SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the Month of August 2016
SHINHAN FINANCIAL GROUP CO., LTD.
(Translation of registrant’s name into English)
20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- n/a .
Summary of FY2016 1H Business Report
On August 16, 2016, Shinhan Financial Group (“SFG”) filed its FY2016 1H 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.
2
Company History in 2010 through 2016
| • | Jan. 2010 : Shinhan Data System became a direct subsidiary of SFG |
| • | Aug. 2010 : Shinhan Macquarie Financial Advisory was disaffiliated from SFG |
| • | Oct. 2010 : Shinhan Maritime Private Equity Fund I became an indirect subsidiary of SFG |
| • | Dec. 2010 : KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp. became an indirect subsidiary of SFG |
| • | Feb. 2011 : Shinhan BNP Paribas Asset Management (Hong Kong) Limited became an indirect subsidiary of SFG |
| • | Nov. 2011 : Shinhan Bank Vietnam was merged with Shinhan Vina Bank |
| • | Dec. 2011 : Shinhan Savings Bank became a direct subsidiary of SFG |
| • | Nov. 2012 : Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary |
| • | Jan. 2013 : Yehanbyoul Savings Bank joined SFG as a direct subsidiary |
| • | Apr. 2013 : Shinhan Savings Bank merged with Yehanbyoul Savings Bank. As a result of the integration, Shinhan Savings Bank has been liquidated and Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity |
| • | Nov. 2014 : LLP MFO Shinhan Finance (Kazakhstan) became an indirect subsidiary of SFG |
| • | Jul. 2015 : Shinhan Securities Vietnam Co., ltd became an indirect subsidiary of SFG |
| • | Oct. 2015 : Banco Shinhan de Mexico became an indirect subsidiary of SFG |
| • | Nov. 2015 : PT Bank Shinhan Indonesia became an indirect subsidiary of SFG |
| • | Dec. 2015 : PT. Shinhan Indo Finance became an indirect subsidiary of SFG |
| • | Dec. 2015 : PT Centratama Nasional Bank became an indirect subsidiary of SFG |
| • | Mar. 2016 : Shinhan Microfinance Co.,ltd. became an indirect subsidiary of SFG |
3
Principal Subsidiaries under Korean Law (as of Jun. 30, 2016)
Direct Subsidiaries
| Subsidiaries |
Ownership by SFG | |||
| Shinhan Bank |
100.0 | % | ||
| Shinhan Card |
100.0 | % | ||
| Shinhan Investment Corp. |
100.0 | % | ||
| Shinhan Life Insurance |
100.0 | % | ||
| Shinhan BNP Paribas Asset Management |
65.0 | % | ||
| Shinhan Capital |
100.0 | % | ||
| Jeju Bank 1) |
68.9 | % | ||
| Shinhan Savings Bank 2) |
100.0 | % | ||
| Shinhan Data System |
100.0 | % | ||
| Shinhan AITAS 3) |
99.8 | % | ||
| Shinhan Credit Information |
100.0 | % | ||
| Shinhan Private Equity |
100.0 | % | ||
| SHC Management 4) |
100.0 | % | ||
| 1) | Jeju Bank is currently listed on the Korea Exchange. |
| 2) | On January 30, 2013, Yehanbyoul Savings Bank joined SFG as a direct subsidiary. |
On April 1, 2013, Shinhan Savings Bank merged with Yehanbyoul Savings Bank, both of which were direct subsidiaries of Shinhan Financial Group. As a result of the integration of the two savings banks, the previous Shinhan Savings Bank has been liquidated and is thus no longer a subsidiary of Shinhan Financial Group and instead, Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity constituting a member of Shinhan Financial Group.
| 3) | On November 30, 2012, Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary. Prior to November 30, 2012, Shinhan AITAS was an indirect subsidiary of SFG under Shinhan Bank, a wholly-owned bank subsidiary of SFG. |
| 4) | Currently in liquidation proceedings |
4
Indirect subsidiaries held through direct subsidiaries (as of Jun. 30, 2016)
| Direct Subsidiaries |
Indirect Subsidiaries |
Ownership by the Parent |
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| Shinhan Bank |
Shinhan Asia Limited | 100.0 | % | |||
| Shinhan Bank America | 100.0 | % | ||||
| Shinhan Bank Europe | 100.0 | % | ||||
| Shinhan Khmer Bank Limited 1) | 90.0 | % | ||||
| Shinhan Bank Kazakhstan | 100.0 | % | ||||
| Shinhan Bank China Limited | 100.0 | % | ||||
| Shinhan Bank Canada | 100.0 | % | ||||
| Shinhan Bank Japan | 100.0 | % | ||||
| Shinhan Bank Vietnam | 100.0 | % | ||||
| Banco Shinhan de Mexico | 100.0 | % | ||||
| PT Bank Shinhan Indonesia | 97.76 | % | ||||
| PT Centratama Nasional Bank | 75.0 | % | ||||
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| Shinhan Card |
LLP MFO Shinhan Finance | 100.0 | % | |||
| PT. Shinhan Indo Finance | 50.0 | % | ||||
| Shinhan Microfinance Co.,ltd. | 100.00 | % | ||||
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| Shinhan Investment Corp. |
Shinhan Investment Corp. USA Inc. | 100.0 | % | |||
| Shinhan Investment Corp. Asia Inc. | 100.0 | % | ||||
| Shinhan Maritime Private Equity Fund I | 7.1 | % | ||||
| KOFC Shinhan Frontier Champ 2010-4 PEF2) | 8.5 | % | ||||
| Shinhan Praxis K-Growth Global Private Equity Fund 3) | 14.1 | % | ||||
| Shinhan Securities Vietnam Co., ltd | 100.0 | % | ||||
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| Shinhan BNP Paribas Asset Management |
Shinhan BNP Paribas Asset Management (Hong Kong) Limited | 100.0 | % | |||
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| Shinhan Private Equity |
Shinhan NPS Private Equity Fund 1st 4) | 5.0 | % | |||
| Shinhan Private Equity Fund 2nd 5) | 2.2 | % | ||||
