Woori Financial Group Reports H1 Net Profit of KRW 1.5386 Trillion, Down 12.7% YoY

Q2 Net Profit 625 Billion KRW... 31.6% Decrease from Previous Quarter

Woori Financial Group announced on the 27th that it recorded a net profit of 1.5386 trillion KRW in the first half of this year. This figure represents a 12.7% decrease compared to the same period last year (1.762 trillion KRW).

The net profit for the second quarter was 625 billion KRW, down 31.6% from the previous quarter (914 billion KRW).

The group's net operating income, combining interest income and non-interest income, was 5.0237 trillion KRW, marking a 2.8% increase compared to the same period last year. Although interest income saw a slight increase year-on-year due to solid growth centered on corporate loans despite a narrowing bank margin caused by rising funding costs, non-interest income decreased compared to the first half of last year due to increased market volatility. However, fee income remained at the same level as the previous year thanks to diversification of the business portfolio, including capital and asset trust sectors.

The group's selling and administrative expense ratio was maintained stably at 40.8%, within the annual management target, through cost reduction efforts despite rising expenses due to global inflation.

The group's credit loss expenses for the first half amounted to 817.8 billion KRW. Proactive measures were taken to address uncertainties by adjusting future economic outlooks, thereby enhancing loss absorption capacity. The bank's high-quality asset ratio exceeded 85%, demonstrating the continuous effect of soundness management, and the group's common equity tier 1 capital ratio stood at 12.0%, achieving a stable capital ratio following the previous quarter and preparing for future soundness risks.

Following the decision in April to repurchase and cancel treasury shares worth over 100 billion KRW, Woori Financial continued its shareholder-friendly policy by declaring a quarterly dividend of 180 KRW per share for the first quarter of the group in the second quarter.

The consolidated net profits for the first half by major subsidiaries were as follows: Woori Bank 1.472 trillion KRW, Woori Card 81.9 billion KRW, Woori Financial Capital 71.3 billion KRW, and Woori Comprehensive Financial 12.2 billion KRW.

A Woori Financial Group official stated, “The first half of this year was a period in which we strengthened our future economic resilience by examining weak links within the group amid expanding domestic and international financial uncertainties, while actively striving to enhance shareholder value. In the second half, we will prioritize asset soundness and capital adequacy management, secure differentiated competitiveness in the corporate finance sector, and promote company-wide cost efficiency to continuously improve the group’s profit-generating capability.”

Woori Financial plans to respond to diverse customer needs and expectations through initiatives such as the Youth Leap Account, support for socially marginalized groups, and social contribution activities, while rapidly advancing corporate culture innovation and internal control improvements.

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