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.

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

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

• Total assets reached KRW 635.2 trillion as of June 30, 2026.

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

Financial highlights

• Net operating revenue for H1 2026 rose 6.0% YoY to KRW 5.723 trillion; interest income grew 3.2% YoY; non-interest income for H1 was over KRW 1 trillion, up 20% YoY.

• Fee and commission income grew 23.7% YoY, with quarterly fee income exceeding KRW 700 billion for the first time.

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

• Credit cost ratio declined to 0.48% in H1 2026, with credit costs for H1 at KRW 966 billion.

• EPS increased 4.6% YoY and BPS rose 10.4% YoY.

Outlook and guidance

• Management plans continued capital return via share buybacks and dividends, with a new KRW 150 billion buyback announced for H2 2026.

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

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

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

• Continued focus on expanding productive and inclusive finance, with an additional KRW 10 trillion committed.