| Shinhan-Stonebridge Petro Private Equity Fund 6) | 0.6 | % | ||||
| 1) | Shinhan Financial Group and its subsidiaries currently own 93.3% of Shinhan Khmer Bank Limited. |
| 2) | Shinhan Financial Group and its subsidiaries currently own 34.6% of KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp. |
| 3) | Shinhan Financial Group and its subsidiaries currently own 18.9% of Shinhan Praxis K-Growth Global Private Equity Fund. |
| 4) | Shinhan Financial Group and its subsidiaries currently own 36.7% of Shinhan NPS Private Equity Fund 1st. |
| 5) | Shinhan Financial Group and its subsidiaries currently own 32.6% of Shinhan Private Equity Fund 2nd. |
| 6) | Shinhan Financial Group and its subsidiaries currently own 1.8% of Shinhan-Stonebridge Petro Private Equity Fund. |
Number of Shares (as of Jun. 30, 2016)
| Types of Shares |
Number of Shares | |||
| Common Shares |
474,199,587 | |||
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| Total |
474,199,587 | |||
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| * | On April 21, 2016, we redeemed all of the Series 12 redeemable preferred shares. |
5
Operation Results
| (KRW billion) | ||||||||||||||||
| 2016 1H (Jan. 1 ~ Jun. 30) |
2015 1H (Jan. 1 ~ Jun. 30) |
FY2015 (Jan. 1 ~ Dec. 31) |
FY2014 (Jan. 1 ~ Dec. 31) |
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| Operating income |
1,545.6 | 1,638.7 | 2,973.1 | 2,654.8 | ||||||||||||
| Equity method income |
3.8 | 10.4 | 21.0 | 30.6 | ||||||||||||
| Other non-operating income |
39.2 | 61.3 | 146.5 | 182.2 | ||||||||||||
| Profit before income taxes |
1,588.6 | 1,710.4 | 3,140.6 | 2,867.6 | ||||||||||||
| Income tax expense |
100.4 | 385.4 | 694.6 | 668.0 | ||||||||||||
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| Consolidated net income |
1,488.1 | 1,325.1 | 2,446.0 | 2,199.6 | ||||||||||||
| Net income attributable to equity holders of the Group |
1,454.8 | 1,284.1 | 2,367.2 | 2,081.1 | ||||||||||||
| Net income attributable to non-controlling interest |
33.3 | 40.9 | 78.8 | 118.5 | ||||||||||||
Notes :
| • | Some of the totals may not sum due to rounding. |
6
Source and Use of Funds
| Consolidated Basis (KRW billion, %) |
2016 1H | FY2015 | FY2014 | |||||||||||||||||||||||||||||||||||||||||||||||
| Jan. 1 ~ Jun. 30 | Jan. 1 ~ Dec. 31 | Jan. 1 ~ Dec. 31 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance1) |
Proportions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Proportions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Proportions (%) |
Interest Paid |
Interest Rate (%) |
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| Deposits | 221,870.7 | 58.4 | 1,326.3 | 1.20 | 203,910.5 | 57.3 | 2,861.0 | 1.40 | 186,086.1 | 57.2 | 3,449.5 | 1.85 | ||||||||||||||||||||||||||||||||||||||
| Borrowings |
14,619.7 | 3.9 | 84.0 | 1.15 | 13,492.9 | 3.8 | 150.7 | 1.12 | 12,145.2 | 3.7 | 190.0 | 1.56 | ||||||||||||||||||||||||||||||||||||||
| Debt Securities Issued |
41,735.4 | 11.0 | 553.0 | 2.65 | 39,334.8 | 11.0 | 1,183.8 | 3.01 | 36,609.9 | 11.3 | 1,301.9 | 3.56 | ||||||||||||||||||||||||||||||||||||||
| Source |
Other Liabilities |
70,165.0 | 18.5 | — | — | 68,378.1 | 19.2 | — | — | 60,397.7 | 18.6 | — | — | |||||||||||||||||||||||||||||||||||||
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| Total Liabilities |
348,390.7 | 91.7 | — | — | 325,116.3 | 91.3 | — | — | 295,238.9 | 90.8 | — | — | ||||||||||||||||||||||||||||||||||||||
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| Total Stockholder’s Equity |
31,402.8 | 8.3 | — | — | 31,063.1 | 8.7 | — | — | 30,023.9 | 9.2 | — | — | ||||||||||||||||||||||||||||||||||||||
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| Total Liabilities & SE |
379,793.5 | 100.0 | — | — | 356,179.4 | 100.0 | — | — | 325,262.8 | 100.0 | — | — | ||||||||||||||||||||||||||||||||||||||
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| Cash & Due from Banks | 21,968.3 | 5.8 | 98.9 | 0.90 | 21,993.4 | 6.2 | 225.6 | 1.03 | 19,646.5 | 6.0 | 236.9 | 1.21 | ||||||||||||||||||||||||||||||||||||||
| Loans | 247,402.2 | 65.1 | 4,572.9 | 3.70 | 231,889.2 | 65.1 | 9,031.6 | 3.89 | 212,237.2 | 65.3 | 9,722.5 | 4.58 | ||||||||||||||||||||||||||||||||||||||
| Loans in KRW |
194,309.8 | 51.2 | 3,238.4 | 3.33 | 180,410.1 | 50.7 | 6,479.5 | 3.59 | 164,597.9 | 50.6 | 7,092.5 | 4.31 | ||||||||||||||||||||||||||||||||||||||
| Loans in Foreign Currency |
14,547.3 | 3.8 | 234.7 | 3.23 | 13,528.2 | 3.8 | 415.0 | 3.07 | 11,598.8 | 3.6 | 403.0 | 3.47 | ||||||||||||||||||||||||||||||||||||||
| Use |
Credit Card Accounts |
18,607.0 | 4.9 | 847.4 | 9.11 | 17,819.5 | 5.0 | 1,635.3 | 9.18 | 17,575.1 | 5.4 | 1,702.5 | 9.69 | |||||||||||||||||||||||||||||||||||||
| Others |
19,938.2 | 5.3 | 252.5 | 2.53 | 20,131.5 | 5.7 | 501.9 | 2.49 | 18,465.4 | 5.7 | 524.5 | 2.84 | ||||||||||||||||||||||||||||||||||||||
| AFS Financial Assets | 29,399.3 | 7.7 | 303.7 | 2.07 | 26,830.0 | 7.5 | 654.4 | 2.44 | 26,801.5 | 8.2 | 814.8 | 3.04 | ||||||||||||||||||||||||||||||||||||||
| HTM Financial Assets | 16,508.9 | 4.4 | 276.1 | 3.35 | 14,961.0 | 4.2 | 539.0 | 3.6 | 12,076.7 | 3.7 | 521.7 | 4.32 | ||||||||||||||||||||||||||||||||||||||
| Other Assets | 64,514.9 | 17.0 | — | — | 60,505.8 | 17.0 | — | — | 54,500.9 | 16.8 | — | — | ||||||||||||||||||||||||||||||||||||||
