Shinhan Holdings joined the upward trend in financial stocks on the 3rd, recording a gain of more than 3% during the trading session. As of the morning of the same day, Shinhan Holdings is trading at 106,200 won, up more than 3% from the previous trading day.

The securities industry forecasts that Shinhan Holdings' second-quarter earnings will slightly exceed market expectations, while also highlighting the possibility of additional share buybacks in the second half of the year as a key investment point.

Daishin Securities estimated that Shinhan Holdings' net income attributable to controlling shareholders for the second quarter of this year will reach 1.63 trillion won. This represents a 0.6% increase from the previous quarter and a 5.3% increase from the same period last year. The firm expects that, driven by improvements in non-interest income, the earnings will slightly exceed the market consensus.

The provisioning burden is also expected to be relatively limited. Daishin Securities anticipates that the impact of provisions related to the Jungang Group will be the most minimal among major financial holding companies. Additionally, the possibility of a partial reversal of provisions related to Hong Kong H-index-linked equity-linked securities (ELS) was cited as a factor for earnings improvement.

Attention was also drawn to the shareholder return policy for the second half of the year. Daishin Securities projected that the scale of additional share buybacks could reach up to 900 billion won. It evaluated that the current price-to-book ratio (PBR) remains at around 0.75 times, indicating that valuation appeal remains valid.

The stock price increase on this day is interpreted as a result of favorable earnings forecasts and expectations for expanded shareholder returns stimulating investor sentiment. Recently, financial stocks have been attracting market attention based on stable earnings and robust shareholder return policies, and related expectations appear to be reflected in Shinhan Holdings as well.

The market views future changes in the benchmark interest rate, net interest margin (NIM), the growth trend of non-interest income, asset quality management, and additional share buyback and dividend policies as key variables that will determine Shinhan Holdings' performance and corporate value.

[This article was written with the assistance of AI. This article does not constitute investment advice, and the responsibility for investment decisions and their consequences lies solely with the investor.]