Woori Financial Group Inc., South Korea’s fourth-largest financial services holding company, has announced a significant increase in shareholder value through an ambitious corporate value-up program following a record-breaking second quarter.
The financial group reported a net profit of 931.4 billion won (US$672 million) for Q2, marking a 49% increase from the previous year’s 625.2 billion won. This figure surpassed the market consensus of 803.4 billion won. Despite considerable provisioning for potential losses from uncertain market conditions, including questionable property project financing, Woori achieved this substantial profit.
The company’s net interest income for the quarter was 2.2 trillion won, slightly down from the previous quarter. However, Woori Bank’s net interest margin declined to 1.47%, impacted by falling market interest rates, yet the group’s corporate loan portfolio grew robustly. Outstanding corporate loans reached 183 trillion won, up 13.8% year-on-year, with loans to large companies increasing by 15.4%.
Woori also saw a remarkable rise in non-interest income, which totaled 534.8 billion won, a 92% increase from the previous year. This growth was driven by the asset management, card, and lease businesses, with wealth management commissions alone rising by 30%.
In response to this financial performance, Woori Financial announced a shareholder return policy under its corporate value-up program, led by CEO Yim Jong-yong. The program aims for a total shareholder return (TSR) of 50% and a sustainable return on equity (ROE) of 10%. Additionally, Woori declared a quarterly dividend of 180 won per common stock.
Following these announcements, Woori Financial’s shares surged by 8.6% to a 52-week high of 15,780 won, outperforming the Kospi index’s 0.8% rise. This strong performance underscores the market’s positive reception to Woori’s enhanced focus on maximizing shareholder value and strategic growth initiatives.
