Woori Financial Group Q3 Net Profit 2.6 Trillion Won... "Exceeding Last Year's Annual Performance"

[Asia Economy Reporter Song Seung-seop] Woori Financial Group announced on the 25th that it recorded a net profit of 2.6617 trillion KRW in the third quarter of this year, exceeding the previous year's annual performance. The net operating income, combining interest income and non-interest income, reached 7.2631 trillion KRW cumulatively for the third quarter, an increase of 1.083 trillion KRW (17.5%) from 6.1801 trillion KRW in the same period last year.

Interest income rose by 1.2587 trillion KRW (24.7%) from 5.0889 trillion KRW to 6.3476 trillion KRW. This was influenced by an increase in interest income from loan receivables, which grew from 6.602 trillion KRW to 9.064 trillion KRW. The securities sector achieved 829 billion KRW (+54.7%), and other interest-bearing assets recorded 143 billion KRW (+160.0%) in performance.

On the other hand, non-interest income decreased by 175.7 billion KRW (16.1%) from 1.0912 trillion KRW to 915.5 billion KRW. Thanks to trust fee income amounting to 202 billion KRW, the total group fee income increased by 165 billion KRW (14.9%) to 1.271 trillion KRW, but losses were recorded in securities (-190 billion KRW) and lease asset depreciation (-281 billion KRW).

In the asset soundness sector, despite concerns over rising interest rates and domestic and international economic slowdown, risk management efforts maintained stable levels with a non-performing loan (NPL) ratio of 0.29% and a delinquency rate of 0.22%. The high-quality asset ratio and NPL coverage ratio were recorded at 89.3% and 223.5%, respectively.

Selling and administrative expenses slightly increased by 5.2% from 279.3 billion KRW in the third quarter last year to 293.8 billion KRW. However, the selling and administrative expense ratio improved by 4.7 percentage points to 40.5%, despite inflation concerns.

By affiliate, Woori Bank recorded a net profit of 2.382 trillion KRW, an increase of 389 billion KRW (19.5%) from 1.993 trillion KRW in the third quarter of the previous year. This was due to interest income rising by 25.3% from 4.312 trillion KRW to 5.402 trillion KRW. However, the non-interest income indicator decreased by 265 billion KRW (33.2%) from 799 billion KRW to 534 billion KRW. The bank's representative profitability indicator, net interest margin, rose to 1.62%, up from 1.36% a year ago and 1.58% in the previous quarter.

Woori Card's net profit was recorded at 179.2 billion KRW. Net operating income increased from 523 billion KRW to 623 billion KRW. Woori Financial Capital's net profit was 167.3 billion KRW (+30.1%), and Woori Comprehensive Financial was 68.3 billion KRW (+2.7%).

Son Tae-seung, Chairman of Woori Financial Group, personally attended the earnings announcement conference call and stated, “Uncertain domestic and international economic conditions are expected to continue in 2023,” adding, “Next year's management plan is being established with a focus on solid management and strengthening risk management capabilities.”

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