Woori Financial Group (316140) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached KRW 3,141.3 billion, up 1.8% year-over-year, with ROE stable at 9.1%.

• Achieved record-high net operating revenue of KRW 10,957.4 billion, up 5% year-over-year, with balanced growth in interest and non-interest income.

• CET1 ratio improved to 12.9%, exceeding the 2025 target, reflecting proactive asset rebalancing and minimal capital impact from insurance acquisitions.

• Expanded business portfolio through successful insurance and securities acquisitions, enhancing group synergy and revenue diversification.

• Board approved year-end dividend of KRW 760 per share and KRW 200 billion share buyback and cancellation.

Financial highlights

• Net operating revenue rose 5% year-over-year to KRW 10,957.4 billion, driven by diversified revenue and insurance inclusion.

• Non-interest income hit a record KRW 1,926.6 billion, up 24% year-over-year, with balanced growth across securities, FX, and insurance.

• SG&A expenses totaled KRW 5,180.5 billion; cost-to-income ratio at 45.7%.

• Credit cost was KRW 2,086.2 billion, with a credit cost ratio of 0.53%; excluding one-offs, ratio was 0.42%.

• Total assets grew 14.4% year-over-year to KRW 601.5 trillion; loans in won increased 2.2%.

Outlook and guidance

• Asset growth target for 2026 is around 5% year-over-year, with focus on productive finance and strategic industries.

• NIM expected to be maintained at current levels, with potential upside if market rates remain high.

• Non-interest income projected to grow by 18% in 2026, driven by insurance and securities contributions.

• CET1 ratio expected to reach and maintain above 13% in 2026, with additional share buybacks possible if achieved.

• DPS to increase by at least 10% annually, with non-taxable dividends extended to quarterly payments from 2026.