Woori Financial¡¯s Q1 bottom line hits record high since holding entity transition

Woori Financial Group Inc. reported 671.6 billion won ($601.5 million) in net profit for the first quarter, the highest since it turned into a financial holding entity in 2019.

Its first-quarter net profit quadrupled what it earned three months earlier on a consolidated basis, according to its regulatory filing on Thursday. Against a year earlier, it was up 29.7 percent.

The net profit figure also exceeded market estimates by nearly 20 percent.

Its stock rose 3.94 percent to trade at 10,550 won in Seoul around 10 a.m. on Thursday.

Woori Financial Group posted 933.3 billion won in operating profit, up 301.2 percent from the previous quarter and 20.7 percent from a year earlier. Revenue totaled at 8.7 trillion won, down 9.9 percent on quarter and 22.4 percent on year.

The company attributed the improvement in bottom line to its successful reform in the profit structure and risk management by expanding non-bank businesses.

Net operating profit, combining interest income and non-interest income, jumped 17.0 percent on quarter to 1.99 trillion won.

Interest income came to 1.6 trillion won, gaining more than 3 percent on growth in assets from corporate lending and savings accounts. Non-interest income amounted 367.4 billion won, nearly tripled from the previous quarter on higher incomes form credit lending service and other non-bank units.

The group¡¯s financial soundness stayed stable.

Non-performing loan ratio stood at 0.39 percent as of the end of March, lower than 0.42 percent recorded three months ago. Delinquency ratio was unchanged at 0.27 percent.

Net interest margin, a key profitability measure, was 1.60 percent, adding 7 basis points on quarter.

Prime asset ratio was 88.2 percent, and non-performing loan coverage ratio was 162.2 percent, well maintaining the capacity to absorb possible future losses.

Cost-to-income ratio fell to 46.2 percent from previous quarter¡¯s 55.0 percent and 50.2 percent in the same period last year, thanks to its cost-cutting efforts.

In the first quarter, its mainstay unit Woori Bank reported 589.4 billion won in net profit, Woori Card 72.0 billion won, Woori Financial Capital 35.0 billion won, and Woori Investment Bank 17.0 billion won.

The group anticipated to make profit improvements throughout the year, propelled by rising contributions from new non-bank units that the group has been adding since 2019.

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