A Shot at Being a Leading Bank

Shinhan Bank aims to be among the 30 largest banks in the world by 2012

President Shin Sang-hoon of Shinhan Bank said he will try to make Shinhan a major bank by 2012 in a speech at a ceremony marking the second anniversary of the bank's takeover of Chohung Bank held at the Chosun Hotel on April 1.
He said that Shinhan is still far from being a leading bank in terms of assets and quality, but he swore that the bank will expand the number of its branches overseas to 100, double the current number, by 2012 so that the bank will be able to secure 10 percent of its annual income from international operations.
In the area of investment banking, the bank will try to be among the 30 largest in the world and will spend some 150 billion won to train experts in the IB sector over the next five years to the extent that 5,000 of the bank's employees will possess qualification certificates.
The CEO said that the Shinhan group is considering a number of measures in connection with M&As as the situation in the financial community requires. The group needs to strengthen the insurance and securities business areas rather than launching new firms in the sectors.
As to the expansion of assets this year, the president said the bank will try to attain 8 percent growth, down from the 17 percent it achieved last year, in consideration of the management of risks and other conditions in the financial markets.
Shinhan, he said, will step up its advance into overseas financial markets with Southeast Asia as the center and move on to North America and South America with the United States and Mexico as the main market countries for its operations in those regions.
In the first half of this year, Shinhan will set up wholly-owned subsidiaries in China and Vietnam and enter Canada following the United States, where Shinhan set up its operation last year. In Mexico, the bank will set up a representative office to pave the way for its advance into South America. The bank will also set up a 100-percent subsidiary in Japan this year.
President Shin said HSBC would be the right model for Shinhan to benchmark because the British bank was a small bank in Hong Kong only 15 years ago, with minimal influence over the Southeast Asian market. But HSBC has become a global bank in a position to fight for the top position in world banking in terms of market value.
In the meantime, Shinhan Bank obtained a license to set up a wholly-owned subsidiary in Beijing from the Chinese financial authorities recently, following the opening of its Beijing branch on Dec. 21, 2007.
The proposed subsidiary will take under its wing Shinhan Bank's branches in Shanghai, Qingdao, Tianjin and Beijing and a sub-branch in Tianjin -- all five of its units in China -- and be ready to engage in retail banking operations there, Shinhan Bank said recently.
When the subsidiary is set up at the end of March, it will focus on expanding the banking network throughout China and conclude tie-ups with major financial institutions to strengthen its banking operations there.
The subsidiary will not only cater to the financial needs of Korean residents and business firms, but also service Chinese corporate and individual customers in such areas as retail and credit card operations. By providing high quality financial services, Shinhan plans to secure many local customers and increase its reach to ultimately become a leading force in the Chinese financial market.
With the bank legally permitted to set up a subsidiary in Kazakhstan, its global presence has grown to 34 branches and subsidiaries in 11 foreign countries including seven wholly-owned subsidiaries, 14 branches and 13 branches under subsidiaries. nw

President Shin Sang-hoon of Shinhan Bank