Woori Financial Group Reports 1.3 Trillion KRW Net Profit Last Year... Laying Foundation for Turnaround (Update)

Eliminating Uncertainty in Proactive Cost Reflection, Demonstrating Strong Asset Soundness
Strengthening Business Capabilities This Year, Active Cost Management, Expecting Subsidiary Consolidation Effects

[Asia Economy Reporter Kwangho Lee] Woori Financial Group announced on the 5th through its earnings report that it achieved a net profit of 1.3 trillion KRW in 2020.

First, net operating income, which combines interest income and non-interest income, remained at approximately 6.8 trillion KRW, maintaining the previous year's level. Despite two cuts in the Bank of Korea's base interest rate, the group sustained operating income at the previous year's level through improved revenue structure driven by asset growth centered on corporate loans and an increase in low-cost core deposits.

In particular, as a result of the risk-centered business culture continuously promoted over the past three years, asset quality improved further. The non-performing loan (NPL) ratio and delinquency rate recorded 0.42% and 0.27%, respectively, showing improvement compared to the end of the previous year. The prime asset ratio and NPL coverage ratio also reached 87.5% and 151.9%, respectively, strengthening future loss absorption capacity.

Based on these improvements in asset quality, the group proactively set aside loan loss provisions in preparation for the prolonged COVID-19 pandemic and sufficiently reflected costs related to private equity funds in advance to eliminate future uncertainties.

Additionally, following the transition to a holding company, the effects of mergers and acquisitions (M&A) of newly incorporated subsidiaries have begun to materialize, gradually increasing the proportion of non-bank income. The inclusion of Woori Financial Capital, which has an annual profit scale of about 100 billion KRW, as a subsidiary is expected to further expand these effects.

A Woori Financial Group official stated, "Last year was a year of steady growth and improved asset quality, with proactive cost provisioning to prepare for the future." He added, "This year will be a year to secure momentum for mid- to long-term development based on the solidified group governance structure in the third year since the holding company transition, not only through a turnaround in performance driven by strengthened sales capabilities and active cost management."

Furthermore, he emphasized, "We will accelerate the company's core strategy of 'digital innovation' across the entire organization," and declared 2021 as the inaugural year of Environmental, Social, and Governance (ESG) management, steadily laying the foundation for sustainable management to prepare for the post-COVID-19 era."

Meanwhile, the consolidated net profits by major subsidiaries were 1.3632 trillion KRW for Woori Bank, 120.2 billion KRW for Woori Card, and 62.9 billion KRW for Woori Comprehensive Financial.

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