Good afternoon, I am Cheryl Buck, Head of IR. Extend my sincere appreciation to you for participating in Shinhan Financial Group earnings presentation for Q2 2023. Moving on to today's presentation, allow me to make some announcements for housekeeping. The earnings presentation of Shinhan Financial Group is taking place through the group's digital platform, the YouTube channel, and Zoom app. The YouTube live channel is only available in Korean, Q&A is not available. If you wish to have an English view or participate in the Q&A, please join through Zoom. Please refer to our website, shinhangroup.com, for detailed information for access. From now on, we will start the earnings presentation of Shinhan Financial Group for Q2 2023. For today's earnings release, the Group CFO Lee Tae-kyung, CRO Dong-Kwon-Bang, Group CDO Myeong-hee Kim, will be the main presenters.
We are also joined by Shinhan Bank CFO Ki-hoon Kim, Shinhan Card CFO Nam-joon Kim, Shinhan Investment and Securities CFO Hee-dong Lee, and Shinhan Life CFO Kang-won Park. In today's earnings release, there will first be a presentation on the overall business results for Q2 2023, followed by a Q&A session. I will hand it over to the group CFO, Tae-kyung Lee, for the presentation on business results for Q2 2023.
Hello. As introduced, I am Tae-kyung Lee, CFO of the Shinhan Financial Group. I would like to extend my sincere appreciation to you for taking part in today's earnings conference call for Q2 2023 despite your busy schedules. I will walk you through the key highlights from page 5 of the IR presentation. Please refer to page 5.
In Q2 of 2023, despite an increase in operating income, net income declined due to conservative provisioning, realizing a net income of KRW 1.2383 trillion. Non-interest income recorded KRW 1.33 trillion, up again after increasing Q1. This was due to balance growth, a fee income deposit, despite the decline in securities-related income. The group's cost-income ratio in the first half of the year stood at 38.3%, maintaining a stable level despite the upward inflationary pressure and increase in digital and ICT-related expenses. There was a solid trend of operating profit. The group's credit cost ratio recorded 53 basis points, increased by 22 basis points YoY due to the increase in countercyclical provisions in light of the bank's credit review season and conservative accumulation of additional provisions with master-scale PD adjustments.
Lastly, at today's BOD meeting, we passed a resolution to set the quarterly dividend payout for Q2 at KRW 525 and execute an additional round of share buyback and cancellation amounting to KRW 100 billion in Q3. Moving forward, we will continue to implement a sustainable capital policy by securing sufficient capital capacity. On page 6, you can find the main highlights of the group Q2 Financial. On page 7, the group's net income and other profitability indicators are available. Turning to page 8, I will provide an explanation on the detailed earnings of the group. Page 8 shows the group's interest income. In Q2 of 2023, the group's interest income stood at KRW 2.69 trillion, a 4.7% QoQ. This is attributable to an increase in interest-bearing assets, an increase in bank margins, and a decrease in funding costs of non-bank subsidiaries.
During Q2, there was an increase in the interest rate for loans and securities following the rise in market interest rates, and the high-interest term deposits funded in Q4 of last year reached maturity. As a result, the bank's NIM recorded 1.64%, up 5 bps QoQ. Growth of bank loans, which slowed down to 0.1% in the first quarter, recovered in Q2, increasing by 0.6%. Due to weaker demand following higher interest rates and tighter DSR regulations and the asset securitization on mortgage loans, retail lending decreased by 1.8% YTD. However, backed by continued demand from large corporations and well-established SMEs, corporate lending grew by 2.8% YTD. Please refer to page 34 of the presentation for more detailed information. Next, on page 9, detailed information on Shinhan Bank's loan growth, deposit, and margin trends are available for your reference. Next, on page 10, the group's non-interest income.
