Woori Financial Reports KRW 1.55 Trillion Net Profit in H1, Down 11.6% Year-on-Year

Common Equity Tier 1 Ratio at 12.76%
Second Quarter Dividend Set at KRW 200 Per Share,
Same as the First Quarter

Woori Financial Group announced on July 25 that it recorded a cumulative net profit of KRW 1.5513 trillion for the first half of this year. This figure represents an 11.6% decrease compared to last year’s KRW 1.7555 trillion. However, net profit in the second quarter reached KRW 934.6 billion, an increase of approximately KRW 300 billion from the previous quarter, driven by further improvement in the bank’s net interest margin (NIM) and solid growth in fee income.

Interest income for the first half of this year was KRW 4.5138 trillion, a 2.7% increase from KRW 4.3951 trillion during the same period last year. Woori Financial explained that this steady growth was supported by last year’s asset growth effect and this year’s efforts to optimize funding costs. In particular, the group added that asset growth remained moderate due to the expansion of loans focused on high-tech strategic industries and new growth companies, as well as an increase in household loans based on real demand. The bank’s net interest margin improved by 4 basis points (bp; 1bp=0.01%) in the first quarter and improved by an additional 1bp in the second quarter.

Non-interest income for the first half was KRW 886.3 billion, a 0.1% increase from the same period last year. Fee income reached the KRW 500 billion range (KRW 522 billion) this quarter, following the previous quarter, supported by balanced growth in both banking (WM, IB) and non-banking (card, leasing) sectors. Selling and administrative expenses accumulated to KRW 2.4791 trillion in the first half, while credit loss expenses increased by 21.8% year-on-year due to one-off provisions. Excluding this, the recurring credit loss ratio remained at 42bp, similar to the same period last year.

The NPL ratio was 0.71% for the group and 0.32% for the bank, while the NPL coverage ratio stood at 126.9% for the group and 179.6% for the bank.

The group’s common equity tier 1 (CET1) ratio is projected to improve by approximately 63bp to 12.76% compared to the end of 2024. Regarding this, Woori Financial stated, “Based on Chairman Lim Jongryong’s strong commitment to enhancing corporate value, we have focused on strengthening capital adequacy through asset rebalancing and a growth strategy centered on risk-weighted asset return (RORWA),” adding, “We expect not only to achieve our year-end target of 12.5% but also to accelerate progress toward reaching 13%.”

Meanwhile, the Woori Financial board of directors decided to set the second quarter dividend at KRW 200 per share, the same as the first quarter, based on its quarterly equal dividend policy.

A Woori Financial representative said, “By focusing on strengthening soundness and improving the capital ratio in response to internal and external uncertainties such as mutual tariffs in the first half, we have enhanced market trust. As a result, Woori Financial was the only major financial holding company to see an increase in foreign investor buying in the first half of this year, and our stock price reached an all-time high,” adding, “In the second half, with the inclusion of Dongyang Life and ABL Life completing our comprehensive financial group, we expect the group’s earnings base to be further strengthened through balanced growth in both banking and non-banking sectors and the full-scale realization of synergies among affiliates.”