165,022 1,165,022
Other financial liabilities 70,027,234 69,986,071 39,472,400 39,429,575
W 652,330,343 653,146,613 607,104,694 608,153,540

(*) Cash is not included.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Level 1 Level 2 Level 3 Total
Assets:
Deposits measured at amortized cost (*) W 597,006 43,873,182 - 44,470,188
Loans measured at amortized cost - 1,049,341 461,357,226 462,406,567
Securities measured at amortized cost:
Government bonds 11,034,050 11,497,664 - 22,531,714
Financial institution bonds 80,697 2,112,430 - 2,193,127
Corporation bonds - 6,885,499 - 6,885,499
11,114,747 20,495,593 - 31,610,340
Other financial assets - 31,848,986 13,091,614 44,940,600
W 11,711,753 97,267,102 474,448,840 583,427,695
Liabilities:
Deposit liabilities:
Demand deposits W - 168,318,205 - 168,318,205
Time deposits - - 237,576,719 237,576,719
Certificate of deposit - - 13,158,437 13,158,437
Issued bill deposit - - 8,745,634 8,745,634
CMA deposits - 5,345,327 - 5,345,327
Other - 4,980,318 73,131 5,053,449
- 178,643,850 259,553,921 438,197,771
Borrowing debts:
Call-money - 1,392,431 - 1,392,431
Bills sold - - 10,984 10,984
Bonds sold under repurchase agreements - - 12,759,946 12,759,946
Borrowings - 9,914 37,869,549 37,879,463
- 1,402,345 50,640,479 52,042,824
Debt securities issued:
Borrowings in won - 40,321,655 33,507,347 73,829,002
Borrowings in foreign currency - 12,070,539 6,247,878 18,318,417
- 52,392,194 39,755,225 92,147,419
Investment contract liabilities - - 772,528 772,528
Other financial liabilities - 35,348,611 34,637,460 69,986,071
W - 267,787,000 385,359,613 653,146,613

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Level 1 Level 2 Level 3 Total
Assets:
Deposits measured at amortized cost (*) W 537,760 37,621,375 - 38,159,135
Loans measured at amortized cost - 965,455 451,759,297 452,724,752
Securities measured at amortized cost:
Government bonds 11,292,066 10,333,600 - 21,625,666
Financial institution bonds 331,421 3,497,178 - 3,828,599
Corporation bonds - 7,694,086 - 7,694,086
11,623,487 21,524,864 - 33,148,351
Other financial assets - 13,474,763 9,994,559 23,469,322
W 12,161,247 73,586,457 461,753,856 547,501,560
Liabilities:
Deposit liabilities:
Demand deposits W - 160,031,759 - 160,031,759
Time deposits - - 236,878,216 236,878,216
Certificate of deposit - - 10,481,318 10,481,318
Issued bill deposit - - 7,624,245 7,624,245
CMA deposits - 4,451,561 - 4,451,561
Other - 3,694,921 40,805 3,735,726
- 168,178,241 255,024,584 423,202,825
Borrowing debts:
Call-money - 1,197,823 - 1,197,823
Bills sold - - 8,831 8,831
Bonds sold under repurchase agreements - - 11,542,956 11,542,956
Borrowings - 19,922 37,216,182 37,236,104
- 1,217,745 48,767,969 49,985,714
Debt securities issued:
Borrowings in won - 43,460,315 32,150,656 75,610,971
Borrowings in foreign currency - 12,899,498 5,859,935 18,759,433
- 56,359,813 38,010,591 94,370,404
Investment contract liabilities - - 1,165,022 1,165,022
Other financial liabilities - 10,428,026 29,001,549 39,429,575
W - 236,183,825 371,969,715 608,153,540

(*) Cash is not included.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 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 - - 47,218,057 - 47,218,057
Due from banks at FVTPL 39,196 - - - 39,196
Securities at FVTPL 75,558,174 - - - 75,558,174
Derivatives assets 5,264,196 - - 540,425 5,804,621
Loans at FVTPL 1,847,775 - - - 1,847,775
Loans at amortized cost - - 458,895,705 - 458,895,705
Securities at FVOCI - 99,788,930 - - 99,788,930
Securities at amortized cost - - 31,672,897 - 31,672,897
Others - - 44,587,090 - 44,587,090
W 82,709,341 99,788,930 582,373,749 540,425 765,412,445

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

September 30, 2025
Financial liabilities<br><br>at FVTPL Financial liabilities designated at FVTPL Financial liabilities at amortized cost Derivatives held for hedging Total
Liabilities:
Deposits W - - 437,880,353 - 437,880,353
Financial liabilities at FVTPL 1,785,737 - - - 1,785,737
Financial liabilities designated at FVTPL - 6,798,410 - - 6,798,410
Derivatives liabilities 4,511,131 - - 790,116 5,301,247
Borrowings - - 51,964,046 - 51,964,046
Debt securities issued - - 91,686,182 - 91,686,182
Investment contract liabilities - - 772,528 - 772,528
Others - - 70,027,234 - 70,027,234
W 6,296,868 6,798,410 652,330,343 790,116 666,215,737

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
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 - - 40,525,712 - 40,525,712
Due from banks at FVTPL 35,450 - - - 35,450
Securities at FVTPL 70,231,449 - - - 70,231,449
Derivatives assets 9,576,896 - - 702,361 10,279,257
Loans at FVTPL 1,879,946 - - - 1,879,946
Loans at amortized cost - - 449,295,238 - 449,295,238
Securities at FVOCI - 93,805,369 - - 93,805,369
Securities at amortized cost - - 33,315,999 - 33,315,999
Others - - 23,116,960 - 23,116,960
W 81,723,741 93,805,369 546,253,909 702,361 722,485,380

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Financial liabilities<br><br>at FVTPL Financial liabilities designated at FVTPL Financial liabilities at amortized cost Derivatives held for hedging Total
Liabilities:
Deposits W - - 422,781,045 - 422,781,045
Financial liabilities at FVTPL 954,899 - - - 954,899
Financial liabilities designated at FVTPL - 8,220,475 - - 8,220,475
Derivatives liabilities 9,036,461 - - 1,022,071 10,058,532
Borrowings - - 49,920,373 - 49,920,373
Debt securities issued - - 93,765,854 - 93,765,854
Investment contract liabilities - - 1,165,022 - 1,165,022
Others - - 39,472,400 - 39,472,400
W 9,991,360 8,220,475 607,104,694 1,022,071 626,338,600

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Changes in subsidiaries

(a) There are no major subsidiaries included in or excluded from the consolidated financial statements during the nine-month period ended September 30, 2025.

(b) The major subsidiaries that were excluded from the consolidated financial statements during the year ended December 31, 2024 are as follows:

Company Description
Excluded Shinhan AI Co., Ltd. Liquidation
PT Shinhan Asset Management Indonesia Disposal
SHINHAN ASSET MGT HK, LIMITED Liquidation

(*) Subsidiaries such as trust, beneficiary certificate, corporate restructuring fund and private equity fund which are not actually operating their own business are excluded.

  1. Operating segments

(a) Segment information

The general descriptions by operating segments as of September 30, 2025 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 accompanying work
Securities Securities trading, consignment trading, underwriting and its accompanying work
Insurance Life insurance business, decapitalize 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 businesses

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Operating segments (continued)

(b) The operating profit and net income for the nine-month periods ended September 30, 2025 and 2024, by operating segment, are as follows:

September 30, 2025
Banking Credit card Securities Insurance Credit Others Consolidation adjustment Total
Net interest income (expense) W 6,894,788 1,457,627 425,394 (106,919) 76,892 60,028 (141,417) 8,666,393
Net fees and commission income (expense) 821,759 591,355 483,915 (5,108) 18,023 277,529 20,708 2,208,181
Provision for credit loss allowance (547,992) (669,580) (74,462) (1,100) (136,189) (57,877) (903) (1,488,103)
General and administrative expenses (2,851,995) (662,365) (579,537) (138,142) (48,124) (318,261) 180,144 (4,418,280)
Other operating income (expense) (20,104) (119,885) 207,314 925,090 156,817 153,104 (357,433) 944,903
Operating income (expense) 4,296,456 597,152 462,624 673,821 67,419 114,523 (298,901) 5,913,094
Equity method income (expense) (97) (2,835) 40,864 (1,715) 50,644 676 48,793 136,330
Income tax expense (benefit) 1,034,308 142,975 120,151 172,796 24,852 (1,776) (11,471) 1,481,835
Profit (loss) for the period W 3,288,389 463,921 359,357 487,294 91,972 118,669 (263,132) 4,546,470
Controlling interest W 3,287,795 460,935 359,364 487,294 91,972 118,669 (345,086) 4,460,943
Non-controlling interests 594 2,986 (7) - - - 81,954 85,527
September 30, 2024
--- --- --- --- --- --- --- --- --- --- ---
Banking Credit card Securities Insurance Credit Others Consolidation adjustment Total
Net interest income (expense) W 6,718,577 1,440,420 415,663 (107,278) 115,616 69,889 (160,187) 8,492,700
Net fees and commission income (expense) 666,694 736,181 417,337 (2,759) 15,373 257,926 19,124 2,109,876
Provision for credit loss allowance (346,522) (618,291) (53,837) (5,522) (81,740) (293,579) (248) (1,399,739)
General and administrative expenses (2,770,152) (618,989) (578,742) (146,838) (45,866) (328,732) 156,224 (4,333,095)
Other operating income (expense) (108,779) (135,946) 174,165 892,679 161,038 373,831 (436,054) 920,934
Operating income (expense) 4,159,818 803,375 374,586 630,282 164,421 79,335 (421,141) 5,790,676
Equity method income (expense) 11,322 (4,072) (8,529) (180) 29,834 2,332 (53,506) (22,799)
Income tax expense (benefit) 873,949 188,780 73,199 172,626 39,431 20,988 (65,925) 1,303,048
Profit (loss) for the period W 3,039,218 628,482 248,838 453,117 152,626 (39,126) (358,891) 4,124,264
Controlling interest W 3,038,758 626,129 248,833 453,117 152,626 (39,126) (436,258) 4,044,079
Non-controlling interests 460 2,353 5 - - - 77,367 80,185

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Operating segments (continued)

(c) Interest gains and losses from external customers by segment and cross-sector interest gains and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025
Banking Credit card Securities Insurance Credit Others Consolidation adjustment (*) Total
Net interest income<br><br>from:
External customers (*) W 6,893,808 1,496,300 440,502 (102,549) 90,289 3,882 (155,839) 8,666,393
Internal transactions 980 (38,673) (15,108) (4,370) (13,397) 56,146 14,422 -
W 6,894,788 1,457,627 425,394 (106,919) 76,892 60,028 (141,417) 8,666,393
September 30, 2024
--- --- --- --- --- --- --- --- --- ---
Banking Credit card Securities Insurance Credit Others Consolidation adjustment (*) Total
Net interest income<br><br>from:
External customers (*) W 6,718,504 1,487,536 429,019 (108,503) 136,012 885 (170,753) 8,492,700
Internal transactions 73 (47,116) (13,356) 1,225 (20,396) 69,004 10,566 -
W 6,718,577 1,440,420 415,663 (107,278) 115,616 69,889 (160,187) 8,492,700

(*) Consolidated adjustment to net interest income(expense) from external customers is from the securities and others which were measured at fair values as a part of business combination accounting.

(d) The following tables provide information of net fees and commission income (expense) of each operating segment for the nine-month periods ended September 30, 2025 and 2024.

September 30, 2025
Banking Credit card Securities Insurance Credit Others Consolidation adjustment Total
Net fees and<br><br>commission<br><br>income (loss) from:
External customers W 852,888 630,969 488,632 2,263 17,391 216,038 - 2,208,181
Internal transactions (31,129) (39,614) (4,717) (7,371) 632 61,491 20,708 -
W 821,759 591,355 483,915 (5,108) 18,023 277,529 20,708 2,208,181
September 30, 2024
--- --- --- --- --- --- --- --- --- ---
Banking Credit card Securities Insurance Credit Others Consolidation adjustment Total
Net fees and<br><br>commission<br><br>income (loss) from:
External customers W 698,506 774,610 421,635 2,905 14,189 198,031 - 2,109,876
Internal transactions (31,812) (38,429) (4,298) (5,664) 1,184 59,895 19,124 -
W 666,694 736,181 417,337 (2,759) 15,373 257,926 19,124 2,109,876

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Cash and due from banks at amortized cost

(a) Restricted due from banks in accordance with Related Regulations or Acts as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024 Related Regulations or Acts
Deposits denominated in Korean won:
Reserve deposits W 20,590,753 11,594,266 Article 55 of the Bank of Korea Act
Other 1,429,091 1,978,415 Article 74 of the Capital Markets and Financial Investment Business Act, etc.
22,019,844 13,572,681
Deposits denominated in foreign currency 4,107,859 11,046,189 Articles of the Bank of Korea Act,<br><br>New York State Banking Act, derivatives related, etc.
W 26,127,703 24,618,870

(b) The details of early redemptions of due from banks at amortized cost for the nine-month period ended September 30, 2025 are as follows:

September 30, 2025
Carrying amount (*1) Gain (loss) on redemption (*2)
Installment savings deposits W 137,975 1,639

(*1) The carrying amount includes accrued interest of W 62,550 million.

(*2) The installment savings deposits were redeemed early upon the issuer’s request.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Debt instruments:
Governments W 9,671,179 8,983,699
Financial institutions 8,952,290 11,127,785
Corporations 14,217,149 12,579,941
Stocks with put option 634,990 691,684
Equity investment with put option 5,712,515 5,483,075
Beneficiary certificates 16,421,757 14,414,681
Commercial papers 7,671,068 9,270,928
CMA 3,727,049 1,613,961
Others (*) 3,333,379 2,840,070
70,341,376 67,005,824
Equity instruments:
Stocks 3,833,417 2,954,653
Equity investment 4,791 6,680
Others 408,581 135,995
4,246,789 3,097,328
Gold/silver deposits 970,009 128,297
W 75,558,174 70,231,449
Other:
Loans at FVTPL W 1,847,775 1,879,946
Due from banks at FVTPL 39,196 35,450
W 77,445,145 72,146,845

(*) As of September 30, 2025 and December 31, 2024, restricted reserve for claims of customers’ deposits (trusts) are W 2,717,945 million and W 1,731,224 million, respectively.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Derivatives

(a) The notional amounts of derivatives outstanding as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Foreign currency related:
Over the counter:
Currency forwards W 185,340,361 167,805,176
Currency swaps 64,288,420 59,641,567
Currency options 2,648,021 2,182,530
252,276,802 229,629,273
Exchange traded:
Currency futures 1,857,041 1,534,764
254,133,843 231,164,037
Interest rates related:
Over the counter:
Interest rate forwards and swaps 61,645,819 57,169,341
Interest rate options 926,000 825,057
62,571,819 57,994,398
Exchange traded:
Interest rate futures 5,227,804 4,875,687
Interest rate swaps (*) 155,158,957 142,194,805
160,386,761 147,070,492
222,958,580 205,064,890
Credit related:
Over the counter:
Credit swaps 4,685,822 4,231,106
Total return swaps 785,189 809,987
5,471,011 5,041,093
Equity related:
Over the counter:
Equity swaps and forwards 3,873,003 5,975,657
Equity options 1,748,033 2,923,962
5,621,036 8,899,619
Exchange traded:
Equity futures 1,167,806 1,600,342
Equity options 539,121 452,322
1,706,927 2,052,664
7,327,963 10,952,283
Commodity related:
Over the counter:
Commodity swaps and forwards 2,375,174 2,121,686
Exchange traded:
Commodity futures and options 136,612 172,899
2,511,786 2,294,585
Hedge:
Currency forwards 2,262,539 4,345,149
Currency swaps 8,896,165 7,993,851
Interest rate forwards and swaps 13,138,717 13,219,417
Equity options 11,750 18,750
24,309,171 25,577,167
W 516,712,354 480,094,055

(*) The notional amounts of derivatives outstanding 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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Derivatives (continued)

(b) Fair values of derivative instruments as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Assets Liabilities Assets Liabilities
Foreign currency related:
Over the counter:
Currency forwards W 2,593,525 1,776,091 5,731,971 3,887,398
Currency swaps 1,392,995 1,801,739 2,299,084 3,823,249
Currency options 3,162 8,010 24,230 25,700
3,989,682 3,585,840 8,055,285 7,736,347
Exchange traded:
Currency futures 368 268 1,527 828
3,990,050 3,586,108 8,056,812 7,737,175
Interest rates related:
Over the counter:
Interest rate forwards and swaps 637,915 721,737 734,284 859,402
Interest rate options - 30,159 1,157 28,907
637,915 751,896 735,441 888,309
Exchange traded:
Interest rate futures 1,178 1,215 2,929 675
639,093 753,111 738,370 888,984
Credit related:
Over the counter:
Credit swaps 34,827 6,968 40,325 5,208
Total return swaps 460,663 6,902 467,352 4,556
495,490 13,870 507,677 9,764
Equity related:
Over the counter:
Equity swap and forwards 92,104 47,678 96,841 137,399
Equity options 4,243 17,077 95,173 112,088
96,347 64,755 192,014 249,487
Exchange traded:
Equity futures 4,366 11,004 1,228 13,302
Equity options 28,548 12,909 66,177 4,274
32,914 23,913 67,405 17,576
129,261 88,668 259,419 267,063
Commodity related:
Over the counter:
Commodity swaps and forwards 4,117 67,682 914 129,833
Exchange traded:
Commodity futures and options 6,185 1,691 13,704 3,642
10,302 69,373 14,618 133,475
Hedge:
Currency forwards 5,061 117,517 12,100 213,015
Currency swaps 396,851 227,553 539,015 181,413
Interest rate forwards and swaps 138,513 443,813 151,246 623,702
Equity options - 1,234 - 3,941
540,425 790,117 702,361 1,022,071
W 5,804,621 5,301,247 10,279,257 10,058,532

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Derivatives (continued)