Despite the drop in securities-related income, fee income, and insurance-related income, which are the core sources of non-interest income, recovered, resulting in a 3.4% increase of the group's non-interest income QoQ. On a YoY basis, due to the base effect of the low trading gains due to the sharp rise in interest rates in the previous year and higher securities-related income reflecting market rate decrease in the first half of this year, non-interest income improved by 21.5%. Due to an increase/decrease in accident insurance payments with a drop in insurance claim filings, insurance-related income increased by 10.1% QoQ. Now, I will move on to fee income. With balance growth in all sectors covering credit card fees, brokerage fees, and IB commissions, fee income increased by 7.6% QoQ.
With increased volume in credit card purchases, credit card fee income increased by 26.9% QoQ, and brokerage fees also increased by 17.9% QoQ, reflecting increased trading volume. IB commissions recorded an increase due to commissions from acquisition financing, recording an increase of 29.3% QoQ. Nonetheless, fee income overall decreased by 8.1% YoY due to a decline in credit card fees. On page 11, additional information on the group's non-interest income trend and details are available for your reference. Next, on page 12, I will walk you through the group's Q&A expenses and credit costs. Despite the one-offs of Shinhan Life ERP costs fully absorbed in the previous quarter due to tax deductions and higher advertising and service expenses, G&A costs increased by 6.4% QoQ.
On a YoY basis, due to bigger depreciation following increased investments in digital and ICT and an increase in general cost levels due to inflation, G&A costs increased 9.0%. If the ERP costs of Shinhan Life from Q1 is excluded, the rate of increase stands at 7.6%. The group's CIR recorded 38.3%, a slight increase of 3.8% on a YoY basis, excluding the impact from ERP of Shinhan Life in Q1, it decreased by 0.1%. Despite the fall in credit card provisions following the stabilization of the two-month delinquency roll rate for credit cards, due to the increase in countercyclical provisions in light of the bank's credit review season and the conservative accumulation of additional provisions set aside through master-scale PD adjustments, the group's provision for credit losses increased by 19% QoQ.
Looking at the delinquency rate, which is a leading indicator of credit costs in the case of banks, following the rate hikes and economic slowdown, it is trending upward. When compared against the pre-COVID levels, the absolute level is still low. Through active write-offs, Shinhan Bank's delinquency rate remains flat QoQ at 0.27%. The delinquency rate for Shinhan Card recorded 1.43%, up 6 bps QoQ. The two-month delinquency roll rate, which is a leading indicator of the delinquency rate, has been stabilizing downward since February. To be prepared for internal and external uncertainties, the group is making efforts to secure sufficient loss absorption capacity through front-loading provisioning and is continuously striving to mitigate systemic risks by expanding support for vulnerable borrowers through exports to include and expand more win-win finance. On page 13, additional information on the group's G&A expenses and provisioning is available for your reference.
From page 14, I will hand it over to the group CRO, Bang Dong-Kwon, to explain the group's outlook on asset quality and provisioning.
Good afternoon. I am Dong-Kwon-Bang, CRO of SFG. I will go over the asset quality and loss absorption capacity of the group. High interest rates and real estate issues have led to concerns on asset quality. Today, I would like to provide an overview on the group's asset quality, real estate financing management, and loss absorption capacity. First, in terms of asset quality, for vulnerable segments that are being managed as potential risk factors, since latter half of last year, the credit card company has led efforts to preemptively strengthen credit management. In result, the portion of exposure to vulnerable segments has remained stable. Fortunately, the group's non-bank delinquency ratio has been showing somewhat stabilizing trends since Q1. In order to manage asset quality, each affiliate is newly establishing or strengthening the related teams, and the group is operating a joint asset quality management system.
We will continue to rigorously manage asset quality with our preemptive management system to prepare for any additional market deterioration. Next is real estate, including bridge loans. Total FIAT exposure amounted to KRW 8.9 trillion as of June, which is approximately 2% of the group's total loans. By region and by underlying asset, Seoul and Greater Metropolitan Area takes up 73%, Residential 61%, and Senior Loan 73%. It is largely comprised of high-quality assets. Given the concerns on real estate financing from both home and abroad, the group internally conducted a stress test assuming the level of unsold pre-sale apartments during the 2008 financial crisis, which concluded that additional credit costs of KRW 200 billion may be necessary. We will stably manage risk assets with close monitoring and increasing the frequency of reviewing countermeasures while also actively discussing normalization of projects with other lenders.
