Net profit: 2,659.1 billion won, an increase of 9.1% from the previous year. Net profit for the third quarter was 903.6 billion won.
Return on Equity (ROE): 10.82%.
Cost to revenue ratio: less than 40% for two consecutive quarters. 39.6% in the third quarter.
Net operating revenue: 7,992.7 billion won, an increase of 6.6% from the previous year. The third quarter was 2,712.2 billion won.
Credit cost: 1,254.6 billion won, an increase of 6.3% from the previous year. Credit costs for the third quarter were 479.1 billion won.
Non-performing loan ratio: 0.55% for groups, 0.21% for banks.
Non-performing loan coverage ratio: 152% for groups, 270% for banks.
CET1 ratio: expected to be around 12% as of September 2024.
Net Interest Margin (NIM): 1.40% for banks. The total for the group including the card business is 1.67%.
Total loan amount: 340 trillion won, 5% increase from June 2024.
Total deposits: 327 trillion won, 5.5% increase from June 2024.
Non-interest income: 1,378.1 billion won, an increase of 53.2% from the previous year.
Selling, general and administrative expenses: 3,158.1 billion won, an increase of 3.4% from the previous year. SG&A expenses for the third quarter were 1,057.1 billion won.
Dividend: A cash dividend of KRW 181 per share was approved.
Release date: October 25, 2024
For a complete record of financial statements, see Complete Record of Financial Statements.
Woori Financial Group Inc (NYSE:WF) reported that its cumulative net profit for the third quarter of 2024 increased by 9.1% year-on-year to reach 2,659.1 billion won.
The Group’s return on equity (ROE) is 10.82%, indicating high profitability.
The cost-to-income ratio has been below 40% for two consecutive quarters, demonstrating effective cost management.
Non-interest income increased 53.2% year-on-year due to favorable market conditions and strong gains from securities.
The Group’s CET1 ratio is expected to be approximately 12%, remaining stable despite currency fluctuations.
Net profit for the third quarter of 2024 was 903.6 billion won, a slight decrease compared to the previous quarter.
Net interest margin (NIM) decreased by 7 basis points in the third quarter, reflecting margin compression due to changes in market interest rates.
Credit costs increased 6.3% year-on-year and 17.1% quarter-on-quarter in the third quarter due to high interest rates and real estate market restructuring.
Core deposit growth was slow due to high demand for term deposits amid expectations of interest rate cuts.
The Group faces uncertainties due to geopolitical risks and a potential economic slowdown, which may affect its future results.
Q: Could you please explain why the CET1 ratio is flat this quarter and whether the year-end target of 12.2% is still achievable considering the appreciation of the Korean won? A: The CET1 ratio remained at 12% as our capital ratio improved due to the appreciation of the Korean won. Risk-weighted assets increased due to the increase in assets, and the ratio remained at the same level as at the end of June. The Group aims to achieve the 12.2% target by focusing on asset management and price adjustments for corporate and household loans. The goal is to reach a CET1 ratio of 12.5% by the end of 2025.
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Q: What is your outlook for NIM in the fourth quarter and your dividend plan for 2025? A: NIM in the third quarter declined by 7 basis points due to higher term deposit rates. Aggressive asset and capital management should stabilize NIM in the fourth quarter. If interest rates fall by 75 basis points in 2025, NIM could fall by 4 to 5 basis points. Regarding dividends, the Group will consult with the Board of Directors regarding an equal distribution over quarters and will notify the decision by February 2025.
Q: What is Woori Investment & Securities’ launch schedule for new services and applications? A: The MTS service is scheduled to launch by the end of the year, and the integrated super app is scheduled to be released in the first quarter of next year. is. Integration of IT systems for a comprehensive MTS is targeted for the second half of next year.
Q: What is your forecast for the cost of credit at the end of the year and early next year? A: Due to high interest rates and delinquency rates, the current cost of credit is 42 basis points. Once the real estate PF market restructuring is complete and interest rates are lowered, credit costs could improve to less than 40 basis points next year.
Q: Given the challenging market environment, what are your objectives and strategies to increase core deposits? A: The Group aims to increase core deposits to cushion the downside in NIM. Measures include bank-wide efforts to attract corporate and residential customers. The current core deposit level is 92 trillion won, with the goal of reaching 100 trillion won. The Group expects the improvement in core deposits to accelerate next year.
For a complete record of financial statements, see Complete Record of Financial Statements.
This article first appeared on GuruFocus.