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| Total Assets | 379,793.5 | 100.0 | — | — | 356,179.4 | 100.0 | — | — | 325,262.8 | 100.0 | — | — | ||||||||||||||||||||||||||||||||||||||
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| 1) | The “Average Balance” is the arithmetic mean of the ending balance of each quarter. |
7
Other Financial Information
| * | The main serial financial figures and indices for Jun. 30, 2016 listed herein may be subject to change. |
1) Capital Adequacy
Consolidated BIS Ratio (Shinhan Financial Group)
| (KRW billion) | ||||||||||||
| Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||
| Aggregate Amount of Equity Capital (A) |
28,769.8 | 27,216.4 | 25,938.0 | |||||||||
| Risk-Weighted Assets (B) |
206,960.6 | 203,274.5 | 198,832.9 | |||||||||
| BIS Ratio (A/B) |
13.90 | % | 13.39 | % | 13.05 | % | ||||||
Note) based on Basel III
Capital Adequacy Ratios (Subsidiaries)
| (%) | ||||||||||||||
| Subsidiary |
Capital Adequacy Ratio |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||
| Shinhan Bank |
BIS Capital Adequacy Ratio | 15.2 | 14.8 | 15.4 | ||||||||||
| Shinhan Card |
Adjusted Equity Capital Ratio | 25.8 | 28.9 | 29.7 | ||||||||||
| Shinhan Investment Corp. |
Net Capital Ratio | 757.9 | 387.2 | 461.8 | ||||||||||
| Shinhan Life Insurance |
Risk Based Capital Ratio | 204.7 | 204.2 | 230.7 | ||||||||||
| Shinhan BNP Paribas Asset Management |
Equity Capital (KRW billion) | 143.4 | 157.3 | 159.0 | ||||||||||
| Minimum Capital Requirement (KRW billion) | 23.6 | 23.2 | 22.1 | |||||||||||
| Shinhan Capital |
Adjusted Equity Capital Ratio | 16.5 | 16.8 | 15.5 | ||||||||||
| Jeju Bank |
BIS Capital Adequacy Ratio | 12.8 | 12.6 | 14.3 | ||||||||||
| Shinhan Savings Bank |
BIS Capital Adequacy Ratio | 15.1 | 16.3 | 16.3 | ||||||||||
Notes :
| • | The BIS Capital Adequacy Ratio is computed in accordance with the guidelines issued by the FSS for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%. |
| • | Basel III FIRB was applied in calculating Shinhan Bank’s BIS Capital Adequacy Ratio. |
| • | Basel III TSA was applied in calculating Jeju Bank’s BIS Capital Adequacy Ratio. |
| • | Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio. |
| • | The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholder’s equity to total adjusted assets and is computed in accordance with the guidelines issued by FSS. Under these guidelines, Shinhan Card and Shinhan Capital are required to maintain a minimum adjusted equity capital ratio of 8%. |
| • | Net Capital Ratio is computed in accordance with the guidelines issued by the FSS. Under these guidelines, Shinhan Investment Corporation is required to maintain a minimum net capital ratio of 100%. |
| • | Under the guidelines issued by the FSS, Shinhan Life Insurance is required to maintain a minimum RBC ratio of 100%. |
| • | Under the guidelines issued by the FSS, Shinhan BNP Paribas Asset Management is required to hold Equity Capital that exceeds the Minimum Capital Requirement. |
8
2) Liquidity
Won Liquidity Ratio
| (KRW billion, %) | ||||||||||||||||||||||||||||||||||||
| Company |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
| Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
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| Shinhan Financial Group |
851.5 | 215.4 | 395.3 | 624.1 | 216.0 | 288.9 | 76.1 | 41.4 | 183.9 | |||||||||||||||||||||||||||
| Shinhan Bank |
— | — | — | — | — | — | 55,338.0 | 45,258.5 | 122.3 | |||||||||||||||||||||||||||
| Shinhan Card |
14,395.4 | 4,239.2 | 339.6 | 14,588.0 | 3,845.4 | 379.4 | 14,583.7 | 3,014.5 | 483.8 | |||||||||||||||||||||||||||
| Shinhan Investment Corp. |
13,794.7 | 8,963.4 | 153.9 | 11,546.7 | 6,525.0 | 177.0 | 17,500.5 | 11,305.5 | 154.8 | |||||||||||||||||||||||||||
| Shinhan Life Insurance |
1,463.1 | 493.7 | 296.4 | 1,189.5 | 486.7 | 244.4 | 1,302.2 | 472.6 | 275.6 | |||||||||||||||||||||||||||
| Shinhan Capital |
654.7 | 333.9 | 196.1 | 784.7 | 355.4 | 220.8 | 567.6 | 161.1 | 352.3 | |||||||||||||||||||||||||||
| Jeju Bank |
— | — | — | — | — | — | 798.2 | 716.9 | 111.3 | |||||||||||||||||||||||||||
| Shinhan Savings Bank |
245.9 | 226.1 | 108.8 | 144.2 | 103.1 | 139.9 | 242.0 | 94.9 | 255.0 | |||||||||||||||||||||||||||
Notes :
| • | Shinhan Financial Group, Shinhan Bank and Jeju Bank: Due within 1 month |
| • | Shinhan Life Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100 |
| • | Shinhan Card, Shinhan Investment Corp., Shinhan Capital, and Shinhan Savings Bank : Due within 3 months |
| • | Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015 to reflect the recent amendments to detailed regulations on supervision of banking business. |
Liquidity Coverage Ratio
| (KRW billion, %) | ||||||||||||||||||||||||||||||||||||
| Company |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
| High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
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| Shinhan Bank |
36,001.2 | 37,624.8 | 95.7 | 37,421.5 | 38,253.3 | 97.8 | — | — | — | |||||||||||||||||||||||||||
| Jeju Bank |
596.4 | 281.1 | 212.2 | 546.3 | 352.0 | 155.2 | — | — | — | |||||||||||||||||||||||||||
Note) The “High quality liquid assets” and “Net cash outflows” are the arithmetic mean of the ending balance of every month.
