Woori Financial Group Reports Record Operating Profit of 1.9041 Trillion KRW Last Year

Decrease Due to Shareholder Conversion Totals 2.0385 Trillion
Dividend of 700 Won per Share, Up 50 Won from Previous Year

[Asia Economy Reporter Kim Hyo-jin] Woori Financial Group announced on the 7th that it recorded a net income of 1.9041 trillion KRW (consolidated basis) last year. Although this represents a 5.7% decrease compared to the previous year (2.0192 trillion KRW), when including the accounting net income reduction of 134.4 billion KRW due to the holding company transition in January of the same year, the recurring net income reached 2.0385 trillion KRW, marking the highest performance on a recurring basis.

Woori Financial explained that despite the worsening domestic and international conditions such as the US-China trade dispute and interest rate declines, the improvement in the profit structure was achieved through asset growth focused on corporate loans and an increase in core deposits. It is also interpreted that the additional improvement in asset soundness, which reached the industry's highest level, had an impact.

The core profitability indicator, net operating income, composed of interest income and non-interest income, was recorded at 6.9417 trillion KRW, a 3.4% increase compared to the previous year. Interest income increased by 4.3% due to asset growth centered on small and medium-sized enterprises and efforts to increase core deposits, while fee income grew by 3.1% year-on-year, driven by digital and loan-related fees.

The global division's net income was 224 billion KRW, a 15.8% increase compared to the previous year. It accounted for more than 10% of the total net income, establishing itself as a major source of revenue.

In terms of asset soundness (bank basis), improvements were made compared to the previous year, with a non-performing loan (NPL) ratio of 0.40% and a delinquency rate of 0.30%, recording the lowest levels in the industry. Woori Financial stated, "This achievement was made amid concerns over soundness deterioration due to delayed economic recovery and is the result of credit policies emphasizing soundness and proactive post-management efforts."

Woori Financial decided on a dividend of 700 KRW per common share for the 2019 fiscal year, an increase of 50 KRW compared to the previous year. Despite concerns that expanding dividends would be difficult as a growth strategy after establishing the holding company, this is interpreted as a result of strengthening shareholder-friendly policies. The dividend yield was 5.8%, and the payout ratio was 26.6%, increasing by 1.8 percentage points and 5.1 percentage points respectively compared to the previous year.

Woori Financial evaluated last year as "a successful first year as a holding company that laid the foundation for diversifying revenue sources by achieving the highest recurring net income despite difficult domestic and international conditions and successfully completing non-bank mergers and acquisitions (M&A) one after another."

Woori Financial also announced, "This year, we will further solidify the group system based on the profitability and growth established last year and actively pursue shareholder-friendly policies."

This content was produced with the assistance of AI translation services.