(c) Gain or loss on valuation of derivatives for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Foreign currency related:
Over the counter:
Currency forwards W 814,544 (226,448) (591,632) 249,713
Currency swaps (809,992) 535,866 734,798 (72,587)
Currency options 6,398 4,695 64 2,478
10,950 314,113 143,230 179,604
Exchange traded:
Currency futures (4,368) 100 270 323
6,582 314,213 143,500 179,927
Interest rates related:
Over the counter:
Interest rate forwards and swaps 9,847 63,658 (34,994) 48,801
Interest rate options 4,738 1,890 436 473
14,585 65,548 (34,558) 49,274
Exchange traded:
Interest rate futures, etc. (359) (605) 324 (2,249)
14,226 64,943 (34,234) 47,025
Credit related:
Over the counter:
Credit swaps 714 (9,341) (2,352) (358)
Total return swaps (9,428) 9,182 23,108 31,655
(8,714) (159) 20,756 31,297
Equity related:
Over the counter:
Equity swap and forwards (74,704) 107,166 (45,559) (3,143)
Equity options 640 1,110 (97,488) (61,050)
(74,064) 108,276 (143,047) (64,193)
Exchange traded:
Equity futures (9,489) (6,441) 25,887 3,487
Equity options (8,006) (5,480) (4,185) (655)
(17,495) (11,921) 21,702 2,832
(91,559) 96,355 (121,345) (61,361)
Commodity related:
Over the counter:
Commodity swaps and forwards 26,187 60,313 37,609 28,045
Exchange traded:
Commodity futures and options 9,088 4,494 26,893 17,388
35,275 64,807 64,502 45,433
Hedge: (26,391) (25,089) 235,194 144,279
W (70,581) 515,070 308,373 386,600

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Derivatives (continued)

(d) The notional amounts and the average hedge ratios for hedging instruments as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Less than<br><br>1 year 1~2<br><br>years 2~3<br><br>years 3~4<br><br>years 4~5<br><br>years More than 5 years Total
Interest risk:
Nominal values: W 1,641,581 2,887,162 2,492,646 1,137,281 847,924 4,132,124 13,138,718
Average price condition (*1): 2.85% 4.08% 4.43% 4.33% 3.40% 3.36% 3.74%
Average hedge ratio: 100% 100% 100% 100% 100% 100% 100%
Exchange risk (*2):
Nominal values: 2,498,130 3,619,267 2,202,266 3,108,799 903,937 693,757 13,026,156
Average hedge ratio: 100% 100% 100% 100% 100% 100% 100%
Other price risk (*3):
Nominal values: - 11,750 - - - - 11,750
Average hedge ratio: - 100% - - - - 100%

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

(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,309.18, JPY/KRW 9.05, EUR/KRW 1,488.87, GBP/KRW 1,571.63, AUD/KRW 896.37, CAD/KRW 999.37, and SEK/KRW 131.64.

(*3) The equity option, which has an exercise price of W 324,027

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Derivatives (continued)

(d) The notional amounts and the average hedge ratios for hedging instruments as of September 30, 2025 and December 31, 2024 are as follows (continued):

December 31, 2024
Less than<br><br>1 year 1~2<br><br>years 2~3<br><br>years 3~4<br><br>years 4~5<br><br>years More than 5 years Total
Interest risk:
Nominal values: W 910,440 2,621,365 1,943,818 2,350,027 1,161,927 4,231,840 13,219,417
Average price condition (*1): 3.43% 3.07% 4.08% 4.82% 4.17% 3.60% 3.82%
Average hedge ratio: 100% 100% 100% 100% 100% 100% 100%
Exchange risk (*2):
Nominal values: 4,319,632 2,421,806 3,072,483 2,870,442 1,059,147 447,703 14,191,213
Average hedge ratio: 100% 100% 100% 100% 100% 100% 100%
Other price risk (*3):
Nominal values: - - 18,750 - - - 18,750
Average hedge ratio: - - 100% - - - 100%

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

(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,280.52, JPY/KRW 9.25, EUR/KRW 1,402.37, GBP/KRW 1,561.57, AUD/KRW 892.94, CAD/KRW 991.06, CNY/KRW 189.50, and SEK/KRW 127.54.

(*3) The equity option, which has an exercise price of W 324,027.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Securities at FVOCI:
Debt securities:
Government bonds W 42,528,389 42,463,118
Financial institutions bonds 32,759,189 25,983,405
Corporate bonds and others 22,666,556 23,569,687
97,954,134 92,016,210
Equity securities (*):
Stocks 1,719,301 1,594,019
Equity investments 750 4,367
Others 114,745 190,773
1,834,796 1,789,159
99,788,930 93,805,369
Securities at amortized cost:
Debt securities:
Government bonds 22,626,604 21,808,057
Financial institutions bonds 2,170,303 3,787,661
Corporate bonds and others 6,875,990 7,720,281
31,672,897 33,315,999
W 131,461,827 127,121,368

(*) The equity securities are designated as FVOCI since the Group exercised FVOCI option for these securities required to possess in accordance with certain regulations.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(b) Changes in carrying value of debt securities at fair value through other comprehensive income and securities at amortized cost for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Debt securities at FVOCI Debt securities at amortized cost
12-month expected<br><br>credit losses Lifetime expected<br><br>credit losses Total 12-month expected<br><br>credit losses Lifetime expected<br><br>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 (7,310) 7,310 - - - -
Net increase and decrease (*) 5,968,645 (30,721) 5,937,924 (1,640,261) (3,644) (1,643,905)
Ending balance W 97,922,063 32,071 97,954,134 31,682,282 - 31,682,282
December 31, 2024
--- --- --- --- --- --- --- ---
Debt securities at FVOCI Debt securities at amortized cost
12-month expected<br><br>credit losses Lifetime expected<br><br>credit losses Total 12-month expected<br><br>credit losses Lifetime expected<br><br>credit losses Total
Beginning balance W 88,545,051 91,949 88,637,000 35,690,387 7,523 35,697,910
Transfer (from) to 12-month expected credit losses 3,798 (3,798) - - - -
Transfer (from) to lifetime expected credit losses - - - - - -
Net increase and decrease (*) 3,406,603 (27,393) 3,379,210 (2,367,844) (3,879) (2,371,723)
Ending balance W 91,955,452 60,758 92,016,210 33,322,543 3,644 33,326,187

(*) Included the effects from changes in purchase, disposal, repayment, valuation, changes in foreign exchange rate and amortization of fair value adjustments recognized through business combination accountings and the others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(c) Changes in allowance for credit loss of debt securities at fair value through other comprehensive income and debt securities at amortized cost for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Debt securities at FVOCI Debt securities at amortized cost
12-months expected credit losses Lifetime expected credit losses Total 12-months 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 (8) 8 - - - -
Provision (Reversal) 5,918 74 5,992 (345) (47) (392)
Disposal and others (*) (3,779) (2) (3,781) (407) (4) (411)
Ending balance W 40,398 159 40,557 9,385 - 9,385
December 31, 2024
--- --- --- --- --- --- --- ---
Debt securities at FVOCI Debt securities at amortized cost
12-months expected credit losses Lifetime expected credit losses Total 12-months expected credit losses Lifetime expected credit losses Total
Beginning balance W 41,568 909 42,477 11,283 140 11,423
Transfer (from) to 12-month expected credit losses 14 (14) - - - -
Transfer (from) to lifetime expected credit losses - - - - - -
Provision (Reversal) (2,279) (420) (2,699) (1,515) (97) (1,612)
Disposal and others (*) (1,053) (379) (1,432) 369 8 377
Ending balance W 38,250 96 38,346 10,137 51 10,188

(*) Included the effects from changes in debt restructuring, debt-to-equity swaps, foreign exchange rate and the others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(d) Gain or loss on disposal of securities at fair value through other comprehensive income and securities at amortized cost for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-month Three-month Nine-month
Gain on disposal of securities at FVOCI W 80,814 268,108 94,543 167,161
Loss on disposal of securities at FVOCI (21,218) (62,506) (55,750) (101,088)
Gain on disposal of securities at amortized cost (*) 1 2 - -
Loss on disposal of securities at amortized cost (*) (7) (46) (23,133) (23,137)
W 59,590 205,558 15,660 42,936

(*) The reason for the disposal of securities at amortized cost is the exercise of the issuers’ exercise of early redemption options and others.

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

The Group recognized dividends, amounting to W 61,415 million and W 76,400 million, related to equity securities designated at fair value through other comprehensive income for the nine-month periods ended September 30, 2025 and 2024, respectively.

The details of disposal of equity securities designated at fair value through other comprehensive income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

Fair value at the date of disposal Cumulative net gain (loss) at the time of disposal
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Stocks (*) W 145,039 81,207 6,736 473
Contingent convertible bonds 1,687 - 11 -
W 146,726 81,207 6,747 473

(*) The reason for the disposal of stocks at fair value through other comprehensive income is the disposal of stocks acquired through debt-to-equity swaps, among others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Loans at amortized cost, etc.

(a) The composition of loans at amortized cost by customer as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Retail loans W 173,447,585 166,140,123
Corporate loans (*) 253,758,421 251,011,516
Public and other loans 4,628,833 5,253,071
Loans between banks 2,453,025 1,946,442
Credit card receivables 28,265,728 28,894,371
462,553,592 453,245,523
Discount (27,584) (29,923)
Deferred loan origination costs 728,322 645,569
463,254,330 453,861,169
Less: Allowance for credit loss (4,358,625) (4,565,931)
W 458,895,705 449,295,238

(*) Includes SOHO loans.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(b) Changes in carrying value of loans at amortized cost, etc. for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 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
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 17,468,007 (17,330,834) (137,173) 34,400 (33,001) (1,399) -
Transfer (from) to lifetime expected credit losses (23,226,239) 23,362,906 (136,667) (51,957) 52,541 (584) -
Transfer (from) to credit- impaired financial assets (1,116,725) (1,389,081) 2,505,806 (3,789) (13,843) 17,632 -
Net increase and decrease (*1) 14,553,958 (3,098,576) 665,310 27,798,329 (22,475) 28,261 39,924,807
Charge-off (*2) - - (1,409,029) - - (73,906) (1,482,935)
Disposal (10,000) (30,433) (1,278,069) - (984) (3,736) (1,323,222)
Ending balance W 391,747,753 67,574,093 3,932,484 89,265,928 217,490 183,426 552,921,174

(*1) The amount is due to executions, collections and restructuring of debts, debt-to-equity swaps, changes in exchange rate, etc.

(*2) The contractual uncollected amount (principal and interest) of loans that have been written off but are still subject to recovery activities as of September 30, 2025 is W 10,876,212 million.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(b) Changes in carrying value of loans at amortized cost, etc. for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
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
Beginning balance W 356,983,353 56,073,735 3,012,944 59,409,121 245,916 167,788 475,892,857
Transfer (from) to 12-months expected credit losses 11,871,293 (11,791,179) (80,114) 34,752 (34,626) (126) -
Transfer (from) to lifetime expected credit losses (21,881,980) 21,982,522 (100,542) (62,021) 62,091 (70) -
Transfer (from) to credit- impaired financial assets (922,912) (915,624) 1,838,536 (8,949) (21,143) 30,092 -
Net increase and decrease (*1) 38,062,146 903,773 1,925,720 2,116,517 (10,556) 205,387 43,202,987
Charge-off (*2) - - (1,536,101) - - (61,157) (1,597,258)
Disposal (33,148) (193,116) (1,338,137) (475) (6,430) (124,756) (1,696,062)
Ending balance W 384,078,752 66,060,111 3,722,306 61,488,945 235,252 217,158 515,802,524

(*1) The amount is due to executions, collections and restructuring of debts, debt-to-equity swaps, changes in exchange rate, etc.

(*2) The contractual uncollected amount (principal and interest) of loans that have been written off but are still subject to recovery activities as of December 31, 2024 is W 10,268,898 million.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(c) Changes in allowances for credit loss

Changes in allowance for credit loss of loans at amortized cost, etc. for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 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
Beginning balance 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 304,104 (275,699) (28,405) 937 (890) (47) -
Transfer (from) to lifetime expected credit losses (132,724) 169,807 (37,083) (831) 873 (42) -
Transfer (from) to credit- impaired financial assets (191,077) (383,654) 574,731 (203) (3,874) 4,077 -
Provision (reversal) (73,127) 444,000 1,140,181 7,172 (735) 49,628 1,567,119
Charge-off - - (1,409,029) - - (73,906) (1,482,935)
Amortization of discount - - (29,734) - - - (29,734)
Disposal - (1,519) (487,881) - (37) (3,366) (492,803)
Recovery of written-off loans - - 244,392 - - 1,960 246,352
Others (*) (15,151) (12,415) (7,023) (1,052) (9) (13,160) (48,810)
Ending balance W 1,162,325 1,472,271 1,724,029 400,507 10,080 151,554 4,920,766

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

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

(c) Changes in allowance for credit loss of loans at amortized cost, etc. for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as (continued):

December 31, 2024
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
Beginning balance W 1,275,974 1,672,926 1,381,570 332,951 15,650 137,968 4,817,039
Transfer (from) to 12-months expected credit losses 206,803 (201,876) (4,927) 1,262 (1,229) (33) -
Transfer (from) to lifetime expected credit losses (124,779) 158,247 (33,468) (5,414) 5,441 (27) -
Transfer (from) to credit- impaired financial assets (24,287) (110,430) 134,717 (178) (5,715) 5,893 -
Provision (reversal) (70,604) 22,354 1,910,263 175 629 112,858 1,975,675
Charge-off - - (1,536,101) - - (61,157) (1,597,258)
Amortization of discount - - (35,031) - - - (35,031)
Disposal (2,946) (19,609) (402,283) (1) (38) (15,028) (439,905)
Recovery of written-off loans - - 361,038 - - 3,292 364,330
Others (*) 10,139 10,139 (11,898) 65,689 14 2,644 76,727
Ending balance W 1,270,300 1,531,751 1,763,880 394,484 14,752 186,410 5,161,577

(*) Other changes are due to debt restructuring, debt-to-equity swaps and changes in foreign exchange rate, etc.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates

(a) Investments in associates as of September 30, 2025 and December 31, 2024 are as follows:

Investees Country Reporting<br><br>Date Ownership (%)
September 30,<br><br>2025 December 31, 2024
BNP Paribas Cardif Life Insurance (*1), (*7) Korea June 30, 2025 14.99 14.99
Shinhan-Neoplux Energy Newbiz Fund Korea September 30, 2025 31.66 31.66
Shinhan-Albatross tech investment Fund (*1) Korea August 31, 2025 50.00 50.00
VOGO Debt Strategy Qualified IV Private Korea September 30, 2025 20.00 20.00
Shinhan-Midas Donga Secondary Fund Korea September 30, 2025 50.00 50.00
ShinHan – Soo Young Entrepreneur Investment Fund No.1 Korea September 30, 2025 24.00 24.00
Shinhan Praxis K-Growth Global Private Equity Fund (*7) Korea September 30, 2025 14.15 14.15
Kiwoom Milestone Professional Private Real Estate Trust 19 Korea September 30, 2025 50.00 50.00
Shinhan Global Healthcare Fund 1 (*7) Korea September 30, 2025 3.13 3.13
KB NA Hickory Private Special Asset Fund (*5) Korea - - 37.50
Koramco Europe Core Private Placement Real Estate Fund No.2-2 Korea September 30, 2025 44.02 44.02
KTB Aircraft Specialized Private Investment Trust No. 16 Korea September 30, 2025 33.44 33.44
Shinhan-Nvestor Liquidity Solution Fund Korea September 30, 2025 24.92 24.92
Shinhan AIM FoF Fund 1-A Korea September 30, 2025 25.00 25.00
IGIS Global Credit Fund 150-1 Korea September 30, 2025 25.00 25.00
Genesis North America Power Company No.1 PEF Korea September 30, 2025 43.84 43.84
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 Korea September 30, 2025 23.33 23.33
KOREA FINANCE SECURITY CO., LTD. (*1), (*7) Korea June 30, 2025 14.91 14.91
MIEL CO., LTD. (*2) Korea December 31, 2024 28.77 28.77
AIP Transportation Specialized Privately Placed Fund Trust #1 Korea September 30, 2025 35.73 35.73
Kiwoom-Shinhan Innovation Fund I Korea September 30, 2025 50.00 50.00
Samchully Midstream Private Placement Special Asset Fund 5-4 Korea September 30, 2025 41.67 41.67
MK Ventures-K Clavis Growth Capital Venture Fund 1 Korea September 30, 2025 26.67 26.67
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 (*4) Korea September 30, 2025 60.00 60.00
Milestone Private Real Estate Fund 3 Korea September 30, 2025 32.06 32.06
Rifa Private Real Estate Investment Trust 31 Korea September 30, 2025 31.31 31.31
FuturePlay-Shinhan TechInnovation Fund 1 Korea September 30, 2025 50.00 50.00
Stonebridge Corporate 1st Fund (*5) Korea - - 44.12
Vogo Realty Partners Private Real Estate Fund V Korea September 30, 2025 21.64 21.64
Korea Credit Bureau (*1), (*7) Korea June 30, 2025 9.00 9.00
Goduck Gangil1 PFV Co., Ltd. (*1), (*7) Korea June 30, 2025 1.04 1.04
SBC PFV Co., Ltd. (*1), (*7), (*8) Korea June 30, 2025 25.00 25.00
NH-amundi global infra private fund 16 Korea September 30, 2025 49.75 50.00
SH BNCT Professional Investment Type Private Special Asset Investment Trust (*9) Korea September 30, 2025 72.50 72.50
IGIS Real-estate Private Investment Trust No.33 Korea September 30, 2025 24.18 40.86
Goduck Gangil10 PFV Co., Ltd. (*1), (*7) Korea June 30, 2025 19.90 19.90
Fidelis Global Private Real Estate Trust No.2 (*6) Korea September 30, 2025 79.63 79.63

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(a) Investments in associates as of September 30, 2025 and December 31, 2024 are as follows (continued):

