Woori Financial Group (316140) Q3 2025 earnings summary

Executive summary

• Year-to-date net income rose 5.1% YoY to KRW 2.80 trillion, with Q3 net income at KRW 1.24 trillion, driven by balanced interest and non-interest income and insurance acquisition.

• Completed acquisition of Tongyang Life and ABL Life, adding KRW 556 billion in bargain purchase gains and finalizing a full-service financial group structure.

• Group CET1 ratio improved to 12.92% as of September 2025, up 80 bps YoY, surpassing the 12.5% year-end target.

• Strategic focus on maximizing synergies across banking, brokerage, and insurance, with significant growth in bancassurance sales and digital transformation.

• Maintained stable asset quality with group NPL ratio at 0.70% and bank NPL at 0.31%.

Financial highlights

• Net operating revenue YTD reached KRW 8.17 trillion, up 2.3% YoY; Q3 revenue was KRW 2.77 trillion, stable QoQ.

• Non-interest income YTD was KRW 1.44 trillion, up 4.6% YoY; Q3 non-interest income rose 5.3% QoQ to KRW 555.2 billion.

• Core fee income hit a record KRW 563.7 billion in Q3, up 7.9% QoQ.

• SG&A expense YTD was KRW 3.69 trillion; Q3 SG&A was KRW 1.21 trillion, up 3.2% QoQ; cost-to-income ratio at 43.1%.

• Q3 credit cost was KRW 574.3 billion, up 13.1% QoQ, including KRW 150 billion in one-off items; credit cost ratio at 0.42%.

Outlook and guidance

• NIM expected to remain stable around 1.4–1.5% despite potential rate cuts.

• Credit costs anticipated to stabilize in Q4 as provisioning for completion guarantee projects is largely resolved.

• Insurance and securities arms expected to contribute more significantly to group earnings from 2026.

• CET1 ratio target of 13% accelerated to 2026.

• Focus on sustainable growth leveraging full-service group structure and insurance integration.