6. Shinhan Financial Group Co., Ltd. (NYSE:SHG)
Average Upside Potential: 48.10%
Number of Hedge Fund Holders: 15
Shinhan Financial Group Co., Ltd. (NYSE:SHG) is a financial holding company that originated from Shinhan Bank, which came into being in 1982 and was the first private bank in Korea. Shinhan Bank positioned itself as a blue-chip bank by developing a nationwide network and going public with an IPO. It took the initiative to set up a financial holding company that would enable it to grow its scale across multiple sectors as a comprehensive financial group.
Shinhan Financial Group is currently one of the leading Korean financial leaders, leading the way in innovation. A customer-centered business has made the company what it is today, driving its sustainable growth. On February 6, Shinhan recently posted 4.52 trillion won in net income for FY2024, up 3.4% over the year, based on higher interest income and less provisioning. Due to bank-focused loan growth and efficient margin management during falling market interest rates, interest income witnessed a growth of 5.4% year-over-year.
Regarding Shinhan Financial Group Co., Ltd. (NYSE:SHG), Polaris Global Equity Strategy stated the following in its Q3 2024 investor letter:
“On the backdrop of interest rate cuts, financials shined on expectations for loan demand and cheaper cost of capital; in fact, all sector holdings were in absolute positive territory. Shinhan Financial Group Co., Ltd. (NYSE:SHG) was the top contributor, with a second quarter earnings beat on better non-interest income with credit costs under control. An enhanced shareholder return policy was a pleasant upside surprise, as Shinhan committed to returning 50% of earnings to investors through dividends and share buybacks by 2027.”