Investees Country Reporting<br><br>Date Ownership (%)
September 30,<br><br>2025 December 31, 2024
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 Korea September 30, 2025 28.70 28.70
Shinhan Global Healthcare Fund 2 (*7) Korea September 30, 2025 13.68 13.68
Shinhan AIM Real Estate Fund No.1 Korea September 30, 2025 21.01 21.01
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust Korea September 30, 2025 22.02 22.02
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust Korea September 30, 2025 29.19 29.19
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 (*6) Korea September 30, 2025 71.43 71.43
Korea Omega-Shinhan Project Fund I Korea September 30, 2025 50.00 50.00
Samsung SRA Real Estate Professional Private 45 Korea September 30, 2025 25.00 25.00
IBK Global New Renewable Energy Special Asset Professional Private2 Korea September 30, 2025 28.98 28.98
VS Cornerstone Fund (*5) Korea - - 41.18
Kakao-Shinhan 1st TNYT Fund Korea September 30, 2025 48.62 48.62
Pacific Private Placement Real Estate Fund No.40 Korea September 30, 2025 24.73 24.73
LB Scotland Amazon Fulfillment Center Fund 29 (*4) Korea September 30, 2025 65.01 65.00
JR AMC Hungary Budapest Office Fund 16 Korea September 30, 2025 32.57 32.57
EDNCENTRAL Co., Ltd. (*5) Korea - - 13.47
Gyeonggi-Neoplux Superman Fund Korea September 30, 2025 21.76 21.76
NewWave 6th Fund Korea September 30, 2025 30.00 30.00
Neoplux No.3 Private Equity Fund (*3), (*7) Korea September 30, 2025 10.00 10.00
PCC Amberstone Private Equity Fund I Korea September 30, 2025 21.67 21.67
KIAMCO POWERLOAN TRUST 4TH Korea September 30, 2025 47.37 47.37
Mastern Opportunity Seeking Real Estate Fund II Korea September 30, 2025 20.00 22.22
Neoplux Market-Frontier Secondary Fund (*3), (*7) Korea September 30, 2025 19.74 19.74
Synergy Green New Deal 1st New Technology Business Investment Fund (*5) Korea - - 28.17
KIAMCO Vietnam Solar Special Asset Private Investment Trust Korea September 30, 2025 50.00 50.00
SHINHAN-NEO Core Industrial Technology Fund Korea September 30, 2025 49.75 49.75
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 Korea September 30, 2025 30.00 30.00
Eum Private Equity Fund No.7 Korea September 30, 2025 21.00 21.00
Kiwoom Hero No.4 Private Equity Fund (*5) Korea - - 21.05
AJ-KOSNET Semicon One Venture Fund Korea September 30, 2025 22.22 22.22
Shinhan Smilegate Global PEF I (*5) Korea - - 14.21
Genesis Eco No.1 PEF Korea September 30, 2025 29.00 29.00
SHINHAN-NEO Market-Frontier 2nd Fund Korea September 30, 2025 42.70 42.70
J& Moorim Jade Investment Fund Korea September 30, 2025 24.89 24.89
Ulmus SHC innovation investment fund Korea September 30, 2025 24.04 24.04
TI First Property Private Investment Trust 1 Korea September 30, 2025 40.00 40.00
Kiwoom-Shinhan Innovation Fund 2 Korea September 30, 2025 42.86 42.86
ETRI Holdings-Shinhan 1st Unicorn Fund Korea September 30, 2025 50.00 50.00
SJ ESG Innovative Growth Fund Korea September 30, 2025 28.57 28.57
AVES 1st Corporate Recovery Private Equity Fund (*4) Korea September 30, 2025 76.19 76.19
Reverent-Shinhan Vista Fund (*3) Korea September 30, 2025 13.41 13.41
JS Shinhan Private Equity Fund (*3) Korea September 30, 2025 3.85 3.85

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(a) Investments in associates as of September 30, 2025 and December 31, 2024 are as follows (continued):

Investees Country Reporting<br><br>Date Ownership (%)
September 30,<br><br>2025 December 31, 2024
META TB ESG PRIVATE EQUITY FUND I Korea September 30, 2025 27.40 27.40
Shinhan VC tomorrow venture fund 1 Korea September 30, 2025 39.62 39.62
H-IOTA Fund Korea September 30, 2025 24.81 24.81
Stonebridge-Shinhan Unicorn Secondary Fund Korea September 30, 2025 26.02 26.01
Tres-Yujin Trust Korea September 30, 2025 50.00 50.00
Shinhan-Time mezzanine blind Fund (*5) Korea - - 50.00
Capstone REITs No.26 Korea September 30, 2025 50.00 50.00
JB Incheon-Bucheon REITS No.54 Korea September 30, 2025 39.31 39.31
Hankook Smart Real Asset Investment Trust No.3 Korea September 30, 2025 33.33 33.33
JB Hwaseong-Hadong REITs No.53 Korea September 30, 2025 31.03 31.03
KB Oaktree Trust No.3 Korea September 30, 2025 33.33 33.33
KAI-The Square New Technology No. 1 (E8 RCPS) Korea September 30, 2025 47.96 47.96
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 Korea September 30, 2025 29.73 29.73
Shinhan JigaeNamsan Road Private Special Asset Investment Trust Korea September 30, 2025 24.85 24.85
KB Distribution Private Real Estate 3-1 Korea September 30, 2025 37.50 37.50
Pacific Private Investment Trust No.49-1 (*6) Korea September 30, 2025 79.28 79.28
KIWOOM Real estate private placement fund for normal investors No. 31 (*6) Korea September 30, 2025 60.00 60.00
RIFA Real estate private placement fund for normal investors No. 51 Korea September 30, 2025 40.00 40.00
Shinhan-Kunicorn first Fund Korea September 30, 2025 38.31 38.31
Shinhan-Quantum Startup Fund Korea September 30, 2025 49.18 49.18
Shinhan Simone FundⅠ Korea September 30, 2025 38.46 38.46
Korea Investment develop seed Trust No.1 Korea September 30, 2025 40.00 40.00
Tiger Green alpha Trust No.29 (*5) Korea - - 95.24
STIC ALT Global II Private Equity Fund Korea September 30, 2025 21.74 21.74
DDI LVC Master Real Estate Investment Trust Co., Ltd. (*1), (*7) Korea June 30, 2025 15.00 15.00
Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business Korea September 30, 2025 23.89 23.89
Find-Green New Deal 2nd Equity Fund Korea September 30, 2025 22.57 22.57
ShinhanFitrin 1st Technology Business Investment Association (*3) Korea September 30, 2025 16.17 16.17
Koramco Private Real Estate Fund 143 Korea September 30, 2025 30.30 30.30
Korea Investment Top Mezzanine Private Real Estate Trust No.1 Korea September 30, 2025 22.22 22.22
LB YoungNam Logistics Private Trust No.40 Korea September 30, 2025 25.00 25.00
Shinhan-Cognitive Start-up Fund L.P. Korea September 30, 2025 32.77 32.77
Cornerstone J&M Fund I (*5) Korea - - 26.67
Logisvalley Shinhan REIT Co., Ltd. (*1) Korea June 30, 2025 20.27 20.27
Shinhan-Ji and Tec Smart Innovation Fund Korea September 30, 2025 50.00 50.00
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st Korea September 30, 2025 50.00 50.00

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(a) Investments in associates as of September 30, 2025 and December 31, 2024 are as follows (continued):

Investees Country Reporting<br><br>Date Ownership (%)
September 30,<br><br>2025 December 31, 2024
Korea Investment Green Newdeal Infra Trust No.1 Korea September 30, 2025 27.97 27.97
BTS 2nd Private Equity Fund (*1) Korea August 31, 2025 26.00 26.00
NH-J&-IBKC Label Technology Fund Korea September 30, 2025 27.81 27.81
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund Korea September 30, 2025 50.00 50.00
Shinhan-isquare Venture PEF 1 Korea September 30, 2025 40.00 40.00
Aurum Goldrush ESG Private Fund No. 1 Korea September 30, 2025 28.33 28.33
Capstone Develop Frontier Trust (*5) Korea - - 21.43
Nextrade Co., Ltd. (*7) Korea September 30, 2025 8.00 8.00
IBKC-Behigh Fund 1st Korea September 30, 2025 29.73 29.73
ON No.1 Private Equity Fund (*5) Korea - - 28.57
Digital New Deal Kappa Private Equity Fund (*5) Korea - - 24.75
IBKC-JS 1st Fund Korea September 30, 2025 29.41 29.41
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 Korea September 30, 2025 20.84 20.83
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 Korea September 30, 2025 28.57 28.57
Koramco IPO REITS Mezzanine General Private Investment Trust No. 38 (*4) Korea September 30, 2025 75.00 75.00
TogetherKorea Private Investment Trust No. 6 (*6) Korea September 30, 2025 99.98 99.98
TogetherKorea Private Investment Trust No. 7 (*6) Korea September 30, 2025 99.98 99.98
Kiwoom Core Industrial Technology Investment Fund No.3 Korea September 30, 2025 34.75 34.75
Penture K-Content Investment Fund (*7) Korea September 30, 2025 19.78 19.78
2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund Korea September 30, 2025 30.00 30.00
Hana Alternative Investment Kosmes PCBO General PEF No. 1 Korea September 30, 2025 37.04 37.04
Shinhan-timefolio Bio Development Investment Fund Korea September 30, 2025 48.39 48.39
Shinhan M&A-ESG Fund Korea September 30, 2025 23.33 23.33
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. Korea September 30, 2025 28.43 28.43
KDBC meta-enter New Technology investment fund Korea September 30, 2025 27.89 27.89
Shinhan Time Secondary Blind Fund Korea September 30, 2025 47.50 47.50
Shinhan DS Secondary Investment Fund Korea September 30, 2025 49.83 49.83
Shinhan-OpenWater Pre-IPO Fund-1 Korea September 30, 2025 50.00 50.00
Shinhan-CJ TechInnovation Fund 1st Korea September 30, 2025 40.00 40.00
Shinhan-Eco Venture Fund 2nd Korea September 30, 2025 40.00 40.00
Heungkuk-Shinhan The First Visionary Fund No.1 Korea September 30, 2025 40.00 40.00
Koreainvestment-Shinhan-LEP K beauty Korea September 30, 2025 22.96 22.96
Shinhan HB Wellness 1st Fund Korea September 30, 2025 48.54 48.54
Korea real Asset Fund No.3 Korea September 30, 2025 28.57 28.57
Timefolio Tech New Technology Investment Trust No.1 Korea September 30, 2025 21.18 21.18
PineStreet Global Corporate FoF XIII-2 (NC XI) (*6) Korea September 30, 2025 100.00 100.00
Igis Yongsan Office General PE Real Estate Inv. Trust No. 518 Korea September 30, 2025 26.22 26.22
Samsung-Dunamu Innovation IT Fund No.1 Korea September 30, 2025 22.99 22.99
Time Robotics fund Korea September 30, 2025 29.86 29.86
Ascent-Welcome Fund2 Korea September 30, 2025 27.65 27.65
Newmain I funds (*5) Korea - - 36.36
Igis General PE Real Estate Investment Trust 517-1 (*6) Korea September 30, 2025 96.78 96.78
SH Ulmus M.P.E. Innovative Venture Fund 7 Korea September 30, 2025 28.57 28.57
Consus Osansegyo No.2 Korea September 30, 2025 50.00 50.00
Shinhan AIM Private Fund of Fund 9-B Korea September 30, 2025 25.00 25.00
Shinhan General Private Real Estate Investment Trust No.3 Korea September 30, 2025 20.75 20.75

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(a) Investments in associates as of September 30, 2025 and December 31, 2024 are as follows (continued):

Investees Country Reporting<br><br>Date Ownership (%)
September 30,<br><br>2025 December 31, 2024
Paros Kosdaq Venture General Private Investment Trust No. 5 Korea September 30, 2025 29.45 28.56
Shinhan-soo secondary Fund (*6) Korea September 30, 2025 77.61 77.61
TECHFIN RATINGS Co., Ltd. (*1) Korea June 30, 2025 45.00 45.00
SONGPA BIZ CLUSTER PFV CO., LTD. (*1), (*7), (*10) Korea June 30, 2025 27.40 27.40
Planeta PTE LTD Singapore September 30, 2025 33.33 33.33
The E&Shinhan New Growth Up Fund Korea September 30, 2025 50.00 50.00
HHR Special Situation Real Estate Private Investment Trust No. 13 Korea September 30, 2025 20.00 20.00
Shinhan-GB FutureFlow Fund L.P. Korea September 30, 2025 50.00 58.18
Credila Financial Services (*1), (*7) India June 30, 2025 10.06 10.93
Shinhan-DS Mezzanine Fund 1(*7) Korea September 30, 2025 15.09 15.09
Shinhan Time BM sobujang Fund Korea September 30, 2025 29.41 29.41
Shinhan Market-Frontier Fund Ⅲ Korea September 30, 2025 44.02 44.02
DB IPO HighYield Fund 1 (*5) Korea - - 28.57
Exponential SQUARE Private Investment Trust No.1 (*5) Korea - - 50.99
Fine North America Credit Private Mixed Asset Investment Trust 22 (*6) Korea September 30, 2025 58.82 58.82
IGIS Private Real Estate Investment No.454 Korea September 30, 2025 24.04 24.04
IGIS Private Real Estate Investment No.462 (*6) Korea September 30, 2025 69.20 69.20
BNW Recharge Private Equity Fund Korea September 30, 2025 21.13 21.13
United Partners Realasset Fund No.14 Korea September 30, 2025 33.33 33.33
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 (*5) Korea - - 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 (*5) Korea - - 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 (*7) Korea September 30, 2025 7.67 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 (*7) Korea September 30, 2025 7.79 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 (*7) Korea September 30, 2025 7.67 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 (*7) Korea September 30, 2025 5.00 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 (*7) Korea September 30, 2025 5.00 5.00
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 (*7) Korea September 30, 2025 5.00 5.00
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] (*7) Korea September 30, 2025 19.91 22.37
SH Prestige High Dividend Security Feeder No.1[Equity] Korea September 30, 2025 23.92 21.55
IGIS Real Estate General Private Feeder Investment Company No.562 (*6) Korea September 30, 2025 88.46 -
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21(*7) Korea September 30, 2025 4.97 -
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22(*7) Korea September 30, 2025 4.97 -
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23(*7) Korea September 30, 2025 4.97 -
Finflow (*7) Korea September 30, 2025 15.00 -
MW M·C·E New Technology Investment Fund 2nd Korea September 30, 2025 23.31 -
Fireant Media and Digital Service Joint Stock Company (*7) Korea September 30, 2025 17.66 -

(*1) Since the financial statements as of September 30, 2025 could not be obtained, the most recent financial statements available after the reporting date were used to apply the equity method. Significant trades and events occurred within the period are properly 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 September 30, 2025. 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.

(*6) Although the ownership percentages are more than 50%, the Group applies the equity method accounting as the Group does not have an ability to participate in the financial and operating policy-making process.

(*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

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
BNP Paribas Cardif Life Insurance W 36,440 - (1,591) 1,780 - 36,629
Shinhan-Neoplux Energy Newbiz Fund 14,612 - (1,471) - - 13,141
Shinhan-Albatross tech investment Fund 8,672 (917) (1,731) - - 6,024
VOGO Debt Strategy Qualified IV Private 3,713 (271) (85) - - 3,357
Shinhan-Midas Dong-A Secondary Fund 3,152 (915) (588) - - 1,649
ShinHan – Soo Young Entrepreneur Investment Fund No.1 3,381 - (394) - - 2,987
Shinhan Praxis K-Growth Global Private Equity Fund 3,690 - (1) - - 3,689
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 - 47 - (771) 6,091
KTB Aircraft Specialized Private Investment Trust No. 16 2,954 (293) 600 - - 3,261
Shinhan-Nvestor Liquidity Solution Fund 5,126 (1,250) (153) - - 3,723
Shinhan AIM FoF Fund 1-A 9,804 (9,756) (7) - - 41
IGIS Global Credit Fund 150-1 4,989 (2,979) (1,132) - - 878
Genesis North America Power Company No.1 PEF 6,802 (1,254) 399 - - 5,947
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 9,402 (9,178) 1,833 - - 2,057
KOREA FINANCE SECURITY CO., LTD. 3,542 - 197 - - 3,739
MIEL CO., LTD. (*) - - - - - -
AIP Transportation Specialized Privately Placed Fund Trust #1 58,807 - 2,404 - - 61,211
Kiwoom-Shinhan Innovation Fund I 7,979 - (153) - - 7,826

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Samchully Midstream Private Placement Special Asset Fund 5-4 39,484 - (2,908) - - 36,576
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 3,947 (1,863) - - 37,497
Milestone Private Real Estate Fund 3 19,120 1,789 425 - - 21,334
Rifa Private Real Estate Investment Trust 31 6,343 (98) (141) - - 6,104
FuturePlay-Shinhan TechInnovation Fund 1 5,785 - 624 - - 6,409
Stonebridge Corporate 1st Fund 3,977 (3,367) (610) - - -
Vogo Realty Partners Private Real Estate Fund V 10,662 (225) 490 - - 10,927
Korea Credit Bureau 7,574 (90) 1,858 - - 9,342
Goduck Gangil1 PFV Co., Ltd. (*1) 96 (25) (6) - - 65
SBC PFV Co., Ltd. 37,616 - (1,104) - - 36,512
NH-amundi global infra private fund 16 32,968 5,062 (9,385) - - 28,645
SH BNCT Professional Investment Type Private Special Asset Investment Trust 225,708 (22,614) 7,582 - - 210,676
IGIS Real-estate Private Investment Trust No.33 15,632 (9,746) 787 - - 6,673
Goduck Gangil10 PFV Co., Ltd. 6,165 (1,030) (865) - - 4,270
Fidelis Global Private Real Estate Trust No.2 (*) 551 - - - - 551
AIP O PRIVATE REAL ESTATE TRUST No. 12 (*) 24,644 - - - (6,806) 17,838
Shinhan Global Healthcare Fund 2 (*) - - - - - -
Shinhan AIM Real Estate Fund No.1 2,884 - 3,523 - - 6,407

