2002 3Q SUMMARY REPORT2002 3Q SUMMARY REPORT2002 3Q SUMMARY REPORT2002 3Q SUMMARY REPORT

October 31, 2002October 31, 2002October 31, 2002October 31, 2002

2

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Table of ContentsTable of Contents

3

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Highlight of Key Accounts

Details in Assets by Subsidiary

Loan Growth

Contents

4

Total AssetTotal Asset

Bank Only

SFG SFG 1) 1)

Footnote 1): includes Asset Under Management (AUM )of Shinhan Investment Trust ManagementFootnote 1): includes Asset Under Management (AUM )of Shinhan Investment Trust Management

(KRW bn) 2001200120012001

62,017.5

65,568.7

42,494.0

42,666.8

34,409.9

35,045.6

19,568.7

19,284.8

1. B/S –1. B/S – Highlight of Key AccountsHighlight of Key Accounts

Amt ChgAmt ChgAmt ChgAmt Chg

5,191.4

11,489.4

2,803.7

4,506.2

4,928.3

8,129.1

-277.7

287.7

YTDYTDYTDYTD

8.4%

17.5%

6.6%

10.6%

14.3%

23.2%

-1.4%

1.5%

Total DepositTotal Deposit

Bank Only

SFGSFG

Total LoanTotal Loan

Bank Only

SFGSFG

Total SecuritiesTotal Securities

Bank Only

SFGSFG

2Q 022Q 022Q 022Q 02

64,924.7

74,308.4

45,205.9

46,973.3

37,613.3

41,401.4

19,018.3

19,335.5

1Q 021Q 021Q 021Q 02

66,774.6

71,132.1

45,463.5

45,482.0

39,118.6

39,588.6

19,819.3

19,627.5

3Q 023Q 023Q 023Q 02

67,208.9

77,058.1

45,297.7

47,173.0

39,338.2

43,174.7

19,291.0

19,572.5

5

1. B/S –1. B/S – Details in Assets by SubsidiaryDetails in Assets by Subsidiary

SHBSHB

T/AT/A

GMSHGMSH

SHCardSHCard

SHITMSHITM

AuMAuM

Jeju BankJeju Bank

TotalTotal

(KRW bn)

(Intra Transac.)(Intra Transac.)

총자산총자산1Q 021Q 021Q 021Q 02

66,774.6

10,500.0

623.2

46.2

3,565.6

71,132.2

(735.1)

2001200120012001

62,017.5

9,422.8

631.4

45.2

2,784.9

65,568.7

(765.8)

3Q 023Q 023Q 023Q 02

67,208.9

4,108.4

1,695.2

77,058.1

10,036.7

1,503.7

2,078.0

45.6

(447.1)

B/AB/A 57,054.7 57,289.7

SHCSHC 857.7 865.5

총자산총자산2Q 022Q 022Q 022Q 02

64,924.7

10,247.1

1,895.7

2,230.6

44.6

3,513.8

1,588.9

74,308.4

(720.2)

54,976.6

830.2

YTDYTDYTDYTD

8.4%

47.5%

n.a

17.5%

6.5%

n.a

n.a

0.9%

(-41.6%)

7.4%

1.2%

Amt ChgAmt ChgAmt ChgAmt Chg

5,191.4

1,323.5

1,695.2

11,489.4

614.0

872.3

2,078.0

0.4

(-318.7)

3,933.7

10.0

53,356.0

855.5

6

Consumer

Home Equity

SMEs

Large Corps.

