Woori Financial Group Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Net Income: Year-to-date net income increased by 5.1% to KRW 2,796.4 billion. Q3 net income was KRW 1,244.4 billion, up KRW 300 billion from Q2.

Net Operating Revenue: Year-to-date revenue totaled KRW 8,173.4 billion, a 2.3% increase YoY. Q3 revenue was KRW 2,773.3 billion, stable compared to Q2.

NIM (Net Interest Margin): Improved for the third consecutive quarter to 1.48%, up 3 basis points QoQ and 8 basis points YoY.

CET1 Ratio: Preliminary CET1 ratio stood at 12.92%, exceeding the 2025 target of 12.5%, with an 80 basis point increase from the end of last year.

SG&A Expenses: Cumulative SG&A expenses reached KRW 3,690.3 billion, with a Q3 expense of KRW 1,211.2 billion, reflecting a 3.2% increase QoQ.

2Strategic Updates and Business Highlights

Insurance Acquisition: The acquisition of Tongyang Life and ABL Life was completed, contributing to a diversified profit structure and a bargain purchase gain of approximately KRW 556 billion.

Asset Rebalancing: Continuous efforts in asset rebalancing and funding optimization have led to improved profitability and a stable financial structure.

Future Co-Growth Project: The group plans to supply KRW 80 trillion over five years to support productive financing in key industries, aiming to enhance competitiveness and economic contribution.

Synergies: The integration of banking, brokerage, and insurance operations is expected to maximize group synergies and enhance noninterest income.

3Forward Guidance and Outlook

NIM Stability: The bank aims to maintain a NIM of around 1.5% for the year, despite potential base rate cuts.

Credit Costs: Credit costs are expected to stabilize in Q4, with proactive risk management measures in place.

Profitability Growth: The insurance arm is anticipated to contribute positively to net income starting in 2026, with expectations for increased sales from the securities business.

4Bad News, Challenges, or Points of Concern

Increased Credit Costs: Q3 credit costs rose by 13.1% QoQ to KRW 574.3 billion, partly due to provisions for completion-guarantee projects.

Economic Uncertainties: Ongoing concerns regarding exchange rate volatility, trade negotiations, and a potential economic slowdown could impact future performance.

Regulatory Risks: The group faces risks related to regulatory fines and the need for ongoing capital management amid market fluctuations.

5Notable Q&A Insights

Insurance Integration: Management is still evaluating whether to merge the acquired insurance entities into a single subsidiary, with no decisions made yet.

M&A Opportunities: While the focus remains on strengthening current operations, future M&A opportunities may be considered to enhance competitiveness.

Cybersecurity Investments: The group is enhancing its cybersecurity measures in response to recent global security issues, with increased investment planned.

Shareholder Returns: The board approved a quarterly cash dividend of KRW 200 per share, with ongoing discussions about utilizing bargain purchase gains for shareholder returns. This summary encapsulates the key points from Woori Financial Group's Q3 2025 earnings call, highlighting both achievements and challenges faced by the group.