Woori Financial Group (316140) Q2 2026 earnings summary

Executive summary

• Net income for H1 2026 reached KRW 1.666 trillion, up 3.7% YoY, with Q2 net income surpassing KRW 1 trillion for the first time, driven by robust interest and non-interest income growth and cost stabilization.

• ROE excluding one-off items was 9.0%; adjusted ROE was 10.3%.

• Non-interest income exceeded KRW 1 trillion, up 20% YoY, with strong fee growth in wealth management and capital markets.

• Non-bank subsidiaries' profit contribution exceeded 22%, reflecting successful portfolio diversification.

• Maintained strong capital adequacy and liquidity, with a BIS ratio of 16.59% and stable funding structure.

Financial highlights

• Net operating revenue for H1 2026 increased 6.0% YoY to KRW 5.723 trillion; Q2 net operating revenue up 7.5% QoQ.

• Interest income grew 3.2% YoY; NIM rose 7 bps YoY to 1.51% and remained stable QoQ.

• Fee and commission income reached KRW 1,738 billion, with net fee income of KRW 1,279 billion and fee income up 23.7% YoY.

• Cost-to-income ratio improved to 42.8%, reflecting ongoing cost efficiencies despite structural cost increases.

• Credit costs for H1 were KRW 966 billion, with Q2 credit costs down 16.7% QoQ and credit cost ratio at 0.48%.

Outlook and guidance

• Non-bank businesses expected to become a new growth engine, further diversifying earnings.

• Targeting a full-year credit cost reduction of 15% and maintaining credit cost ratio in the low 40 bps range.

• Plans to gradually strengthen recurring earnings to over KRW 1 trillion per quarter.

• Ongoing investments in AI, digital transformation, and sustainable growth initiatives.

• Guidance for continued stable asset quality and profitability, despite external uncertainties.