All values are in Euros.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>Balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust W 39,491 (685) 1,261 - - 40,067
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust 21,947 5 (782) - - 21,170
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 15,770 (509) 254 - - 15,515
Korea Omega-Shinhan Project Fund I 19,473 (23,623) 20,684 - - 16,534
Samsung SRA Real Estate Professional Private 45 30,276 183 1,040 - - 31,499
IBK Global New Renewable Energy Special Asset Professional Private2 33,098 (5,805) 115 - - 27,408
VS Cornerstone Fund 3,225 (3,618) 393 - - -
Kakao-Shinhan 1st TNYT Fund 23,678 - 589 - - 24,267
Pacific Private Placement Real Estate Fund No.40 11,623 (370) 7,988 - - 19,241
LB Scotland Amazon Fulfillment Center Fund 29 18,848 5,877 (1,382) - - 23,343
JR AMC Hungary Budapest Office Fund 16 13,187 1,127 1,083 - - 15,397
EDNCENTRAL Co., Ltd. (*) - - - - - -
Gyeonggi-Neoplux Superman Fund 4,138 - (502) - - 3,636
NewWave 6th Fund 10,708 - (394) - - 10,314
Neoplux No.3 Private Equity Fund 12,152 (20) (150) - - 11,982
PCC Amberstone Private Equity Fund I 14,540 (4,728) 190 - - 10,002
KIAMCO POWERLOAN TRUST 4TH 48,703 (1,877) 1,853 - - 48,679
Mastern Opportunity Seeking Real Estate Fund II 5,272 (4,873) 750 - - 1,149
Neoplux Market-Frontier Secondary Fund 8,175 - (2,124) - - 6,051
Synergy Green New Deal 1st New Technology Business Investment Fund 10,857 (10,841) (16) - - -

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
KIAMCO Vietnam Solar Special Asset Private Investment Trust W 7,103 - (352) - - 6,751
SHINHAN-NEO Core Industrial Technology Fund 8,111 - (22) - - 8,089
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 21,710 (1,797) 659 - - 20,572
Eum Private Equity Fund No.7 9,156 (405) 662 - - 9,413
Kiwoom Hero No.4 Private Equity Fund 4,197 (9,523) 5,326 - - -
AJ-KOSNET Semicon One Venture Fund 3,212 - (39) - - 3,173
Shinhan Smilegate Global PEF I 3,882 (3,882) - - - -
Genesis Eco No.1 PEF 11,077 - (50) - - 11,027
SHINHAN-NEO Market-Frontier 2nd Fund 27,499 - (972) - - 26,527
J& Moorim Jade Investment Fund 5,353 (1,815) 824 - - 4,362
Ulmus SHC innovation investment fund 4,305 - 1,018 - - 5,323
TI First Property Private Investment Trust 1 3,102 (203) 152 - - 3,051
Kiwoom-Shinhan Innovation Fund 2 10,227 (540) 10 - - 9,697
ETRI Holdings-Shinhan 1st Unicorn Fund 4,696 (500) (55) - - 4,141
SJ ESG Innovative Growth Fund 3,115 (1,269) (412) - - 1,434
AVES 1st Corporate Recovery Private Equity Fund 4,523 - 93 - - 4,616
Reverent-Shinhan Vista Fund 3,409 27 244 - - 3,680
JS Shinhan Private Equity Fund 6,381 - 15 - - 6,396
META TB ESG PRIVATE EQUITY FUND I 5,683 - (91) - - 5,592
Shinhan VC tomorrow venture fund 1 70,633 3,399 9,745 - - 83,777
H-IOTA Fund 9,377 (4,879) (256) - - 4,242

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Stonebridge-Shinhan Unicorn Secondary Fund W 13,587 (2,002) 1,552 - - 13,137
Tres-Yujin Trust 13,031 - 47 - - 13,078
Shinhan-Time mezzanine blind Fund 16,426 (16,504) 78 - - -
Capstone REITs No.26 5,369 - (284) - - 5,085
JB Incheon-Bucheon REITS No.54 4,967 - 751 - - 5,718
Hankook Smart Real Asset Investment Trust No.3 6,006 (1,515) (2,428) - - 2,063
JB Hwaseong-Hadong REITs No.53 4,974 - (7) - - 4,967
KB Oaktree Trust No.3 9,888 (692) 488 - - 9,684
KAI-The Square New Technology No. 1 (E8 RCPS) (*) 125 - 61 - (144) 42
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 52,797 (23,973) 2,547 - - 31,371
Shinhan JigaeNamsan Road Private Special Asset Investment Trust 39,645 (673) 1,130 - - 40,102
KB Distribution Private Real Estate 3-1 (*) 24,079 - (939) - (23,140) -
Pacific Private Investment Trust No.49-1 28,000 - 8,113 - - 36,113
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 - (1,637) - - 7,787
Shinhan-Quantum Startup Fund 5,665 - (87) - - 5,578
Shinhan Simone Fund Ⅰ 3,422 - (14) - - 3,408
Korea Investment develop seed Trust No.1 10,145 (527) 667 - - 10,285
Tiger Green alpha Trust No.29 29,992 (31,100) 1,108 - - -
STIC ALT Global II Private Equity Fund 9,841 (217) 154 - - 9,778
DDI LVC Master Real Estate Investment Trust Co., Ltd. 5,800 - (560) - - 5,240
Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business 2,074 - 957 - - 3,031
Find-Green New Deal 2nd Equity Fund 4,324 - 407 - - 4,731
ShinhanFitrin 1st Technology Business Investment Association 4,232 - (272) - - 3,960
Koramco Private Real Estate Fund 143 6,669 - 1,416 - - 8,085
Korea Investment Top Mezzanine Private Real Estate Trust No.1 9,876 (5,508) 442 - - 4,810
LB YoungNam Logistics Private Trust No.40 9,625 (299) 427 - - 9,753
Shinhan-Cognitive Start-up Fund L.P. 4,209 - (62) - - 4,147

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Cornerstone J&M Fund I W 3,414 (4,109) 695 - - -
Logisvalley Shinhan REIT Co., Ltd. 3,389 - (94) - - 3,295
Shinhan-Ji and Tec Smart Innovation Fund 13,004 (4,160) 2,577 - - 11,421
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st 6,758 1,800 (158) - - 8,400
Korea Investment Green Newdeal Infra Trust No.1 16,096 2,573 (58) - - 18,611
BTS 2nd Private Equity Fund 10,159 - 4 - - 10,163
NH-J&-IBKC Label Technology Fund 9,646 - 3,800 - - 13,446
Shinhan-Sneak Peek Biohealthcare Bounceback Fund 3,916 1,500 1,086 - - 6,502
Shinhan-isquare Venture PEF 1st 4,237 (874) (29) - - 3,334
Aurum Goldrush ESG Private Fund No. 1 3,007 - (273) - - 2,734
Capstone Develop Frontier Trust 8,049 (7,607) (442) - - -
Nextrade Co., Ltd. 9,700 - - - - 9,700
IBKC-Behigh Fund 1st 3,160 - (47) - - 3,113
ON No.1 Private Equity Fund 5,712 (6,020) 308 - - -
Digital New Deal Kappa Private Equity Fund 4,747 (5,534) 787 - - -
IBKC-JS 1st Fund 2,618 - 1,037 - - 3,655
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 9,646 (4,304) 1,586 - - 6,928
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 11,324 (1,643) 512 - - 10,193
Koramco IPO REITS Mezzanine General Private Investment Trust No. 38 3,278 (87) 53 - - 3,244
TogetherKorea Private Investment Trust No. 6 5,423 - 89 - - 5,512
TogetherKorea Private Investment Trust No. 7 5,423 - 89 - - 5,512
Kiwoom Material Part Equipment New Technology Investment Fund No.3 4,219 - (33) - - 4,186
Penture K-Content Investment Fund 11,319 - (2,476) - - 8,843
2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund 13,468 - 2,203 - - 15,671
Hana Alternative Investment Kosmes PCBO General PEF No. 1 5,125 (396) 416 - - 5,145
Shinhan-timefolio Bio Development Investment Fund 11,707 - 2,317 - - 14,024
Shinhan M&A-ESG Investment Fund 6,454 546 154 - - 7,154
Shinhan SM Office Value Add – Outsource Management Real Estate Investment Co., Ltd. 18,804 (472) 823 - - 19,155

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
KDBC meta-enter New Technology investment fund W 6,797 - 392 - - 7,189
Shinhan Time Secondary Blind New Technology Investment Trust 4,637 2,375 1,618 - - 8,630
Shinhan DS Secondary Investment Fund 2,439 6,272 2,690 - - 11,401
Shinhan-OpenWater Pre-IPO Fund-1 5,666 (1,000) 1,041 - - 5,707
Shinhan-CJ Technology Innovation Fund No. 1 4,595 - (134) - - 4,461
Shinhan-Eco Venture Fund 2nd 3,957 (146) (70) - - 3,741
Heungkuk-Shinhan The First Visionary Fund No.1 6,497 1,600 323 - - 8,420
Koreainvestment-Shinhan-LEP K beauty 10,264 (2,938) (241) - - 7,085
Shinhan HB Wellness 1st Fund 5,326 - 127 - - 5,453
Korea real Asset Fund No.3 16,552 1,046 729 - - 18,327
Timefolio Tech New Technology Investment Trust No.1 2,990 - 53 - - 3,043
PineStreet Global Corporate FoF XIII-2 3,743 2,011 902 - - 6,656
Igis Yongsan Office General PE Real Estate Inv. Trust No. 518 17,144 (726) (1,886) - - 14,532
Samsung-Dunamu Innovation IT Fund No.1 3,750 - 200 - - 3,950
Time Robotics New Technology Investment Trust 3,778 (72) (290) - - 3,416
Ascent-Welcome Fund2 8,460 (1,659) 539 - - 7,340
Newmain I funds 9,364 (9,254) (110) - - -
Igis General PE Real Estate Investment Trust 517-1 54,902 - (2,238) - - 52,664
SH Ulmus M.P.E. Innovative Venture Fund 7 3,032 - (43) - - 2,989
Consus Osansegyo No.2 8,009 - - - - 8,009
Shinhan AIM Private Fund of Fund 9-B 36,741 1,899 1,844 - - 40,484
Shinhan General Private Real Estate Investment Trust No.3 26,706 1,809 1,288 - - 29,803
Paros Kosdaq Venture General Private Investment Trust No. 5 6,590 (3,062) (37) - - 3,491
Shinhan-soo secondary Fund 16,737 - 781 - - 17,518
TECHFIN RATINGS Co., Ltd. 25,610 - (1,651) - - 23,959
SONGPA BIZ CLUSTER PFV CO., LTD. 13,364 - (330) - - 13,034
Planeta PTE LTD 11,341 - 619 - - 11,960
The E&Shinhan New Growth Up Fund 3,518 2,080 668 - - 6,266
HHR Special Situation Real Estate Private Investment Trust No. 13 2,749 (224) 645 - - 3,170
Shinhan-GB FutureFlow Fund L.P. 5,150 2,996 (283) 481 - 8,344

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

September 30, 2025
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Credila Financial Services W 263,116 3,240 14,607 (19,695) - 261,268
Shinhan-DS Mezzanine Fund 1 2,869 - 727 - - 3,596
Shinhan Time BM sobujang Fund 1,405 1,750 (80) - - 3,075
Shinhan Market-Frontier Investment Association No. 3 12,791 8,804 (89) - - 21,506
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 4,613 925 388 - - 5,926
IGIS Private Real Estate Investment No.454 3,368 - (4) - - 3,364
IGIS Private Real Estate Investment No.462 4,433 - (42) - - 4,391
BNW Recharge Private Equity Fund 7,138 - (1,570) - - 5,568
United Partners Realasset Fund No.14 9,998 (65) 61 - - 9,994
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 - 4,150 - - 17,861
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 13,738 - 3,845 - - 17,583
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 13,290 - 4,134 - - 17,424
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 5,378 - 2,871 - - 8,249
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 10,925 - 5,392 - - 16,317
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 5,052 - 3,050 - - 8,102
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] 4,197 (326) 370 - - 4,241
SH Prestige High Dividend Security Feeder No.1[Equity] 2,579 - 1,238 - - 3,817
IGIS Real Estate General Private Feeder Investment Company No.562 - 23,000 (1,091) - - 21,909
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 - 15,700 3,128 - - 18,828
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 - 15,700 3,894 - - 19,594
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 - 15,700 2,668 - - 18,368
Finflow - 7,058 (11) - - 7,047
MW M·C·E New Technology Investment Fund 2nd - 2,000 1,198 - - 3,198
Fireant Media and Digital Service Joint Stock Company - 4,925 (204) - - 4,721
Others 189,166 (14,386) 6,962 - (2) 181,740
Total W 2,752,980 (206,769) 136,330 (17,434) (44,289) 2,620,818

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

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
BNP Paribas Cardif Life Insurance W 39,272 - (3,423) 587 - 36,436
Shinhan-Neoplux Energy Newbiz Fund 22,358 (9,196) 1,450 - - 14,612
Shinhan-Albatross tech investment Fund 15,499 (8,312) 1,485 - - 8,672
KCGI-SingA330-A Private Special Asset Investment Trust 4,609 (4,876) 267 - - -
VOGO Debt Strategy Qualified IV Private 6,532 (3,465) 646 - - 3,713
Shinhan-Midas Donga Secondary Fund 4,301 (750) (399) - - 3,152
ShinHan – Soo Young Entrepreneur Investment Fund No.1 4,862 (5,760) 4,279 - - 3,381
Shinhan Praxis K-Growth Global Private Equity Fund 3,692 - (2) - - 3,690
Kiwoom Milestone Professional Private Real Estate Trust 19 (*) - - - - - -
Shinhan Global Healthcare Fund 1 (*) - - - - - -
KB NA Hickory Private Special Asset Fund 24,096 (7,321) 718 - - 17,493
Koramco Europe Core Private Placement Real Estate Fund No.2-2 18,799 1,058 370 - (13,412) 6,815
KDBC-Midas Dong-A Global contents Fund 4,288 - (1,648) - - 2,640
Shinhan-Nvestor Liquidity Solution Fund 6,088 (1,270) 308 - - 5,126
Shinhan AIM FoF Fund 1-A 9,635 (1,169) 1,338 - - 9,804
IGIS Global Credit Fund 150-1 4,286 (549) 1,252 - - 4,989
Korea Omega Project Fund III 3,696 (2,274) (1,422) - - -
Genesis North America Power Company No.1 PEF 6,358 (3,143) 3,587 - - 6,802
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 40,764 (37,990) 6,628 - - 9,402
KOREA FINANCE SECURITY CO., LTD. 3,245 - 297 - - 3,542
MIEL CO., LTD. (*) - - - - - -
AIP Transportation Specialized Privately Placed Fund Trust #1 46,372 3,460 8,975 - - 58,807
Kiwoom-Shinhan Innovation Fund I 7,854 - 125 - - 7,979
Midas Asset Global CRE Debt Private Fund No.6 54,881 (57,919) 3,038 - - -
Samchully Midstream Private Placement Special Asset Fund 5-4 33,163 2,416 3,905 - - 39,484
SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 7,254 (7,664) 410 - - -
MK Ventures-K Clavis Growth Capital Venture Fund 1 (*) - (183) 3 - 183 3
NH-Amundi Global Infrastructure Trust 14 18,728 (20,589) 1,861 - - -
Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 35,265 (1,591) 1,739 - - 35,413
Milestone Private Real Estate Fund 3 17,615 1,619 (114) - - 19,120
Nomura-Rifa Private Real Estate Investment Trust 31 6,889 - (546) - - 6,343
SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2 3,138 (889) 269 - - 2,518

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
FuturePlay-Shinhan TechInnovation Fund 1 7,847 (1,238) (824) - - 5,785
Stonebridge Corporate 1st Fund 4,142 - (165) - - 3,977
Vogo Realty Partners Private Real Estate Fund V 10,792 1,379 (1,509) - - 10,662
Korea Credit Bureau 6,738 (45) 881 - - 7,574
Goduck Gangil1 PFV Co., Ltd. 180 (148) 64 - - 96
SBC PFV Co., Ltd. 30,774 8,750 (1,908) - - 37,616
NH-amundi global infra private fund 16 50,652 4,293 (21,977) - - 32,968
SH BNCT Professional Investment Type Private Special Asset Investment Trust 244,772 (31,676) 12,612 - - 225,708
Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24 18,110 (19,646) 1,536 - - -
Sparklabs-Shinhan Opportunity Fund 1 3,914 - (1,189) - - 2,725
IGIS Real-estate Private Investment Trust No.33 15,271 (809) 1,170 - - 15,632
Goduck Gangil10 PFV Co., Ltd. 5,081 (212) 1,296 - - 6,165
Fidelis Global Private Real Estate Trust No.2 551 - - - - 551
AIP O PRIVATE REAL ESTATE TRUST No. 12 48,619 2,955 2,919 - (29,849) 24,644
Shinhan Global Healthcare Fund 2 (*) - - - - - -
Shinhan AIM Real Estate Fund No.2 26,678 1,760 (26,884) - - 1,554
Shinhan AIM Real Estate Fund No.1 51,873 2,613 (51,602) - - 2,884
SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust 34,781 (856) 5,566 - - 39,491
SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust 20,053 - 1,894 - - 21,947
SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 17,516 (3,377) 1,631 - - 15,770
Korea Omega-Shinhan Project Fund I 11,630 (1,957) 9,800 - - 19,473
Samsung SRA Real Estate Professional Private 45 31,432 (3,954) 2,798 - - 30,276
IBK Global New Renewable Energy Special Asset Professional Private2 32,296 (1,266) 2,068 - - 33,098
VS Cornerstone Fund 3,280 - (55) - - 3,225

