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- **Record Financial Performance**: 2025 net operating revenue up 5% YoY to KRW 10.96 trillion, driven by 24% growth in noninterest income.
- **Capital Strength**: CET1 ratio improved to 12.9%, with plans to reach 13% in 2026. Year-end dividend of KRW 760 (nontaxable) and KRW 200 billion buyback announced.
- **Strategic Growth**: KRW 73 trillion productive finance support over 5 years, focusing on AI, semiconductors, and defense. 10% DPS growth target and 20% nonbank profit contribution by 2026.
- **Risk Management**: Credit cost ratio of 0.42% (excluding one-offs), with plans to reduce credit costs by 20% YoY in 2026. AI-based risk management to enhance asset quality.


**【Management Opening Remarks】**
- Woori Financial Group completed the insurance acquisition in 2025, achieving a CET1 ratio of 12.9% (vs. target 12.5%) and announcing a 2026 corporate value enhancement plan to reach a CET1 ratio of 13% ahead of schedule.
- The group emphasized shareholder returns, including nontaxable dividends and buybacks, and highlighted strategic initiatives in productive finance and AI-driven risk management.

**【CFO Financial Commentary】**
- **2025 Financial Highlights**: Net income of KRW 3,141.3 billion (+1.8% YoY), ROE of 9.1%, and record net operating revenue of KRW 10,957.4 billion (+5% YoY). Noninterest income surged 24% to KRW 1,926.6 billion, driven by fee income and insurance contributions.
- **Capital Strength**: CET1 ratio improved to 12.9%, up 77 bps YoY. Year-end dividends of KRW 760 (nontaxable) and KRW 200 billion buybacks were announced, with total TSR of 39.8%.
- **Asset Quality**: Credit cost ratio of 0.53% (0.42% excluding one-off provisions), with plans to reduce credit costs by KRW 420 billion YoY in 2026.

**【Corporate Value Enhancement Plan】**
- **2026 Targets**: CET1 ratio of 13%, 10% DPS growth, and 20% nonbank profit contribution. Shareholder returns will include nontaxable dividends and buybacks, with a focus on productive finance support (KRW 73 trillion over 5 years).
- **Strategic Initiatives**: AI-based risk management, asset rebalancing, and synergies across banking, securities, and insurance businesses. Plans to dispose of idle real estate to enhance capital ratios.

**【Q&A Highlights】**
- **2026 Outlook**: 5% asset growth target, 20% noninterest income growth, and 40 bps credit cost ratio. Buybacks may expand if CET1 exceeds 13%.
- **Dividend Policy**: Nontaxable dividends will be distributed quarterly starting 2026, with resources of KRW 6.3 trillion available. DPS target of 10% YoY growth.
- **Nonbank Growth**: Securities and insurance businesses will focus on fee income, wealth management, and productive finance funds. Insurance will prioritize stability amid market volatility.
- **Capital Management**: Idle real estate disposal and asset rebalancing will support CET1 ratio maintenance above 13.2%.


Woori Financial Group Inc. (WF) Q4 2025 Earnings Call Transcript

- **Strong Financial Performance**: 5.1% YoY net income growth, 1.48% NIM, and record fee income of KRW 563.7 billion.
- **Capital Management Excellence**: CET1 ratio up 80bps to 12.92%, targeting 13% by 2026 despite insurance acquisition.
- **Sustainable Growth Initiatives**: Future Co-Growth Project to allocate KRW 80 trillion in productive financing over 5 years.
- **Risk Management**: Proactive credit provisioning (KRW 98 billion Q3) and 130% coverage ratio maintain asset quality.
- **Digital Transformation**: AI integration for loan underwriting and cybersecurity investments at 11% of IT spend.

**【CFO Financial Commentary】**
- **Net Income Growth**: Year-to-date net income rose 5.1% YoY to KRW 2,796.4 billion, with Q3 net income up 300 billion QoQ. 
- **NIM Improvement**: Woori Bank's NIM reached 1.48% (3bps QoQ increase), driven by asset rebalancing and cost savings.
- **Loan Book Expansion**: Corporate loans remained flat at KRW 178 trillion, while retail loans grew 1.5% QoQ to KRW 150 trillion.
- **Noninterest Income Strength**: Core fee income hit a record KRW 563.7 billion (7.9% QoQ growth), supported by wealth management and credit card businesses.
- **Expense Management**: Cost-to-income ratio maintained at 43.1%, with disciplined spending on digital initiatives.
- **Credit Quality**: Credit cost ratio stabilized at 0.42%, with proactive provisioning for completion-guarantee projects.
- **Capital Adequacy**: CET1 ratio improved 80bps YoY to 12.92%, exceeding 2025 target of 12.5%. Group aims for 13% CET1 by 2026.
- **Insurance Acquisition Impact**: Bargain purchase gain of KRW 550 billion offset by 55 billion in one-off provisions, with minimal capital ratio impact.