Last is the strengthening of loss absorption. Since latter half of last year, high interest rates and a sluggish real estate market led to deterioration of market environment. Against this backdrop, the group has consistently implemented preemptive and conservative provisioning policies. Consequently, the group's provisioning rate against total loans and total assets is 0.96 and 0.55% respectively, showing steady upward trend. SFG has one of the highest loss absorption capacities in the Korean financial sector. We will continue the conservative provisioning and make efforts to ensure sufficient loss absorption capacity. Thank you, Mr. Bang. Next, we will move on to page 17 to look at the P&L of each affiliate. The bank's interest income increased thanks to margin improvement, but conservative provisioning, higher G&A, and base effect from marketable securities profit led to a decline in net income QoQ.
For non-bank subsidiaries, credit cards showed even growth of operating income across credit sales and loans. However, net income decreased QoQ as gains generated by sale of securities in the previous quarter were removed. For securities, despite higher provisioning against CFD receivables, an increase in brokerage fees supported by high transaction volume and growth of underwriting and arrangement fees from the IB business led to slightly higher income QoQ. For Life, ERP was fully expensive the previous quarter. Also, insurance and financial income grew evenly to boost higher net income QoQ. For Capital, despite reduction of securities-related income, the effect of real estate P&L provisioning of the previous quarter was removed, leading to higher net income than the previous quarter. On page 18, we have the P&L of affiliates, and page 19 shows the group's global business. Now, let's move on to page 20, capital management and profitability.
As of June, CET1 ratio is expected to improve by 27 bps QoQ to 12.95%. This was mainly driven by robust growth of net income, the conversion of CPS to common shares in May, and an appropriate level of RWA growth. In February, we mentioned that the group's mid-long-term target was CET1 ratio 12%. However, since, the authorities have announced that they will levy the countercyclical buffer and introduce the stress capital buffer. We don't know the exact amount yet, but we feel that an additional 1 percentage point of CET1 ratio is appropriate. Given the sustained economic uncertainty at both home and abroad, we plan to raise the CET1 ratio by 1% - 13% earlier than originally planned. Meanwhile, the capital policies that we announced earlier this year are being consistently implemented.
On the next page, we have provided information on our shareholder return efforts and policies for your reference. The digital strategy on page 22 will be presented by the CDO, Ms. Kim Myoung Hee.
Good afternoon. I am Myoung Hee Kim, CDO of SFG. SFG is working to leverage digital capabilities to strengthen Shinhan's fundamental financial competitiveness and boost social value. In line with the group's vision, which is we believe finance should be more friendly, more secure, and more creative, I will go over the achievements of our digital efforts in 3 segments: platform innovation, social responsibility, and financial contribution. First are the achievements in more friendly, driven by platform innovation. The group's platform is pursuing both volume and quality growth so that more customers can use our digital services more frequently. The growth NAU across finance and non-finance platforms reached 24.5 million, which is a 24% growth YoY.
User-friendly UI/UX improvements and a stronger financial product and service portfolio drove the monthly visitors on our finance platform to surpass 20 million. The non-finance platform is increasing contact points in the daily lives of customers and recorded an MAU of over 4 million, which is a 59% growth y/y. In terms of quality growth, data-based activities to enhance customer engagement generated a DAU of over 5 million on our finance platform, leading to the growth of quality users. Next is the group's social responsibility under more secure. Early this year, we installed UAD-equipped ATMs nationwide to prevent more than 9,200 financial accidents. The AI detection function that analyzes unusual activities and patterns is being continuously upgraded to provide stronger security for our customers' financial transactions. We have also been developing services and content for senior customers.