All values are in Euros.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
NH-Amundi US Infrastructure Private Fund2 W 29,725 (30,845) 1,664 - - 544
Kakao-Shinhan 1st TNYT Fund 19,866 - 3,812 - - 23,678
Pacific Private Placement Real Estate Fund No.40 11,624 (748) 747 - - 11,623
Mastern Private Real Estate Loan Fund No.2 3,040 (1,908) 198 - - 1,330
LB Scotland Amazon Fulfillment Center Fund 29 30,928 3,780 (15,860) - - 18,848
JR AMC Hungary Budapest Office Fund 16 12,687 221 279 - - 13,187
EDNCENTRAL Co., Ltd. (*) - - - - - -
Gyeonggi-Neoplux Superman Fund 5,056 - (918) - - 4,138
NewWave 6th Fund 13,716 (1,425) (1,583) - - 10,708
Neoplux No.3 Private Equity Fund 18,981 (404) (6,425) - - 12,152
PCC Amberstone Private Equity Fund I 17,258 (5,513) 2,795 - - 14,540
KIAMCO POWERLOAN TRUST 4TH 45,099 (2,331) 5,935 - - 48,703
Mastern Opportunity Seeking Real Estate Fund II 13,135 (4,868) (2,995) - - 5,272
Neoplux Market-Frontier Secondary Fund 10,427 (4,006) 1,754 - - 8,175
Synergy Green New Deal 1st New Technology Business Investment Fund 10,315 (72) 614 - - 10,857
KIAMCO Vietnam Solar Special Asset Private Investment Trust 6,836 (580) 847 - - 7,103
SHINHAN-NEO Core Industrial Technology Fund 13,616 (9,247) 3,742 - - 8,111
SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 23,356 (2,538) 892 - - 21,710
Eum Private Equity Fund No.7 9,166 (400) 390 - - 9,156
Kiwoom Hero No.4 Private Equity Fund 3,442 (96) 851 - - 4,197
Vogo Canister Professional Trust Private Fund I 45,871 (47,321) 1,450 - - -
AJ-KOSNET Semicon One Venture Fund 2,854 - 358 - - 3,212
Timefolio The Venture-V second 5,801 (4,444) 8 - - 1,365
Shinhan Smilegate Global PEF I 3,801 (4,326) 4,407 - - 3,882
Genesis Eco No.1 PEF 11,219 - (142) - - 11,077
SHINHAN-NEO Market-Frontier 2nd Fund 32,670 (5,466) 295 - - 27,499
NH-Synergy Core Industrial New Technology Fund 6,439 (6,175) (264) - - -
J& Moorim Jade Investment Fund 4,920 - 433 - - 5,353
Ulmus SHC innovation investment fund 5,543 (1,150) (88) - - 4,305

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
T Core Industrial Technology 1st Venture PEF W 4,254 (378) (881) - - 2,995
Fine Value POST IPO No.5 Private Equity Fund 3,766 (3,565) (201) - - -
TI First Property Private Investment Trust 1 3,102 (203) 203 - - 3,102
IBKC Global Contents Investment Fund 4,701 (4,764) 63 - - -
Kiwoom-Shinhan Innovation Fund 2 9,165 1,148 (86) - - 10,227
ETRI Holdings-Shinhan 1st Unicorn Fund 3,295 1,500 (99) - - 4,696
SJ ESG Innovative Growth Fund 4,198 - (1,083) - - 3,115
AVES 1st Corporate Recovery Private Equity Fund 4,768 - (245) - - 4,523
Reverent-Shinhan Vista Fund 2,600 54 755 - - 3,409
JS Shinhan Private Equity Fund 4,933 - 1,448 - - 6,381
Daishin Newgen New Technology Investment Fund 1st 6,082 (5,742) (340) - - -
META TB ESG PRIVATE EQUITY FUND I 5,771 - (88) - - 5,683
Shinhan VC tomorrow venture fund 1 45,210 25,608 (185) - - 70,633
H-IOTA Fund 9,524 (2,639) 2,492 - - 9,377
Stonebridge-Shinhan Unicorn Secondary Fund 7,427 6,160 - - - 13,587
Tres-Yujin Trust 10,359 - 2,672 - - 13,031
Shinhan-Time mezzanine blind Fund 14,121 - 2,305 - - 16,426
Capstone REITs No.26 5,750 - (381) - - 5,369
JB Incheon-Bucheon REITS No.54 4,978 - (11) - - 4,967
Hankook Smart Real Asset Investment Trust No.3 7,668 - (1,662) - - 6,006
JB Hwaseong-Hadong REITs No.53 4,983 - (9) - - 4,974
KB Oaktree Trust No.3 8,668 304 916 - - 9,888
Daehan No.36 Office Asset Management Company 22,482 (25,394) 2,912 - - -
Rhinos Premier Mezzanine Private Investment Fund No.1 3,056 (3,048) (8) - - -
SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 62,769 (12,710) 2,738 - - 52,797
Shinhan JigaeNamsan Road Private Special Asset Investment Trust 41,434 (1,142) (647) - - 39,645
SKS-Yozma Fund No.1 3,455 (2,931) (524) - - -
KB Distribution Private Real Estate 3-1 25,976 - (1,897) - - 24,079
Pacific Private Investment Trust No.49-1 27,377 - 623 - - 28,000
KIWOOM Real estate private placement fund for normal investors No. 31 8,558 (435) (91) - - 8,032
RIFA Real estate private placement fund for normal investors No. 51 5,731 (294) (66) - - 5,371
Fivetree general private equity fund No.15 12,572 (12,572) - - - -
Shinhan-Kunicorn first Fund 9,626 - (202) - - 9,424
Shinhan-Quantum Startup Fund 3,986 1,800 (121) - - 5,665
Shinhan Simone FundⅠ 4,837 (991) (424) - - 3,422

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Korea Investment develop seed Trust No.1 9,532 (939) 1,552 - - 10,145
Tiger Green alpha Trust No.29 28,573 (664) 2,083 - - 29,992
STIC ALT Global II Private Equity Fund 9,504 (217) 554 - - 9,841
NH-Brain EV Fund 11,125 (12,999) 1,874 - - -
DDI LVC Master Real Estate Investment Trust Co., Ltd. 6,583 - (783) - - 5,800
Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business 3,294 - (1,220) - - 2,074
Find-Green New Deal 2nd Equity Fund 4,465 - (141) - - 4,324
ShinhanFitrin 1st Technology Business Investment Association 4,519 - (287) - - 4,232
Koramco Private Real Estate Fund 143 6,667 - 2 - - 6,669
Korea Investment Top Mezzanine Private Real Estate Trust No.1 10,016 (994) 854 - - 9,876
LB YoungNam Logistics Private Trust No.40 9,782 (600) 443 - - 9,625
Shinhan-Cognitive Start-up Fund L.P. 5,329 - (1,120) - - 4,209
Cornerstone J&M Fund I 3,488 - (74) - - 3,414
Logisvalley Shinhan REIT Co., Ltd. 3,598 - (209) - - 3,389
DA Value-Honest New Technology Investment Fund 1 4,099 (2,754) (1,345) - - -
Shinhan-Ji and Tec Smart Innovation Fund 9,977 2,535 492 - - 13,004
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st 6,968 - (210) - - 6,758
Korea Investment Green Newdeal Infra Trust No.1 10,257 5,962 (123) - - 16,096
BTS 2nd Private Equity Fund 6,342 3,796 21 - - 10,159
NH-J&-IBKC Label Technology Fund 9,747 - (101) - - 9,646
Hanyang Time Mezzanine Fund 3,012 (300) (201) - - 2,511
Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund 2,261 1,250 405 - - 3,916
Shinhan-isquare Venture PEF 1 4,286 100 (149) - - 4,237

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Aurum Goldrush ESG Private Fund No. 1 W 2,917 - 90 - - 3,007
Capstone Develop Frontier Trust 7,547 (549) 1,051 - - 8,049
Nextrade Co., Ltd. 9,700 - - - - 9,700
SH 1.5years Maturity Investment Type Security Investment Trust No.2 4,835 (4,835) - - - -
Eventus-IBKC LIB Fund 6,632 (7,064) 432 - - -
IBKC-Behigh Fund 1st 3,219 - (59) - - 3,160
ON No.1 Private Equity Fund 5,321 - 391 - - 5,712
Digital New Deal Kappa Private Equity Fund 4,845 - (98) - - 4,747
IBKCJS New Technology Fund No.1 6,130 (2,418) (1,094) - - 2,618
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 9,803 - (157) - - 9,646
VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 12,013 (2,170) 1,481 - - 11,324
Koramco IPO REITS Mezzanine General Private Investment Trust No. 38 3,171 (61) 168 - - 3,278
TogetherKorea Private Investment Trust No. 6 5,270 - 153 - - 5,423
TogetherKorea Private Investment Trust No. 7 5,270 - 153 - - 5,423
Kiwoom Core Industrial Technology Investment Fund No.3 4,180 - 39 - - 4,219
Penture K-Content Investment Fund 5,622 6,000 (303) - - 11,319
2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund 7,969 6,413 (914) - - 13,468
Hana Alternative Investment Kosmes PCBO General PEF No. 1 5,107 (526) 544 - - 5,125
Shinhan-timefolio Bio Development Investment Fund 5,927 6,000 (220) - - 11,707
Shinhan M&A-ESG Fund 4,169 2,576 (291) - - 6,454
Shinhan SM Office Value Add – Outsource Management Real Estate Investment Co., Ltd. 10,574 6,609 1,621 - - 18,804
KDBC meta-enter New Technology investment fund 6,940 - (143) - - 6,797
Shinhan Time Secondary Blind Fund 4,754 - (117) - - 4,637
Shinhan DS Secondary Investment Fund 7,477 (1,408) (3,630) - - 2,439
Shinhan-OpenWater Pre-IPO Fund-1 4,973 - 693 - - 5,666
Shinhan-CJ TechInnovation Fund 1st 2,364 2,400 (169) - - 4,595
Shinhan-Eco Venture Fund 2nd 3,610 450 (103) - - 3,957
Heungkuk-Shinhan The First Visionary Fund No.1 3,154 3,200 143 - - 6,497
Koreainvestment-Shinhan-LEP K beauty 9,969 - 295 - - 10,264
Shinhan HB Wellness 1st Fund 4,992 - 334 - - 5,326
Korea real Asset Fund No.3 9,315 7,865 (628) - - 16,552
PineStreet Global Corporate FoF XIII-2 (NC XI) 721 3,087 (65) - - 3,743

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December

31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
Igis Yongsan Office General PE Real Estate Inv. Trust No. 518 W 23,131 (5,596) (391) - - 17,144
Samsung-Dunamu Innovation IT Fund No.1 4,536 - (786) - - 3,750
Time Robotics fund 3,966 (200) 12 - - 3,778
Ascent-Welcome Fund2 8,771 - (311) - - 8,460
Newmain I funds 1,991 - 7,373 - - 9,364
Igis General PE Real Estate Investment Trust 517-1 51,736 5,000 (1,834) - - 54,902
SH Ulmus M.P.E. Innovative Venture Fund 7 3,000 - 32 - - 3,032
Consus Osansegyo No.2 8,104 - (95) - - 8,009
Mastern General Private Real Estate Investment Trust No.189(Type 1 Beneficiary Securities) 7,822 (7,502) (320) - - -
Shinhan AIM Private Fund of Fund 9-B 24,018 9,751 2,972 - - 36,741
Shinhan General Private Real Estate Investment Trust No.3 7,838 18,970 (102) - - 26,706
NH Absolute Project L General Private Investment Trust 4,893 (5,264) 371 - - -
Paros Kosdaq Venture General Private Investment Trust No. 5 5,994 - 596 - - 6,590
Happy Pet Life Care New Technology Investment Association No.2 3,456 - (457) - - 2,999
Shinhan-soo secondary Fund 5,249 12,250 (762) - - 16,737
TECHFIN RATINGS Co., Ltd. - 27,000 (1,390) - - 25,610
SONGPA BIZ CLUSTER PFV CO., LTD. - 13,700 (336) - - 13,364
Planeta PTE LTD - 11,341 - - - 11,341
The E&Shinhan New Growth Up Fund - 3,600 (82) - - 3,518
Shinhan-GB FutureFlow Fund L.P. - 5,855 (352) (353) - 5,150
Credila Financial Services - 250,270 4,017 8,829 - 263,116
Shinhan Market-Frontier Fund Ⅲ - 13,205 (414) - - 12,791
DB IPO HighYield Fund 1 - 4,000 278 - - 4,278
Exponential SQUARE Private Investment Trust No.1 - 6,146 (938) - - 5,208
Fine North America Credit Private Mixed Asset Investment Trust 22 - 4,549 64 - - 4,613
IGIS Private Real Estate Investment No.454 - 3,393 (25) - - 3,368
IGIS Private Real Estate Investment No.462 - 4,607 (174) - - 4,433
BNW Recharge Private Equity Fund - 6,767 371 - - 7,138

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Investments in associates (continued)

(b) Changes in investments in associates for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Investees Beginning<br><br>balance Investment<br><br>and<br><br>dividend Equity<br><br>method<br><br>income<br><br>(loss) Change in<br><br>other comprehensive income Impairment<br><br>loss Ending<br><br>balance
United Partners Realasset Fund No.14 W - 10,000 (2) - - 9,998
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 - 17,929 48 - - 17,977
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 - 11,996 39 - - 12,035
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 - 13,953 (242) - - 13,711
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 - 13,955 (217) - - 13,738
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 - 13,837 (547) - - 13,290
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 - 5,270 108 - - 5,378
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 - 10,530 395 - - 10,925
Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 - 5,270 (218) - - 5,052
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] - 4,124 73 - - 4,197
Others 210,518 (9,778) (17,080) - - 183,660
Total W 2,692,031 118,786 (23,822) 9,063 (43,078) 2,752,980

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

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Securities sold:
Stocks W 17,929 640
Bonds 684,689 354,084
Others - 3,117
702,618 357,841
Gold/silver deposits 1,083,119 597,058
W 1,785,737 954,899
  1. Financial liabilities designated at fair value through profit or loss

(a) Financial liabilities designated at fair value through profit or loss as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024 Reason for designation
Derivatives-linked securities sold W 6,497,114 7,959,176 Combined financial instrument
Debt securities issued 301,296 261,299 Fair value measurement<br><br>and management
W 6,798,410 8,220,475

(*) 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 6,798,410 million as of September 30, 2025. Decrease in values of the liability due to credit risk changes is W 2,522 million for the nine-month period ended September 30, 2025 and the accumulated changes in values are W (-) 5,876 million as of September 30, 2025.

(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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Expiration payment W 6,553,004 8,001,931
Carrying amount 6,798,410 8,220,475
Difference from carrying amount W (245,406) (218,544)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Debt securities issued

Debt securities issued as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Interest<br>rate (%) Amount Interest<br>rate (%) Amount
Debt securities issued in Korean won:
Debt securities issued 1.00~9.50 W 70,770,968 1.00~9.50 W 72,561,043
Subordinated debt securities issued 2.20~5.20 3,020,105 2.20~5.20 2,820,105
Gain on fair value hedges - (148,798) - (188,774)
Discount on debt securities issued - (86,840) - (85,489)
73,555,435 75,106,885
Debt securities issued in foreign<br><br>currencies:
Debt securities issued 0.98~5.54 14,195,867 0.98~6.60 13,979,805
Subordinated debt securities issued 3.75~5.75 4,084,778 3.34~5.75 4,995,972
Gain on fair value hedges - (92,404) - (250,628)
Discount on debt securities issued - (57,494) - (66,180)
18,130,747 18,658,969
W 91,686,182 W 93,765,854

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Present value of defined benefit obligations W 2,421,602 2,345,148
Fair value of plan assets (2,607,519) (2,461,871)
Recognized liability (asset) for defined benefit obligations (*) W (185,917) (116,723)

(*) The asset for defined benefit obligation of W 185,917 million as of September 30, 2025 is the net defined benefit assets of W 297,394 million less the net defined liabilities of W 111,477 million. In addition, the asset for defined benefit obligation of W 116,723 million as of December 31, 2024 is the net defined benefit assets of W 155,697 million less the net defined liabilities of W 38,974 million.

(b) Net income relating to defined benefit liabilities for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-month Three-month Nine-month
Current service cost W 41,175 124,006 40,765 122,934
Net interest expense (income) (4,581) (13,517) (3,563) (11,045)
Past service cost - 8,624 - 265
Settlement - 4 12 (1,975)
W 36,594 119,117 37,214 110,179

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Provisions

(a) Provisions as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Asset retirement obligations W 106,212 99,306
Expected loss related to litigation 135,445 114,750
Unused credit commitments 325,632 411,275
Guarantee contracts issued: 110,651 104,451
Financial guarantee contracts issued: 93,840 87,088
Non-financial guarantee contracts issued: 16,811 17,363
Others (*1), (*2), (*3) 465,123 579,114
W 1,143,063 1,308,896

(*1) As of September 30, 2025 and December 31, 2024, the Group recognizes a provision of W 311,515 million and W 317,857 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 September 30, 2025 and December 31, 2024, the Group recognizes a provision of W 333 million and W 25,856 million for vulnerable groups such as self-employed people, small business owners and institutions supporting vulnerable groups, etc. in accordance with the “Banking financial support plan for people’s livelihood.”

(*3) As of September 30, 2025 and December 31, 2024, the Group recognizes a provision of W 10,327 million and W 19,086 million for the estimated customer compensation amount related to equity-linked products based on the Hong Kong H-Index (Hang Seng China Enterprises Index).

