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JONBUR Research · Update note

Shinhan Financial Group · 055550 · Holding companies

Shinhan Financial Group Reports Q3 2026 Preliminary Results: Sales Nearly Double, Operating Profit Slightly Lower

Why this report

Written after:

Shinhan's preliminary consolidated Q3 2026 results show sales of ₩18.6T, up 95.9% from a year earlier, while operating profit of ₩1.9T was down 2.4%. Net income rose 10.9%, so the headline sales jump did not carry through to operating profit, and the underlying earnings trend is little changed.

Written Oct 27, 2026 · Data as of Oct 26, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-27 Shinhan filed preliminary consolidated results for July to September 2026. These are provisional figures and may differ from final ones.

Sales were ₩18.6T, up 95.9% from ₩9.5T a year earlier but down 25.6% from ₩25.1T in the previous quarter. Operating profit was ₩1.9T, down 2.4% from a year earlier and down 23.0% from the previous quarter (₩2.5T). Pre-tax profit from continuing operations was ₩2.1T, up 8.2% year on year and down 16.1% quarter on quarter. Net income was ₩1.6T, up 10.9% year on year and down 12.8% quarter on quarter. Net income attributable to owners of the parent was about ₩1.6T (₩1,584.6B).

For the nine months to September, sales were ₩72.2T (up 47.8%), operating profit ₩6.5T (up 10.6%) and net income ₩5.1T (up 12.3%).

As background, Shinhan also filed a share buyback decision and a cash dividend decision on the same day. The buyback size is not available in the data we have.

What it changes for the thesis

The previous report described gradually improving profitability: net income of ₩4.4T in 2023, ₩5.0T in 2025 and ₩5.4T over the twelve months to H1 2026, with ROE rising to 9.3%. These results broadly fit that picture. Nine-month net income of ₩5.1T is 12.3% above the same period of 2025, so earnings are still growing.

The near doubling of sales does not look like a sign of stronger underlying business, because operating profit slipped 2.4% and net income grew only 10.9%. For a financial group, sales can include large items that move with markets and are not a clean measure of operating strength. The filing excerpt does not explain the sales jump, so we cannot say what drove it. The quarter-on-quarter decline in profit is also notable, though the filing gives no reason.

The Lotte Non-Life acquisition flagged last time is not reflected in these figures, as it was still pending regulatory approval. Leverage questions from that report (liabilities at 1,245% of equity) are not addressed by the preliminary results.

What it changes for the valuation

Our model estimate now has a range of ₩64,206 (bear), ₩106,489 (base) and ₩161,636 (bull) per share. It uses an excess-return method with a 9.6% rate on twelve-month data to H1 2026, so it does not yet include these Q3 results. The previous report's range was ₩183,377, ₩254,373 and ₩352,094, based on a free-cash-flow method. The two ranges come from different methods and are not directly comparable, so the drop reflects the change in method and not a deterioration in results.

The latest close was ₩85,500 on 2026-10-26, within the new range and between the bear and base values. This is a model estimate based on the assumptions shown, not a price target. The share price is down 21.8% over one month and 18.6% over three months, and sits between its 52-week low of ₩72,500 and high of ₩116,500.

Current multiples are a P/E of 7.5, P/B of 0.7 and a dividend yield of 3.0%. Peers are KB Financial (P/E 8.3, P/B 0.9), Hana (7.4, 0.6) and Woori (6.8, 0.6). Foreign investors sold a net ₩206.9B over 20 days, and foreign ownership is 61.1% against 61.6% sixty days earlier.

Closing view

The quarter shows continued earnings growth at the net income level, with flat to slightly lower operating profit and a sharp sales increase whose cause is not explained in the data. This supports the earlier view of gradual profitability improvement and does not change it materially. Open questions remain: the sales driver, the sequential decline in profit, the buyback size and the financial effect of the Lotte Non-Life deal. The model range is a reference point under stated assumptions, and its change from the previous report mainly reflects a different method.

Model estimate of fair value

Bear
₩64,206
-27%
Base
₩106,489
+21%
Bull
₩161,636
+84%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the P/B vs ROE (excess return) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 27, 2026Update noteEarningsShinhan Financial Group Reports Q3 2026 Preliminary Results: Sales Nearly Double, Operating Profit Slightly Lower
  2. Oct 13, 2026Update noteM&A / restructuringShinhan Financial Group Board Approves ₩693.3B Acquisition of 77.0% of Lotte Non-Life Insurance
  3. Oct 13, 2026InitiationShinhan Financial Group: Steady Earnings Growth, Pullback in Shares and a New Insurance Acquisition

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information