Woori Financial Group (316140) Q3 2024 earnings summary

Executive summary

• Cumulative net income for Q3 2024 rose 9.1% year-over-year to KRW 2.6591 trillion, with Q3 net income at KRW 903.6–904.4 billion, exceeding market expectations despite additional provisioning for real estate PF risks.

• Group ROE reached 10.82% on a cumulative basis, reflecting strong profitability and capital efficiency.

• Non-interest income surged 53.2% year-over-year, driven by diversified fee income and securities-related gains.

• Cost-to-income ratio remained below 40% for two consecutive quarters, with strong cost control supporting profitability.

• Maintained stable asset quality with group NPL ratio at 0.55% and NPL coverage at 152%.

Financial highlights

• Cumulative net operating revenue grew 6.6% year-over-year to KRW 7.9927 trillion; Q3 revenue was KRW 2.7122 trillion, flat sequentially.

• Interest income was KRW 6.615 trillion YTD (+0.2% YoY); non-interest income up 53.2% YoY to KRW 1.3781 trillion.

• Fees and commissions grew 24.2% YoY to KRW 1.587 trillion YTD.

• Credit cost up 16.3% YoY to KRW 1.255 trillion YTD, with a credit cost ratio of 0.44%.

• Loans grew 9.4% YoY to KRW 340 trillion; deposits rose 6.7% YoY to KRW 327 trillion.

Outlook and guidance

• CET1 ratio target is 12.2% by year-end 2024 and 12.5% early in 2025, with active asset management and RWA control planned.

• NIM expected to remain stable in Q4 and decline by 4–5 bps in 2025, ending in the high 1.3% range.

• Credit cost projected to remain at current levels for 2024 and improve to below 40 bps in 2025 if PF restructuring completes and rates fall.

• Core deposit growth targeted to reach KRW 100 trillion, with multiple measures in place to accelerate growth.

• Continued focus on cost optimization, balanced growth, and enhancing shareholder value through dividends and index inclusion.