Woori Financial Group Decides Dividend Payout Ratio at 20% Following Regulatory Recommendations

[Asia Economy Reporter Kiho Sung] Woori Financial Group has decided on a dividend payout ratio of 20% following the recommendation of the Financial Services Commission. This represents a reduction of more than half compared to 2019.

On the 5th, Woori Financial held a board meeting and announced that the year-end dividend for 2020 was set at 360 KRW per share for both common and preferred stocks. The total dividend amount is 260 billion KRW, with a payout ratio of 20%. Woori Financial's year-end dividend in 2019 was 700 KRW per share.

Last year, Woori Financial recorded a profit of 1.3073 trillion KRW, down 31% from the previous year (1.9041 trillion KRW), affected by COVID-19 and provisions for private equity funds. At that time, the payout ratio was 27%, and the dividend amount was 550.6 billion KRW.

Earlier, the Financial Services Commission recommended that financial holding companies and banks maintain a dividend payout ratio within 20% due to increased uncertainty caused by the prolonged COVID-19 crisis.

Among the five major financial holding companies, KB Financial Group and Hana Financial Group reduced their payout ratios to 20%, in line with the recommendation. The foreign bank Korea Citibank also adjusted its payout ratio to around 20%.

However, only Shinhan Financial Group, which passed the Financial Services Commission's stress test, showed a dividend payout ratio (22.7%) higher than the regulatory recommendation.