Woori Financial Group reported a net profit of KRW 1.0046 trillion for Q2, marking the first time its quarterly profit exceeded KRW 1 trillion and representing a 66% increase from Q1's KRW 604.3 billion. The group attributed the turnaround to improved bank net interest margin (NIM), corporate loan growth, and expanded wealth management (WM) and corporate and investment banking (CIB) fees. Cumulative first-half net profit reached KRW 1.609 trillion, up 3.7% year-over-year, as the financial group strengthened its position in the Korean stocks and banking sector. The Q2 results reflect stabilized asset quality after elevated loan loss provisions in Q1, with the group's fundamentals and earnings power demonstrating resilience in a competitive market environment.
Woori Financial Group Reports KRW 1.0046 Trillion Q2 Net Profit
Woori Financial Group announced that its Q2 net profit of KRW 1.0046 trillion represented a 66% increase from Q1's KRW 604.3 billion. The group stated that the earnings recovery was driven by improved bank NIM, corporate loan growth, and expanded WM and CIB fees. First-half cumulative net profit totaled KRW 1.609 trillion, up 3.7% compared to the same period last year.
First-Half Revenue Reaches Record KRW 5.7227 Trillion
First-half net operating revenue reached KRW 5.7227 trillion, up 6.0% year-over-year and marking a record high. Interest income totaled KRW 4.6597 trillion, up 3.2% year-over-year, with the bank's NIM at 1.51% on a cumulative half-year basis, up 7 basis points from the prior year. The group attributed interest income growth to deposit expansion centered on core deposits, asset rebalancing, and corporate loan growth focused on productive financing. Non-interest income reached KRW 1.063 trillion, up 20.0% year-over-year and achieving a record high, driven by increased fee income from the bank's WM business and securities and asset management fees amid favorable capital market conditions.
The group's loan loss provision for the first half totaled KRW 966 billion, up 2.4% year-over-year. However, Q2 loan loss provision decreased to KRW 439.2 billion, down 16.7% from Q1, stabilizing to prior-year levels despite the large provision recognized in Q1.
Group NPL Ratio Rises to 0.73% in First Half
The group's non-performing loan (NPL) ratio stood at 0.73%, up 0.02 percentage points from 0.71% in the prior year. The bank's NPL ratio increased to 0.39% from 0.32%. The group and bank NPL coverage ratios were 112.9% and 132.9%, respectively. The Common Equity Tier 1 (CET1) ratio was preliminarily calculated at 13.7%.
Board Approves KRW 220 Per Share Q2 Dividend and KRW 150 Billion Treasury Stock Buyback
The board determined the Q2 dividend at KRW 220 per share. Woori Financial Group decided to conduct an additional KRW 150 billion treasury stock buyback and cancellation in the second half, the first such action since the establishment of the holding company, expanding the total annual treasury stock buyback and cancellation to KRW 350 billion. The group stated that if the year-end CET1 ratio exceeds 13%, it plans to expand shareholder returns in accordance with its value-up plan.
Non-Bank Subsidiaries Contribute 22.3% of First-Half Profit
Non-bank subsidiaries' profit contribution expanded to 22.3% in the first half, more than tripling from 6.9% in the prior year. As the effect of insurance subsidiary consolidation materialized, the securities division also expanded its business base with a capital increase of approximately KRW 1 trillion, posting a net profit of KRW 24.7 billion, up 44% year-over-year. Card and capital divisions also recorded double-digit profit growth rates. First-half net profits by major subsidiary were: Dongyang Life (individual basis) KRW 91.9 billion, Woori Bank KRW 1.373 trillion, Woori Card KRW 94.5 billion, Woori Financial Capital KRW 76.9 billion, and Woori Investment & Securities KRW 24.7 billion.
A Woori Financial Group official stated, "The recovery of ordinary quarterly net profit to over KRW 1 trillion is a meaningful achievement demonstrating that the group's fundamentals and earnings power have been further strengthened. We will continue efforts to enhance corporate value, including sustained expansion of shareholder returns based on the industry's highest level of capital capacity."
FAQ
What drove Woori Financial Group's Q2 net profit increase to KRW 1.0046 trillion?
Woori Financial Group attributed the Q2 net profit of KRW 1.0046 trillion to improved bank net interest margin (NIM), corporate loan growth, and expanded wealth management (WM) and corporate and investment banking (CIB) fees. The Q2 profit represented a 66% increase from Q1's KRW 604.3 billion.
What shareholder return actions did Woori Financial Group announce for the year?
The board approved a Q2 dividend of KRW 220 per share. The group also decided to conduct an additional KRW 150 billion treasury stock buyback and cancellation in the second half, expanding the total annual buyback and cancellation to KRW 350 billion. The group stated that if the year-end CET1 ratio exceeds 13%, it plans to expand shareholder returns further.
