SHINHAN FINANCIAL GROUP CO LTD | CIK:0001263043 |

Filed: 4/30/2018

Entity registrant name: SHINHAN FINANCIAL GROUP CO LTD (CIK: 0001263043)

Generator: Fujitsu

SEC filing page: http://www.sec.gov/Archives/edgar/data/1263043/000119312518141173/0001193125-18-141173-index.htm

XBRL Instance: http://www.sec.gov/Archives/edgar/data/1263043/000119312518141173/shg-20171231.xml

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ifrs-full:DisclosureOfOperatingSegmentsExplanatory

7.	Operating segments

(a)

Segment information

The general descriptions for operating segments are as follows:


Segment		Description
Banking		The banking segment offers commercial banking services such as lending to and receiving deposits from corporations and individuals and also includes securities investing and trading and derivatives trading primarily through domestic and overseas bank branches and subsidiaries.

Credit card		The credit card segment primarily consists of the credit card business of Shinhan Card, including its installment finance and automobile leasing businesses.

Securities		Securities segment comprise securities trading, underwriting and brokerage services.

Life insurance		Life insurance segment consists of life insurance services provided by Shinhan Life Insurance.

Others		Leasing, assets management and other businesses

(b)

The following tables provide information of income and expense for each operating segment for the years ended December 31, 2015, 2016 and 2017.


	2015
	Banking			Credit card			Securities			Life insurance			Others			Consolidation adjustment			Total
Net interest income (loss)	W	4,246,146			1,350,968			444,271			675,760			(32,274	)		8,062			6,692,933
Net fees and commission income		689,122			433,441			266,529			32,232			194,530			5,125			1,620,979
Impairment losses on financial assets		(800,893	)		(305,876	)		(3,353	)		(31,383	)		(124,534	)		1,986			(1,264,053	)
General and administrative expenses		(2,779,864	)		(830,355	)		(479,567	)		(204,975	)		(244,929	)		64,622			(4,475,068	)
Other income (expense), net		294,633			319,758			34,080			(340,012	)		174,140			(84,249	)		398,350

Operating income		1,649,144			967,936			261,960			131,622			(33,067	)		(4,454	)		2,973,141
Equity method income (loss)		13,399			—			1,478			(277	)		5,601			770			20,971
Income tax expense		363,928			209,916			62,668			32,356			28,519			(2,768	)		694,619

Profit (loss) for the period	W	1,426,006			778,153			215,454			100,221			(59,454	)		(14,422	)		2,445,958

Controlling interest	W	1,425,672			778,153			215,454			100,221			(66,492	)		(85,837	)		2,367,171
Non-controlling interests		334			—			—			—			7,038			71,415			78,787


	2016
	Banking			Credit card			Securities			Life insurance			Others			Consolidation adjustment			Total
Net interest income	W	4,605,046			1,484,697			390,761			704,489			13,028			7,345			7,205,366
Net fees and commission income		717,097			408,601			248,845			19,068			169,081			2,847			1,565,539
Impairment losses on financial assets		(746,126	)		(347,179	)		(8,035	)		(9,559	)		(85,009	)		245			(1,195,663	)
General and administrative expenses		(2,907,314	)		(802,037	)		(406,017	)		(227,639	)		(215,759	)		50,191			(4,508,575	)
Other income (expense), net		190,909			296,829			(82,480	)		(326,251	)		43,783			(80,815	)		41,975

Operating income		1,859,612			1,040,911			143,074			160,108			(74,876	)		(20,187	)		3,108,642
Equity method income		8,615			—			(273	)		(1,188	)		4,277			(1,436	)		9,995
Income tax expense		64,214			235,140			30,066			2,951			14,190			(1,008	)		345,553

Profit (loss) for the period	W	1,866,811			806,313			115,440			150,556			(79,150	)		(35,051	)		2,824,919

Controlling interest	W	1,866,446			814,836			115,438			150,556			(79,151	)		(93,347	)		2,774,778
Non-controlling interests		365			(8,523	)		2			—			1			58,296			50,141


