Woori Financial Group Achieves Highest Quarterly Earnings Since Becoming a Holding Company

Q1 Net Profit 671.6 Billion Won
Up 29.6% YoY
Up 303.33% QoQ

Son Tae-seung, Chairman of Woori Financial Group

[Asia Economy Reporter Kim Hyo-jin] Woori Financial Group achieved its highest quarterly performance since its transition to a holding company in the first quarter of this year. Despite the ongoing impact of COVID-19, including ultra-low interest rates, the group focused its capabilities on improving the revenue structure and risk management, and diversified its income base by expanding its non-bank portfolio.

According to the financial sector on the 22nd, Woori Financial recorded a net profit of 671.6 billion KRW in the first quarter of this year. Compared to the first quarter of last year (518.2 billion KRW), it increased by 29.6%, and compared to the previous quarter (166.5 billion KRW), it surged by 303.33%. This is the largest 'surprise performance' since the holding company was launched in January 2019 on a quarterly basis.

Both interest and non-interest income increased. Interest income in the first quarter was 1.6196 trillion KRW, up 10.7% from 1.463 trillion KRW in the first quarter of last year when the impact of COVID-19 began in earnest. Non-interest income was recorded at 367.4 billion KRW, a 17.0% increase compared to 313.8 billion KRW in the first quarter of last year.

The increase in interest income was driven by asset growth centered on corporate loans and efforts to improve net interest margin (NIM) through an increase in low-cost deposits. In the case of non-interest income, the strong performance in asset management and securities sectors, combined with lease fees from the capital division, enhanced the group's revenue-generating capability.

Asset quality was also managed stably. The non-performing loan (NPL) ratio was 0.39%, down 0.03 percentage points from the end of last year, and the delinquency rate remained at a healthy level of 0.27%. The high-quality asset ratio and NPL coverage ratio were recorded at 88.2% and 162.2%, respectively, securing loss absorption capacity.

Woori Bank 589.4 billion KRW... 17.04%↑

The flagship affiliate, Woori Bank, posted a net profit of 589.4 billion KRW in the first quarter, a 17.04% increase compared to 503.6 billion KRW in the first quarter of last year. Woori Card recorded 72 billion KRW, Woori Financial Capital 35 billion KRW, and Woori Comprehensive Financial 17 billion KRW in net profit, respectively.

A Woori Financial official said regarding the first quarter results, "We were able to confirm Woori Financial's improved profit-generating power and stronger fundamentals. In particular, the non-bank sector's profit and loss exceeded 100 billion KRW for the first time this quarter, marking the full-scale contribution of newly incorporated subsidiaries, and combined with the bank's profitability, the momentum for performance improvement is expected to continue throughout this year."

As announced at the recent regular shareholders' meeting, Woori Financial plans to pursue diverse and proactive shareholder return policies once the COVID-19 situation stabilizes, while accelerating ESG (Environmental, Social, and Governance) management to establish a sustainable management system.