Shinhan Financial Group announced its 'Corporate Value-up program' in July 2024, signaling a strategic pivot from quantitative expansion to qualitative, capital-efficient growth. This new direction aims to enhance Return on Equity (ROE) and Return on Capital (ROC) while accelerating shareholder returns, marking a significant evolution in the company's operational philosophy.
The program sets clear financial targets, including a 13% Return on Capital (ROC) and a commitment to maintain a CET1 ratio of 13% or higher. These targets demonstrate a focus on optimizing capital utilization and ensuring financial stability amidst evolving market conditions.
A cornerstone of the 'Corporate Value-up program' is an aggressive shareholder return strategy, targeting a 50% Total Shareholder Return (TSR) by 2027, with an initial goal of 40%. This commitment to enhanced shareholder value is expected to be primarily driven by accelerated share buybacks and cancellations.
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