Capital Group lifts Shinhan Financial stake to 5.02%

  • Capital Group raised its Shinhan Financial stake above 5% through share and depositary-receipt purchases.
  • 23,568,346 shares represented a 5.02% stake after CRMC’s 115,260-share purchase.
  • Shinhan’s Value-Up 2.0 targets ROE above 10%, shareholder returns above 50%, and CET1 above 13%.

Capital Group has raised its stake in South Korea’s Shinhan Financial Group above 5%, making it the company’s third-largest shareholder. Capital Research and Management Company (CRMC), an investment advisory arm of Capital Group, held 23,568,346 shares as of the 26th of last month, equal to 5.02%, according to a filing submitted to the Financial Supervisory Service’s DART system on the 2nd. CRMC had remained below 5% through the 25th before buying 115,260 additional shares through on-market purchases and off-market depositary-receipt transactions. The holding was reported as a simple investment. Shinhan unveiled its Value-Up 2.0 strategy in April, targeting return on equity above 10%, a total shareholder return ratio above 50% and a common equity Tier 1 ratio above 13%. Shinhan said the increase reflected a favorable assessment of the program and improving earnings at non-banking affiliates. Capital Group, which managed more than $3.6 trillion at the end of June, previously held more than 5% of Shinhan before falling below the major-shareholder threshold. It has also reduced positions in KB Financial and Hana Financial, while investors monitor whether its Shinhan stake changes further.

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