Profile: Shinhan Financial Group Co Ltd (SHG)
3 Dec 2013
Shinhan Financial Group Co., Ltd. (Shinhan Financial Group), incorporated on September 1, 2001, is a financial holding company. The Company has developed and introduced a range of financial products and services in Korea and delivers a range of financial solutions to clients through a one-portal network. Shinhan Financial Group provides financial services, principally consisting of commercial banking services, consisting of retail banking services; corporate banking services, primarily consisting of small- and medium-sized enterprises banking; large corporate banking; treasury and securities investment; other banking services, including trust account management services provided by Shinhan Bank; credit card services; securities brokerage services; insurance services, primarily consisting of life insurance services; bancassurance; asset management services, including brokerage and trading of various securities, related margin lending and deposit and trust services, and other asset management services, and other services, including leasing and equipment financing, investment trust management, regional banking, investment banking advisory and loan collection and credit reporting.
The Company, through Shinhan Bank, offers deposit products that target different customer segments with features tailored to each segment’s financial and other profile. Its deposit products consist principally of demand deposits, savings deposits, certificates of deposit, other time deposits, mutual installment deposits, housing subscription time deposits and housing subscription installment savings deposits. During the year ended December 31, 2009, the interest rate on savings deposits ranged from 0 to 3.31%. Certificates of deposit typically have maturities from 30 days to five years. Certificates of deposit constituted approximately 5.4% of its total deposits as of December 31, 2009. Other time deposits constituted approximately 61.1% of its total deposits as of December 31, 2009. Mutual installment deposits constituted approximately .1% of its total deposits as of December 31, 2009.
Housing subscription time deposits products are special purpose time deposits providing the customer with a preferential right to subscribe for new private apartment units under the Housing Construction Promotion Law. These products accrue interest at a fixed rate for one year and at an adjustable rate after one year, which are consistent with other time deposits. Housing subscription installment savings deposits products are monthly installment savings products providing the customer with a preferential subscription right for new private apartment units under the Housing Construction Promotion Law.
Retail Banking Services
Shinhan Financial Group provides retail banking services primarily through Shinhan Bank, and, to a lesser extent, through Jeju Bank, a regional commercial bank. Retail banking services include mortgage and retail lending, as well as demand, savings and fixed deposit-taking, checking account services, electronic banking and automated teller machine (ATM) services, bill paying services, payroll and check-cashing services, currency exchange and wire fund transfer. It offers various retail loan products, consisting principally of household loans, which target different segments of the population with features tailored to each segment’s financial profile and other characteristics, including each customer’s profession, age, loan purpose, collateral requirements and the duration of the customer’s relationship with Shinhan Bank. Household loans consists principally of mortgage and home equity loans and other retail loans. As of December 31, 2009, its mortgage and home-equity loans and other retail loans accounted for 63.2% and 36.8%, respectively, of its retail loans (excluding credit card loans).
Corporate Banking Services
The Company provides corporate banking services, primarily through Shinhan Bank, to small- and medium-sized enterprises, including enterprises known as small office, home office (SOHO), which are small enterprises operated by individuals or households, and, to a lesser extent, to large corporations, including corporations that are affiliated with chaebols. It also lends to government-controlled enterprises. As of December 31, 2009, it made loans to 186,003 small- and medium-sized enterprises. Large corporate customers consist primarily of member companies of chaebols and financial institutions. Shinhan Bank offers to corporate customers a Web-based total cash management service through Shinhan Bizbank.
Treasury and Securities Investment
Shinhan Bank engages in treasury and securities investment business, which involves treasury; securities investment and trading; derivatives trading, and international business. Shinhan Bank’s treasury division provides funds to all of Shinhan Bank’s business operations and ensures the liquidity of its operation. Shinhan Bank invests in and trades securities for its own accounts in order to maintain adequate sources of liquidity and generate interest and dividend income and capital gains. Shinhan Bank provides and trades a range of derivatives products. Shinhan Bank also engages in treasury and investment activities in international capital markets.
Trust Account Management Services
Shinhan Bank’s trust account management services include management of trust accounts, primarily in the form of money trusts. Trust account customers are typically individuals seeking higher rates of return than those offered by bank account deposits. Shinhan Bank offers primarily two types of money trust accounts through its retail branch network: guaranteed fixed rate trusts and variable rate trusts.
Credit Card Services
The Company provides credit card services through its credit card subsidiary, Shinhan Card. Shinhan Card offers a range of credit card and other services, principally consisting of credit card services, cash advances, installment purchases and card loans.
Securities Brokerage Services
Through Shinhan Investment, it provides a range of financial investment services to its diversified customer base including corporations, institutional investors, governments and individuals. Financial investment services offered by Shinhan Investment range from securities brokerage to its retail and institutional customers, investment advice and financial planning services to its retail customers, as well as investment banking services, such as underwriting and M&A advisory services to its institutional customers.
Shinhan Financial Group provides life insurance products and services primarily through Shinhan Life Insurance. Shinhan Life Insurance provides its services through diversified distribution channels consisting of financial planners, telemarketers, agency marketers and bancassurance specialists.
Asset Management Services
Shinhan Financial Group provides asset management services through Shinhan BNP Paribas Asset Management, a joint venture with BNP Paribas Investment Partners, of which the Company and BNP Paribas Investment Partners hold 65:35 interests, respectively. Shinhan BNP Paribas Asset Management provides a range of investment products, including traditional equity/fixed income funds, as well as alternative investment products, to retail and institutional clients.
Through its other subsidiaries, Shinhan Financial Group also provides leasing and equipment financing, regional banking and investment banking and advisory services. It provides leasing and equipment financing services to its corporate customers mainly through Shinhan Capital. It provides regionally focused commercial banking services, primarily in Jeju Island of Korea, through a majority owned banking subsidiary, Jeju Bank.
Shinhan Financial Group Co Ltd
16/17F, Daegyeong Bldg.
120, Taepyeongno 2-Ga, Jung-Gu