**【Q&A Highlights】**
- **Insurance Integration**: Plans to evaluate merging Tongyang Life and ABL, with focus on enhancing group synergies.
- **Future Co-Growth Project**: KRW 80 trillion in productive financing over 5 years, balanced against capital management.
- **Cybersecurity**: IT security investment at 11% of total IT spend, with multi-authentication and terminal security upgrades.
- **Dividend Policy**: 2025 dividend of KRW 200/share, with buybacks and cancellations to enhance TSR.
- **AI Integration**: AI agents for loan underwriting and employee productivity, with 90%+ accuracy in complex tasks.

Woori Financial Group Inc. (WF) Q3 2025 Earnings Call Transcript

- **CET1 Ratio Exceeds Target**: CET1 ratio of 12.76% surpasses 12.5% target, with plans to reach 13% by year-end.
- **Insurance Acquisition Impact**: Completed Tongyang and ABL Life integration; PPA results pending but no immediate capital increase needed.
- **NIM Stability**: Q2 NIM at 1.45% (bank) and 1.71% (group), maintained through asset rebalancing.
- **Dividend Policy**: Quarterly dividend of KRW 200 per share approved, aligning with 50% payout policy.
- **MTS Expansion**: Woori Investment Securities to launch overseas stock trading and AI-driven investment tools in 2025.

**【Management Opening Remarks】**
- Hong Sung Han, Head of IR, welcomed participants and introduced the CFO, Sung-Wook Lee, who would present the financial results. The call included simultaneous interpretation for overseas investors.

**【CFO Financial Commentary】**
- **Net Income**: First-half 2025 net income was KRW 1,551.3 billion, down 11.6% Y-o-Y, due to one-off expenses (early retirement program and trust provisions). Excluding these, net income was stable.
- **Capital Adequacy**: CET1 ratio reached 12.76% as of June 2025, up 60 bps Y-o-Y, exceeding the 12.5% target. The group aims to achieve 13% by year-end through asset rebalancing and risk-weighted asset management.
- **Business Expansion**: Completed acquisition of Tongyang Life and ABL Life in July 2025, with ongoing purchase price allocation (PPA) to assess financial impact. Focus on sound capital management and synergies across the group.
- **Operating Revenue**: First-half operating revenue grew 2.3% Y-o-Y to KRW 5,400.1 billion, driven by core fee income in Wealth Management and noninterest income from capital market activities.
- **Net Interest Margin (NIM)**: Bank NIM was 1.45% in Q2, up 1 bps Q-o-Q, reflecting asset rebalancing and funding cost management. Group NIM (including credit card) was 1.71%, up 1 bps Q-o-Q.
- **Loan Portfolio**: Bank loans totaled KRW 329 trillion, with retail loans up KRW 3.7 trillion Q-o-Q. Focus on SME lending and household debt management per government policy.
- **Noninterest Income**: First-half noninterest income was KRW 886.3 billion, stable Y-o-Y, with Q2 up 47% Q-o-Q due to Wealth Management fee growth and market-related gains.
- **Expenses**: SG&A rose 18% Y-o-Y to KRW 2,479.1 billion, driven by one-off costs (early retirements, IT investments). Cost-to-income ratio was 42.8%.
- **Credit Costs**: First-half credit costs were KRW 944.5 billion, up 16.9% Q-o-Q due to preemptive provisions. Excluding one-off items, credit cost ratio was 0.42%.
- **Capital Return**: Approved quarterly dividend of KRW 200 per share (record date August 10), aligning with 50% payout policy.

**【Q&A Highlights】**
- **Insurance Strategy**: No decision on merging Tongyang and ABL; focusing on business assessment and K-ICS ratio improvement. PPA results to be disclosed in Q3.
- **Capital Ratio Target**: CET1 ratio to exceed 12.5% for 2025, with potential 13% achievement by year-end. No immediate capital increase needed for insurers.
- **MTS Service**: Woori Investment Securities launched MTS in March, opening 20 new accounts. Plans to expand overseas stock trading and AI-driven investment tools.
- **Stable Coins**: Monitoring digital asset framework; potential joint stable coin issuance with OBDIA, pending regulatory clarity.
- **Credit Cost Guidance**: Full-year CCR expected at low to mid-40s basis points, stable after Q2 one-off provisions.
- **Share Buyback**: 2025 share cancellation of KRW 150 billion scheduled for September, with future buybacks contingent on financial conditions.