Public & Others

Total Loans

2001200120012001

10,772.9

6,940.2

10,618.9

2,937.5

24,422.3

93.0

(KRW bn)

Footnote: Bank Account Loan in Korean WonFootnote: Bank Account Loan in Korean Won

3Q20023Q20023Q20023Q20022Q2Q2Q2Q

1,056.1

572.9

590.6

-562.3

1,092.1

7.7

15,423.8

10,266.8

12,119.9

3,503.5

31,154.4

107.2

3Q3Q3Q3Q

884.1

597.6

-24.1

89.7

951.0

1.3

1. B/S1. B/S - Loan GrowthLoan Growth

YTDYTDYTDYTD

43.2%

47.9%

14.1%

19.3%

27.6%

15.3%

Portfolio Portfolio In %In %

Portfolio Portfolio In %In %

49.5%

33.0%

38.9%

11.2%

100.0%

0.3%

1Q1Q1Q1Q

2,710.7

2,156.1

934.5

1,038.6

4,689.0

5.2

Others 3,832.7 483.2 5,157.0286.5 34.6% 16.6%554.6

Amount ChangeAmount ChangeAmount ChangeAmount Change

7

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Income by Individual Subsidiaries

SFG Net Profit

Interest Income vs. Non-interest Income

Non-interest Income Summary

NIS and NIM

Contents

8

2.2. P&LP&L -- Income By Individual SubsidiariesIncome By Individual Subsidiaries

Pre-Provision IncomePre-Provision IncomeBankBank

SecuritiesSecurities

CapitalCapital

ITMCITMC

TotalTotal

Loan Loss ProvisionLoan Loss Provision

BankBank

Other CompaniesOther Companies

Net ProfitNet Profit

BankBank

SecuritiesSecurities

CapitalCapital

ITMCITMC

TotalTotal

YoYYoYYoYYoY

5.7%

-57.7%

111.4%

65.6%

-91.8%

78.9%

26.9%

59.6%

-49.2%

-7.5%

85.2%

5.4%

(KRW bn)

TotalTotal

총자산총자산2Q 022Q 022Q 022Q 02

265.7

2.0

8.8

2.0

290.7

83.8

8.2

125.4

1.4

2.2

1.3

136.9

92.0

1Q 021Q 021Q 021Q 02

312.6

8.5

8.7

1.2

331.0

46.0

2.0

180.6

6.3

3.8

0.8

191.5

47.9

3Q20013Q20013Q20013Q2001

809.4

23.8

26.5

2.7

862.4

397.2

22.8

270.8

13.4

3.8

2.6

290.6

420.0 -48.5%

TotalTotalTotalTotal

823.3

168.1

48.2

444.8

1.2

6.8

3.3

463.8

24.5

5.0

909.4

216.3

CardCard 5.6

JejuJeju 6.6 12.1

CardCard 3.9 3.7

JejuJeju 2.7 4.0

3Q 023Q 023Q 023Q 02

245.0

1.6

7.0

1.8

287.7

38.3

38.0

138.8

-6.6

0.8

1.2

135.3

76.4

26.8

5.5

-0.2

1.3

32.4

12.1

9

ProvisionProvisionAdjustmentAdjustmentProvisionProvision

AdjustmentAdjustmentOperating Operating ExpenseExpense

Operating Operating ExpenseExpenseNet ProfitNet ProfitNet ProfitNet Profit

BankBank

CardCard

444.8

3.7

CapitalCapital 6.8 5.6

ITMCITMC 3.3

e Shinhane Shinhan (0.6)

TotalTotalTotalTotal

444.8

3.7

12.4

3.3

(0.6)

(KRW bn)

Shinhan MacquarieShinhan Macquarie (0.1) (0.1)

SFGSFG (30.4)* (30.4)

TotalTotal 462.7 6.2 (30.4) 434.6

2. P&L2. P&L -- SFG Net ProfitSFG Net Profit

SecuritiesSecurities 1.2 (4.7)

Jeju BankJeju Bank 4.0 6.52.1

* Interest income 2.4, G&A expenses 15.6, Deffered income tax credits 17.2* Interest income 2.4, G&A expenses 15.6, Deffered income tax credits 17.2

Credit InformationCredit Information (0.3) (0.3)

(1.5)

GoodwillGoodwillGoodwillGoodwill

(4.0)

