Woori Financial Group (316140) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 was KRW 1.5513–1.552 trillion, down 11.6% year-over-year, mainly due to one-off early retirement costs and preemptive provisions, but adjusted profit remained stable; ROE reached 10.28% excluding one-offs.

• Net operating revenue grew 2.3% year-over-year to KRW 5.4001 trillion, with stable interest income and increased non-interest income from capital market activities.

• The group completed the acquisition of Dongyang Life and ABL Life, expanding its non-bank portfolio and finalizing a comprehensive financial group structure.

• Maintained robust credit ratings (AAA/AA-) and strong ESG performance, including MSCI AAA and DJSI World Index inclusion.

Financial highlights

• Net operating revenue for H1 2025 was KRW 5.4001 trillion, up 2.3% year-over-year; Q2 revenue rose 6.8% sequentially.

• Interest income increased 2.7% year-over-year to KRW 4.514 trillion; non-interest income was stable at KRW 886.3 billion.

• SG&A expense for H1 was KRW 2.4791 trillion, up 18% year-over-year, with a cost-to-income ratio of 42.8%.

• Credit cost for H1 was KRW 944.5 billion; credit cost ratio rose to 0.49%, managed at 0.42% excluding one-offs.

• Total assets reached KRW 534.1 trillion as of H1 2025.

Outlook and guidance

• NIM is expected to remain at the low to mid 1.4% range in the second half, with continued focus on asset quality and risk-weighted asset management.

• Credit cost ratio guidance for 2025 is low to mid 40 basis points, with stabilization expected in H2.

• CET1 ratio target for year-end is to stably manage above 12.5%, with a longer-term goal of 13% potentially achievable earlier than 2027.

• Focus on balanced growth between banking and non-banking, leveraging new insurance subsidiaries for group synergies.

• Targeting medium- to long-term ROE above 10%.