Woori Financial Group (316140) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income ranged from KRW 615.6 billion to KRW 654.6 billion, down year-over-year due to higher one-off costs and SG&A, but up sequentially, with underlying fundamentals supported by stable interest and non-interest income and ROE at 9.5%.

• Net operating revenue rose 2.4% year-over-year and 6.6% quarter-over-quarter to KRW 2.61 trillion, driven by robust interest and non-interest income.

• Asset rebalancing, diversification, and digital investments supported profitability and risk management amid volatile market conditions.

• Dividend per share increased 11% YoY to KRW 200, and share buyback/cancellation program expanded to KRW 150 billion.

• ESG initiatives advanced, with continued AAA MSCI ESG rating and inclusion in the DJSI World Index.

Financial highlights

• Net income for Q1 2025 ranged from KRW 615.6 billion to KRW 654.6 billion.

• Net operating revenue: KRW 2.61 trillion, up 2.4% YoY and 6.6% QoQ.

• Interest income: KRW 2,252 billion, up 2.5% YoY; core fee income: KRW 511.4 billion.

• SG&A expenses: KRW 1.31 trillion, up 26.6% YoY, mainly due to one-off ERP expenses.

• Cost-to-income ratio (excluding one-offs): 43.6%.

Outlook and guidance

• CET1 ratio improved to 12.42%, with a 2025 target of 12.5% and proactive RWA management.

• Asset growth guidance is 4%-5% for the year, contingent on stable FX rates.

• NIM expected to remain at or above 1.4% for the year, despite rate cuts.

• Focus on expanding non-interest income, digital/IT investment, and ESG leadership.

• Continued shareholder return enhancement via dividends and share buybacks.