Woori Financial Group (316140) Q3 2025 earnings summary

Executive summary

• Year-to-date net income rose 5.1% YoY to KRW 2,796.4 billion, driven by balanced interest and non-interest income and insurance subsidiary integration.

• Completed acquisition of Tongyang Life and ABL Life, finalizing a full-service financial group structure and contributing significant bargain purchase gains.

• Group CET1 ratio improved to 12.92% as of September 2025, reflecting strong capital management.

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

• Received AAA ESG rating from MSCI for three consecutive years and included in Dow Jones World Index.

Financial highlights

• Q3 net operating revenue YTD reached KRW 8,173.4 billion, up 2.3% YoY; Q3 net income was KRW 1,244.4 billion, up 33% YoY.

• Non-interest income YTD was KRW 1,441.5 billion, up 4.6% YoY; Q3 non-interest income rose 5.3% QoQ to KRW 555.2 billion.

• SG&A expense YTD was KRW 3,690.3 billion; Q3 SG&A was KRW 1,211.2 billion, up 3.2% QoQ and 16.8% YoY, mainly due to IT and brand investments.

• Credit cost YTD was KRW 1,517.6 billion; Q3 credit cost was KRW 574.3 billion, up 13.1% QoQ and 21.1% YoY, with one-off items of KRW 150 billion.

• Total assets as of 9/30/2025: KRW 586.96 trillion, up from KRW 498.00 trillion at 2023 year-end.

Outlook and guidance

• CET1 ratio target of 13% accelerated to 2026, ahead of previous 2027 goal.

• Focus on maximizing group synergy across banking, securities, and insurance, with continued expansion of bancassurance and digital initiatives.

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

• Future Co-Growth Project to supply KRW 80 trillion in productive financing over five years.

• Insurance business expected to contribute KRW 30–40 billion annually to net income after consolidation adjustments.