9
Foreign Currency (FC) Liquidity Ratio
| (USD millions, %) | ||||||||||||||||||||||||||||||||||||
| Company |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
| FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
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| Shinhan Financial Group |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Shinhan Bank |
34,240.9 | 29,141.5 | 117.5 | 31,925.0 | 27,205.6 | 117.4 | 25,309.1 | 19,472.6 | 130.0 | |||||||||||||||||||||||||||
| Shinhan Investment Corp. |
5,730.4 | 5,297.6 | 108.2 | 1,875.7 | 1,793.8 | 104.6 | 1,195.7 | 871.5 | 137.2 | |||||||||||||||||||||||||||
| Shinhan Capital |
64.0 | 25.9 | 247.1 | 83.1 | 73.4 | 113.2 | 73.8 | 49.6 | 148.8 | |||||||||||||||||||||||||||
| Jeju Bank |
11.1 | 6.7 | 165.9 | 15.2 | 9.7 | 156.3 | 9.8 | 6.1 | 160.0 | |||||||||||||||||||||||||||
Notes :
| • | Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months. |
| • | Shinhan Bank’s foreign currency liquidity ratio reflected securitization weight with the guidelines issued by the FSS. |
| • | Shinhan Financial Group figures are based on the separate basis. |
10
3) Asset Quality
SFG Consolidated Basis
| (KRW billion) | ||||||||||||
| Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||
| Total Loans |
253,822.2 | 246,487.6 | 226,503.2 | |||||||||
| Substandard & Below |
2,232.7 | 2,171.6 | 2,595.3 | |||||||||
| Substandard & Below Ratio |
0.88 | % | 0.88 | % | 1.15 | % | ||||||
| Non-Performing Loans |
1,857.6 | 1,691.5 | 2,031.7 | |||||||||
| NPL Ratio |
0.73 | % | 0.69 | % | 0.90 | % | ||||||
| Substandard & Below Coverage Ratio |
197.00 | % | 191.22 | % | 168.88 | % | ||||||
| Loan Loss Allowance 1) |
4,398.5 | 4,152.5 | 4,383.0 | |||||||||
| Substandard & Below Loans |
2,232.7 | 2,171.6 | 2,595.3 | |||||||||
| 1) | Including reserve for credit losses. |
Separate Basis
| ( | %) | |||||||||||||||||||||||||||||||||||
| Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
| Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio 1) |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio 1) |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio 1) |
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| Shinhan Financial Group |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Shinhan Bank |
0.82 | 0.71 | 176 | 0.80 | 0.61 | 173 | 1.03 | 0.78 | 154 | |||||||||||||||||||||||||||
| Shinhan Card |
1.16 | 0.71 | 380 | 1.24 | 0.81 | 355 | 1.69 | 1.21 | 295 | |||||||||||||||||||||||||||
| Shinhan Investment Corp. |
0.13 | 0.13 | 513 | 0.15 | 0.15 | 485 | 1.37 | 1.36 | 208 | |||||||||||||||||||||||||||
| Shinhan Life Insurance |
0.09 | 0.08 | 958 | 0.09 | 0.09 | 927 | 0.1 | 0.09 | 867 | |||||||||||||||||||||||||||
| Shinhan Capital |
2.73 | 3.17 | 95 | 3.06 | 3.58 | 86 | 2.87 | 4.08 | 96 | |||||||||||||||||||||||||||
| Jeju Bank |
0.75 | 0.43 | 157 | 0.87 | 0.50 | 141 | 2.04 | 1.84 | 80 | |||||||||||||||||||||||||||
| Shinhan Savings Bank |
5.90 | 3.92 | 53 | 6.51 | 5.37 | 58 | 12.15 | 10.27 | 33 | |||||||||||||||||||||||||||
| 1) | Including reserve for credit losses. |
4) Debt to Equity Ratios
Shinhan Financial Group (Separate Basis)
| (KRW billion) | ||||||||||||
| Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||
| Debt |
6,876.3 | 6,894.5 | 6,859.4 | |||||||||
| Equity |
20,562.0 | 20,781.0 | 20,235.1 | |||||||||
| Debt to Equity Ratio |
33.44 | % | 33.18 | % | 33.90 | % | ||||||
11
Twenty Largest Exposures by Borrower
| (KRW billion) | ||||||||||||||||||||||||
| As of Jun. 30, 2016 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities | Guarantees and Acceptances |
Others | Total Exposures |
||||||||||||||||||
| Ministry of Strategy & Finance |
0.0 | — | 8,578.2 | — | — | 8,578.2 | ||||||||||||||||||
| Bank of Korea |
660.0 | — | 6,047.3 | 0.1 | — | 6,707.3 | ||||||||||||||||||
| Korea Housing Finance Corporation |
0.0 | — | 4,823.6 | — | — | 4,823.6 | ||||||||||||||||||
| Korea Development Bank |
66.0 | 34.1 | 4,604.7 | — | 0.3 | 4,705.1 | ||||||||||||||||||
| Industrial Bank of Korea |
639.5 | 110.6 | 1,390.5 | — | — | 2,140.6 | ||||||||||||||||||
| Korea Deposit Insurance Corporation |
— | — | 1,728.1 | — | — | 1,728.1 | ||||||||||||||||||
| Korea Securities Finance Corporation |
24.7 | — | 1,406.3 | — | — | 1,431.0 | ||||||||||||||||||
| NongHyup Bank |
384.0 | 129.6 | 848.0 | 4.3 | — | 1,365.8 | ||||||||||||||||||
| Woori Bank |
164.3 | 99.0 | 1,071.0 | 0.2 | — | 1,334.4 | ||||||||||||||||||
| Hyundai Heavy Industries Co., Ltd. |
82.6 | 55.3 | 20.3 | 1,145.1 | — | 1,303.2 | ||||||||||||||||||
| Kookmin Bank |
415.3 | 81.5 | 736.4 | — | — | 1,233.3 | ||||||||||||||||||
| Samsung Electronics co., ltd. |
0.1 | 1,087.5 | 16.1 | — | — | 1,103.7 | ||||||||||||||||||
| Hana Bank |
134.8 | 207.3 | 725.5 | 0.2 | — | 1,067.8 | ||||||||||||||||||
| Korea Land & Housing Corporation |
— | — | 1,050.2 | — | — | 1,050.2 | ||||||||||||||||||
| Export-Import Bank of Korea |
