Common Equity Tier 1 Ratio at 12.92%... Up About 80bp Year-to-Date
'Productive Finance' in Full Swing
Fulfilling the Core Role of Finance
Laying the Foundation for Sustainable Growth
Woori Financial Group's cumulative net profit for the third quarter of this year is approaching 3 trillion won. This growth is attributed to robust net operating income and the effects of acquiring an insurance company.
On October 29, Woori Financial Group announced at its investor relations (IR) session that its cumulative net profit for the third quarter of 2025 reached 2.7964 trillion won, up 5.1% from the same period last year. The group's return on equity (ROE) stood at 10.87% (10.09% on a recurring basis), up 1.74 percentage points from the previous quarter, reflecting improved profitability.
Net profit for the third quarter was 1.2444 trillion won, an increase of 33% from the previous quarter. Bank NIM rose by 3 basis points quarter-on-quarter thanks to asset rebalancing and cost-efficient funding, while non-interest income also increased by 5.3% quarter-on-quarter, driven by stronger performance in the bank's wealth management, card, and capital businesses, as well as insurance profit contributions, resulting in a more diversified income structure.
This 'insurance subsidiary acquisition' is regarded as having completed the comprehensive financial group structure while minimizing the impact on the capital ratio. It also served as a catalyst for strengthening the competitiveness of non-banking sectors and expanding synergy among group affiliates.
In fact, the share of Tongyang and ABL in bancassurance sales increased by about 13 percentage points over three months to reach 22.5%. This is expected to further solidify the group's growth base through balanced growth between banking and non-banking sectors and maximizing synergy among subsidiaries.
Additionally, Woori Financial Group proactively set aside provisions in response to concerns over an economic slowdown, thereby strengthening asset quality. As a result, the NPL ratio stood at 0.70% for the group and 0.31% for the bank, while the bank's delinquency rate fell to 0.36%. The NPL coverage ratio also rebounded to 130.0% for the group and 180.9% for the bank, with key soundness indicators improving overall.
The group's common equity tier 1 (CET1) ratio was 12.92% (estimated). Despite pressures from a stronger exchange rate and capital requirements related to M&A, this figure increased by about 10 basis points from the previous quarter, demonstrating clear improvement within the industry and proving the group's solid capital management capabilities.
As a result, not only is the year-end target of 12.5% within reach, but the mid- to long-term goal of 13% is also likely to be achieved ahead of schedule, enabling the group to swiftly implement its value-up plan. Furthermore, on October 24, Woori Financial Group's board of directors decided on a quarterly dividend of 200 won per share for the third quarter, reaffirming its commitment to stable shareholder returns.
A Woori Financial Group representative stated, "Through qualitative improvements in our asset structure, such as asset rebalancing, our CET1 ratio has approached 13%, and the group's financial structure has rapidly improved." He added, "Starting in the fourth quarter, we plan to take a leading role in the transition to productive finance through the 'Future Co-Growth Project' announced last month."
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