0.4

(4.4)

10

2. P&L2. P&L - - Interest Income vs Non-Interest IncomeInterest Income vs Non-Interest Income

BankBank

(KRW bn) 2Q 022Q 022Q 022Q 02 3Q 023Q 023Q 023Q 02

Interest IncomeInterest Income 302.0 316.4

Non-Interest IncomeNon-Interest Income 80.3 74.8

SFGSFG

Interest IncomeInterest Income 310.1 309.9

Non-Interest IncomeNon-Interest Income 130.6

1Q 02 1Q 02 1Q 02 1Q 02

261.9

200.2

269.2

241.2 180.2

YoYYoYYoYYoY

761.9 15.5%

419.3 -15.3%

790.3 12.5%

509.7 8.3%

TotalTotalTotalTotal

880.3

355.3

889.2

552.0

3Q013Q013Q013Q01

※ ※ Including Shinhan CardIncluding Shinhan Card 98.0 134.5 3.2%432.7

11

Fees & CommissionsFees & Commissions

Credit Card IncomeCredit Card Income

254.4

184.3

(KRW bn) TotalTotalTotalTotal

Fees on Trust AccountFees on Trust Account 97.2

Securities related IncomeSecurities related Income

Income on FC TransactionIncome on FC Transaction

-52.5

68.5

OthersOthers -12.3

TotalTotal

93.3

68.1

총자산총자산총자산총자산2Q 022Q 022Q 022Q 02

25.2

-67.0

35.3

-6.7

80.3

101.9

86.3

1Q 021Q 021Q 021Q 02

39.9

42.1

18.6

-2.3

200.2 355.3

2. P&L2. P&L -- Non-Interest Income Summary Non-Interest Income Summary (Shinhan Bank)(Shinhan Bank)

281.4

216.2

3Q 013Q 013Q 013Q 01

92.2

-6.6

79.3

-27.0

419.3

-9.6%

-14.8%

YoYYoYYoYYoY

5.4%

n.a

-13.6%

n.a

-15.3%

Footnote) 1) Shinhan Card’s income(Revenue-Expenses) : W77.4bn (From June to September)Footnote) 1) Shinhan Card’s income(Revenue-Expenses) : W77.4bn (From June to September) 2) Losses on disposition of Hynix common share holding : W62.5bn2) Losses on disposition of Hynix common share holding : W62.5bn

261.785.8 21.0%

10.0-4.5 n.a

69.2

29.9

총자산총자산총자산총자산3Q 023Q 023Q 023Q 02

32.1

-27.6

14.6

-3.3

74.8

89.6 ※ ※ Including Shinhan CardIncluding Shinhan Card1)1)

※ ※ Excluding disposition loss of HynixExcluding disposition loss of Hynix2)2)

12

2. P&L2. P&L -- NIS and NIMNIS and NIM

Average Lending RateAverage Lending Rate

Average Deposit RateAverage Deposit Rate

7.52%

4.46%

1H 021H 021H 021H 02

7.62%

4.54%

1Q 021Q 021Q 021Q 02

8.75%

6.02%

3Q 013Q 013Q 013Q 01

3.06%

7.47%

4.41%

3Q 023Q 023Q 023Q 02

3.06%

-1.28%p

-1.61%p

YoYYoYYoYYoY

NIS in KRWNIS in KRW

NIS

3.08% 2.73% 0.33%p

2.54% 2.54% NIS in KRW(excluding Credit Card)NIS in KRW(excluding Credit Card) 2.49% 2.14% 0.40%p