— | — | 945.7 | 0.7 | — | 946.4 | ||||||||||||||||||
| Samsung Heavy Industries Co., Ltd. |
150.0 | — | 10.0 | 609.6 | — | 769.6 | ||||||||||||||||||
| LG Electronics Inc. |
111.3 | 54.8 | 124.9 | 410.3 | — | 701.3 | ||||||||||||||||||
| National Federation of Fisheries Cooperatives |
52.1 | 4.2 | 620.5 | — | — | 676.8 | ||||||||||||||||||
| Samsung C&T Corporation |
— | 95.7 | 219.0 | 343.2 | 0.1 | 658.1 | ||||||||||||||||||
| Hotel Lotte Co., Ltd. |
— | 384.4 | — | 225.4 | — | 609.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
2,884.7 | 2,343.9 | 34,966.2 | 2,738.9 | 0.4 | 42,934.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Note) Some of the totals may not sum due to rounding
12
Exposure to ten Main Debtor Groups
| (KRW billion) | ||||||||||||||||||||||||
| As of Jun. 30, 2016 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities | Guarantees and Acceptances |
Others | Total Exposures |
||||||||||||||||||
| Samsung |
424.4 | 1,662.7 | 913.4 | 1,262.5 | 0.1 | 4,263.1 | ||||||||||||||||||
| Hyundai Motors |
1,039.1 | 1,354.4 | 973.2 | 336.2 | 0.2 | 3,703.1 | ||||||||||||||||||
| Lotte |
566.2 | 1,024.5 | 968.2 | 439.8 | 0.2 | 2,999.0 | ||||||||||||||||||
| Hyundai Heavy Industries |
265.6 | 118.9 | 310.7 | 1,967.9 | — | 2,663.1 | ||||||||||||||||||
| SK |
512.5 | 356.8 | 620.8 | 1,070.4 | 0.0 | 2,560.5 | ||||||||||||||||||
| LG |
435.6 | 442.7 | 380.5 | 703.8 | 0.1 | 1,962.6 | ||||||||||||||||||
| LS |
98.6 | 382.3 | 380.3 | 709.6 | 0.0 | 1,570.8 | ||||||||||||||||||
| Hanwha |
579.8 | 272.9 | 335.1 | 209.3 | 0.0 | 1,397.0 | ||||||||||||||||||
| GS |
349.6 | 102.6 | 268.5 | 145.8 | 0.2 | 866.6 | ||||||||||||||||||
| Hyosung |
162.6 | 477.7 | 33.9 | 151.5 | 0.0 | 825.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
4,434.0 | 6,195.4 | 5,184.5 | 6,996.9 | 0.8 | 22,811.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Note) Some of the totals may not sum due to rounding
Loans, Due from banks and Securities Concentration by Industry
| (KRW billion) | ||||||||
| As of Jun. 30, 2016 Consolidated basis |
Total Exposures | |||||||
| Amount | Weight (%) | |||||||
| Finance and Insurance |
70,995.5 | 20.7 | % | |||||
| Manufacturing |
40,872.1 | 11.9 | % | |||||
| Retail and wholesale |
16,462.1 | 4.8 | % | |||||
| Real Estate, leasing and service |
22,031.6 | 6.4 | % | |||||
| Construction |
4,011.1 | 1.2 | % | |||||
| Hotel and Restaurant |
5,322.0 | 1.6 | % | |||||
| Others |
53,198.5 | 15.5 | % | |||||
| Consumers |
129,479.6 | 37.8 | % | |||||
|
|
|
|
|
|||||
| Total |
342,372.8 | 100.0 | % | |||||
|
|
|
|
|
|||||
Note) Some of the totals may not sum due to rounding
13
Top Twenty Non-Performing Loans
| (KRW billion) | ||||||||||||||
| Borrower |
Industry |
Gross Principal Outstanding |
Substandard & Below |
Allowance for Loan Losses |
||||||||||
| A |
Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products | 112.8 | 112.8 | 31.6 | ||||||||||
| B |
Construction of Highways, Streets and Roads | 88.1 | 88.1 | 3.5 | ||||||||||
| C |
Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators | 81.0 | 81.0 | 56.3 | ||||||||||
| D |
Manufacture of Plastic Products for Fabricating of Machine | 58.9 | 58.9 | 43.0 | ||||||||||
| E |
Manufacture of Synthetic Resin and Other Plastic Materials | 58.0 | 58.0 | 13.1 | ||||||||||
| F |
Wholesale of Non-Specialized Goods | 52.4 | 52.4 | 35.5 | ||||||||||
| G |
Building of Steel Ships | 43.3 | 43.3 | 0.3 | ||||||||||
| H |
Manufacture of Sections for Ships | 42.7 | 40.4 | 25.3 | ||||||||||
| I |
Manufacture of Internal Combustion Piston Engines | 35.9 | 35.6 | 31.5 | ||||||||||
| J |
Renting of Non-Residential Buildings | 31.4 | 31.4 | 0.0 | ||||||||||
| K |
Development and Subdividing of Residential Buildings | 30.0 | 30.0 | 22.2 | ||||||||||
| L |
Other Civil Engineering Construction | 29.8 | 29.8 | 11.9 | ||||||||||
| M |
Building of Steel Ships | 26.0 | 26.0 | 12.7 | ||||||||||
| N |
Building of Steel Ships | 23.3 | 23.3 | 0.8 | ||||||||||
| O |
Oceangoing Foreign Freight Transport | 23.1 | 23.1 | 17.5 | ||||||||||
| P |
Manufacture of Other Basic Iron and Steel n. e. c. | 21.0 | 20.3 | 8.8 | ||||||||||
| Q |
Apartment Building Construction | 19.5 | 19.5 | 5.7 | ||||||||||
| R |
Construction of Highways, Streets and Roads | 17.9 | 17.9 | 9.7 | ||||||||||
| S |
Building of Steel Ships | 17.5 | 17.5 | 10.4 | ||||||||||
| T |
Apartment Building Construction | 17.5 | 16.5 | 11.1 | ||||||||||
|
|
|
|
|
|
|
|||||||||
| Total |
830.1 | 825.8 | 350.9 | |||||||||||
|
|
|
|
|
|
|
|||||||||
Notes :
| • | Consolidated basis as of Jun. 30, 2016. |
| • | Some of the totals may not sum due to rounding. |
14
Audit Opinion for the last 3 years
| 2016 1H | FY2015 | FY2014 | ||||||||||
| Audit Opinion |
— | Unqualified | Unqualified | |||||||||
* For the first half of 2016, the independent accountant conducted a review for our financial statements instead of auditing them.
