Woori Financial Group (316140)

**Business Overview** Woori Financial Group is a financial holding company established in 2019, operating as a comprehensive financial group offering diverse financial services including banking, insurance, credit cards, capital, and securities. Its key subsidiaries include Woori Bank, Woori Card, Woori Financial Capital, Woori Investment & Securities, Tongyang Life Insurance, and ABL Life Insurance. The group operates an extensive network across 24 countries both domestically and internationally. While its core business is based on commercial banking, it has recently diversified its business portfolio by acquiring insurance and securities firms to strengthen its non-banking segment. As of Q1 2026, the non-banking segment accounts for approximately 23.5% of the group's net income. Its main customers are individual and corporate clients, and it holds a significant market position as one of the top five financial holding companies in Korea. **Core Competitiveness** Woori Financial Group boasts a history and brand recognition inherited from the nation's only traditional bank, established in 1899. As of the end of March 2026, its Common Equity Tier 1 (CET1) ratio rose to 13.6%, securing a top-tier level of capital soundness compared to its major competitors. Furthermore, through its strategy to strengthen the non-banking segment, it is diversifying its revenue portfolio by incorporating insurance and securities subsidiaries, and actively pursuing shareholder return policies such as tax-exempt dividends and share buybacks and cancellations. **Performance Analysis** Looking at Woori Financial Group's annual performance, operating income in 2024 was KRW 4,255.2 billion, showing growth with an increase of approximately 21.6% compared to the previous year (KRW 3,499.0 billion). However, operating income in 2025 decreased by approximately 13.6% compared to 2024, reaching KRW 3,674.8 billion. Net income increased by approximately 20.7% in 2024 to KRW 3,171.5 billion compared to the previous year (KRW 2,626.9 billion), and in 2025, it maintained solid profitability with a slight increase of approximately 1.8% compared to 2024, reaching KRW 3,227.5 billion. Examining recent quarterly performance, operating income recorded a temporary deficit of KRW -120.4 billion in Q3 2025, but showed a significant recovery in Q4, reaching KRW 2,686.8 billion. **Financial Soundness** Regarding financial soundness indicators, the debt-to-equity ratio as of 2025 remained high at 1,488.67%, an increase from 1,364.69% in 2024. Return on Equity (ROE) recorded 8.53% in 2025, a slight decrease from 8.84% in 2024, but still indicates sound profitability. Information on the current ratio is not included in the provided data. **Outlook** Woori Financial Group plans to continuously pursue diversification of its revenue portfolio through strengthening its non-banking segment and expanding its global business. Specifically, it aims to enhance its non-banking competitiveness through a capital increase for Woori Investment & Securities and the full acquisition of Tongyang Life Insurance, and has a strategy to preempt the future financial market through digital transformation utilizing AI. Although net income temporarily decreased in Q1 2026, this is attributed to non-recurring factors such as one-off provisions related to overseas subsidiaries. Gradual performance improvement is expected through efforts to enhance capital ratios and expand non-interest income.