Woori Financial Group Reports Q1 Net Profit of 824.5 Billion KRW, Down 9.8% YoY

Woori Financial Group announced on the 26th that it recorded a net profit of 824.5 billion KRW in the first quarter of this year. This figure represents a 9.8% decrease compared to the same period last year (913.7 billion KRW).

Operating revenue remained at the same level as the previous year’s corresponding period, at 2.5488 trillion KRW. Although interest income decreased by 0.9% year-on-year due to increased funding costs, the bank’s NIM rose by 3 basis points from the end of last year to 1.5%, supported by an increase in core deposits.

Non-interest income was 350.6 billion KRW, up 5.7% compared to the same period last year. Despite some valuation losses caused by exchange rate increases and market interest rate declines, Woori Financial explained that fee income, which increased by 20% year-on-year in asset management, IB, and foreign exchange, led the growth in non-interest income.

Selling and administrative expenses continued to improve, decreasing by 0.5% year-on-year through active cost management despite the prolonged high interest rate and high inflation environment.

ROE recorded 10.3%, rising approximately 2.0 percentage points from the end of last year. In terms of asset soundness, the NPL ratio was 0.44% for the group and 0.20% for the bank. The NPL coverage ratio also maintained industry-leading loss absorption capacity, with 190.7% for the group and 293.8% for the bank, according to Woori Financial’s analysis.

Net profits for major subsidiaries in the first quarter of 2024 were 789.7 billion KRW for Woori Bank, 28.8 billion KRW for Woori Card, 33.0 billion KRW for Woori Financial Capital, and 12.6 billion KRW for Woori Comprehensive Financial.

Meanwhile, Woori Financial Group decided on a quarterly dividend of 180 KRW per share for the first quarter of this year. Following the purchase and cancellation of approximately 136.6 billion KRW worth of shares owned by the Korea Deposit Insurance Corporation in March, the shareholder return rate is expected to improve compared to last year, with quarterly dividends being implemented from the first quarter this year.

A Woori Financial Group official stated, “With the recent emphasis on global geopolitical risks, volatility in financial markets such as oil prices and exchange rates has increased, along with growing concerns about the real economy due to real estate PF.” He added, “We will actively respond to domestic and international uncertainties by focusing more on managing asset soundness and capital ratios, and strive to improve ROE.”

This content was produced with the assistance of AI translation services.