“1 trillion won for two consecutive quarters”: Woori Financial Group reports cumulative Q3 net profit of 2.66 trillion won

[Financial News] For the first time since the group was launched, Woori Financial Group has posted net profit of more than 1 trillion won for two consecutive quarters. Expanded corporate lending and growth in the non-bank sector drove net operating revenue to a record high. The Woori Financial Group board resolved to pay a quarterly dividend of 220 won per share, continuing its shareholder returns.
On the 23rd, Woori Financial Group announced at the release of its third-quarter results that it had posted net profit of 1.0492 trillion won. Cumulative net profit was 2.6581 trillion won, down 4.9% year on year. Excluding one-off factors such as the bargain purchase gain from last year’s acquisition of an insurance company, net profit was up 18.7% year on year.
With a stable capital ratio of 13% or higher, Woori Financial Group is continuing its consistent shareholder return policy. On the same day, its board resolved to pay a quarterly cash dividend of 220 won per share, 10% higher than in the same period last year. Woori Financial Group is the only domestic bank holding company to pay tax-free dividends. Its preliminary Common Equity Tier 1 (CET1) ratio was 13.80%.
Woori Financial Group’s net operating revenue for the first nine months, through the third quarter, reached a record 8.6803 trillion won, up 6.2% from the same period last year. Growth in lending centered on corporate finance boosted interest income, while increased non-interest income in the non-bank sector also drove earnings growth.
Cumulative interest income rose 4.5% year on year to 7.0359 trillion won, reflecting an increase in corporate lending focused on productive finance. At the end of September, Woori Bank’s won-denominated loans totaled 313 trillion won, up 4.1% from the end of last year. Household lending was managed with a focus on controlling its overall volume.
Non-interest income increased 13.9% year on year to 1.6444 trillion won. Woori Financial Group said, “Although gains and losses related to securities declined as long-term interest rates rose, the effects of bringing an insurance company into the group and greater synergies among affiliates contributed to higher earnings.” It added, “In particular, as collaboration between the bank and securities businesses gained momentum, the group’s investment banking (IB) fees more than doubled year on year, further strengthening the earnings base of the non-bank sector.”
Cost management and a lighter burden from provisions also contributed to earnings. Cumulative selling, general and administrative expenses totaled 3.8575 trillion won, up 4.6% year on year, but the expense ratio improved by 0.8 percentage points to 42.3%. The group said it responded to cost pressures—including additional staffing and IT investment following the integration of its insurance and securities subsidiaries, as well as a higher education tax—with increased revenue and greater cost efficiency.
The credit cost ratio fell by 0.10 percentage points to 0.42%. Despite rising interest rates and uncertainty in financial markets, asset rebalancing efforts sustained over the past two years and proactive risk management led to improved asset quality. Return on common equity (ROE) rose from 9.0% in the first half to 9.9% for the first nine months through the third quarter.
Some asset quality indicators, however, worsened compared with last year. The group’s non-performing loan (NPL) ratio rose by 0.02 percentage points year on year to 0.72%, while its NPL coverage ratio fell from 130.0% to 112.7%. The delinquency rate was 0.46% at Woori Bank and 1.95% at Woori Card Co., Ltd., up 0.10 and 0.15 percentage points year on year, respectively.
Woori Bank, the group’s key subsidiary, posted a record quarterly net profit of 1.0276 trillion won in the third quarter, up 22% from the previous quarter. Cumulative net profit increased 4.7% year on year to 2.4006 trillion won. Its net interest margin (NIM) for January to September this year was 1.48%.
Woori Bank is also preparing for customer information leaks resulting from recent hacks in the financial sector and for cyberattacks. The bank said, “We have established a close-response system with relevant organizations and are continuing to invest in information security infrastructure.” It added, “We plan to continue strengthening our customer information protection and cyber threat response systems, including by expanding the scope of biometric authentication.”
Cumulative net profits at major non-bank affiliates were 121.6 billion won at Dongyang Life, 133.7 billion won at Woori Card Co., Ltd., 114.6 billion won at Woori Financial Capital Co., Ltd., 28.2 billion won at Woori Investment Securities Co., Ltd., and 25.4 billion won at Woori Asset Management.
Meanwhile, alongside improving its earnings, Woori Financial Group is accelerating its efforts in productive and inclusive finance. Within a year of launching its “Future Co-Growth Project,” Woori Financial Group had provided 34.7 trillion won in productive and inclusive financing.
[email protected] Lee Hyun-jung Reporter