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) |
Details |
Working hours | ||||
| FY2016 | KPMG Samjong Accounting Corp. | 581 (annualized basis) |
Review/Audit of Financial Statements | 2,490 Hours | ||||
| KPMG Samjong Accounting Corp. | 73 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank | 297 Hours | |||||
| FY2015 | KPMG Samjong Accounting Corp. | 561 (annualized basis) |
Review/Audit of Financial Statements | 8,236 Hours | ||||
| KPMG Samjong Accounting Corp. | 73 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank | 895 Hours | |||||
| KPMG Samjong Accounting Corp. | 12 (annualized basis) |
Non-statutory audit of subsidiaries under the consolidated corporate tax system for CY2015 | 282 hours | |||||
| FY2014 | KPMG Samjong Accounting Corp. | 500 (annualized basis) |
Review/Audit of Financial Statements | 6,564 Hours | ||||
| KPMG Samjong Accounting Corp. | 73 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank | 845 Hours | |||||
| KPMG Samjong Accounting Corp. | 12 (annualized basis) |
Non-statutory audit of subsidiaries under the consolidated corporate tax system for CY2014 | 182 hours |
| 1) | Excluding value-added taxes. |
| * | In addition to above mentioned description of fees for audit and review services, KPMG Samjong Accounting Corp. also provided services related to US listing and ICOFR audit in accordance with the standards of the PCAOB which we agreed to pay KRW1,302 million(excluding value-added taxes) for FY2016. |
15
4. Major Shareholder and Market Price Information of our Common Shares and ADRs
Major Shareholders1) of Shinhan Financial Group as of Jun. 30, 2016
| Name |
No. of Common Shares owned2) | Ownership% | ||||||
| National Pension Service |
43,881,041 | 9.25 | % | |||||
| BNP Paribas |
25,356,276 | 5.35 | % | |||||
| 1) | Shareholders who own beneficial ownership of 5% or more(common share basis). |
| 2) | Based on the results of shareholder registry closing as of December 31, 2015 |
Share ownership of Employee Stock Ownership Association
| (Number of shares, %) | ||||||||||||||||||||
| Share ownership |
Beginning Balance (Jan. 1, 2016) |
Increase | Decrease | Ending Balance (Jun. 30, 2016) |
Ownership%1) (Jun. 30, 2016) |
|||||||||||||||
| Employee Stock Ownership |
21,200,687 | 2,377,172 | 1,235,975 | 22,341,884 | — | |||||||||||||||
| ESOA account |
72,686 | 27,606 | — | 100,292 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
21,273,373 | 2,404,778 | 1,235,975 | 22,442,176 | 4.73 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1) | Common share basis. |
Common Share Traded on the Korea Exchange
| (KRW, number of shares) | ||||||||||||||||||||||||||
| Jan.2016 | Feb.2016 | Mar.2016 | Apr.2016 | May.2016 | Jun.2016 | |||||||||||||||||||||
| Price per share |
High | 39,400 | 40,600 | 41,900 | 42,900 | 40,700 | 40,300 | |||||||||||||||||||
| Low |
36,100 | 36,800 | 38,300 | 39,350 | 39,150 | 37,050 | ||||||||||||||||||||
| Avg. |
38,053 | 39,025 | 40,659 | 41,298 | 39,785 | 38,521 | ||||||||||||||||||||
| Trading Volume |
15,308,182 | 17,813,224 | 19,772,106 | 20,310,571 | 13,151,793 | 17,854,427 | ||||||||||||||||||||
| Highest Daily Trading Volume |
1,180,892 | 1,928,479 | 1,611,574 | 3,245,943 | 1,270,825 | 1,410,049 | ||||||||||||||||||||
| Lowest Daily Trading Volume |
533,086 | 454,315 | 392,004 | 593,312 | 332,958 | 422,564 | ||||||||||||||||||||
American Depositary Receipts traded on the New York Stock Exchange
| (USD, number of shares) | ||||||||||||||||||||||||||
| Jan.2016 | Feb.2016 | Mar.2016 | Apr.2016 | May.2016 | Jun.2016 | |||||||||||||||||||||
| Price per share |
High | 33.07 | 33.31 | 36.14 | 38.23 | 35.81 | 34.68 | |||||||||||||||||||
| Low |
29.66 | 30.57 | 31.71 | 34.19 | 33.16 | 30.66 | ||||||||||||||||||||
| Avg. |
31.45 | 31.81 | 34.45 | 36.20 | 33.90 | 32.89 | ||||||||||||||||||||
| Trading Volume |
2,124,317 | 2,001,834 | 2,258,081 | 3,408,447 | 1,901,607 | 1,914,258 | ||||||||||||||||||||
| Highest Daily Trading Volume |
176,313 | 158,848 | 217,443 | 395,760 | 159,994 | 158,772 | ||||||||||||||||||||
| Lowest Daily Trading Volume |
48,868 | 49,134 | 45,295 | 52,419 | 42,364 | 44,737 | ||||||||||||||||||||
Note) 1 ADR = 1 Common Shares
16
5. Directors, Executive Officers and Employees
Directors and Executive Officers
1) Executive Director
| (As of Jun. 30, 2016) | ||||||||
| Name |
Month and Year of Birth |
Position |
Service Term | |||||
| Han Dongwoo |
November. 1948 | - Chairman of Shinhan Financial Group - Board Steering Committee Chair - Corporate Governance & CEO Recommendation Committee member - Outside Director Recommendation Committee member - Corporate Social Responsibility Committee member |
6 years starting from March 23, 2011 | |||||
17
2) Non-Executive Directors
Currently, 11 non-executive directors are in office, 9 of which outside directors who are nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting.