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Provisions (continued)

(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows:

September 30, 2025
Unused credit commitments Financial guaranteed contracts issued Total
12-months expected<br>credit losses Lifetime expected<br>credit losses Impaired<br><br>financial asset 12-months expected credit losses Lifetime expected<br>credit losses Impaired financial asset
Beginning balance W 229,415 88,843 93,017 80,780 6,296 12 498,363
Transfer (from) to 12 months expected credit losses 46,391 (46,289) (102) 1,581 (1,581) - -
Transfer (from) to lifetime expected credit losses (14,880) 14,942 (62) (3,583) 3,583 - -
Transfer (from) to impaired financial asset (850) (1,029) 1,879 (416) - 416 -
Provided (reversed) (45,019) 41,749 (76,909) (3,842) (598) 3 (84,616)
Change in foreign exchange rate (4,544) (625) - (1,047) (209) 1 (6,424)
Others (*) (295) - - 6,476 6,391 (423) 12,149
Ending balance W 210,218 97,591 17,823 79,949 13,882 9 419,472

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Provisions (continued)

(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Unused credit commitments Financial guarantee contracts issued Total
12-months expected<br>credit losses Lifetime expected<br>credit losses Impaired<br><br>financial asset 12-months expected credit losses Lifetime expected<br>credit losses Impaired financial asset
Beginning balance W 206,687 129,182 19,722 32,002 7,590 406 395,589
Transfer (from) to 12 months expected credit losses 68,071 (67,931) (140) 4,968 (4,968) - -
Transfer (from) to lifetime expected credit losses (11,698) 11,723 (25) (366) 366 - -
Transfer (from) to impaired financial asset (806) (1,561) 2,367 - - - -
Provided (reversed) (40,306) 16,043 71,093 (3,783) (1,139) 2 41,910
Change in foreign exchange rate 5,340 1,347 - 2,316 791 1 9,795
Others (*) 2,127 40 - 45,643 3,656 (397) 51,069
Ending balance W 229,415 88,843 93,017 80,780 6,296 12 498,363

(*) Others include effects of the provision from the new financial guaranteed contracts measured at fair value, and the expired contracts, the change of discount rate and others.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities and others

(a) Insurance contract liabilities and others as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Insurance contract assets W (2,327) (5,639)
Insurance contract liabilities 52,396,931 51,124,991
Net insurance contract liabilities W 52,394,604 51,119,352
Reinsurance contract assets W 736,510 184,754
Reinsurance contract liabilities (107,019) (98,063)
Net reinsurance contract assets W 629,491 86,691

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities and others (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025
Nine-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Expected insurance premiums and other expected insurance service expenses W 567,272 494,019 240,330 1,301,621
Risk-adjusted change amount 43,925 31,703 60,401 136,029
Contractual service margin amortization 270,295 189,951 222,635 682,881
Recovery of insurance acquisition cash flows 70,128 248 235,494 305,870
Etc. (*) (8,480) 128 (5,324) (13,676)
943,140 716,049 753,536 2,412,725
Premium allocation approach 74,404 - 754 75,158
Insurance revenue subtotal 1,017,544 716,049 754,290 2,487,883
Unapplied premium allocation approach Accrued insurance premiums and other incurred insurance service expenses 569,216 444,575 275,563 1,289,354
Changes in incident fulfillment cash flow 825 16,420 15,915 33,160
Costs related to loss-bearing contracts (10,071) (15,127) 43,862 18,664
Amortization of insurance acquisition cash flows 70,366 248 235,255 305,869
Etc. (*) (7,542) 1,156 (22,239) (28,625)
622,794 447,272 548,356 1,618,422
Premium allocation approach 86,809 - 1,615 88,424
Insurance service expense subtotal W 709,603 447,272 549,971 1,706,846

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2025
Nine-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Accrued reinsurance amount W 279 89,726 46,168 136,173
Changes in incident fulfillment cash flow 113 (22,869) 2,991 (19,765)
Etc. (*) 10 (98) (156) (244)
402 66,759 49,003 116,164
Premium allocation approach 26,237 - - 26,237
Reinsurance revenue subtotal 26,639 66,759 49,003 142,401
Unapplied premium allocation approach Expected reinsurance amount - 27,941 27,409 55,350
Risk-adjusted change amount - 2,719 2,127 4,846
Contractual service margin amortization - 8,537 14,476 23,013
Etc. (*) - 17,030 15,864 32,894
- 56,227 59,876 116,103
Premium allocation approach 28,102 - - 28,102
Reinsurance service expense subtotal 28,102 56,227 59,876 144,205
W 306,478 279,309 193,446 779,233

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2025
Three-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Expected insurance premiums and<br><br>other expected insurance service<br><br>expenses W 188,817 164,918 91,366 445,101
Risk-adjusted change amount 14,018 10,170 23,345 47,533
Contractual service margin<br><br>amortization 87,848 62,105 78,781 228,734
Recovery of insurance acquisition cash<br><br>flows 22,443 78 83,388 105,909
Etc. (*) (2,657) 98 (1,675) (4,234)
310,469 237,369 275,205 823,043
Premium allocation approach 24,719 - 447 25,166
Insurance revenue subtotal 335,188 237,369 275,652 848,209
Unapplied premium allocation approach Accrued insurance premiums and other<br><br>incurred insurance service expenses 196,150 194,977 118,014 509,141
Changes in incident fulfillment cash<br><br>flow (5,331) (36,401) (7,150) (48,882)
Costs related to loss-bearing contracts (5,245) 8,933 12,206 15,894
Amortization of insurance acquisition<br><br>cash flows 22,530 78 83,300 105,908
Etc. (*) (2,351) 511 (16,590) (18,430)
205,753 168,098 189,780 563,631
Premium allocation approach 31,840 - 633 32,473
Insurance service expense subtotal W 237,593 168,098 190,413 596,104

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2025
Three-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Accrued reinsurance amount W 203 24,637 31,200 56,040
Changes in incident fulfillment cash flow 64 (9,030) 2,054 (6,912)
Etc. (*) 16 (146) 78 (52)
283 15,461 33,332 49,076
Premium allocation approach 10,959 - - 10,959
Reinsurance revenue subtotal 11,242 15,461 33,332 60,035
Unapplied premium allocation approach Expected reinsurance amount - 9,295 10,033 19,328
Risk-adjusted change amount - 868 789 1,657
Contractual service margin<br><br>amortization - 2,896 6,046 8,942
Etc. (*) - 2,174 10,404 12,578
- 15,233 27,272 42,505
Premium allocation approach 10,333 - - 10,333
Reinsurance service expense subtotal 10,333 15,233 27,272 52,838
W 98,504 69,499 91,299 259,302

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2024
Nine-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Expected insurance premiums and<br><br>other expected insurance service<br><br>expenses W 577,919 517,703 136,744 1,232,366
Risk-adjusted change amount 36,618 26,886 33,577 97,081
Contractual service margin<br><br>amortization 343,147 182,814 182,963 708,924
Recovery of insurance acquisition cash<br><br>flows 91,685 313 169,666 261,664
Etc. (*) (11,000) (136) 4,607 (6,529)
1,038,369 727,580 527,557 2,293,506
Premium allocation approach 44,725 - 311 45,036
Insurance revenue subtotal 1,083,094 727,580 527,868 2,338,542
Unapplied premium allocation approach Accrued insurance premiums and other<br><br>incurred insurance service expenses 565,113 440,001 132,454 1,137,568
Changes in incident fulfillment cash<br><br>flow 4,278 58,050 8,169 70,497
Costs related to loss-bearing contracts 8,011 5,201 5,407 18,619
Amortization of insurance acquisition<br><br>cash flows 91,807 313 169,544 261,664
Etc. (*) (9,136) 471 (37,771) (46,436)
660,073 504,036 277,803 1,441,912
Premium allocation approach 56,417 - 946 57,363
Insurance service expense subtotal W 716,490 504,036 278,749 1,499,275

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2024
Nine-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Accrued reinsurance amount W 35 47,705 6,054 53,794
Changes in incident fulfillment cash flow 52 (19,274) (1,113) (20,335)
Etc. (*) 19 (6,148) (3,059) (9,188)
106 22,283 1,882 24,271
Premium allocation approach 14,226 - - 14,226
Reinsurance revenue subtotal 14,332 22,283 1,882 38,497
Unapplied premium allocation approach Expected reinsurance amount - 29,708 8,422 38,130
Risk-adjusted change amount - 2,169 700 2,869
Contractual service margin<br><br>amortization - (8,031) 7,712 (319)
Etc. (*) - (2,810) 39 (2,771)
- 21,036 16,873 37,909
Premium allocation approach 12,303 - - 12,303
Reinsurance service expense subtotal 12,303 21,036 16,873 50,212
W 368,633 224,791 234,128 827,552

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2024
Three-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Expected insurance premiums and<br><br>other expected insurance service<br><br>expenses W 191,814 169,001 52,621 413,436
Risk-adjusted change amount 11,794 8,816 12,175 32,785
Contractual service margin<br><br>amortization 109,229 57,190 69,757 236,176
Recovery of insurance acquisition cash<br><br>flows 30,144 105 65,040 95,289
Etc. (*) (3,278) (175) 1,509 (1,944)
339,703 234,937 201,102 775,742
Premium allocation approach 18,686 - 190 18,876
Insurance revenue subtotal 358,389 234,937 201,292 794,618
Unapplied premium allocation approach Accrued insurance premiums and other<br><br>incurred insurance service expenses 193,293 186,435 59,512 439,240
Changes in incident fulfillment cash<br><br>flow (6,287) (25,689) (1,957) (33,933)
Costs related to loss-bearing contracts 7,626 299 6,522 14,447
Amortization of insurance acquisition<br><br>cash flows 30,189 105 64,996 95,290
Etc. (*) (2,522) 45 (4,447) (6,924)
222,299 161,195 124,626 508,120
Premium allocation approach 22,181 - 1,512 23,693
Insurance service expense subtotal W 244,480 161,195 126,138 531,813

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance contracts liabilities (continued)

(b) Details of insurance profits and losses for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

September 30, 2024
Three-month
Retroactive modification method Fair value method Etc. Total
Unapplied premium allocation approach Accrued reinsurance amount W 21 17,455 2,162 19,638
Changes in incident fulfillment cash flow 7 (8,214) (786) (8,993)
Etc. (*) 12 (1,105) 114 (979)
40 8,136 1,490 9,666
Premium allocation approach 5,872 - - 5,872
Reinsurance revenue subtotal 5,912 8,136 1,490 15,538
Unapplied premium allocation approach Expected reinsurance amount - 9,749 2,778 12,527
Risk-adjusted change amount - 741 284 1,025
Contractual service margin mortization - (10,773) 2,796 (7,977)
Etc. (*) - (31) 408 377
- (314) 6,266 5,952
Premium allocation approach 5,554 - - 5,554
Reinsurance service expense subtotal 5,554 (314) 6,266 11,506
W 114,267 82,192 70,378 266,837

(*) Others include allocation of loss components, etc.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Insurance finance income and expense

Insurance finance income or expense for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-<br><br>month Three-month Nine-<br><br>month
Insurance finance income
Insurance contract
Foreign exchange rate change effects W 91 20,104 13,268 13,580
Other 1,551 22,546 99,510 115,974
1,642 42,650 112,778 129,554
Reinsurance contract
The change in non-performance risk by<br><br>reinsurer 7 - (9) (35)
Other 1 229 - -
8 229 (9) (35)
1,650 42,879 112,769 129,519
Insurance finance expense
Insurance contract
Foreign exchange rate change effects 8,866 8,562 (208) 20,099
Other 315,673 774,583 (4,507) 251,727
324,539 783,145 (4,715) 271,826
Reinsurance contract
The change in non-performance risk by <br>  reinsurer 8 8 - -
Other 17 17 - -
25 25 - -
324,564 783,170 (4,715) 271,826
Insurance finance income (expense) W (322,914) (740,291) 117,484 (142,307)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity

(a) Equity as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Capital stock (*):
Common stock W 2,695,586 2,695,586
Preferred stock 274,055 274,055
2,969,641 2,969,641
Hybrid bond 4,749,837 4,600,121
Capital surplus:
Share premium 11,352,744 11,352,744
Others 749,304 742,224
12,102,048 12,094,968
Capital adjustments (843,306) (807,114)
Accumulated other comprehensive income, net of tax:
Loss on financial assets at FVOCI (2,213,875) (2,314,518)
Equity in other comprehensive loss of associates (7,130) 5,701
Foreign currency translation adjustments for foreign operations (11,151) 296,489
Net loss from cash flow hedges (39,538) 3,406
Remeasurement of defined benefit obligation (409,856) (354,087)
Changes in own credit risk on financial liabilities designated under fair value option (4,325) (5,569)
Net finance gain on insurance contract assets (liabilities) 11,730 532,388
Net finance gain on reinsurance contract assets (liabilities) (49,197) 11,750
(2,723,342) (1,824,440)
Retained earnings 41,615,684 39,020,580
Non-controlling interest 2,707,055 2,767,277
W 60,577,617 58,821,033

(*) Due to profit retirement, the capital is different from the total face value of issued stocks.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity (continued)

(b) Hybrid bonds

Hybrid bonds classified as other equity instruments as of September 30, 2025 and December 31, 2024 are as follows:

Issue date Maturity date Interest rate (%) September 30, 2025 December 31, 2024
Hybrid bonds in Korean won June 25, 2015 June 25, 2045 4.38 W - 199,455
September 15, 2017 Perpetual bond 4.25 89,783 89,783
April 13, 2018 Perpetual bond 4.56 14,955 14,955
September 17, 2020 Perpetual bond 3.12 - 448,699
March 16, 2021 Perpetual bond 2.94 429,009 429,009
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 -
September 9, 2025 Perpetual bond 3.26 399,035 -
Hybrid bonds in foreign currency May 12, 2021 Perpetual bond 2.88 556,007 556,007
W 4,749,837 4,600,121

(*) For the nine-month period ended September 30, 2025, the deduction for capital related to hybrid bonds issued is W 2,131 million.

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

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity (continued)

(c) Treasury stock

Changes in treasury stock for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
The number of shares Carrying value The number of shares Carrying value
Beginning balance 4,585,561 W 250,000 6,352 W 227
Acquisition 17,264,831 913,939 13,899,708 700,000
Disposal - - (6,353) (227)
Retirement (*) (17,950,391) (900,000) (9,314,146) (450,000)
Ending balance 3,900,001 W 263,939 4,585,561 W 250,000

(*) For the nine-month period ended September 30, 2025, the Group acquired treasury stocks 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. For the year ended December 31, 2024, the Group acquired treasury stocks for retirement and completed the retirement of 3,366,257 shares and 5,947,889 shares on March 22, 2024 and November 1, 2024, respectively.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity (continued)

(d) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows:

September 30, 2025
Items that are or may be reclassified to profit or loss Items that will never be reclassified to profit or loss Total
Gain (loss) on securities at FVOCI Equity in other comprehens-<br><br>ive income (loss) of<br><br>associates Foreign currency translation<br><br>adjustments<br><br>for foreign<br><br>operations Net gain (loss) from cash flow hedges Net finance gain on insurance contract assets<br><br>(liabilities) Net finance<br><br>gain on<br><br>reinsurance<br><br>contract assets<br><br>(liabilities) Remeasure<br><br>-ments of<br><br>the defined benefit<br><br>plans Equity in other comprehensi-<br><br>ve income (expense) of<br><br>associates Gain (loss) on securities at<br><br>FVOCI Gain (loss) on financial<br><br>liabilities<br><br>designated at<br><br>FVTPL<br>attributable to<br>changes in<br>credit risk
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 80,224 (20,119) - - (707,624) (82,804) - - 141,194 (2,522) (591,651)
Reclassification:
Change due to impairment or disposal (48,967) 662 - - - - - - - - (48,305)
Effect of hedge accounting - - - 121,286 - - - - - - 121,286
Hedging (27,247) - 67,560 (179,479) - - - - - - (139,166)
Effects from changes in foreign exchange rate - 2,023 (381,765) - - - - - (3,374) - (383,116)
Remeasurements of the net defined benefit plans - - - - - - (75,996) - - - (75,996)
Deferred income taxes (691) 4,603 3,308 15,249 186,966 21,857 19,938 - (36,360) 668 215,538
Transfer to other account - - - - - - - - (4,572) 3,098 (1,474)
Non-controlling interests 436 - 3,257 - - - 289 - - - 3,982
Ending balance W (2,478,913) (7,139) (11,151) (39,538) 11,730 (49,197) (409,856) 9 265,038 (4,325) (2,723,342)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity (continued)

(d) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the nine-month period ended September 30, 2025 and the year ended December 31, 2024 are as follows (continued):

December 31, 2024
Items that are or may be reclassified to profit or loss Items that will never be reclassified to profit or loss Total
Gain (loss) on securities at FVOCI Equity in other comprehensi-<br><br>ve income (expense) of<br><br>associates Foreign currency translation<br><br>adjustments<br><br>for foreign<br><br>operations Net gain (loss)<br><br>from cash<br><br>flow<br><br>hedges Net finance<br><br>Income (expense) on insuran-ce contract<br><br>assets<br><br>(liabilities) Net finance<br><br>Income (expense) on reinsurance contract assets<br><br>(liabilities) Remeasure<br><br>-ments of<br><br>the defined benefit<br><br>plans Equity in other comprehensi-<br><br>ve income (expense) of<br><br>associates Gain (loss) on securities at<br><br>FVOCI Gain (loss) on<br><br>financial<br><br>liabilities<br><br>designated at<br><br>FVTPL<br>attributable to<br>changes in<br>credit risk
Beginning balance W (3,628,434) (979) (118,517) (35,108) 2,866,623 13,273 (292,328) 9 124,892 (3,884) (1,074,453)
Change due to fair value 1,465,249 16,732 - - (3,171,476) (2,077) - - 55,179 (8,616) (1,645,009)
Reclassification:
Change due to impairment or disposal 119,594 - (593) - - - - - - - 119,001
Effect of hedge accounting - - - (582,424) - - - - - - (582,424)
Hedging (30,371) - (221,221) 634,645 - - - - - - 383,053
Effects from changes in foreign exchange rate - (7,668) 624,565 - - - - - 13,017 - 629,914
Remeasurements of the net defined benefit plans - - - - - - (83,937) - - - (83,937)
Deferred income taxes (407,849) (2,393) 13,431 (13,707) 837,241 554 21,794 - (17,609) 2,275 433,737
Transfer to other account - - - - - - - - (7,329) 4,656 (2,673)
Non-controlling interests (857) - (1,176) - - - 384 - - - (1,649)
Ending 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)

