Woori Financial Group Reports 3Q Cumulative Net Profit of 2.6591 Trillion KRW, Up 9.1% YoY

Exceeded Previous Year's Annual Performance in Q3... Surpassing Market Expectations
Q3 Dividend per Share Set at 180 Won... "Continuing Implementation of Corporate Value Enhancement Plan"

Woori Financial Group announced on the 25th that its cumulative net profit for the third quarter of this year reached 2.6591 trillion KRW, a 9.1% increase compared to the same period last year. Surpassing last year's annual performance of 2.5063 trillion KRW in just three quarters, the group continued its progress toward achieving an 'annual net profit of 3 trillion KRW.'

The third quarter net profit also exceeded market expectations, settling at 903.6 billion KRW for the second consecutive quarter in the 900 billion KRW range. The group's return on equity (ROE) was recorded at 10.82%. The cumulative net operating income for the first three quarters, combining interest and non-interest income, increased by 6.6% year-on-year to 7.9927 trillion KRW.

Despite downward pressure on the bank's net interest margin (NIM) due to declining market interest rates, interest income was maintained at the same level as the previous year, supported by solid asset growth centered on corporate loans.

In particular, non-interest income surged by 53.2% compared to the same period last year, strongly driving profit growth. As a result of ongoing efforts to diversify the revenue structure, fee income from both banking and non-banking sectors grew evenly, increasing by 24.2% year-on-year. Additionally, gains related to securities maintained an upward trend, supporting the growth in non-interest income.

The group's selling and administrative expense ratio was 39.6%, thanks to active cost management efforts. This figure remained below 40% for the second consecutive quarter, continuing a downward stabilization trend. Although credit costs increased by 16.3% year-on-year to 1.2546 trillion KRW for the first three quarters, this was attributed to one-time factors taken proactively to prepare for uncertainties.

The non-performing loan (NPL) ratio, an asset soundness indicator, slightly rose compared to the end of last year, standing at 0.55% for the group and 0.21% for the bank. However, the NPL coverage ratio was recorded at 152.3% for the group and 270.2% for the bank.

Meanwhile, based on these results, Woori Financial's board of directors decided to pay a third-quarter dividend of 180 KRW per share, fulfilling its commitment to shareholder returns. A Woori Financial Group official stated, “Woori Financial, having achieved results exceeding market consensus, has seen its efforts to diversify its business portfolio and enhance corporate value culminate in inclusion in the ‘Korea Value-Up Index.’ We will actively respond to global uncertainties such as geopolitical risks and the U.S. presidential election, maintaining stable performance through the end of the year to meet the heightened expectations of the market.”

In addition, Woori Financial plans to further strengthen its fulfillment of financial social responsibility for sustainable growth by steadily expanding signature social contribution projects such as ‘Economic Independence Support for People with Developmental Disabilities (Goodwill Store)’ and ‘Medical Support for Future Generations with Hearing and Visual Impairments (Woori Rookie Project).’