6 outside directors were appointed as board of directors at the 15th Annual General Meeting of Shareholders on March 24, 2016, of which 3 directors renewed their terms and 3 directors were newly appointed.
Our non-executive directors are as follows:
| (As of Jun. 30, 2016) | ||||||||||
| Name |
Month and Year of Birth |
Outside Director |
Sub-Committees |
Service Term | ||||||
| Ko Boo-in | December. 1941 | O | Corporate Social Responsibility Committee member Corporate Governance & CEO Recommendation Committee member |
4 years starting from March 28, 2013 | ||||||
| Park Cheul | April. 1946 | O | Chairman of Board of Directors Risk Management Committee Chair Compensation Committee Chair Corporate Governance & CEO Recommendation Committee member |
2 years starting from March 25, 2015 | ||||||
| Lee Manwoo | November. 1954 | O | Audit Committee Chair Corporate Social Responsibility Committee member Outside Director Recommendation Committee member |
3 years starting from March 26, 2014 | ||||||
| Lee Sang-kyung | September. 1945 | O | Corporate Governance & CEO Recommendation Committee Chair Audit Committee member Compensation Committee member Board Steering Committee member |
5 years starting from March 29, 2012 | ||||||
| Lee Sung-ryang | August. 1955 | O | Outside Director Recommendation Committee Chair Audit Committee member Board Steering Committee member Compensation Committee member |
2 years starting from March 24, 2016 | ||||||
| Lee Jung-il | August. 1952 | O | Compensation Committee member Outside Director Recommendation Committee member |
2 years starting from March 24, 2016 | ||||||
| Lee Heun-ya | September. 1959 | O | Risk Management Committee member Outside Director Recommendation Committee member |
2 years starting from March 24, 2016 | ||||||
| Yuki Hirakawa | October. 1960 | O | Corporate Social Responsibility Committee member Board Steering Committee member Corporate Governance & CEO Recommendation Committee member |
2 years starting from March 25, 2015 | ||||||
| Philippe Avril | April. 1960 | O | Risk Management Committee member Corporate Governance & CEO Recommendation Committee member |
2 years starting from March 25, 2015 | ||||||
| Cho Yong-byoung | June. 1957 | X | - | 2 years starting from March 25, 2015 | ||||||
| Namkoong Hoon | June. 1947 | X | Corporate Social Responsibility Committee Chair Risk Management Committee member Board Steering Committee member Corporate Governance & CEO Recommendation Committee member |
1 years starting from March 24, 2016 | ||||||
18
3) Executive Officers
In addition to the executive directors, we currently have the following executive officers:
| (As of Jun. 30, 2016) | ||||||
| Name |
Month and Year of Birth |
Position |
In charge of | |||
| Kim Hyung-jin | August. 1958 | Deputy President & Chief Strategy Officer |
- Strategic Planning Team - Global Business Strategy Team - Corporate Culture Development Team - Future Strategy Research Institute - Digital Strategy Team | |||
| Lim Young-jin | November. 1960 | Deputy President | - Synergy Management Team - Public Relations Team - CSR Team - Management Support Team | |||
| Yim Bo-hyuk | March. 1961 | Deputy President & Chief Financial Officer |
- Finance Management Team - Investor Relations Team - HR Team - Information & Communication Technology Planning Team | |||
| Lee Chang-goo | January. 1961 | Executive Vice President | - Wealth Management Planning Office | |||
| Woo Young-woong | March. 1960 | Executive Vice President | - Corporate & Investment Banking Business Department | |||
| Park Woo-gyun | March. 1959 | Managing Director | - Compliance Team | |||
| Lim Byung-chul | January. 1964 | Managing Director | - Future Strategy Research Institute | |||
| Jeon Young-kyo | August. 1962 | Managing Director | - Finance Management Team | |||
| Choi Joon-hwan | September. 1963 | Managing Director | - Information & Communication Technology Planning Team | |||
| Kim Im-geun | July. 1963 | Managing Director | - Risk Management Team | |||
| Yu Sunghun | January. 1965 | Managing Director | - Investor Relations Team | |||
Compensation to Directors
1) Total Amount Approved at the Meeting of Shareholders
| Total number of persons | Total amount approved at shareholders’ meeting (KRW millions) |
Notes | ||||
| Directors (Outside directors) |
12(9) | 3,500 | — |
Note) Represents the aggregate amount for all directors(including outside directors). Excludes long-term incentives.
