Shinhan Financial Group has announced 'Shinhan ValueUp 2.0,' which increases predictability by linking group growth and shareholder returns and implements new capital policies to enhance corporate value.
This plan is a reconfiguration of the structure in which group performance and shareholder returns move together, as the previously proposed shareholder return rate of 50% was achieved ahead of schedule. It has been set for a period of 3 years until 2028.
Shinhan Financial has introduced a calculation method for the shareholder return rate that is linked to the growth rate and an elevated target of 'ROE over 10%.' By applying a formula to calculate the shareholder return rate as '1 - (growth rate / target ROE),' it establishes a predictable return system by eliminating the existing 50% cap. For example, with a target ROE of 10% and a growth rate of 4-5%, the shareholder return rate is determined to be around 50-60%.
The dividend policy is also strengthened. Starting from the 2026 financial statements, tax-exempt dividends will be implemented for 3 years, with the goal of expanding the per-share dividend (DPS) by more than 10% annually. It will maintain a quarterly equal dividend principle, and the remaining funds will be utilized to implement the existing plan of 'purchasing and retiring over 5 million treasury shares.'
Capital efficiency at the group level will also be reviewed. Based on Return on Capital (ROC), capital will be reallocated to increase ROE, and this will be linked to the group's overall performance measurement, evaluation, and compensation system.
Jang Jung-hoon, Vice President of Finance at Shinhan Group, stated, "This plan is significant in establishing a sustainable system where group growth and shareholder returns circulate together" and added, "We will enhance shareholder value based on a predictable shareholder return system."