The senior MAU on our finance platform increased by 15% YTT as a result. AI will be more widely applied to protect customers, enhance accessibility to digital finance, and boost literacy so that we can fulfill our social responsibility. Last is the financial contribution under more creative. The group has been leveraging digital technology to strengthen business innovation and has been implementing company-wide process innovation to boost cost efficiency. As the first half of this year, we have been using AICC and RPA to save KRW 200 billion in costs, which is a 10% improvement YoY. We are also expanding the business scope of the Life platform while the new digital businesses based on data-based growth are continuously generating operating profit. In the first half of this year, operating profit recorded more than KRW 200 billion. The growth of the data business, 28% YoY, is particularly notable.
SFG will make ongoing efforts to strengthen digital capabilities to boost fundamental financial competitiveness and create value for customers to fulfill our social responsibility. Thank you.
Thank you, Ms. Kim. From page 23, the group's ESG initiatives, detailed information of subsidiaries, and major business performance indicators are provided for your reference. This will conclude the presentation for the 2023 Q2 earnings. We will now move on to Q&A. Thank you. From now on, we will be taking questions. If you have any questions, please press the icon to raise your hand in Zoom. If you are asking a question in English, also press the icon to raise your hand. Consecutive interpretation from English to Korean will be provided for questions asked in English. If you are asking a question in English, please allow some time for your question to be translated.
We need some time for the questions to come through, so please bear with us for a moment. The first question we have, White Oak Capital, Shane Mathews. Please ask your question.
Thank you for the opportunity and congrats on the result. I want to ask three questions from my end. The first question is on the OCI trajectory. If you look on our tenure basis from maybe FY 2012 to FY 2022, you can see that OCI has actually been negative for the bank over the past 10 years. I wanted to understand the OCI trajectory, which you're seeing, and largely the losses which are coming through OCI is from the securities, so the duration of the stroke, how you're actually thinking about this component of the OCI part. That's the first question. Second is on your CET1 and buyback plans, so you've raised the CET1, let's say, target to 13%. Do you think this is going to affect the buyback plans you have proposed? The third question is on the credit card billing to see falling down.
I just wanted to get a better sense of how you're seeing the overall environment and how your business is operating in the current macro scenario. Thank you.
네, 질문 주셔서 감사합니다. 우선 좋은 실적에 대해서 축하 말씀드립니다. 먼저 세 가지 질문이 있는데요. 처음 OCI 관련해서 전반적인 경로에 대해서 보고 계신 추이에 대해서 질문을 드리고 싶습니다. 전체적으로 보시는 영업비 비율에 대한 것들이 저희가 10년, 15년 추계를 살펴봤을 때, 지금 상당히 몇 년 동안은 10년 이상은 마이너스를 기록을 하다가 전체적으로 유가증권 쪽에서 있었던 손실이나 이런 분들을 반영을 하신 상태에서 경로가 새롭게 잡히고 있는 것으로 보입니다. 전체적으로 보고 계신 자산 쪽에 대한 듀레이션이나 장부에서 보고 계신 전반적인 경비율의 트렌드는 어떻게 보고 계시는지가 첫 번째 질문입니다. 두 번째 질문은 보통주 자본 비율, CAT1에 대한 부분과 자사주 매입에 대한 부분을 좀 여쭤보고 싶은데요. 아까 말씀하신 것처럼 10.3% 목표로 하고 있다고 말씀을 해주셨는데, 그에 대해서 조금 더 자세하게 계획에 대해서 말씀 부탁드리겠습니다.
또 세 번째 질문은 신용카드 연체율에 대한 부분이 지금 계속해서 하락을 하고 있는데, 지금 전체적으로 저희가 보고 있는 거시경제 환경 하에서 이런 여러 가지 부분들에 대해서 지금 연체율이 하락하고 있는 현상과 그게 사업에 미치는 영향에 대해서 어떻게 보고 계신지에 대해서 말씀 부탁드립니다.
Thank you for your question. Please allow us some time to prepare answers to your question. There were three questions in total. The first was the OCI, securities projections, and the CAT1 and buyback, and the card delinquency rate. The card delinquency rate, we will first have the answer provided to you by CFO Nam-Jun Kim. Thank you for the good question. If we take a look at the delinquency rate for credit cards, the delinquency two-month roll rate reached its peak in February, and it has been trending downward since.
