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 efficient cost management.

• ROE increased to 9.3% (9.34% group, 9.55% excluding FX one-offs), and cost-income ratio improved to 42.8% due to ongoing cost optimization.

• CET1 ratio increased to 12.08%, with a 20% year-over-year increase in dividend per share, reflecting enhanced shareholder returns.

• Credit cost decreased 9.4% year-over-year to KRW 1.72 trillion, with a credit cost ratio of 0.45% and high NPL coverage (Group: 153%, Bank: 247%).

Financial highlights

• Net operating revenue grew 6.1% year-over-year to KRW 10.44 trillion, with interest income stable at KRW 8.89 trillion and non-interest income up 41.9% to KRW 1.55 trillion.

• 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.

• NIM declined by 12 basis points to 1.70% for the group, reflecting lower market rates.

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

Outlook and guidance

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

• Focus on defending margins through asset rebalancing, cost control, and prioritizing asset soundness, with continued digital transformation.

• Targeting CET1 ratio of 12.5% by year-end 2025, with RWA growth managed within 4%.

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