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Beginning balance W 3,969,339 3,456,487
Expected regulatory reserve for loan losses 230,571 512,852
Ending balance W 4,199,910 3,969,339

ii) Profit attributable to equity holders of Shinhan Financial Group and earnings per share after factoring in regulatory reserve for loan losses for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-month Nine-<br><br>month
Profit attributable to equity holders of Shinhan Financial Group W 1,423,544 4,460,943 1,297,068 4,044,079
Provision for regulatory reserve for loan losses (172,578) (223,255) (93,338) (610,445)
Profit attributable to equity holders of Shinhan Financial Group adjusted for regulatory reserve W 1,250,966 4,237,688 1,203,730 3,433,634
Basic and diluted earnings per share adjusted for regulatory reserve in Korean won (*) W 2,295 8,372 2,195 6,400

(*) Dividends for hybrid bonds are deducted.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Equity (continued)

(f) Dividends

i) Quarterly dividends paid by the controlling company for the nine-month period ended September 30, 2025 are as follows:

Record date Total dividends
Common stock (W 570 per share) March 31, 2025 (1Q) W 278,127
Common stock (W 570 per share) June 30, 2025 (2Q) 276,732
W 554,859

ii) By resolutions of the 24th general meeting of stockholders, the annual dividends declared to be paid by the controlling company to the shareholders of the Company in respect of the year ended December 31, 2024 are as follows:

Total dividends
Common stock (W540 per share) W 267,755

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Operating income

Operating income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Operating income:
Interest income W 6,902,736 20,937,846 7,402,644 21,838,101
Fees and commission income 1,194,707 3,395,250 1,081,702 3,267,780
Insurance income 848,209 2,487,883 794,618 2,338,542
Reinsurance income 60,035 142,401 15,538 38,497
Insurance finance income 1,650 42,879 112,769 129,519
Dividend income 40,236 173,779 41,257 194,811
Gain on financial instruments at fair value through profit or loss 1,052,093 3,255,359 793,476 3,347,418
Income from derivatives held for trading 358,454 12,777,765 2,244,642 13,760,907
Gain on financial instruments designated at fair value through profit or loss 3,024 188,579 85,754 201,263
Gain (loss) on foreign currency transaction (1,314,684) 3,777,770 (1,281,834) 3,294,972
Gain on disposal of financial securities at fair value through other comprehensive income 80,814 268,108 94,543 167,161
Gain on disposal of securities at amortized cost 1 2 - -
Reversal of allowance for credit loss 51,606 85,008 (9,677) 1,743
Gain (loss) on hedging instruments (42,311) 569,288 (16,988) 389,777
Other operating income 278,260 752,969 263,602 745,681
W 9,514,830 48,854,886 11,622,046 49,716,172

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Net interest income

Net interest income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-<br><br>month Nine-<br><br>month
Interest income:
Cash and due from banks at amortized cost W 192,465 572,595 201,845 583,940
Deposit at FVTPL 383 901 84 84
Securities at FVTPL 362,470 1,126,505 437,400 1,250,058
Securities at FVOCI 723,252 2,133,085 692,328 2,035,113
Securities at amortized cost 259,328 790,914 281,784 833,530
Loans at amortized cost 5,253,364 15,966,222 5,674,164 16,779,668
Loans at FVTPL 14,184 73,581 21,453 68,950
Insurance finance interest income 62,709 167,773 53,051 166,421
Others 34,581 106,270 40,535 120,337
6,902,736 20,937,846 7,402,644 21,838,101
Interest expense:
Deposits 2,222,969 6,954,358 2,615,228 7,624,792
Interests on financial liabilities designated at FVTPL 3,975 10,809 3,345 9,935
Borrowings 361,570 1,151,803 484,870 1,469,070
Debt securities issued 830,188 2,502,726 867,056 2,504,992
Insurance finance interest expenses 458,837 1,405,114 475,186 1,433,804
Others 77,644 246,643 101,972 302,808
3,955,183 12,271,453 4,547,657 13,345,401
Net interest income W 2,947,553 8,666,393 2,854,987 8,492,700

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Net fees and commission income

Net fees and commission income for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-<br><br>month Three-month Nine-<br><br>month
Fees and commission income:
Credit placement fees W 17,894 50,563 19,846 60,277
Commission received as electronic charge receipt 37,940 112,197 36,787 110,940
Brokerage fees 145,916 351,687 96,775 309,468
Commission received as agency 46,343 136,807 40,359 119,192
Investment banking fees 112,031 257,429 83,680 176,675
Commission received in foreign exchange activities 126,792 328,367 92,107 265,947
Trust management fees 66,161 187,159 62,576 188,914
Credit card fees 279,692 882,173 323,062 1,008,630
Operating lease fees 162,383 495,277 162,459 487,771
Others 199,555 593,591 164,051 539,966
1,194,707 3,395,250 1,081,702 3,267,780
Fees and commission expense:
Credit-related fee 11,930 33,844 15,149 39,819
Credit card fees 262,011 748,824 244,878 711,992
Others 152,706 404,401 131,108 406,093
426,647 1,187,069 391,135 1,157,904
Net fees and commission income W 768,060 2,208,181 690,567 2,109,876

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Reversal of (provision for) credit loss allowance

Reversal of (provision for) credit loss allowance on financial assets for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-month Three-month Nine-month
Allowance provided:
Loans at amortized cost W (463,236) (1,511,054) (451,175) (1,295,632)
Other financial assets at amortized cost (17,246) (56,065) (12,711) (48,423)
Securities at FVOCI (2,023) (5,992) (1,832) (1,832)
Unused credit commitments and financial guarantee - - 53,136 (55,595)
(482,505) (1,573,111) (412,582) (1,401,482)
Allowance reversed:
Securities at FVOCI - - (9,973) -
Securities at amortized cost 333 392 296 1,743
Unused credit commitments and financial guarantee 51,273 84,616 - -
51,606 85,008 (9,677) 1,743
W (430,899) (1,488,103) (422,259) (1,399,739)
  1. General and administrative expenses

General and administrative expenses for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-month Three-month Nine-month
Employee benefits:
Salaries and bonuses W 852,114 2,506,385 847,659 2,463,285
Severance benefits: 43,524 138,085 43,537 128,802
Defined contribution 10,423 30,877 9,681 28,725
Defined benefit 33,101 107,208 33,856 100,077
Termination benefits 40,990 45,172 978 7,002
936,628 2,689,642 892,174 2,599,089
Entertainment 9,664 29,253 10,381 30,724
Depreciation 128,821 403,093 138,636 398,707
Amortization 75,170 227,954 76,730 200,725
Taxes and utility bills 106,286 244,202 58,184 208,910
Advertising 79,652 196,597 75,277 191,112
Research 6,787 20,563 5,774 17,338
Others 175,214 606,976 232,088 686,490
W 1,518,222 4,418,280 1,489,244 4,333,095

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Share-based payments

(a) Performance shares granted as of September 30, 2025 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 as of September 30, 2025 193,735 2,599,317
Fair value per share in Korean won W 33,122, W 37,387 <br>W 37,081, W 38,156, and W 50,444 for the expiration of exercising period from 2020 to 2024 W 70,800

(*) 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.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Share-based payments (continued)

(b) Share-based compensation costs for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025
Employees of
The controlling company The subsidiaries Total
Performance share W 8,149 69,470 77,619
September 30, 2024
--- --- --- --- ---
Employees of
The controlling company The subsidiaries Total
Performance share W 6,807 55,655 62,462

(c) Accrued expenses recognized related to share-based payment transactions as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025
Accrued expenses
The controlling company The subsidiaries Total
Performance share W 19,707 171,825 191,532
December 31, 2024
--- --- --- --- ---
Accrued expenses
The controlling company The subsidiaries Total
Performance share W 16,396 135,356 151,752

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Income tax expense

Income tax expense for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-month Nine-<br><br>month Three-month Nine-<br><br>month
Current income tax expense W 459,538 1,094,113 406,986 974,274
Deferred income tax expense (benefit) arising from the origination and reversal of temporary differences (*) (53,160) 171,328 (4,109) (58,214)
Income tax expense (benefit) recognized outside profit or loss (*) 92,055 216,394 37,042 386,988
Income tax expense W 498,433 1,481,835 439,919 1,303,048
Effective tax rate % 25.55 24.58 24.92 24.01

(*) Due to the implementation of the global minimum tax law, the current income tax expense as of September 30, 2025, is W 936 million. 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.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Earnings per share

Basic and diluted earnings per share for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-month Nine-<br><br>month
Profit attributable to equity holders of Shinhan Financial Group W 1,423,544 4,460,943 1,297,068 4,044,079
Less:
Dividends to hybrid bonds (44,300) (143,433) (38,591) (124,397)
Profit available for common stock W 1,379,244 4,317,510 1,258,477 3,919,682
Weighted average number of common shares outstanding (*) 484,176,455 489,018,087 503,986,567 507,942,592
Basic and diluted earnings per share in Korean won W 2,849 8,829 2,497 7,717

(*) As of September 30, 2025, the number of common shares issued by the Group is 485,494,934 shares, and the weighted average number of outstanding shares reflects changes such as the acquisition and retirement of treasury stock for the nine-month periods ended September 30, 2025 and 2024.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Commitments and contingencies

(a) Guarantees, acceptances and credit commitments as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Guarantees and purchase agreements:
Outstanding guarantees W 16,180,272 15,315,381
Contingent guarantees 4,271,639 5,068,782
ABS and ABCP purchase agreements 2,338,585 2,123,665
22,790,496 22,507,828
Commitments to extend credit:
Loan commitments in won 93,286,383 93,064,772
Loan commitments in foreign currency 26,787,289 28,613,692
Unused credit commitments 93,055,273 90,700,766
Other agreements 6,534,003 6,601,564
219,662,948 218,980,794
Endorsed bills:
Secured endorsed bills 11,626 1,367
Unsecured endorsed bills 11,465,946 11,937,894
11,477,572 11,939,261
W 253,931,016 253,427,883

(b) Legal contingencies

As of September 30, 2025, the Group is involved with 1,322 pending lawsuits as a defendant with total litigation fee of W 1,494,841 million.

As of September 30, 2025, the Group has recorded W 135,445 million and W 5,298 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.

(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.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Commitments and contingencies (continued)

On January 22, 2021, the prosecution indicted Shinhan Securities Co., Ltd. and the former director of its Prime Brokerage Services department for violating the Financial Investment Services and Capital Markets Act. On March 15, 2023, Shinhan Securities Co., Ltd. was sentenced to a fine of W 50 million for negligence in its duty of supervision. Meanwhile, Shinhan Securities Co., Ltd. remains involved in civil litigation with Woori Bank, Mirae Asset Securities, Hana Bank, and Shin Young Securities in connection with the criminal case. On February 14, 2025, the company partially lost the first-instance trial against Woori Bank and Mirae Asset Securities and paid approximately W 63.2 billion in damages. In consideration of the first trial verdict, Shinhan Securities Co., Ltd. recognized a litigation provision of approximately W 38.4 billion as of September 30, 2025.

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 September 30, 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.

(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 September 30, 2025, Shinhan Asset Trust Co., Ltd. had entered into agreements for a total of 19 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 September 30, 2025, the total project financing (PF) commitment amount from financial institutions related to these projects was W 1,307,630 million, and the outstanding PF loan balance amounted to W 1,210,511 million.

As of September 30, 2025, the guaranteed completion deadlines for 9 project sites (including completed ones) have passed. The total project financing (PF) loan commitment limits for these sites amount to W 349,930 million, with loan balances of W 323,506 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 September 30, 2025, 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 292,154 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 September 30, 2025, Shinhan Bank and Shinhan Securities Co., Ltd. are under investigation by the Korea Fair Trade Commission regarding alleged unfair collusion among financial institutions. In addition, Shinhan Life Insurance is expected to receive inspection results and corrective action requirements for certain matters identified during the regular examination conducted by the Financial Supervisory Service in 2023. The outcomes of these matters cannot be reasonably estimated at this time.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Statement of cash flows

Cash and cash equivalents in the consolidated statements of cash flows as of September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025 December 31, 2024
Cash and due from banks at amortized cost W 47,237,607 40,547,054
Adjustments:
Due from financial institutions with a maturity over<br><br>three months from date of acquisition (1,141,539) (1,655,932)
Restricted due from banks (2,896,329) (3,643,579)
(4,037,868) (5,299,511)
W 43,199,739 35,247,543

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 September 30, 2025 and December 31, 2024 are as follows:

Related party Account September 30, 2025 December 31, 2024
Investments in associates:
BNP Paribas Cardif Life Insurance Credit card loans W 180 154
〃 ACL (1) (1)
〃 Accrued income W 15 23
〃 Deposits 4,951 5,559
〃 Allowance for unused credit commitments 1 1
Incorporated association Finance Saving<br><br>Information Center Credit card loans 1 2
〃 Deposits 5 3
Nomura-Rifa Private Real Estate Investment<br><br>Trust No.19 Loans 11,400 11,700
〃 ACL (544) (247)
SH MAIN Professional Investment Type <br> Private Mixed Asset Investment Trust No.3 Accrued income 60 71
Korea Finance Security Deposits 130 131
〃 Credit card loans 7 6
Korea Credit Bureau Deposits 1,000 24
〃 Credit card loans 918 616
〃 ACL - (1)
Goduck Gangil1 PFV Co., Ltd Deposits - 4
SBC PFV Co., Ltd. Loans 497,800 984,600
〃 ACL (3,890) (1,345)
〃 Accrued income 46 89
〃 Allowance for unused credit commitments 793 -
〃 Deposits 3 105
Goduck Gangil10 PFV Co., Ltd. Deposits 348 11,899
EDNCENTRAL Co., Ltd. Loans - 25,400
〃 ACL - (74)
〃 Accrued income - 64
〃 Deposits - 1,170
〃 Provisions - 156
Shinhan Global Healthcare Investment Fund 2 Deposits 1 1
Future-Creation Neoplux Venture Capital Fund Account receivables 3,600 3,600
Gyeonggi-Neoplux Superman Fund Account receivables - 1,696
Shinhan-Neoplux Energy Newbiz Fund Account receivables - 721

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties(continued)

(a) Balances with the related parties as of September 30, 2025 and December 31, 2024 are as follows (continued):

Related party Account September 30, 2025 December 31, 2024
Investments in associates (continued):
SHINHAN-NEO Core Industrial Technology Fund Account receivables W - 399
Neoplux No.3 Private Equity Fund Account receivables - 7,532
Wave Technology Deposits 189 115
SHINHAN-NEO Market-Frontier 2nd Fund Account receivables - 1,402
iPIXEL Co., Ltd. Credit card loans 15 14
〃 ACL - (1)
〃 Deposits 36 717
〃 Allowance for unused credit commitments - 1
NewWave 6th Fund Account receivables - 877
DDI LVC Master Real Estate Investment Trust Co.,Ltd. Deposits 802 852
Logisvalley Shinhan REIT Co., Ltd. Loans 33,000 33,000
〃 ACL (30) (30)
〃 Accrued income 38 75
〃 Deposits 1,656 1,340
Shinhan-Albatross tech investment Fund Deposits 1,595 4,339
Shinhan VC tomorrow venture fund 1 Account receivables - 2,474
JS Shinhan Private Equity Fund Accrued income 138 -
Shinhan Time 1st Investment fund Deposits - 64
NH-J&-IBKC Label Technology Fund Deposits 4 59
SH K REITs Infra Real Estate Investment Trust Accrued income 4 5
Shinhan-CJ TechInnovation Fund 1st Deposits 5,000 3,100
SH US Buyback&High Dividend Security Feeder<br>Investment Trust(H)[Equity] Accrued income 13 12
SH Prestige High Dividend Security Feeder No.1[Equity] Accrued income 18 14
Shinhan General Private Real Estate Investment Trust No.3 Accrued income 50 44
Capstone REITs No.26 Loans 20,000 20,000
〃 ACL (21) (21)
〃 Accrued income 90 90
SHINHAN Mid and SMALL-SIZED OFFICE VALUE-ADDED MO REIT Co., Ltd. Accrued income 227 145

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties(continued)

(a) Balances with the related parties as of September 30, 2025 and December 31, 2024 are as follows (continued):

Related party Account September 30, 2025 December 31, 2024
Investments in associates (continued):
Shinhan-GB FutureFlow L.P. Account receivables W - 41
〃 Unearned revenue 159 -
LB Scotland Amazon Fulfillment Center Fund 29 Derivative assets 57 503
Shinhan AIM FoF Fund 1-A Derivative assets - 3,511
PineStreet Global Corporate FoF XIII-2 (NCXI) Derivative assets 352 104
CASCADETECH INC Deposits 1 35
SONGPA BIZ CLUSTER PFV CO LTD Loans 44,848 22,424
〃 ACL (242) (119)
〃 Accrued income 46 26
〃 Allowance for unused credit commitments 48 95
〃 Deposits 1,423 -
STIC ALT Global II Private Equity Fund Deposits 805 2,207
TECHFIN RATINGS Co., Ltd. Credit card loans 24 13
〃 ACL - (2)
〃 Deposits 15,211 21,611
〃 Allowance for unused credit commitments 1 7
Nomura-Rifa Private Real Estate Investment Trust 31 Loans 13,860 14,000
〃 ACL (179) (27)
Pacific Private Placement Real Estate Fund No.40 Loans 14,000 14,000
〃 ACL (76) (75)
〃 Accrued income 152 124
Shinhan-DS Mezzanine Fund 1 Unearned revenue 154 93
Shinhan-Csquared Mezzanine Fund 1 Unearned revenue 29 19
KR Seocho Co., Ltd. Loans 11,871 11,871
〃 ACL (227) (213)
〃 Accrued income 1,409 573
KB Distribution Private Real Estate 3-1 Loans 2,000 2,000
〃 ACL - (4)
〃 Accrued income - 17
Shinhan Dev Healthcare Investment Fund 1 Unearned revenue 26 -
Credila Financial Services Loans 22,134 -
〃 ACL (88) -
〃 Deposits 2,372
Shinhan Rio Green Private Equity Fund Deposits 1,800 -
D2U 12th Fund Deposits 500 -
Finflow Deposits 25 -
Fireant Media and Digital Service Joint Stock Company Deposits 5 -
META TB ESG PRIVATE EQUITY FUND I Deposits 300 -
Key management personnel<br><br>and their immediate relatives: Loans 4,059 3,402
Assets 677,134 1,165,274
Liabilities W 39,373 53,707

