Woori Financial Group Achieves Record First Half Earnings of 1.4197 Trillion Won After Holding Company Transition 'Earnings Surprise'

[Asia Economy Reporter Jin-ho Kim] Woori Financial Group announced on the 21st that it achieved a net profit of 1.4197 trillion KRW in the first half of the year, surpassing the previous year's annual performance in just half a year. The net profit far exceeded market expectations, marking an 'earnings surprise.'

Woori Financial explained that this result was due to the full-scale effect of the holding company transition through synergy expansion among subsidiaries, continuous improvement of the revenue structure, and active efforts in soundness and cost management. The net profit for the second quarter recorded 752.6 billion KRW, significantly exceeding market expectations.

The net operating income, which combines interest income and non-interest income, exceeded 2 trillion KRW for the first time in a quarter during the second quarter, recording 4.0439 trillion KRW in the first half. Loans grew by 4.4% compared to the end of the previous year, mainly focusing on small and medium-sized enterprises, and core low-cost deposits increased by 10.6% compared to the end of the previous year, improving the revenue structure. Interest income achieved 3.3226 trillion KRW, a 13.0% increase compared to the same period last year.

Non-interest income showed a turnaround this year, with strong performance in asset management operations and securities sectors, as well as the effect of subsidiary incorporations such as capital, resulting in 721.3 billion KRW, a 54.1% increase compared to the same period last year.

Asset soundness is being managed at historically low levels, with a non-performing loan (NPL) ratio of 0.37% and a delinquency ratio of 0.26%, despite concerns over soundness due to COVID-19.

The group's selling and administrative expense ratio improved to 45.9%, a 6.6 percentage point improvement from 52.5% in the same period last year, through active cost management and recovery of operating income.

A Woori Financial Group official stated, "The first half performance is a result achieved based on solid profit-generating capabilities rather than one-time effects, and this trend will continue in the future." He added, "As a result of a risk management-focused business culture, asset soundness has already reached the industry's highest level, and in June, the global credit rating agency S&P also upgraded Woori Bank's long-term credit rating."

He continued, "Although uncertainties related to COVID-19 have not been completely resolved, we will continue to strive to enhance shareholder value, including this interim dividend."

Meanwhile, the net profit by major subsidiaries on a consolidated basis was 1.2793 trillion KRW for Woori Bank, 121.4 billion KRW for Woori Card, 82.5 billion KRW for Woori Financial Capital, and 44.0 billion KRW for Woori Comprehensive Financial.

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