Chairman Lee Soon-woo and also the president of Woori Bank, which assumed the functions of Woori Financial Group recently to facilitate the group's privatization. (Photo:WB)

Woori Bank kicked off its first day of business on Nov. 1 since merging with Woori Financial Holdings. The bank will continue its operation as its establishment law has been left intact, taking over the role of a holding company.

 With the merger, Woori Financial Holdings ended its 14 years of existence as a financial holding company on Nov. 1. It had been the first such company in Korea.

 The government set up Woori Financial Holdings to manage a number of government-owned banks, including Hanbit, Pyonghwa, Kyungnam and Kwangju Bank, all with government funds under a government policy to consolidate those banks into one group in 2001.

 Woori Bank set up the Overall Management Support Office to assume the role of a holding company from Woori Financial Holdings. Vice President Kim Seung-kyu has been named to take control of the new office, which will take charge of the privatization of the group’s affiliates, among other matters.

Woori Bank was established in 1899 and conducted general banking business during modernization and industrialization era. Today, the bank has grown to become a leading provider of financial services. 

This support has been reflected in a number of recent awards. Woori was proud to receive an award for Customer Credit Protection and was recognized as the best financial service provider of small finance in 2012.

The bank plans to offer greater convenience and benefits to customers through its customer-specific products and services, and smart banking services suitable for a digital financial service leader. Furthermore, the bank is determined to fulfill its responsibly and role as a social enterprise by boosting financial services for small- and medium-sized enterprises and the general public, and by conducting diverse social responsibility activities.

The bank wishes to convey its utmost appreciation for customers’ continued support. 

 Total assets of Woori Financial Group were 279.7 trillion won at the end of first half of 2014, down due to the spin-off of regional banks (57.5 trillion won) and the disposal of subsidiaries in the securities business (101.9 trillion won), but core assets — such as loans — are continuing to grow.

Woori Bank’s BIS ratio, basic equity capital ratio, and capital stock ratio recorded 16.18 percent, 12.80 percent and 11.36 percent, respectively, and those of Woori Financial Group were 14.08 percent, 11.05 percent and 9.49 percent, respectively. Compared to the previous quarter, these figures showed huge increases, maintaining the highest level of capital adequacy in the industry.

In terms of profitability, Woori Financial Group’s Q2 NIM dropped only 2 bps compared to the previous quarter, recording 1.99 percent, and realized solid interest income thanks to the growth of quality loans.

In terms of asset quality, substandard and below ratio decreased 0.06 percent from the previous quarter to 2.54 percent and delinquency ratio also fell by 0.06 percent from the previous quarter to 1.17 percent  thanks to promoting asset soundness as a top priority of management strategy.

“Merging between the holding company and bank is progressing smoothly and by giving trust to the market and customers through enhancing company value, we will strive to successfully complete the privatization you and your family,” said an official of Woori Financial Group.