Woori Financial Group Inc. (WF) Q2 2025 Earnings Call Transcript

- **Core Earnings Resilience**: Despite one-off costs, ROE at 9.5% and CET1 ratio up 30bps to 12.42%.
- **Digital Growth Momentum**: Super App MAU targets 9M, life insurance acquisition to add KRW 300-400B annual profit.
- **Risk Management Excellence**: Normalized credit cost ratio at 0.39%, real estate PF exposure capped at 0.5% of loans.
- **Tariff Mitigation Strategy**: Proactive portfolio rebalancing and customer support to minimize trade dispute impact.

**【CFO Performance Overview】**
- Q1 2025 Net Income: KRW 615.6 billion (YoY -18.8% due to one-off costs). Core ROE: 9.5%.
- Net Operating Revenue: KRW 2,609.5 billion (YoY +2.4%, QoQ +6.6%). Interest Income stable, Noninterest Income up 5%.
- Credit Cost: KRW 435.5 billion (YoY +18.8%), driven by economic uncertainty. Normalized credit cost ratio: 0.39%.
- CET1 Ratio: 12.42% (up 30bps YoY), targeting 12.5%+ by end-2025.
- Q1 Dividend: KRW 200/share (YoY +11%), with buyback program of KRW 150 billion.

**【Asset Management & Risk】**
- Loan Portfolio: KRW 330 trillion (slight QoQ decline). Focus on high-quality SMEs (183% growth), secured retail loans, and risk mitigation.
- NIM: 1.44% (QoQ +4bps), benefiting from BOK rate cuts and cost stabilization. Anticipate NIM stability amid rate cuts.
- Real Estate PF Exposure: KRW 3.3 trillion (0.5% of loans), with preemptive provisioning limiting impact.

**【Digital & Expansion Initiatives】**
- Super App MAU: 8.5 million (target 9M by end-2025). Securities MTS launched, integrating digital channels.
- Life Insurance Acquisition: Expected annual profit boost of KRW 300-400 billion, minimal CET1 impact.
- Budget Telecom Service: Targeting 20-30s demographic, bundled telecom/finance products for customer acquisition.

**【Macroeconomic Response】**
- U.S. Reciprocal Tariffs Task Force: Monitoring sector-specific impacts, restructuring portfolio to high-quality assets.
- Foreign Currency Management: Reducing FX-sensitive assets, maintaining liquidity buffers.
- Digital Investments: KRW 169 billion in Q1 for UN Banking, IT upgrades; targeting cost efficiency in 2025.

Actual	1.7712	0.5812	1.8142	0.6211	2.3147	2.6491	2.5743	1.304	2.8302	2.6821	2.962	2.8254	1.893	2.7774	0.2306	2.416	2.8386	2.5383	1.1953	1.786	2.6773	3.5225	0.97
Forecast	1.6798	0.6149	1.572	0.7505	3.8663	2.0325	2.6016	1.1778	2.3996	2.84	2.6129	2.9038	2.5027	2.3094	0.7507	2.2534	2.4355	2.3811	1.1445	1.9339	2.5823	2.2758	0.8161	2.6042
Surprise	+5.44%	-5.48%	+15.41%	-17.24%	-40.13%	+30.34%	-1.05%	+10.71%	+17.94%	-5.56%	+13.36%	-2.70%	-24.36%	+20.27%	-69.28%	+7.22%	+16.55%	+6.60%	+4.44%	-7.65%	+3.68%	+54.78%	+18.86%	0.00%

WF

WF fundamentals

WF Q1 2026 Earnings Preview

Earnings Call

You can ask Aime

WF

WF fundamentals

WF Q1 2026 Earnings Preview

Earnings Call

WF Earnings Call Summary for Q1/2026Upcoming Mar 25, 2026

WF Earnings Call Summary for Q4/20252:00 AM on Feb 6, 2026

WF Earnings Call Summary for Q3/20253:00 AM on Oct 29, 2025

WF Earnings Call Summary for Q2/20253:00 AM on Jul 25, 2025

WF Earnings Call Summary for Q1/2025Invalid Date on Apr 25, 2025

You can ask Aime