Woori Financial Group Reports Net Profit of 1.7 Trillion KRW, Up 24% YoY, Highest Half-Year Earnings

[Asia Economy Reporter Song Seung-seop] Woori Financial Group posted a net profit of 1.7614 trillion KRW in the first half of this year, a 24.0% increase compared to the same period last year. The group recorded its highest half-year performance as interest income within the group expanded significantly and the non-bank sector also showed strong growth. The interim dividend was decided at 150 KRW per share.

According to Woori Financial Group on the 22nd, net operating income for the first half reached 4.8861 trillion KRW, up 20.8% from the same period last year, thanks to diversification of the revenue base. Woori Financial Group explained that net profit increased significantly through balanced growth in both interest income and non-interest income, driven by asset growth centered on corporate loans and expanded profits in the IB (Investment Banking) sector.

In particular, the increase in interest income was remarkable. The group’s interest income for the first half was 4.1033 trillion KRW, up 780.7 billion KRW (23.4%) from 3.3226 trillion KRW in the same period last year. This growth rate is steeper than the 8.5% increase in non-interest income, which rose from 721.3 billion KRW to 782.8 billion KRW. The net interest margin (NIM), a representative profitability indicator, recorded 1.83%, rising 0.1 percentage points from 1.73% in the previous quarter.

Sales and administrative expenses slightly increased to 1.957 trillion KRW from 1.856 trillion KRW in the same period last year, and bad debt expenses also rose from 205 billion KRW to 497 billion KRW.

Despite concerns over economic slowdown, asset quality indicators remained stable with a non-performing loan (NPL) ratio of 0.30% and a delinquency rate of 0.21%, unchanged from last year. The high-quality asset ratio and NPL coverage ratio also maintained stable levels at 89.6% and 210.3%, respectively.

Within the group, the main affiliate Woori Bank led the performance. Total loans at Woori Bank reached 296 trillion KRW, increasing by about 8 trillion KRW from 288 trillion KRW at the end of last year. Household loans decreased from 139 trillion KRW to 137 trillion KRW due to regulatory and benchmark interest rate hikes, but corporate loans grew from 147 trillion KRW to 157 trillion KRW, an increase of 10 trillion KRW.

Woori Bank’s interest income rose by 655 billion KRW (23.1%) from 2.826 trillion KRW to 3.481 trillion KRW. On the other hand, non-interest income decreased by 40 billion KRW (7%) from 522 billion KRW to 482 billion KRW.

Net profit for the first half from non-bank affiliates included Woori Card at 134.3 billion KRW, Woori Financial Capital at 124.9 billion KRW, and Woori Comprehensive Financial at 45.3 billion KRW.

Son Tae-seung, Chairman of Woori Financial Group, who attended the earnings conference call, said, “Through the first half results, we were able to once again confirm the strengthened fundamentals of Woori Financial. We will continue stable growth through proactive risk management in preparation for the possibility of a complex economic crisis caused by the ‘three highs’ (inflation, exchange rates, and interest rates).”

Meanwhile, the interim dividend was decided at 150 KRW per share. Chairman Son mentioned, “We will continue to pursue stakeholder win-win management activities, including various shareholder return activities to enhance shareholder value.”

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