[Interpreted] Greetings, everyone. I am Park Cheol Woo, Head of IR. I would like to thank all the participants in our Business Results Presentation and begin the 2019 Q4 Earnings Release. We have here with us our CFO, Yu Sunghun; CSO, Park Woo Hyuk [ph] and Kim Tae Youn, Head of Finance. We will first start the 2019 business results presentation by our CFO, Yu Sunghun, and then have a Q&A session. I would like to invite our CFO, Yu Sunghun, to deliver the 2019 business results presentation.

Greetings. I am CFO, Yu Sunghun, heading the Group Finance from this year. First, I would like to thank all the shareholders, investors, analysts, and journalists in and out of Korea for participating in our 2019 business results presentation. I would like to walk you through the major highlights of Shinhan Financial Group's 2019 business results. Please look at Page 3 of our material, and I would like to cover the major highlights. Shinhan Financial Group 2019 net income posted KRW 3,403.5 trillion and grew 7.8% Y-o-Y, excluding the Q4 one-off items, the normalized net income posted around KRW 3.46 trillion. The 2020 SMART Project strategy, which was implemented consistently for the last 3 years lead [ph] to fruition and led to the record high full year earnings. On the other hand, Q4 quarterly net income posted KRW 507.5 billion, a 1.1% drop Y-o-Y. This is due to the one-off items, including the main depository bank for city government intangible asset-related expenses and slightly increased Y-o-Y. I would like to summarize the 5 major highlights of the 2019 earnings. First, the bank and non-bank net income all had balanced growth compared to the previous year, and the growth trend has been continuing for sixth consecutive years from 2014. In particular, through the strengthening of non-banking global business, Shinhan's differentiated and stable earnings generation base was confirmed once again. As a result of focusing on strengthening our profitability for a long time, the group's global net income grew 23.3% Y-o-Y and posted KRW 397.9 billion. Along with the solid global growth of the bank, Shinhan Vietnam, a consumer financial company was launched, and with this opportunity the group's overseas income contribution grew to around 12%, accelerating our strategy to localize our non-banking business. Also in the case non-banking business based on…

[Operator Instructions] We’ll take the first question from DB Securities. We have Byung Gun Lee on the line.

Hello. I'm from DB Securities. My name Byung Lee. In a difficult environment, thank you for showing good earnings. I would like to ask you two questions. The first question is regarding the previous year. And on the 14th of November, you will retire your shares - treasury shares. And actually, you mentioned plans to retire them. And regarding the acquisition of Orange Life, there was 100% completion into a subsidiary. So can you tell us about your future schedule for retirement of treasury shares? And there is bound to be some ratio changes. And can you tell us about the consolidated amount of the treasury shares because there will be an influence? And regarding the retirement of treasury shares or cancellation of NIM, can you tell us about how it will impact your CET1 ratio so that it will be pulled up? Second question is related to NIM, N-I-M. To our knowledge in Q4, well, it seems that there were not many executions, and it seems that there was not a big influence. But in the case of the conversion loans for that belief, and there are plans to actually securitize them in February and March by a housing fund. So can you tell us about what type of impact you will receive? It seems that the impact hasn't been reflected yet. And there is a possibility that the BOK can actually cut the base rate. If we take into consideration whether the BOK or remains the current interest rate, can you tell us about how you will be impacted and how you will respond to if the rates are cut or not? Thank you.

Regarding the treasury shares, I would like to answer them. On the 28th of January, there was a treasury swap, and we are planning to re-list them. And according to the capital market law, regarding the treasury shares that we own, we had a share swap with those shares. So that it means that we retire or cancel the shares that Shinhan has. And we need to have at least three months that taxes. After that, we'll also acquire new treasury shares. This means that January 28 will be three months. So it means that from April 28, we can acquire additional treasury stock. This means that the amount of retirement of the treasury shares will be discussed at our BOD, so that within three months' time, we plan to have some of the cancellations or retirement. Regarding the consolidated CET1 Orange Life influence, the acquisition of the 40% shares that is remaining, well, there is the treasury shares that we have, and we had the new type of capital of - right offering that was the method. So there is no visible impact to the capital adequacy rate - capital rate. So regarding the sale of treasury shares, it means that our shareholders equity have increased accordingly. So it means that there will be no CET1 changes even if it becomes fully incorporated wholly owned company. And in the - in Q3 of the previous year, during the earnings release, there was a question, and we mentioned that on a recurring basis, Q3 would be the lowest level. As it means that in Q4, the shareholder rates fell because KRW 850 billion fell because of dividend. So it was just a temporary happening. So on an annual basis for the CET1 basis, 30 to 40 bp’s is expected to grow annually. I believe that I have covered the treasury share of question with this answer. And regarding the BOK rate cut possibility, in our financial plan, we also have assumed that there will be additional 21 - 25 [ph] bp cut, and if 25 bp is cut, then we believe that in our financial plan we will have 3 bp NIM drop. In addition, in the case of debt relief conversion loan, I would like to elaborate. Until Q4 of 2019, KRW 1.2 trillion was dealt with - by a tender by us. And we have KRW 3.7 trillion that is with us. And we have KRW 2.5 trillion that hasn't been transferred and is remaining, and we will have execution in Q1 or Q2 that will be transferred. And we believe that the margin impact is minimal, and about 4 bp’s is what we are expecting. And regarding the conversion of the debt release [ph] conversion loans, we believe that we can have more growth because [indiscernible] related loans or other loans have higher profitability, possibilities. So we will actually have growth based on further market demand. So it was actually 0.47 bp’s.

