Woori Financial Q1 Net Profit 518.2 Billion Won... "Exceeds Market Expectations Despite COVID-19 Impact"

8.9% Decrease Compared to Q1 Last Year
"Improved Profit Structure Leads to Strong Net Operating Income"

[Asia Economy Reporter Kim Hyo-jin] Woori Financial Group recorded a net profit of 518.2 billion KRW in the first quarter of this year, marking an 8.9% decrease compared to the same period last year.

On the 27th, Woori Financial announced its first-quarter business performance reflecting this information.

Woori Financial's first-quarter net profit exceeded market expectations. Some had even predicted a decline of about 20% compared to the same period last year.

Woori Financial analyzed that despite the full impact of the novel coronavirus disease (COVID-19), the improvement in the revenue structure led to favorable net operating income.

Net operating income, composed of interest income and non-interest income, recorded 1.7769 trillion KRW, a 3.0% increase compared to the same period last year.

Interest income increased by 0.6% year-on-year due to reduced funding costs resulting from efforts to attract core deposits, despite the downward trend in market interest rates. Non-interest income increased by 15.9% year-on-year as the profit contributions from newly incorporated subsidiaries became fully reflected.

Loan assets increased by 2.8% compared to the end of the previous year, influenced by a 5.7% growth in corporate loans in the first quarter.

In terms of asset soundness (based on Woori Bank), despite concerns over deterioration due to the economic downturn, the non-performing loan (NPL) ratio was managed stably at 0.40%, and the delinquency ratio was 0.31%.

The loan-to-deposit ratio was 85.8%, and the coverage ratio for non-performing loans (NPL) was 120.7%, both favorable. This is explained as a result of the spread of a credit culture emphasizing soundness and improved risk management capabilities over recent years.

The first-quarter results fully reflected the management performance of subsidiaries such as Woori Asset Trust, Woori Asset Management, and Woori Global Asset Management, which were incorporated into Woori Financial last year.

A Woori Financial official said, "We expect the scale of profits to gradually expand through synergy creation among subsidiaries in the future." The global division also recorded a net profit of about 53 billion KRW in the first quarter, maintaining its share at over 10% of the group's net profit.

Woori Financial's first-quarter return on equity (ROE) was 9.57%, and return on assets (ROA) was 0.61%. Woori Bank recorded a net profit of 505.7 billion KRW, while Woori Card and Woori Comprehensive Financial recorded net profits of 51 billion KRW and 13.4 billion KRW, respectively.

A Woori Financial official stated, "Woori Financial's fundamentals are at a completely different level compared to the past financial crisis," adding, "With the stable profit-generating ability and solid soundness management achieved over the past few years, we can sufficiently overcome the current situation of great uncertainty."

The official added, "We also aim to contribute to the stability of the financial system through the social role of finance, such as credit support for small business owners affected by COVID-19 and participation in financial market stabilization programs."

Woori Financial Group Q1 Earnings Performance (Net Income Excluding Non-controlling Interests) / Provided by Woori Financial Group

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