Including Credit CardIncluding Credit Card

NIMNIM 2.80%2.76% 2.76%

2.93%

2.78%

2.91%

0.02%p

NIM in KRWNIM in KRW

NIM

2.88% 2.83% 0.08%p

1.79% 1.82% NIM in FXNIM in FX 1.86% 2.34% -0.52%p

Excluding Credit CardExcluding Credit Card

NIMNIM 2.42%2.37% 2.50%

2.51%

2.41%

2.50%

-0.09%p

NIM in KRWNIM in KRW 2.44% 2.53% -0.03%p

1.77% 1.80% NIM in FXNIM in FX 1.86% 2.34% -0.54%p

13

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Asset Classification and Coverage Ratio

Delinquency Ratio

Credit Card Asset Quality

Additional Provisions

Exposure to Hyundai Affiliates

Contents

14

3Q023Q023Q023Q02

3. Asset Quality3. Asset Quality –– Shinhan BankShinhan Bank

Total CreditsTotal Credits

Substandard & belowSubstandard & below

41,196.3

614.8

(KRW bn) 2Q022Q022Q022Q02

Precautionary & belowPrecautionary & below 1,523.7

RatioRatio

Coverage RatioCoverage Ratio

3.70%

Substandard & belowSubstandard & below 105.1%

Precautionary & belowPrecautionary & below

41,371.7

735.7

총자산총자산총자산총자산1Q 021Q 021Q 021Q 02

1,863.9

4.51%

90.2%

35.6%

35,920.7

868.1

2001200120012001

1,939.6

5.40%

71.8%

32.1% 42.4%

42,865.9

680.7

1,522.9

3.55%

99.1%

44.3%

Footnote) 1. ABS Issue Footnote) 1. ABS Issue 2. The numbers for NPLs Sold and Write-offs are not accumulated basis(quarterly figures)2. The numbers for NPLs Sold and Write-offs are not accumulated basis(quarterly figures)

1.49%1.78%

646.4663.4 674.7

RatioRatio

ProvisionsProvisions

2.42%

19.3%

-21.6%

-21.5%

-1.85%p

27.3%p

12.2%p

-0.83p%

8.26%623.2

1.59%

YTDYTDYTDYTD

NPLs SoldNPLs Sold1)1) 0

Write-offsWrite-offs

116.1

26.2

161.4

729.8 33.5

0

25.2

n.a

-88.4%

15

3Q023Q023Q023Q02

3. Asset Quality3. Asset Quality –– Delinquency RatioDelinquency Ratio

RetailRetailRetailRetail

96.1

159.2

(KRW bn) 2Q022Q022Q022Q02

332.4

164.5

223.2

472.3

Footnote) Shinhan Bank onlyFootnote) Shinhan Bank only

84.8%

-7.2%

-16.5%

YTDYTDYTDYTD

Home Equity LoanHome Equity Loan 36.5 79.8 195.6%

Unsecured LoanUnsecured Loan 30.5 50.0 28.9%

1Q021Q021Q021Q02

89.0

240.6

2001200120012001

565.6

118.5

186.8

536.0

27.0 44.9

38.8 56.1

RetailRetail

CorporateCorporate

0.65%

1.02%

TotalTotal 0.86%

1.05%

1.42%

1.17%

0.25%p

-0.33%p

-0.52%p

0.36% 0.74% 0.35%p

1.29% 1.95% 0.47%p

0.80%

1.75%

1.69%

0.86%

1.19%

1.38%

0.39% 0.48%

1.48% 2.45%

Home Equity LoanHome Equity Loan

Unsecured LoanUnsecured Loan

Loan AmountLoan Amount

Delinquency AmountDelinquency Amount

14,751.2 15,603.4 40.1%11,140.4 13,780.2

CorporateCorporateCorporateCorporate

TotalTotalTotalTotal

Loan AmountLoan Amount

Delinquency AmountDelinquency Amount

15,657.1 15,744.5 14.7%13,730.5 15,652.2

Loan AmountLoan Amount

Delinquency AmountDelinquency Amount

38,634.8 40,350.9 20.6%33,469.7 38,840.6

Delinquency Ratio

16

3Q023Q023Q023Q02

3. Asset Quality3. Asset Quality –– Shinhan CardShinhan Card

Total CreditsTotal Credits

Substandard & belowSubstandard & below

2,444.2

0.86%

(KRW bn)

