Shinhan Investment's headquarters in Yeouido (Shinhan Investment)
Shinhan Investment's headquarters in Yeouido (Shinhan Investment)

Shinhan Investment significantly grew its financial product and investment banking revenues in the first half of this year, accelerating efforts to diversify its income streams on top of strong equity brokerage performance driven by a buoyant stock market.

The company posted a net profit of 577.7 billion won ($408 million) in the first half, the company said Friday. Return on equity stood at 19.7 percent, while the cost-to-income ratio came in at 41.9 percent.

Growth in the financial products segment was particularly notable. Financial product fees reached 85.7 billion won in the first half, up 52.6 billion won, or 158 percent, from the same period last year. Shinhan Investment said the gains reflected its success in converting investors who entered the market for equity trading into financial product and wealth management customers.

The company's customer base also expanded. Total customer assets stood at 325 trillion won at the end of the first half. The number of clients holding assets of 100 million won or more rose about 46 percent, from 169,000 at the end of last year to 247,000 by the close of the first half.

Shinhan Investment has been working to broaden its customer base by lowering investment costs for non-face-to-face financial products. Among the "Light" products introduced on the Shinhan Sol Securities app on July 12, 14 Light bond products sold more than 100 billion won worth within a month of launch — more than double the average monthly non-face-to-face bond sales recorded last year. The company is also selling 15 Light equity-linked securities products with front-end sales fees cut to zero and enhanced coupon rate competitiveness, alongside non-face-to-face public offering funds with zero upfront fees.

IB net operating revenue reached 178.7 billion won in the first half, up 248 percent year on year. The company secured double-digit market share in both the debt capital markets and equity capital markets segments, at 10.44 percent and 11.52 percent, respectively.

Transactions completed during the period included a bridge loan refinancing backed by a controlling stake in Kyobo Life and acquisition financing for Apact. The company also formed six productive-finance partnerships and private equity funds, expanding assets under management by around 200 billion won. The asset management segment posted a 45 percent year-on-year increase in earnings, supported by stable asset management operations and stronger retail product solutions.

Asset quality indicators improved alongside revenue growth. The substandard-and-below loan ratio fell from 8.5 percent in 2024 to 2.3 percent in the first half of this year.

For the second half, Shinhan Investment plans to expand new revenue sources through the resumption of national pension fund transactions and ETF liquidity provider operations, as well as entry into the promissory note issuance market.

"The significance of our first-half results lies not in the absolute size of net profit, but in the simultaneous improvement of capital efficiency, financial product competitiveness and our customer base," a Shinhan Investment official said. "Through proactive risk management and the securing of new revenue sources, we will sustain stable earnings improvement even as market volatility increases in the second half, while contributing to the profitability of Shinhan Financial Group's non-banking businesses as the group's capital markets hub."


hajun825@heraldcorp.com