In Korea, compared to pre-COVID levels, we think that we will be able to return to that level near the year-end. The delinquency rate that increased dramatically in Q1 that led us to additional provisioning will stabilize in the second half. If we look at the delinquency roll rate, we think that it's also at a manageable level at 0.33%. In terms of delinquency rate, we will be very active in taking a management stance. Regarding the profit outlook on our securities book. As you know, this can be quite volatile depending on interest rates, and I think interest rate is the biggest contributor to the volatility. Recently, interest rate has been going up, and it has booked as valuation loss. The trend is changing from first half and second half.
In the second half, we believe that overall, I think the amount that I can give you is that interest rate outlook, it can change as the market conditions change. Fed raised it once, and BOK, we're not sure whether they're going to raise it or not. Probably not. I think high interest rates will be maintained for the time being, and from next year onwards, the interest rates, I think, will start to come down. Based on this assumption, the overall securities book and valuations and OCI, the valuation loss should reduce and valuation gains should increase. There will be repricing of the securities, and the return has been on uptrend. This can have an impact on NIM, a positive impact on NIM.
Regarding the CAT1 ratio and the buyback plans and cancellation plans, like you've mentioned, we raised our look from 12% to 13%. As of June, it's almost already 12.95%. It's just 5 bps more that we need. It's not very difficult. As for the buyback plans, we will be reviewing them on a quarterly basis. We have been canceling shares on a quarterly basis as well. The TSR, I think, will be around 30%-40%. We have to consider the authorities' regulations, market conditions, and the needs of the group. Considering all these factors, I think we will be able to maintain the policies that we announced earlier this year for the shareholders. The next question. We'll just allow some time for the next question to come in. The next question will be from White Oak Capital, Tej Kiran.
Please ask your question.
Hi. Thanks for taking my question. I have two. One, if you could comment on your strategy of expansion outside Korea, how much capital we should expect you to allocate outside Korea over the next three years. That would be very helpful. What businesses in which countries should we expect this capital allocation to go to? The second question is more at a system level. We know recently there has been high household debt-to-GDP levels in Korea. To what level should this ratio fall for us to expect loan growth again comfortably? Thank you.
지금 질문 주셔서 감사합니다. 지금 두 개 질문 있는데요. 지금 첫 번째로 일단 해외 시장에 대한 확충 계획에 대해서 질문이 있고요. 그리고 두 번째 질문 같은 경우에는 지금 전체 발급 계획에서 가지고 계신 대출에 대한 부분들을 앞으로 자산이나 그런 부분에 대해서 늘려가실 계획에 대해서 저희가 지금 그 관련한 내용에 대해서 질문을 좀 드리겠습니다.
Thank you for the question. Please allow some time for the question to be answered. I think there were two questions. There was the first question on the global business and the shareholder return on asset growth. I would like to provide an overall answer. For the detailed asset growth on the bank side, the bank CFO will answer. For the global business, there's the advanced markets and we have the emerging markets.
For the advanced markets, as our companies are making inroads into those markets, we're trying to support them in our policies as well. For large corporations and in cooperation with many companies in Korea, we're continuing to pursue those initiatives. For emerging markets, in order to increase our income, we are looking at opportunities to seek, and we're trying to expand our footprint there as well. As you well know, in Vietnam, we are seeing good growth. I think it's the same for Korea and other countries as well. Recently, there have been rate hikes and also an economic slowdown. All countries are looking at delinquency rate increasing. Of course, in emerging markets, we're observing the same situation. We have the risk management experience in the past that we can refer to, so we will be looking at that for preemptive risk management.
Under that, we are looking at how we can not just expand our footprint physically, but also looking at how we could grow further in the areas that we have already established for our businesses. Even if we are going to make additional expansions, we are going to look at how we can not rather do organic growth, but if there are high growth potential areas, we may be looking at options to make equity investments. Until now, we haven't had any specific targets. In terms of our asset growth, for total shareholder return in the early start of the year, for shareholder return for asset growth, we said that we were trying to support that. Under that asset growth policy, we're trying to grow our assets accordingly. For retail loans and the bank asset book, the bank CFO will take the answer.
