Woori Financial Group (316140) Q4 2024 earnings summary

Executive summary

• Net income for 2024 reached KRW 3.086 trillion, up 23.1% year-over-year, driven by improved profit generation, strong top-line growth, and cost management.

• ROE increased by 1 percentage point year-over-year to 9.3% (9.34% overall, 9.55% excluding FX one-offs).

• Cost-to-income ratio improved to 42.8% due to ongoing cost optimization.

• Credit cost decreased 9.4% year-over-year, with a stable credit cost ratio of 0.45% and high NPL coverage (Group: 153%, Bank: 247%).

• The group maintained robust asset quality and continued conservative provisioning.

Financial highlights

• Net operating revenue grew 6.1% year-over-year to KRW 10.44 trillion, with interest income up 1.6% and non-interest income up 41.9%.

• Fee income surged 21.3% year-over-year, supported by strong performance in both bank and non-bank segments.

• Loans expanded 7.2% year-over-year, led by a 9.0% increase in corporate loans and 5.9% in retail loans.

• SG&A expenses remained tightly controlled, rising only 0.6% year-over-year.

• Cost Income Ratio improved to 42.8%.

Outlook and guidance

• 2025 expected to face weak recovery, domestic demand slowdown, and further BOK rate cuts.

• Focus on active growth management, asset rebalancing, and defending margins.

• Targeting CET1 ratio of 12.5% by end-2025 through systematic RWA management.

• NIM expected in the upper 1.3%-1.4% range; CCR to be managed within 0.4%.

• Continued focus on cost optimization, risk management, and digital transformation to drive sustainable growth.