SFG's Ambitious Plan
Shinhan Financial Group aims to be a world-class financial group
The Shinhan Financial Group launched its strategies to build its affiliate network in 2001 in line with a global trend to form financial groups or holding companies by financial organizations around the world to be more competitive and further growth.
Shinhan has as its subsidiaries and affiliates banks, securities firm, credit card, asset management, capital, bancassurance, and investment banking consultation firm, across a wide spectrum of the financial business sector in order to serve a wide range of needs for its customers. It has been providing the one-portal comprehensive financial service that its customers need. The holding company has been pushing a one-portal business system, which develops a synergy effect in the earning aspect through cross-sales among its business lines.
In 2002, the holding company acquired Goodmorning Securities, expanding its securities business sector, followed by a takeover of Chohung Bank in September, 2003, to expand its banking business sector. These moves not only improved the quality of management, but also expanded its scale to be a market leader in the financial industry in the country. In the area of the banking business, Shinhan and Chohung Banks have been following a dual-operation line to upgrade their competitive edge through cooperation and synergistic effect and become a new bank at the end to be a top bank in the country.
Shinhan Financial Holding increased its total assets to 166 trillion won at the end of the third quarter, last year following the takeover of Chohung, to rank the second largest in assets in the financial industry in the country. It was able to maximize its advantages as a financial holding firm not only in terms of asset scale, but also sales network. Shinhan has been able to meet its asset amount target level, not only in the asset scale, but also in the number of customers and achieved the target level in sales revenue. The holding company would be able to secure a strong competitive power if its existing qualitative advantage points like customer management, risk management, and excellent earning power are mixed together.
By 2008, it plans to grow to become the top financial group in the country through its mid-to-long-term plan in terms of both quality and quantity. The holding company has been working to advance its management system, build a risk management system, and performance-based corporate culture, to make its management system an advanced one. The group will continue to reform its management system and build the 'best practice' to develop into a world-class financial group through sustained growth as a representative financial group in the Republic of Korea.
In detail, by 2008, the group will grow to be the top bank in terms of assets and be a market leader. The merged bank would be a top bank in the banking sector in the country and other units such as securities firm, credit card and other affiliates would rank within the third of their respective industries and become major firms.
The group's net profit totaled 858.5 billion won in the first-half, the largest since its history with 443.6 billion won coming from Shinhan Bank and 355.3 billion won generated by Chohung Bank with credit card chipping in with 27.6 billion won. NIM improved for both banks with Shinhan's recording 2.11 percent and Chohung' standing at 3.27 percent. Both banks saw stable increases in their assets, with Shinhan's rising 4.9 percent and Chohung coming up with 5.1 percent. Shinhan? ratio of non-performing assets stood at 0.95 percent, while Chohung recorded 1.68 percent. Shinhan? BIS ratio registered 12.3 percent, with Chohung marking 9.9 percent.
The group's non-banking affiliates netted 71.3 billion won in the first-half for profit; Goodmorning Shinhan Securities recording 18 billion won in net profit followed by Shinhan Card with 27.6 billion won and Shinhan Capital with 14.5 billion won. Its affiliates including Shinhan BNP Investment netted 3.4 billion won; SH&C 2.6 billion won, Shinhan Macquarie Consulting 4.6 billion won, and Shinhan Credit Information 1.5 billion won, among other affiliates. nw
SFG President Lee In-ho.