[Click e-Stock] "Woori Financial Group, Highest Dividend Yield... Target Price Up 40.9%"

On August 6, Yuanta Securities raised its target price for Woori Financial Group by 40.9% to 31,000 won. This upward revision is based on the expectation that Woori Financial Group’s high dividend yield will serve as a differentiated investment point compared to its competitors.

Woo Dohyeong, a researcher at Yuanta Securities, stated, “Woori Financial Group’s net profit attributable to controlling shareholders in the second quarter was 934.6 billion won, exceeding market expectations by 12.6%.” He explained, “This was due to the recognition of 47 billion won in valuation gains from Dalba Global, a venture capital subsidiary investment, and 10 billion won in branch sale gains, both reflected in non-operating income.”

The CET-1 ratio (Common Equity Tier 1 ratio), which is used as a capital adequacy indicator and reflects a financial company’s loss absorption capacity as well as serving as a standard for shareholder return policies, stood at 12.76% in the second quarter. The dividend yield was 5.7%.

Regarding this, Woo noted, “Woori Financial Group repurchased 150 billion won worth of treasury shares in 2025, and no additional buybacks are expected. The total shareholder return ratio is projected at 34.5% for 2025, with a dividend yield of around 5.2%.”

He continued, “Woori Financial Group has announced a tax-free dividend by transferring capital surplus to retained earnings, with the amount estimated at around 3 trillion won. This will be used as a source for shareholder returns over the next three to four years. The tax-free dividend is expected to be applied from the 2025 year-end dividend, and if the year-end dividend is tax-free, the dividend yield will be 5.7%, the highest among coverage banks.”

Woo maintained a ‘Buy’ rating on Woori Financial Group and set the target price at 31,000 won.

He explained, “This is because: ▲ The CET-1 ratio is expected to exceed 12.5% this year, allowing for a total shareholder return ratio of over 35% from next year; ▲ The high dividend yield through tax-free dividends will serve as a differentiated investment point compared to competitors; and ▲ The profit contribution from securities and insurance subsidiaries is expected to expand.”