I am the CFO of the bank. My name is Kim Ji-young, and I will go over the household loan growth. If you look at the first half asset growth, first of all, the market experienced negative growth. Our numbers were - 2.4%. In the corporate loans, there was net growth of around KRW 3.5 trillion in the corporate loan sector. Earlier this year, we said that we're going to consider certain economic situations. We're going to focus on high-quality loans, and we're going to be conservative. In that respect, we believe that in the corporate loan sector, we have been in line with that. For the households, in the second half, there can be some mortgages and jeonse-related demand. I think, therefore, we'll be able to offset the negative growth of the first half. We'll be able to record positive growth.
If we do that, and if we maintain the corporate loan trends, we'll be able to achieve our annual targets. Just to add to that, for the retail loan sector, there is some government concern on high household debt levels. If you look at the exposure of Shinhan Group in the retail segment, it's actually very high quality. Of course, we are supporting the vulnerable borrowers. Overall, we have a very high-quality portfolio, and we'll be appropriately managing, and we will be growing the household sector in that respect. Thank you for the answers. We'll move on to the next question. Next question is from HSBC, from Mr. Won Jae-yun. Please go ahead. Thank you for the good results. Congratulations for the good results. Despite the challenging market environment, the NIM increased in Q2 for Shinhan Group.
I would like to know your outlook for the second half, NIM. Second, the credit cost ratio, it went up by 0.5%. In this scenario, you said you did a scenario, a stress test based on 2008 financial crisis. You said additional credit costs will be around KRW 200 billion. That's not as much as I initially expected. Does that mean that credit costs overall for the year can show a downward stabilizing trend? Lastly, the cancellation, I think, the share cancellation is smaller than what we originally expected. Is this because you have raised the CAT1 ratio target? Is that correct? If this is the case, I understood that you have plans to focus on cancellation and buyback rather than dividend payout. What is your shareholder return policy? What are your plans for buyback and cancellation for the remainder of the year?
Can you focus more on the dividend payout? Please wait one moment while we prepare the answer. There were 3 questions. The NIM will be answered by Bank CFO, and the remaining 2, I will answer them. First, NIM, and it will be from the CFO of the Bank. Thank you for the questions. My name is Kim Ji-young, and I am the CFO of the Bank. As you mentioned, Q2 NIM improved by around 5 bps QoQ. I mentioned in Q1 earnings call, but NIM in Q1 has been affected by Q4 because funding costs rise quite significantly. The funding cost is showing downward stabilization as we enter Q2. That has helped our NIM. In the second half, the household and the corporate loan segment, I think there will be quite intense competition in terms of pricing in the market.
From the deposit side, the time deposits are maturing, so they will be repriced. Given these factors, I think there is room for improvement. Second half NIM should be slightly higher than Q2 or should remain stable. Full year NIM should be similar to last year. Second question. Given the global financial crisis, given the current economic recession, you mentioned that there can be KRW 200 billion additional credit costs according to our stress test. Even if we set that aside, it won't be set aside all at once. It will be distributed across different quarters. I would like to highlight that given the asset quality, we have sufficient provisioning. We are just preparing ourselves for uncertainty in the economy and if we are going to maintain our conservative provisioning policy.
In the second half, our credit cost was around 53 bips. It was quite high. In the second half, it's going to come down. Maybe I think it will be around 4 bips. Like you've mentioned, we are increasing the target of CAT1 for 12%-13%. This has impacted the size of our cancellation. As we move up the CAT1 ratio, if we maintain 13%, we will be able to continue. Even if we maintain at 13%, we will be able to continue the initial capital return policy that we announced earlier this year. The next question will be by Yongjin Seol from SK. Thank you for the opportunity to ask the question. There's one question from my side. For the overseas commercial real estates, there have been continuous issue rates. I would like to get a color on your exposure.
