Kim Kihoon: So I’m the CFO of the bank. My name is Kihoon and I will go over the household loan growth. If you look at the first half asset growth, first of all the market experienced negative growth, our numbers were minus 2.4%. In the corporate loans there was net growth of around KRW3.5 trillion in the corporate loan sector and earlier this year we said that we were going to consider a certain economic situations, we’re going to focus on high quality loans and we are going to be conservative. And in that respect, we believe that in the corporate loan sector we have been in line with that. For the households in the second half there can be some mortgages and tons related demand and I think therefore, we will be able to offset the negative growth of the first half.
We’ll be able to record negative — positive growth. And if we do that and if we maintain the corporate loan trends, we’ll be able to achieve our annual targets. And just to add to that for the retail loan sector, there is the government concern on high household debt levels, but if you look at the exposure of Shinhan Group in the retail segment, it’s actually very high quality. And of course we are supporting the vulnerable borrowers, but overall we have very high quality portfolio and we’ll be appropriately managing and we will be growing the household sector in that respect.
Operator: Thank you for the answers. We’ll move on to the next question. Next question is from HSBC from Mr. Won Jae-woong. Please go ahead.
Won Jae-woong: Thank you for the good results. Congratulations for the good results. Despite challenging market environment the NIM increased in Q2 for Shinhan Group. I would like to know your outlook for the second half NIM? And second, the credit cost ratio, it went up by 0.5%. In this scenario, you said you did a scenario, a stress test based on 2008 financial crisis. You said additional credit costs will be around KRW200 billion. That’s not as much as I initially expected. And so does that mean that credit cost overall for the year can show downward stabilizing trend? And lastly, cancellation, I think the share cancellation is smaller than what we originally expected. Is this because you have raised the CET 1 ratio target, is that correct?
And if this is the case, I understood that you have plans to focus on cancellation and buyback rather than dividend payout. What is your shareholder return policy and what are your plans for buyback and cancellation for the remainder of the year? Should we focus more on the dividend payout?
Park Cheol Woo: Please wait one moment while we prepare the answer. There were three questions. The NIM will be answered by Bank CFO and the remaining two, I will answer them. First NIM and it will be from the CFO of the bank.
Kim Kihoon: Thank you for the questions. My name is Kihoon and I am the CFO of the Bank. As you mentioned, Q2 NIM improved around 5 bps 2Q and I mentioned in Q1 earnings call, but NIM in Q1 one has been affected by Q4 because funding costs rise quite significantly and the funding cost is showing downward stabilization as we enter Q2. So that has helped our NIM. In the second half household and the corporate loan segment, I think there will be quite intense competition in terms of pricing in the market. And from the deposit side, the time deposits are maturing so they will be repriced. And so given these factors, I think there is room for improvement. So second half NIM should be slightly higher than Q2 or should remain stable. Full year NIM should be similar to last year.