	2017
	Banking			Credit card			Securities			Life insurance			Others			Consolidation adjustment			Total
Net interest income	W	5,107,888			1,501,054			433,047			727,917			69,231			3,816			7,842,953
Net fees and commission income		816,795			359,408			297,718			53,271			180,510			3,252			1,710,954
Impairment losses on financial assets		(676,057	)		(291,694	)		(15,752	)		(13,162	)		(36,830	)		18,596			(1,014,899	)
General and administrative expenses		(3,149,436	)		(831,927	)		(444,935	)		(222,650	)		(234,649	)		72,399			(4,811,198	)
Other income (expense), net		(11,556	)		567,234			(17,229	)		(385,226	)		53,815			(106,173	)		100,865

Operating income		2,087,634			1,304,075			252,849			160,150			32,077			(8,110	)		3,828,675
Equity method income (loss)		1,306			—			12,081			(910	)		8,796			(880	)		20,393
Income tax expense		418,409			285,853			63,472			41,441			32,805			6,153			848,133

Profit (loss) for the period	W	1,622,344			1,012,755			211,919			120,642			9,600			(29,136	)		2,948,124

Controlling interest	W	1,622,103			1,027,823			211,907			120,642			9,600			(74,340	)		2,917,735
Non-controlling interests		241			(15,068	)		12			—			—			45,204			30,389

(c)

The following tables provide information of net interest income of each operating segment for the years ended December 31, 2015, 2016 and 2017.


	2015
	Banking			Credit card			Securities			Life insurance		Others			Consolidation adjustment		Total
Net interest income from:
External customers	W	4,253,559			1,390,469			450,019			674,708		(75,822	)		—		6,692,933
Internal transactions		(7,413	)		(39,501	)		(5,748	)		1,052		43,548			8,062		—

	W	4,246,146			1,350,968			444,271			675,760		(32,274	)		8,062		6,692,933


	2016
	Banking			Credit card			Securities			Life insurance		Others			Consolidation adjustment		Total
Net interest income from:
External customers	W	4,610,536			1,507,748			392,973			704,188		(10,079	)		—		7,205,366
Internal transactions		(5,490	)		(23,051	)		(2,212	)		301		23,107			7,345		—

	W	4,605,046			1,484,697			390,761			704,489		13,028			7,345		7,205,366


	2017
	Banking			Credit card			Securities		Life insurance			Others		Consolidation adjustment		Total
Net interest income from:
External customers	W	5,113,584			1,517,399			427,888		727,975			56,107		—		7,842,953
Internal transactions		(5,696	)		(16,345	)		5,159		(58	)		13,124		3,816		—

	W	5,107,888			1,501,054			433,047		727,917			69,231		3,816		7,842,953

(d)

The following tables provide information of net fees and commission income of each operating segment for the years ended December 31, 2015, 2016 and 2017.


	2015
	Banking			Credit card			Securities			Life insurance			Others		Consolidation adjustment		Total
Net fees and commission income from:
External customers	W	730,799			460,314			274,833			40,638			114,395		—		1,620,979
Internal transactions		(41,677	)		(26,873	)		(8,304	)		(8,406	)		80,135		5,125		—

	W	689,122			433,441			266,529			32,232			194,530		5,125		1,620,979


	2016
	Banking			Credit card			Securities			Life insurance			Others		Consolidation adjustment		Total
Net fees and commission income from:
External customers	W	744,464			427,592			255,999			26,769			110,715		—		1,565,539
Internal transactions		(27,367	)		(18,991	)		(7,154	)		(7,701	)		58,366		2,847		—

	W	717,097			408,601			248,845			19,068			169,081		2,847		1,565,539


	2017
	Banking			Credit card			Securities			Life insurance			Others		Consolidation adjustment		Total
Net fees and commission income from:
External customers	W	844,349			384,356			306,407			60,555			115,287		—		1,710,954
Internal transactions		(27,554	)		(24,948	)		(8,689	)		(7,284	)		65,223		3,252		—

	W	816,795			359,408			297,718			53,271			180,510		3,252		1,710,954

(e)

Financial information of geographical area

The following table provides information of income from external consumers by geographical area for the years ended December 31, 2015, 2016 and 2017.


	2015		2016		2017
Domestic	W	2,727,862		2,876,073		3,503,429
Overseas		245,279		232,569		325,246

	W	2,973,141		3,108,642		3,828,675

The following table provides information of non-current assets by geographical area as of December 31, 2016 and 2017.


	2016		2017
Domestic	W	7,568,195		7,513,736
Overseas		157,105		198,308

	W	7,725,300		7,712,044

Non-current

assets comprise property and equipment, intangible assets and investment properties.