Woori Financial Group's net profit for last year decreased by approximately 20% compared to the previous year.
Woori Financial announced on the 6th that its net profit attributable to controlling shareholders in 2023 was 2.5167 trillion KRW, down 19.89% from 3.1417 trillion KRW the previous year. This result reflects one-time expenses such as banking sector livelihood financial support and provisions set due to increased financial market uncertainty.
According to Woori Financial, last year's net operating income was 9.8374 trillion KRW, maintaining the previous year's level. Interest income increased by 0.5% compared to the previous year. Although the bank's net interest margin (NIM) fell by 3 basis points (1bp=0.01%) due to increased funding costs, solid loan growth offset this decline.
Non-interest income was 1.0948 trillion KRW, down 4.7% from the previous year. However, this includes one-time expenses related to livelihood financial support, and excluding these, the company explained that performance increased by about 10% compared to the previous year. A Woori Financial representative stated, "Despite a challenging business environment, fee income showed stable growth," adding, "This is attributed to an increase in securities-related income compared to the previous year."
Loan loss expenses amounted to 1.8807 trillion KRW. In the first half of last year, 263 billion KRW in provisions were proactively set aside reflecting adjustments to future economic outlooks, and in the fourth quarter, following regulatory guidelines, approximately 525 billion KRW in additional provisions were recognized due to changes in loss given default (LGD) rates and real estate project financing (PF) related matters.
The non-performing loan (NPL) coverage ratios for the holding company and the bank reached record highs of 229.2% and 318.4%, respectively. The NPL ratio for the holding company increased by 0.04 percentage points from the previous year to 0.35%. The bank's NPL ratio was around 0.18%.
Meanwhile, Woori Financial decided on an annual dividend of 1,000 KRW (640 KRW as the year-end dividend). Last year's annual dividend yield was 7.1%, and the total shareholder return ratio was about 33.7%. In accordance with the dividend procedure improvement plan introduced last year, Woori Financial set the record date for the year-end dividend as February 29.
A Woori Financial representative said, "Last year, we improved the soundness of vulnerable sectors and strengthened the group's capital market competitiveness by reorganizing affiliates such as the integration of Woori Asset Management and Global Asset Management," adding, "This year, while focusing on risk management such as managing risk-weighted assets, we expect to fully realize a performance turnaround through a growth strategy of selection and concentration and by enhancing group synergies in asset management and other sectors."
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