We were actually mindful of this in advance of starting [indiscernible] in the first quarter this year. We started — we have started to set up our provision preemptively. For Shinhan Asset Trust. So the outstanding balance is about KRW310 billion and the provision amount is about KRW87.1 billion. So against — balance is about provisioning rate of 8% against the exposure. So regarding Asset Trust, in the first quarter, we have set aside some preemptive provisioning already but we will continue to do that. In the second quarter, through a full Scope survey to identify whether additional provisioning may be required to fully absorb any possible loss. Given our recurring fundamentals, I think any impact to the Group will not be sizable. But for any expected loans, we will continue to provision against that kind of prospective loss.
Operator: [Operator Instructions] And also, please be informed that for English questions, there will be consecutive interpretation. [Operator Instructions] From SK Securities, we have Mr. Seol Yong Jin.
Seol Yong Jin: Now it is about the global business profitability. So compared to — so on a Y-o-Y basis, I can see that the global income has gone up. So specifically from which business areas has the company seen growth in the income from the global business?
Unidentified Company Representative: Yes. Thank you very much. Please, I ask for patience as we prepare our response.
Sang-Hyuk Jung: Thank you. So now then, regarding the global business profitability. Now as you would be aware, now in terms of the global business, Shinhan has long history and I would say that we are ahead in many ways. In terms of our global business then, there has been much growth coming from interest income, then also from our provisioning. So there has also been a reversal in the provisioning, thanks to some exposed management. And so for the overseas subsidiaries, then we also have the recurring income, then also especially from London and then also what we call the NMC branches, like Hong Kong and New York, there has been reversal in provisions going up by 35.4% Y-o-Y.
Operator: Yes. So Doosan Baek from Korea Investment Securities.
Doosan Baek: Yes, this is Baek Doosan. I also have 2 questions. Regarding Shinhan investment securities, short-term trading results actually appear a little bit disappointing. Is it because of impairment loss from overseas investments? Or is there any particular reason behind the poor performance? First quarter results and given your forecast for full year performance, how strong do you think the underlying earnings fundamentals are? Second, you said share buyback will be done in the form of the trust contract [ph] over the next 6 months, I believe. Now going forward on a quarterly basis or maybe on a semi yearly basis, that could be possible. So in terms of the timing and also the value amount allocated to each timing period [ph], could you provide further details?
Unidentified Company Representative: So yes, we will prepare to answer your questions, first, on the stock trading business and share buyback.
Unidentified Company Representative: Yes. Thank you for the 2 questions. Regarding Shinhan investment securities, you asked about business performance and outlook. And also, the second question regarding share buyback, maybe I can address that first and I’ll pass the mic to the CFO of securities for the first question. Now regarding overall share buyback, let me address the overall detail. So as we were presenting the annual business results and regarding the TSR, then about the quarterly even payout and then also the share buyback and cancellations. So through these measures, we announced that we will be continuing to enhance shareholder value. So the shareholder buyback and cancellation that we announced this time, so this is in line with the overall direction.
But then in the past, it was done on a quarterly basis but now this time, it is on a biannual basis and that is because we wanted to secure more flexibility in the share buyback. And also, as you have seen in the business results of the first quarter, you have strong fundamentals. And also in terms of the capital ratios, despite the special circumstances in the first quarter, we were able to manage the capital ratios quite stably. So we are confident and we are also committed to improving shareholder value on a continuous basis. So then for the share buyback and cancellation for the next 6 months, meaning that it will continue until the third quarter of this year, meaning that the volume is going to be similar to last year’s. And then now in the fourth quarter, we will also be looking into additional share buyback.
And as you can see from the first quarter results, based on our judgment, the recurring revenue for the company on a quarterly basis would be about KRW1.5 trillion. So then based on this fundamentals as well as our capital management capabilities, so based on this trend, then I do believe that in the fourth quarter, we could look into another round of sizable shareholder buyback and cancellation. But then this — in that case, then because this time, it was quarterly then biannual. So in the fourth quarter, if we have another share cancellation, then it is likely to be on a quarterly basis. But of course, all of this would have to be determined at the BOD but then that would be the guidance for now.
Sang-Hyuk Jung: Now regarding the security side. So in the first quarter, prop trading results actually were quite sluggish. So it’s — actually, I think it can be explained in 3 ways. First, it’s a reverse base effect; second, conservative response; and third, preemptive response. So I mentioned the reverse base effect because last year first quarter, our prop trading results actually were very good. So if you recall, interest rates at the time had fallen abruptly and the market conditions were quite favorable. And so we opened our bond position and actually we’re quite aggressive moving in. So at the company level, we actually saw a very high record results from prop trading. So if you compare first quarter ’24 against that high base, it does appear that we are seeing a significant year-on-year decrease.
That’s the first reason why. And then in the sense of being conservative in our response. As you know, in terms of the timing of the rate cut from the U.S., it is being postponed and deferred. And the number of cuts actually — expectations are changing as well. Oil prices from — regarding the Middle East and price inflation is also growing in terms of uncertainty. So our trading desk actually is, now, formulating a very conservative strategy to address the business and the conservative strategy has had the result of scaling back some of our performance. And then third, I mentioned preemptive response. In the first quarter, in terms of acquisition financing, we actually were a bit preempt, given the ongoing uncertainty, in terms of the business and economic outlook.
