Woori Financial Group (316140) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income ranged from KRW 615.6 billion to KRW 654.6 billion, down year-over-year due to higher one-off costs and SG&A, but up sequentially, with ROE at 9.5% and solid underlying fundamentals.

• Net operating revenue rose 2.4% YoY and 6.6% QoQ to KRW 2.6095–2.610 trillion, driven by stable interest and non-interest income.

• Asset rebalancing, digital investments, and ESG initiatives supported profitability and growth amid macro uncertainties.

• Q1 2025 dividend increased 11% YoY to KRW 200 per share, with a KRW 150 billion share buyback/cancellation program underway.

• ESG leadership advanced, with AAA MSCI ESG rating and DJSI World Index inclusion.

Financial highlights

• Net income: KRW 615.6–654.6 billion for Q1 2025.

• Net operating revenue: KRW 2.6095–2.610 trillion, up 6.6% QoQ.

• Interest income: KRW 2.252 trillion, stable to up 2.5% YoY.

• Core fee income: KRW 511.4 billion, up 1.6% YoY.

• SG&A expenses: KRW 1.3062 trillion, up 26.6% YoY, mainly due to one-off ERP expenses.

Outlook and guidance

• CET1 ratio improved to 12.42% (up 29–30 bps QoQ), targeting 12.5% for 2025.

• Asset growth baseline set at 4%-5%, with flexibility depending on FX stability.

• NIM expected to remain at or above 1.4% for the year, despite rate cuts.

• Focus on asset soundness, capital adequacy, digital transformation, and ESG leadership.

• Non-bank profit contribution and ROE projected to improve post-acquisition.