Woori Financial Group (316140) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated net income ranged from KRW 603.8 billion to KRW 639.4 billion, with stable profitability despite market volatility and one-off provisions.

• Non-bank subsidiaries' profit contribution more than doubled year-over-year, driven by insurance acquisition and strong subsidiary performance, rising from 8.8% to as high as 25%.

• CET1 ratio reached a record 13.6%, up 71 bps YTD and 115 bps YoY, supporting asset growth and shareholder returns.

• Total assets reached KRW 612.6 trillion, up from KRW 601.5 trillion at the end of 2025.

• Continued strategic investments in digital, ESG, and global expansion.

Financial highlights

• Net operating revenue reached KRW 2,758 billion, up 5.6% YoY, with non-interest income up 26.7% to KRW 455 billion.

• Interest income grew 2.3% YoY to KRW 2,303.2 billion; core fee income hit a quarterly record at KRW 576.8 billion, up 13% YoY.

• SG&A expense increased 9% YoY to KRW 1,022.8 billion; cost-to-income ratio at 45%.

• Credit cost ratio annualized at 0.53%, with one-off provisions impacting results; excluding one-offs, credit cost was about KRW 390 billion.

• Loans grew 2.4% YoY to KRW 338 trillion, with corporate loans up 4.7%.

Outlook and guidance

• NIM is expected to remain above last year's 1.46%, with continued asset rebalancing and core deposit growth, though regulatory and market factors may pose headwinds.

• Credit cost ratio is guided at around 40 basis points for 2026, aiming for a 20% reduction from last year.

• Focus on balanced growth across banking, securities, and insurance, with ongoing digital transformation and ESG initiatives.

• Shareholder return policy includes a 10% annual DPS increase and ongoing treasury stock buybacks.

• Cautious on external risks, including global economic uncertainty and credit quality.