2Q022Q022Q022Q02

Precautionary & belowPrecautionary & below 0.95%

Coverage RatioCoverage Ratio

331.9%

2,460.1

2.91%

5.98%

57.2%

Footnote) 1. Based on Shinhan Card and Shinhan Bank’s “Purchase Card”Footnote) 1. Based on Shinhan Card and Shinhan Bank’s “Purchase Card”

77.9 89.4ProvisionsProvisions

22.3%

0.72%p

2.10%p

-47.75p

4.8%

YTDYTDYTDYTD

NormalNormal

2.2 80.3 126.2%PrecautionaryPrecautionary

0.0 0.0 n.aSubstandardSubstandard

0.0 36.6 115.3%DoubtfulDoubtful

21.3 39.5 42.6%Estimated LossEstimated Loss

2,467.7 2,616.4 25.0%

1Q021Q021Q021Q02

2,012.2

2.19%

2001200120012001

3.88%

104.9%

2,232.8

2.30%

4.12%

102.7%

85.3 98.5

35.5 42.4

1.0 0.9

17.0 20.9

27.7 31.7

2,093.4 2,328.7

Delinquency RatioDelinquency Ratio

Over 1 dayOver 1 day

4.63% 5.46% 2.43%p3.03% 3.84%Over 1 monthOver 1 month

8.21% 9.93% 3.63%p6.30% 7.16%

Substandard & belowSubstandard & below

Precautionary & belowPrecautionary & below

365.7% 117.5% -68.8%p186.3% 183.9%

Spin-off Change in classification standard

17

3. Asset Quality3. Asset Quality ––

Increase in Provision Ratio

5% 8%⇒

Changes orChanges orAmendmentAmendmentChanges orChanges orAmendmentAmendment

Provision Provision Requirement(E)Requirement(E)

Provision Provision Requirement(E)Requirement(E)

Net IncomeNet IncomeImpact(E)Impact(E)

Net IncomeNet IncomeImpact(E)Impact(E)

ApplicationApplicationPeriodPeriod

ApplicationApplicationPeriodPeriod

Consumer LoanConsumer Loan(Precautionary)(Precautionary)Consumer LoanConsumer Loan(Precautionary)(Precautionary) 2.6 bn △ 1.8 bn

End of 2002

Increase inProvision Ratio0.5% 0.75%⇒

Corporate LoanCorporate Loan(Normal)(Normal)

Corporate LoanCorporate Loan(Normal)(Normal) 27.4 bn △ 19.2 bn TBD

Increase inProvision Ratio

7% 12%⇒

Credit CardCredit Card(Precautionary)(Precautionary)

Credit CardCredit Card(Precautionary)(Precautionary) 3.9 bn △ 2.7 bn

End of2002

TotalTotalTotalTotal 6.5 33.9 bn∼ △4.6 ∼

△ 23.7 bn

Additional Provisions from Additional Provisions from Regulatory RequirementRegulatory Requirement

18

(billion won)

Securities Total Exposure Collateral Net Exposure Provisions Coverage

Amount Type (b) (c=a+b) (d) (e=c-d) (f) Ratio(f/e)

Hynix - - - -

Hyundai E&C - 60.0 60.0 60.0*

Hyundai Petro. 75.8 Substandard 4.8 80.6 14.4 66.2 22.7 34.4%

Hyundai M. M. 58.6 Precautionary 58.6 6.8 51.8 11.1 21.5%

Hyundai Heavy 92.4 Normal 92.4 92.4 1.8 2.0%

Hyundai Corp. - - -

Hyundai Elevator - - -

Total 226.8 - 64.8 291.6 21.2 210.4 35.7 17.0%

☞ As of September 2002

* The Bank is holding Hyundai E&C securities through debt-equity swap program. Holding securities evaluated on mark-to-market basis(W39.0bn as of 3Q)