Thank you for your question. Please give us some time to prepare for our answers. Yes, for our commercial real estate exposure, our group CRO will take the question. Yes, I'm Bang Dong-Kwon, the group CRO. Thank you for the good question. If we look at our overseas real estate investment, it's around KRW 4 trillion. I'd like to just add a little bit of explanation to that. There is about KRW 1 trillion substandard and mostly in hotels, around KRW 100 billion. America is KRW 3.5 trillion and KRW 800 billion in Europe, and others are in Asia. We did a full-scale investigation into the current status. The additional loss that's expected, we are going to carry out proactive monitoring. Because of COVID, until now, due diligence on-site was quite difficult. Now things have changed, so on-site due diligence activities are possible.
We are looking at the plans of how we could do so on-site at the group level. If we take a look at the exposure, it's around KRW 4 trillion, as explained. Thank you. We are waiting for the questions to come in. While we wait for the questions, please bear with us for one moment. The next question is from Do-Ha Kim from Hana Securities. Yes, we can hear you now. I was on mute. I'm sorry for that. In the second half, I was already assuming KRW 150 billion cancellation of stock. It has gone down to KRW 100 billion. I think, given the changes, the number of shares in the subject for dividends can actually increase from last year. Regarding the stress capital buffer, there can be some announcement by government in the second half of this year.
The target you mentioned was 12%. I think all the minimum regulatory requirement adds up to 10.5%. If the stress capital buffer is around 2%-3%, do you still have room to buy back and cancel shares? What are your expectations for the stress capital? What are your plans regarding this? Can you still maintain KRW 100 billion-KRW 150 billion cancellation every quarter, even with the changes in the minimum regulatory requirement? I would like to ask for some more details here. Yes, thank you for the question. Please give us one moment. We keep getting questions regarding the buyback and cancellation. It was actually a very detailed question, so thank you for that. Early this year, we said that we are going to review this on a quarterly basis.
I don't think we committed to KRW 150 billion every quarter. I think largely you expected KRW 150 billion every quarter. The TSR that we are aiming is around 30%-40%. We gave you some references. Given economic uncertainty and regulatory changes, stress tests, and so on, economic uncertainty is continuing. Importantly, the financial authorities are introducing new regulation. The stress capital buffer, we are not sure the exact amount. I think the TSR is coming to an end end of October, and it should be introduced next year. If we refer to the U.S. and Europe, if you look at their situation, the stress capital buffer, if loss is 1.5%, the minimum is 2.5%. If we look at the government, Korean government, it was around 1.5%. If we assume the U.S., we need to assume 2.5%.
If you look at European banks, the stress capital requirements, they have a requirement, and they have a guidance. If you add both of them together, on average, there are different countries, but on average, it's around 2.4%. This means that the requirement is basically going up by 2.4% for the banks. Currently, the requirement for us is 8%. If the countercyclical buffer is 1%, that's 9%. It's not confirmed, and we don't know the exact number yet. If we refer to the U.S. and Europe, there should be 2.5% additional as the stress capital. It goes up to 11.5%. We add 1.5% buffer, and that's how we came up with this 13% number. We have to still see the stress capital buffer, how that's going to play out. That was our logic behind 13%.
I think you are going through various scenarios. Like we mentioned earlier, I think we'll be able to largely be in line with what we mentioned early this year. I'm not sure if this will completely answer your question, but please understand that at this point, it's very difficult to give you more detailed answers. Thank you for your answer. We'll wait for the next question. I think we have another question from White Oak Capital, Shane Mathews. Please ask your question.
Thank you again for the opportunity. 2 questions from my end. The first is a follow-up on the first one. Can you just tell the duration of your investment portfolio? The second question is with respect to your non-banking subsidies.
Till around 2017, the card operation has contributed around 30% of net income, but it has fallen off a bit in the past five years. I want to understand the competitive strategy that you're seeing in the Shinhan Card operating segment. With respect to the other non-banking subsidies, what areas are you targeting more to make more sustainable revenues? Thank you.