Woori Financial Group (316140) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached KRW 1.7554 trillion (₩1.76 trillion), up 14.1% year-over-year, with Q2 net income at KRW 931.4 billion (₩931.5 billion), surpassing market consensus and marking a record high.

• ROE reached 11.10% (10.8%–10.82%), supported by strong profit generation and cost optimization.

• Cost-to-income (C/I) ratio improved to 39.9%, the lowest since the group's inception.

• CET1 ratio improved to 12.04% as of June 2024, up 9 bps from the previous quarter, despite market volatility.

• Completed the merger of Woori Investment & Securities, re-entering the securities business after 10 years, and set out a mid- to long-term value-up plan targeting a 50% total shareholder return ratio.

Financial highlights

• Net operating revenue for H1 2024 was KRW 5.28 trillion (₩10.89 trillion total revenue), up 5.1% year-over-year; Q2 net operating revenue rose 7.2% sequentially.

• Non-interest income surged 45.1% year-over-year to KRW 885.4 billion, driven by fee income growth from corporate finance and subsidiaries.

• Credit cost for H1 2024 was KRW 775.7 billion (₩776 billion), down 5.2% year-over-year, with a Q2 increase due to additional provisioning for real estate PF.

• Group NPL ratio: 0.56%; bank NPL ratio: 0.23%, both lowest in the industry.

• Quarterly dividend of KRW 180 per share was confirmed, consistent with the previous quarter.

Outlook and guidance

• Targeting sustainable ROE of 10%, CET1 ratio of 13%, and 50% total shareholder return in the mid to long term.

• CET1 ratio goal set at 12.2% by end-2024 and 12.5% by 2025, with flexible growth management and RWA optimization.

• Plans to expand non-bank portfolio via M&A, focusing on insurance and launching Woori Investment & Securities in August.

• Global business contribution targeted to rise to 25%, with focus on Southeast Asia and selective market exits.

• Continued focus on risk management, cost efficiency, and ESG leadership.