Total Credit (a)

3. Asset Quality3. Asset Quality –– Exposure to Hyundai AffiliatesExposure to Hyundai Affiliates

19

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Contents

20

4. Capital Adequacy Ratio4. Capital Adequacy Ratio

3Q02(E)3Q02(E)3Q02(E)3Q02(E)

Risk-weighted AssetsRisk-weighted Assets

Capital Adequacy RatioCapital Adequacy Ratio

38,963.0

10.79%

(KRW bn) 2Q022Q022Q022Q02

Tier 1 RatioTier 1 Ratio

3.90%

2002(E)2002(E)2002(E)2002(E)

Tier 1 CapitalTier 1 Capital 2,682.1

Tier 2 CapitalTier 2 Capital 1,520.8

1Q021Q021Q021Q02

35,772.0

12.02%

2001200120012001

3.76%

40,086.2

11.24%

3.39%

2,955.9 3,150.2

1,343.5 1,357.4

Shinhan Bank only

Shinhan Group(E)

Tier 2 RatioTier 2 Ratio

6.88%8.26% 7.86%

Risk-weighted AssetsRisk-weighted Assets

Capital Adequacy RatioCapital Adequacy Ratio

42,787.7

12.61%

Tier 1 RatioTier 1 Ratio

3.26%

Tier 1 CapitalTier 1 Capital 4,000.2

Tier 2 CapitalTier 2 Capital 1,395.8

41,881.0

10.74%

2.85%

3,303.3

1,193.8

Tier 2 RatioTier 2 Ratio

9.35%7.89%

40,461.0

10.50%

3. 61%

2,788.3

1,460.1

6.89%

10.50%

3.60%

6.90%

☞ Excluding GMSH securities’ minority interest, BIS ratio and tier 1 ratio would be 11.27% and 8.01% respectively

21

1. B/S Highlight

2. P/L Highlight

3. Asset Quality

4. Capital Adequacy Ratio

5. Major Financial Figures

Contents

22

5. Major Financial Ratio5. Major Financial Ratio

2001200120012001 2002 (P)2002 (P)2002 (P)2002 (P)

ROAROAROAROA

ROEROEROEROE

BVPSBVPSBVPSBVPS

Loan to DepositLoan to DepositRatioRatio

Loan to DepositLoan to DepositRatioRatio

0.79%

13.83%

12,312

81.1%

1.03%

20.00%

13,265

91.2%

Cost-income RatioCost-income Ratio ConsolidatedConsolidated BankBank

Cost-income RatioCost-income Ratio ConsolidatedConsolidated BankBank

42.23%

36.21%

36.97%

35.81%

EPSEPSEPSEPS 1,498 2,334

* Loan to deposit ratio / Substandard & below ratio are for Shinhan Bank only

(KRW)

Substandard & Substandard & below ratio*below ratio*

Substandard & Substandard & below ratio*below ratio*

2.42% 1.75%

1Q 021Q 021Q 021Q 02

1.33%

24.05%

13,210

87.1%

41.26%

36.92%

2,641

1.78%

1H 021H 021H 021H 02

1.10%

18.70%

13,505

92.0%

37.31%

32.87%

2,257

1.49%

3Q 023Q 023Q 023Q 02

0.96%

17.48%

13,449

94.7%

43.83%

34.57%

1,987

1.59%

Investor Relations D. H. Lee, Head of IR Team

Tel : (822) 6360-3071 dhlee01@shinhan.com

I. C. Park, Deputy General Manager

Tel : (822) 6360-3072 icpark@shinhan.com

S. H. Yu, Senior Manager

Tel : (822) 6360-3073 irshy@shinhan.com

S. J. Han, Assistant General Manager

Tel : (822) 6360-3074 sjhan@shinhan.com

Fax : (822) 777-1883 / 6263-8070

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