Woori Financial Group Reports Record High Cumulative Net Profit of 2.2 Trillion KRW in Q3

Q3 Net Profit of 778.6 Billion KRW, Highest Quarterly Performance

[Asia Economy Reporter Jin-ho Kim] Woori Financial Group has once again set a record for the highest cumulative net profit for the first three quarters, reaching 2.2 trillion KRW. The diversification of profit generation, including strong non-interest income, was a key factor behind this earnings surprise.

On the 25th, Woori Financial announced its earnings, reporting a cumulative net profit of 2.1983 trillion KRW for the first three quarters. The third-quarter net profit was also 778.6 billion KRW, marking the highest quarterly performance since its transition to a holding company, renewing the record set in the previous quarter. Woori Financial explained that this was the result of a continuous strategy to expand the revenue base and successful management of asset quality and costs since the holding company transition.

The net operating income, combining interest income and non-interest income, reached 6.1804 trillion KRW for the first three quarters, a 20.6% increase compared to the same period last year. Interest income improved to 5.0885 trillion KRW due to loan growth centered on small and medium-sized enterprises and an increase in core low-cost deposits, enhancing the revenue structure. Non-interest income also led strong performance, recording 1.0919 trillion KRW, a 57.2% increase year-on-year.

In terms of asset quality, despite temporary concerns over economic slowdown due to strengthened quarantine measures in the third quarter, the non-performing loan (NPL) ratio was stably managed at 0.31%, and the delinquency ratio was 0.24%. The high-quality asset ratio and NPL coverage ratio were recorded at 89.2% and 177.5%, respectively.

A Woori Financial Group official stated, "Although the improvement in NIM temporarily stalled in the third quarter, balanced growth in interest and non-interest income and proactive management of loan loss provisions led to a record-high performance exceeding 2 trillion KRW in just three quarters."

The net profit by major subsidiaries on a consolidated basis was 1.9867 trillion KRW for Woori Bank, 174.6 billion KRW for Woori Card, 128.7 billion KRW for Woori Financial Capital, and 66.5 billion KRW for Woori Comprehensive Financial.