Woori Financial Group (316140) Q2 2026 earnings summary

Executive summary

• Net income for H1 2026 reached KRW 1.666 trillion, up 3.7% year-over-year, 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 businesses' contribution to group net income more than tripled year-over-year, now exceeding 22%, reflecting successful diversification.

• Record high net operating revenue in H1 2026, with both interest and non-interest income at all-time highs, reflecting balanced growth and improved earnings capacity.

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

• Total assets reached KRW 635.2 trillion as of June 30, 2026, with significant expansion in loans and financial assets.

Financial highlights

• Net operating revenue for H1 2026 increased 6.0% year-over-year to KRW 5.723 trillion; Q2 net operating revenue up 7.5% quarter-over-quarter.

• Interest income grew 3.2% year-over-year; NIM rose 7 bps year-over-year to 1.51% and remained flat quarter-over-quarter.

• Non-interest income for H1 2026 was KRW 1.063 trillion, up 20% year-over-year; fee income hit a quarterly record of KRW 702 billion, up 22% quarter-over-quarter.

• Cost-to-income ratio improved to 42.8% (down 2.4% QoQ, excluding ERP), reflecting ongoing cost efficiencies.

• Credit cost ratio declined to 0.48% in H1 2026, with Q2 credit costs down 16.7% quarter-over-quarter.

Outlook and guidance

• Non-bank businesses expected to drive future growth and further diversify earnings.

• Continued focus on expanding productive and inclusive finance, with an additional KRW 10 trillion committed, targeting a total of KRW 90 trillion over five years.

• Aim to maintain credit cost ratio in the low 40 bps range and reduce credit costs by 15% year-over-year.

• Plans to make share buyback and cancellation a regular semi-annual program, with a new KRW 150 billion buyback announced for H2 2026.

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