Next question will be from Mr. Kim Jin-sang from Hyundai Motor Securities.

Hello. I have two questions. In Q4, there was the impairment loss on the main depository banks for city government and ERP. And considering those KRW 150 billion and KRW 120 billion in investment core recurring income considered, of course, there is the seasonal factor in Q4, but it seems that the numbers are lower. And what are some of the one-off that we need to take note of? What about line and exposure to other schemes? So because of the risky assets, are there more provisionings or any more possibilities of provisioning against such risky assets? And will that impact the fee income? And have you had a chance to look into these matters? And my second question is about the CI ratio. It is maintained at a very low level. So this year, next year, in the mid-term, is the 46 a defendable number? And to keep that CI ratio, what are your efforts going to be? And how much do you think that SG&A will increase this year? Thank you.

Thank you for the questions. What were the Q4 one-off? Even if we consider the one-off, on a recurring basis, the numbers seem to be low. That was the question. So other than the one-off, on a recurring basis, we had KRW 100 billion of loan conversion and KRW 150 billion of main depository bank for city government's amortization, and other than that, there was the disposition of assets, the one-off and a write-back. So on a recurring basis, the recurring income was about KRW 690 billion. So our quarter is not unusually low compared to the other quarters. We did not categorize this as a one-off, but you did mention Line [ph] And Shinhan Corp. had provisioned KRW 56 billion against Line. And this is related to the valuation amount of the securities, and we didn't consider it as a one-off. As far as exposure that we have against Line, I am sure you saw it in the media. There is due diligence by the accounting companies, Samil PwC. But we wanted to be more conservative. We wanted to be on the conservative side. So we had provisioned preemptively a high amount of KRW 56.6 billion. That was the maximum provision that we could set aside. So we don't know if t here's going to be additional provisioning or if there's going to be a write-back, but we were on the preemptive and conservative side. And so yes, that is the situation with the provision. I'd like to now hand all the question about the fee income and how sustainable the CI ratio is. We have our financial plan, and it says that this year's CI ratio will be in the mid-40 range. And in the non-interest income, 5% will be the contribution level, and there will be cost-cutting effort through digitalization. So we want to achieve and maintain the CI ratio of mid-40s this year.

We don't have any questions on queue. [Operator Instructions] The next question from [indiscernible] Investment & Securities, we have Kim Doha [ph] on the line.

Thank you for giving me the opportunity. And regarding your plan for 2020, I believe that you have a business plan, bank cards, life insurance and securities. Can you tell us about your annual income target - earnings target? And can you tell us about the assumption you had to bake [ph] this scenario?

For 2020, regarding our financial business plan, I would like to answer your question. As you are well aware, uncertainty is expected to grow this year. And we have a very conservative plan for asset growth. In the case of that bank, the loans in won growth, we expect to be about 3%. However, in the case of cards, there is lease financing. So we believe that there will be more than 6% of asset growth centering on lease financing. In the case of interest income, because we expect interest rates to go down, and we will try to safeguard the NIM, but we believe there will be downward pressure. However, for non-banking subsidiary income - interest income, we believe that it will be expanded. And for non-interest business we believe that this year we will have 5% growth. As I mentioned before for SG&A, the CI ratio, we believe to be around the mid-40% level.

We are waiting for questions to come. Please stand by. We seem to have no further questions. We will conclude Shinhan's Financial Group 2019 earnings release. Thank you for participating in the earnings call despite your busy schedule. Thank you.