19
2) Total Amount Paid
| (As of Jun. 30, 2016) | ||||||||||||||
| Total number of Persons |
Total Compensation (KRW millions) |
Average Compensation per person (KRW millions) |
Notes | |||||||||||
| Registered Directors |
3 | 1,221 | 480 | Excluding outside directors | ||||||||||
| Outside Directors |
6 | 159 | 27 | Excluding Audit committee members | ||||||||||
| Audit committee members or internal auditor |
3 | 107 | 31 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Total |
12 | 1,487 | 124 | |||||||||||
|
|
|
|
|
|
|
|||||||||
Notes :
| • | Represents the total number of applicable persons as of Jun. 30, 2016. |
| • | Under the Financial Supervisory Service’s standards for preparing corporate disclosure forms, which standards were amended in November 2013, we are required to disclose in our Business Report the individual annual compensation paid by us to our directors and auditors if such individual annual compensation is W500 million or greater. In 2015, Han Dongwoo, our Chairman and Chief Executive Officer, received W765 million which consisted of W367 million in salaries and wages, W398 million in bonus payments. Separately, in 2016, Mr. Han received W236 million in long-term performance compensation and W204 million(4,996 shares) in performance shares which were initially granted in 2011 subject to the Group’s performance. He also currently holds 10,939 performance shares. The exercisability of these performance shares will be determined based on business performance evaluation and share price performance during the period from 2016 to 2019. |
Stock Options
| (As of Jun. 30, 2016) | ||||||||||||||||||||
| No. of Granted Options (A) |
No. of Exercised Options (B) |
No. of Cancelled Options (C) |
No. of Exercisable Options (D = A – B – C) |
Exercise Price (KRW) |
||||||||||||||||
| Granted in 2005 |
2,620,331 | 2,266,642 | 251,300 | 102,389 | 28,006 | |||||||||||||||
| Granted in 2006 |
3,206,173 | 2,617,517 | 480,300 | 108,356 | 38,829 | |||||||||||||||
| Granted in 2007 |
1,231,169 | 967,092 | 205,313 | 58,764 | 54,560 | |||||||||||||||
| Granted in 2008 |
805,174 | 574,150 | 185,396 | 45,628 | 49,053 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
7,862,847 | 6,425,401 | 1,122,309 | 315,137 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Notes :
| • | The weighted-average exercise price of outstanding exercisable options as of Jun. 30, 2016 is KRW 39,726 |
| • | The closing price of our common stock was KRW 38,000 on Jun. 30, 2016. |
| • | On March 18, 2015, the exercise period for all outstanding stock options expired, except for a limited number of stock options for which the expiration of the exercise period has been suspended by a resolution of the board of directors. |
Employees
| (As of Jun. 30, 2016) | ||||||||||||||
| Gender |
Number of Employees |
Average length of Service |
Total Salaries and wages paid in 2016 (KRW million) |
Average Payment per person (KRW million) |
||||||||||
| Male |
119 | 3 yrs (13 yrs 9 mths) 1) |
8,061 | 67 | ||||||||||
| Female |
28 | 5 yrs 8 mths (9 yrs 7 mths) 1) |
1,226 | 43 | ||||||||||
|
|
|
|
|
|
|
|||||||||
| Total |
147 | 3 yrs 6 mths (12 yrs 11 mths) 1) |
9,287 | 63 | ||||||||||
|
|
|
|
|
|
|
|||||||||
| 1) | Average length of service including service within group subsidiaries |
20
Loans to Subsidiaries
| (KRW billion) | ||||||||||||||||||||||||||||||
| Subsidiary |
Loan Type |
Origination Date |
Maturity Date |
Lending Rate |
Beginning Balance (Jan. 1, 2016) |
Decrease | Increase | Ending Balance (Jun. 30, 2016) |
||||||||||||||||||||||
| Shinhan Investment Corp. |
Loans in KRW | 2012-01-30 | 2017-01-30 | 4.11 | % | 100.0 | — | — | 100.0 | |||||||||||||||||||||
| Loans in KRW |
2012-06-28 | 2017-06-28 | 3.84 | % | 100.0 | — | — | 100.0 | ||||||||||||||||||||||
| Shinhan Card |
Loans in KRW | 2011-01-28 | 2016-01-28 | 4.91 | % | 100.0 | 100.0 | — | — | |||||||||||||||||||||
| Loans in KRW |
2011-02-24 | 2016-02-24 | 4.82 | % | 250.0 | 250.0 | — | — | ||||||||||||||||||||||
| Loans in KRW |
2011-05-17 | 2016-05-17 | 4.47 | % | 100.0 | 100.0 | — | — | ||||||||||||||||||||||
| Loans in KRW |
2012-03-14 | 2017-03-14 | 4.12 | % | 150.0 | — | — | 150.0 | ||||||||||||||||||||||
| Loans in KRW |
2016-01-26 | 2021-01-26 | 1.98 | % | — | — | 150.0 | 150.0 | ||||||||||||||||||||||
| Loans in KRW |
2016-02-24 | 2021-02-24 | 1.84 | % | — | — | 150.0 | 150.0 | ||||||||||||||||||||||
| Shinhan Capital |
Loans in KRW | 2011-04-29 | 2016-04-29 | 4.65 | % | 100.0 | 100.0 | — | — | |||||||||||||||||||||
| Loans in KRW |
2011-05-17 | 2016-05-17 | 4.47 | % | 50.0 | 50.0 | — | — | ||||||||||||||||||||||
| Loans in KRW |
2012-03-14 | 2017-03-14 | 4.12 | % | 50.0 | — | — | 50.0 | ||||||||||||||||||||||
| Loans in KRW |
2012-12-14 | 2017-12-14 | 3.33 | % | 50.0 | — | — | 50.0 | ||||||||||||||||||||||
| Loans in KRW |
2013-01-18 | 2018-01-18 | 3.18 | % | 50.0 | — | — | 50.0 | ||||||||||||||||||||||
| Loans in KRW |
2013-09-05 | 2018-09-05 | 3.61 | % | 80.0 | — | — | 80.0 | ||||||||||||||||||||||
| Loans in KRW |
2014-01-27 | 2019-01-27 | 3.60 | % | 50.0 | — | — | 50.0 | ||||||||||||||||||||||
| Loans in KRW |
2016-03-16 | 2021-03-16 | 1.90 | % | — | — | 50.0 | 50.0 | ||||||||||||||||||||||
| Loans in KRW | 2016-04-27 | 2019-04-27 | 1.63 | % | — | — | 100.0 | 100.0 | ||||||||||||||||||||||
| Shinhan Private Equity |
Loans in KRW | 2015-11-25 | 2016-11-23 | 2.12 | % | 5.0 | — | — | 5.0 | |||||||||||||||||||||
| Shinhan Savings Bank |
Loans in KRW | 2016-06-17 | 2021-06-17 | 1.61 | % | 50.0 | 50.0 | |||||||||||||||||||||||
|
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| Total |
|
1,235.0 | 600.0 | 500.0 | 1,135.0 | |||||||||||||||||||||||||
|
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|
|
|
|
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21
Exhibit 99.1
Independent Auditors’ Review Report (Separate Financial Statements) of Shinhan Financial Group as of Jun. 30, 2016
Exhibit 99.2
Independent Auditors’ Review Report (Consolidated Financial Statements) of Shinhan Financial Group as of Jun. 30, 2016
22
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SHINHAN FINANCIAL GROUP CO., LTD. |
| /s/ Yim Bo-hyuk |
| Name: Yim Bo-hyuk |
| Title: Chief Financial Officer |
Date: August 16, 2016
23