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(b) Transactions with the related parties for the nine-month periods ended September 30, 2025 and 2024 are as follows:

Related party Account September 30, 2025 September 30, 2024
Investments in associates:
BNP Paribas Cardif Life Insurance Fees and commission income W 765 940
〃 Interest expense (8) (9)
Shinhan-Albatross Technology Investment Fund Fees and commission income 274 1,047
〃 Interest expense (5) (10)
Shinhan-Nvestor Liquidity Solution Fund Fees and commission income 174 192
Shinhan-PS Investment Fund No.1 Fees and commission income 8 15
Nomura-Rifa Private Real Estate Investment Trust No.19 Interest income 430 441
〃 Provision for credit loss (297) -
SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 Fees and commission income 176 814
KOREA FINANCE SECURITY CO., LTD. Fees and commission income 3 3
〃 Other administrative expense (108) (108)
ShinHan – Soo Young Entrepreneur Investment Fund No.1 Fees and commission income 77 3,122
Kiwoom-Shinhan Innovation Fund I Fees and commission income 28 148
FuturePlay-Shinhan TechInnovation Fund 1 Fees and commission income 179 158
Korea Credit Bureau Fees and commission income 2,503 1,262
〃 Fees and commission expense (3,625) (3,443)
〃 Other administrative expense (472) (52)
〃 Reversal of credit loss 1 -
〃 Interest expense (3) -
SBC PFV Co., Ltd. Fees and commission income 29,145 7,839
〃 Interest income 36,470 21,502
〃 Interest expense - (13)
〃 Provision for credit loss (2,546) (793)
〃 Provision for unused commitments (793) -
Goduck Gangil10 PFV Co., Ltd. Interest income - 30
〃 Interest expense (78) (236)
〃 Reversal of credit loss - 17
Korea Omega Project Fund I Fees and commission income 2,280 110
Sparklabs-Shinhan Opportunity Fund 1 Fees and commission income 1 15
EDNCENTRAL Co., Ltd. Interest income 587 -
〃 Fees and commission income 18 -
〃 Interest expense (22) -
〃 Provision for credit loss (43) -
〃 Provision for unused commitments (33) -
Kakao-Shinhan 1st TNYT Fund Fees and commission income 210 270
Future-Creation Neoplux Venture Capital Fund Interest income 380 58
Gyeonggi-Neoplux Superman Fund Fees and commission income 315 403
Shinhan-Neoplux Energy Newbiz Fund Fees and commission income 508 537

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(b) Transactions with the related parties for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

Related party Account September 30, 2025 September 30, 2024
Investments in associates (continued):
NewWave 6th Fund Fees and commission income W 605 698
SHINHAN-NEO Core Industrial Technology Fund Fees and commission income 225 332
Neoplux No.3 Private Equity Fund Fees and commission income 1,340 1,942
SHINHAN-NEO Market-Frontier 2nd Fund Fees and commission income 1,146 1,140
SWK-Shinhan New Technology Investment Fund 1st Fees and commission income 46 46
Ulmus SHC innovation investment fund Fees and commission income 50 52
iPIXEL Co., Ltd. Reversal of credit loss 1 -
〃 Reversal of provisions for unused commitments 1 -
CJL No.1 Private Equity Fund Interest expense - (2)
Reverent-Shinhan Vista Fund Fees and commission income 40 40
Kiwoom-Shinhan Innovation Fund 2 Fees and commission income 96 120
ETRI Holdings-Shinhan 1st Unicorn Fund Fees and commission income 58 74
Shinhan-Time mezzanine blind Fund (*2) Fees and commission income - 225
Shinhan VC tomorrow venture fund 1 Fees and commission income 2,180 1,812
JS Shinhan Private Equity Fund Fees and commission income 449 449
Stonebridge-Shinhan Unicorn Secondary Fund Fees and commission income 14 592
Shinhan-Kunicorn first Fund Fees and commission income 261 261
Shinhan-Quantum Startup Fund Fees and commission income 93 114
Shinhan Simone Fund Ⅰ Fees and commission income 10 78
Shinhan Whitrin New Tech Fund Fees and commission income 58 62
DDI LVC Master Real Estate Investment Trust Co., Ltd. Interest expense (1) (1)
Logisvalley Shinhan REIT Co., Ltd. Interest income 1,243 1,275
〃 Fees and commission income 113 93
〃 Interest expense (2) (1)
Shinhan Dev Healthcare Investment Fund 1 Fees and commission income 49 82
Shinhan-Cognitive Start-up Fund L.P. Fees and commission income 120 222
Global Commerce New Technology Investment Fund Fees and commission income 22 30
Shinhan-HGI Entities with social responsibility Investment Fund Fees and commission income 47 47
Shinhan WWG Energy Fund New Technology Investment Fund Fees and commission income 34 34
IGIS-Shinhan New Technology Fund 1 Fees and commission income 36 36
Shinhan-Ji and Tec Smart Innovation Fund Fees and commission income 195 130
Global Net Zero Solution Security Investment Trust (*1) Fees and commission income - 17
SH 1.5years Maturity Investment Type Security Investment Trust No.2 (*1), (*3) Fees and commission income - 4

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(b) Transactions with the related parties for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

Related party Account September 30, 2025 September 30, 2024
Investments in associates (continued):
Shinhan Global Active REIT Co., Ltd. (*1), (*3) Interest income W - 3,982
〃 Fees and commission income - 2,449
〃 Derivative-related income - 8,220
〃 Interest expense - (4)
〃 Reversal of credit loss - 218
Shinhan Time 1st Investment fund Fees and commission income 26 26
Shinhan SGC ESG Investment Fund 1st Fees and commission income 86 86
Shinhan-iSquare Venture PEF 1st Fees and commission income 75 75
Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st Fees and commission income 207 207
DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 Fees and commission income 216 216
NH-J&-IBKC Label Technology Fund Interest expense - (5)
Bonanza-Shinhan GIB Innovative Semiconductor Investment Fund Fees and commission income 55 55
2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund Fees and commission income 146 160
Shinhan M&A-ESG Investment Fund Fees and commission income 804 855
Shinhan-JW Mezzanin New Technology Fund 1st (*1) Fees and commission income - 7
MAN Global Strategy Fund(H) Fees and commission income - 5
SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] Fees and commission income 55 -
SH Prestige High Dividend Security Feeder No.1[Equity] Fees and commission income 63 -
Shinhan Time Secondary Blind New Technology Investment Association Fees and commission income 139 150
Shinhan-OpenWater Pre-IPO Fund-1 Fees and commission income 100 100
Shinhan-CJ Technology Innovation Fund No. 1 Fees and commission income 150 150
〃 Interest expense (47) -
Shinhan-Eco Venture Fund 2nd Fees and commission income 75 75
Heungkuk-Shinhan The First Visionary Fund No.1 Fees and commission income 200 200
Koreainvestment-Shinhan-LEP K beauty Fees and commission income 95 190
Shinhan HB Wellness 1st Fund Fees and commission income 58 58
Shinhan J&Wave New Technology Business Investment Association Fees and commission income 11 14
Shinhan General Private Real Estate Investment Trust No.3 Fees and commission income 154 86

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(b) Transactions with the related parties for the nie-month periods ended September 30, 2025 and 2024 are as follows (continued):

Related party Account September 30, 2025 September 30, 2024
Investments in associates (continued):
Shinhan DS Secondary Investment Fund Fees and commission income W 150 151
Fortress-Shinhan Air Cargo No. 1 New Technology Investment Association Fees and commission income 4 76
Shinhan Ulmus Small Manager Innovative Enterprise Investment Association No. 7 Fees and commission income 71 71
Shinhan SM Office Value Add – Outsource Management Real Estate Investment Co., Ltd. Fees and commission income 62 62
Shinhan-GB FutureFlow Fund L.P. Fees and commission income 222 177
LB Scotland Amazon Fulfillment Center Fund 29 Derivative-related income 57 253
〃 Other expense - (2)
Shinhan AIM FoF Fund 1-A Derivative-related income - 937
〃 Derivative-related expense - (232)
〃 Other income - 22
PineStreet Global Corporate FoF XIII-2 (NC XI) Derivative-related income 248 18
〃 Other income - 1
Shinhan Regent New Technology Business Investment Association No. 1 Fees and commission income 84 23
Shinhan-soo secondary Fund Fees and commission income 169 134
E&Shinhan New Growth-Up Fund Fees and commission income 121 177
Cascade Tech Co., Ltd. Reversal of credit loss - 6
TECHFIN RATINGS Co., Ltd. (*4) Fees and commission income 3 2
〃 Interest expense (425) (524)
〃 Fees and commission expense (1) -
〃 Reversal of credit loss 2 -
〃 Reversal of provisions for unused commitments 6 -
SONGPA BIZ CLUSTER PFV CO., LTD. Interest income 1,716 -
〃 Fees and commission income - 9,178
〃 Interest expense - (1)
〃 Provision for credit loss (123) -
〃 Reversal of provisions for unused commitments 47 -
STIC ALT Global II Private Equity Fund Interest expense (1) (2)
Rifa Private Real Estate Investment Trust 31 Interest income 567 553
〃 Provision for credit loss (152) (33)
Pacific Private Placement Real Estate Fund No.40 Interest income 589 771
〃 Provision for credit loss (1) -
Shinhan-DS Mezzanine New Technology Investment Association No. 1 Fees and commission income 203 106
Shinhan-Csquared Mezzanine Fund 1 Fees and commission income 30 10
Shinhan Time BM Sub-Director New Technology Association Fees and commission income 55 110

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(b) Transactions with the related parties for the nine-month periods ended September 30, 2025 and 2024 are as follows (continued):

Related party Account September 30, 2025 September 30, 2024
Investments in associates (continued):
KR Seocho Co., Ltd. Interest income W 1,050 1,005
〃 Provision for credit loss (14) -
Shinhan Market-Frontier Investment Association No. 3 Fees and commission income 1,173 635
K-REITs Infrastructure Real Estate Fund Fees and commission income 48 33
KB Distribution Private Real Estate 3-1 Interest income 62 77
〃 Reversal of (provision for) credit loss 4 (35)
Capstone REITs No.26 Interest income 748 337
〃 Provision for credit loss - (35)
Wave Technology Fees and commission expense (300) (300)
Credila Financial Services Interest income 1,499 -
〃 Fees and commission income 9 -
〃 Provision for credit loss (88) -
〃 Interest expense (42) -
Shinhan Rio Green Private Equity Fund Fees and commission income 52 -
〃 Interest expense (28) -
Startup Korea Vision 2024 Fund Fees and commission income 587 -
Shinhan-soo Investment Green Wiz Fund Fees and commission income 412 -
Shinhan-Time Premier Fund Fees and commission income 120 -
Finflow (*4) Other non-operating income 2,652 -
D2U 12th Fund Interest expense (4) -
Fireant Media and Digital Service Joint Stock Company Interest expense (1) -
〃 Fees and commission income 4 -
META TB ESG PRIVATE EQUITY FUND I Interest expense (9) -
Reverent-Shinhan Root Fund Fees and commission income 88 -
Key management personnel and their close family members Interest income 180 99
W 89,601 75,697

(*1) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2024.

(*2) Excluded from the associates due to disposal and liquidation for the nine-month period ended September 30, 2025.

(*3) Transactions with the subsidiaries of associates were included for the year ended December 31, 2024.

(*4) During the current interim period, the Company acquired shares of Finflow through a contribution in kind and recognized the related gain on disposal, amounting to W 2,652 million, as other non-operating income.

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(c) Key management personnel compensation

Key management personnel compensation for the nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025 September 30, 2024
Three-<br><br>month Nine-<br><br>month Three-month Nine-<br><br>month
Short-term employee benefits W 4,487 15,916 5,257 16,784
Severance benefits 139 514 195 621
Share-based payments (*) 8,364 17,991 7,211 14,703
W 12,990 34,421 12,663 32,108

(*) 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 September 30, 2025 and December 31, 2024 are as follows:

Amount of guarantees
Guarantor Guaranteed Parties September 30,<br><br>2025 December 31, 2024 Account
Shinhan Bank SBC PFV Co., Ltd. 1,243,800 65,400 Unused loan commitments
〃 Key Management Personnel 826 2,801
Shinhan Life Insurance Co., Ltd. SBC PFV Co., Ltd. 174,200 -
Shinhan Securities Co., Ltd. SBC PFV Co., Ltd. 4,100 -
Shinhan Capital Co., Ltd. SBC PFV Co., Ltd. 62,200 -
〃 SONGPA BIZ CLUSTER PFV CO., LTD. 22,424 -
Shinhan Card Co., Ltd. BNP Paribas Cardif Life Insurance 820 846 Unused credit card limits
The Group Structured entities 116,790 204,035 Purchase agreement
〃 〃 22,502 31,440 Derivative agreement
W 1,647,662 304,522

(e) Details of collaterals provided by the related parties as of September 30, 2025 and December 31, 2024 are as follows:

Amount of assets pledged
Provided to Provided by Pledged assets September 30, 2025 December 31, 2024
Shinhan Bank Logisvalley Shinhan REIT Co., Ltd. Collateral trust 39,600 39,600
Nomura-Rifa Private Real Estate Investment Trust No.31. Collateral trust 16,632 16,800
SBC PFV Co., Ltd. Collateral trust 1,440,000 960,000
〃 Stocks 7,529 -
1,447,529 960,000
Key Management Personnel Properties 8,745 6,799
〃 Deposits and etc. 1,228 1,466
〃 Guarantee 995 2,132
10,968 10,397
W 1,514,729 1,026,797

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. Related parties (continued)

(f) Significant loans and financing transactions with related parties

i) Details of significant loan and collection transactions with related parties for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 2025
Classification Company Beginning Loan Collection Others (*1) Ending
Investments in associates Nomura-Rifa Private Real Estate Investment Trust No.19 W 11,700 - (300) - 11,400
SBC PFV Co., Ltd. 984,600 1,248,300 (1,735,100) - 497,800
Logisvalley Shinhan REIT Co., Ltd. 33,000 - - - 33,000
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 22,424 - - 44,848
KB Distribution Private Real Estate 3-1 2,000 - - - 2,000
Capstone REITs No.26 20,000 - - - 20,000
EDNCENTRAL Co., Ltd. (*2) 25,400 7,930 - (33,330) -
Credila Financial Services - 26,567 (4,433) - 22,134
Key Management Personnel 3,403 2,963 (2,305) - 4,061
Total W 1,142,398 1,308,184 (1,742,278) (33,330) 674,974

(*1) The effect of changes in the allowance for credit losses is included.

(*2) It was excluded from associates due to the loss of significant influence during the nine-month period ended September 30, 2025, and the year-end balance has been reclassified under 'Others'

December 31, 2024
Classification Company Beginning Loan Collection Others (*1) Ending
Investments in associates Nomura-Rifa Private Real Estate Investment Trust No.19 W 11,529 - (300) 471 11,700
Shinhan Global Active REIT Co., Ltd. (*2) - 165,400 (125,700) (39,700) -
SBC PFV Co., Ltd. - 1,169,700 (185,100) - 984,600
Goduck Gangil10 PFV Co., Ltd. 1,100 - (1,100) - -
Logisvalley Shinhan REIT Co., Ltd. 33,000 34,175 (34,175) - 33,000
CASCADETECH INC - 66 (66) - -
Nomura-Rifa Private Real Estate Investment Trust No.31. - 28,000 (14,000) - 14,000
Pacific Private Placement Real Estate Fund No.40 - 14,000 - - 14,000
KR Seocho Co., Ltd. - 11,871 (7,000) 7,000 11,871
SONGPA BIZ CLUSTER PFV CO., LTD. - 22,424 - - 22,424
KB Distribution Private Real Estate 3-1 - 2,000 - - 2,000
Capstone REITs No.26 - 20,000 - - 20,000
EDNCENTRAL Co., Ltd. - 25,400 - - 25,400

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

Key Management Personnel 5,005 1,493 (3,095) - 3,403
Total W 50,634 1,494,529 (370,536) (32,229) 1,142,398

(*1) The effect of changes in the allowance for credit losses is included.

(*2) It was excluded from associates due to the loss of significant influence during the year ended December 31, 2024, and the year-end balance has been reclassified under 'Others'

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2025 and 2024(Unaudited), and December 31, 2024

(In millions of won)

  1. 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 nine-month period ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

September 30, 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 (2,800) 1,800
TECHFIN RATINGS Co., Ltd. 18,000 23,000 (26,000) 15,000
Shinhan-CJ TechInnovation Fund 1st 3,100 11,000 (9,100) 5,000
D2U 12th Fund - 500 - 500
META TB ESG PRIVATE EQUITY FUND I - 300 - 300
Korea Credit Bureau - 1,000 - 1,000
Total W 21,159 40,400 (37,959) 23,600
December 31, 2024
--- --- --- --- --- --- --- ---
Liabilities Classification Company Beginning Borrowing Repayment Ending
Deposits (*) Investments in associates NH-J&-IBKC Label Technology Fund W 248 522 (711) 59
TECHFIN RATINGS Co., Ltd. - 46,000 (28,000) 18,000
CJL No.1 Private Equity Fund 265 282 (547) -
Shinhan-CJ TechInnovation Fund 1st - 3,100 - 3,100
Total W 513 49,904 (29,258) 21,159

(*) Settlement balances between related parties and payable deposits with frequent movements are excluded.

  1. Events after the reporting period

The Company resolved to pay a quarterly dividend of W 570 per common share by a resolution of the Board of Directors on October 28, 2025. The total amount of dividends is W 273,369 million, and the record date is November 4, 2025.

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