Shinhan Financial Group Co., Ltd. (NYSE:SHG) Q2 2023 Earnings Call Transcript

Kim Nam-Jun: I think it would be a question on the overall growth potential for our credit card. I think I’ll give an overall explanation. I think the payment and the settlement and the overall landscape in this segment is quite difficult. It’s very challenging, intense competition. If we look at the credit card company’s activities, it’s not only credit card payments but also different business areas as well, non-banking areas and also data businesses. We’re looking for new revenue sources to diversify our portfolio. And if we look at our revenue generation, it’s not only coming from credit card purchases, but additional revenue sources are continuously being identified. So credit card income, about KRW600 billion as we see in our current level, we expect that that will continue on in the future as well. Thank you.

Park Cheol Woo: And, and to add on top of that, for the other credit card companies and the other non-bank subsidiaries had a brief off of my mic, I apologize for that. So we have the bank and the non-banking sector. So for I think that you know that we are making continuous efforts to grow our non-banking business as well. So if we take a look at our income, so with the interest rate hikes, there has been a hike in interest rates and as a result you might see, I think that the contribution coming from the non-bank subsidiaries is lower, but securities, insurance, also asset management capital, all of such subsidiaries are growing quite steadily. The Korean economy, if it continues to grow not only the banks but the non-banking subsidiaries, we expect that the capital markets will grow in these segments as well. So we think that these will continue to be our growth drivers and from our Group’s perspective, we will make continuous efforts to grow them. Thank you.

Operator: We don’t have any immediate questions coming in. We will wait just one moment.

Park Cheol Woo: If there are no more questions, we will conclude the 2023 Q2 earnings call of Shinhan Financial Group. I would like to thank you all for attending the earnings call. The content of today’s earnings call will be uploaded on the YouTube channel of Shinhan Financial Group’s IR team. There are other videos introducing the company and giving you more information on the company. So please take your time.