Sohn Tae-seung, chairman of Woori Financial Group. (Photo: Woori Financial Group)

Woori Financial Group racked up the best business performance since its transition into a holding company in the first quarter of this year.

The result is attributable to the financial group focusing on improving its profit structure even when the novel coronavirus was ravaging the global economy.

In an earnings report on April 21, Woori Financial Group said it logged 671.6 billion won in net income for the first quarter of 2021.

It was a year-on-year increase of 29.7 percent and a quarter-on-quarter increase of more than 300 percent. Thus, the financial group’s earnings far exceeded market expectations.

It logged the best-ever quarterly performance since its transition into a holding company.

“Woori Financial Group was able to produce these strong results as it concentrated its capabilities on improving its profit structure and risk management, and expanding its non-bank portfolio after its transition into a holding company despite the negative effects of the COVID-19 pandemic and a key rate cut in 2020,” said an official of Woori Financial Group.

Woori Financial Group posted 1.987 trillion won in net operating income, up 17 percent from the previous quarter.

Its interest income stood at 1,619.6 billion won, up more than 3 percent from the previous quarter on the back of corporate loan-oriented asset growth and efforts to improve its net interest margins, including an increase in low-cost deposits.

Its non-interest profits added up to 367.4 billion won, with the addition of Woori Financial Capital’s lease commissions to strong sales in the asset management and securities sectors.

Woori Financial Group kept its financial soundness stable. Its NPL ratio stood at 0.39 percent, improving from the end of last year. Its delinquency rate hit 0.27 percent, maintaining a level better than the end of 2020. Its excellent asset ratio and NPL coverage ratio stayed at 88.2 percent and 162.2 percent, respectively.

Its general and administrative expense ratio also fell to 46.2 percent, down 4 percentage points from a year earlier (50.2 percent). Analysts say that the financial group’s cost-cutting efforts paid off handsomely.

“With income exceeding 100 billion won for the first time in the first quarter, new affiliates began to contribute to ramping up the financial group’s profit in earnest,” the official said.

“Strong momentum for Woori Financial Group’s earnings improvement will continue throughout the year as Woori Bank makes an improvement to its profitability.”

As for consolidated net profits by major subsidiaries, Woori Bank earned 589.4 billion won, Woori Card 72 billion won, Woori Financial Capital 35 billion won, and Woori Investment Bank 17 billion won.

Meanwhile, Woori Financial Group announced on May 12 that it will contribute $100,000 to India suffering from the spread of COVID-19, in an effort to participate in international cooperation to put a stop to the spread of the plague and fulfill its social responsibilities as a global financial group.

COVID-19 was more rampant than ever as of the end of April, with 380,000 confirmed cases a day, 18.75 million confirmed cases and about 200,000 deaths in total. The national medical system collapsed in India.

The country lacked beds, oxygen tanks and medical devices. Public health authorities had difficulties in recovering the bodies of the dead.

In addition, the Indian government’s continued lockdowns of cities is pushing poor people to the worst situations. The number of households unable to maintain their livelihoods is soaring in India as vulnerable manual workers have lost jobs due to the pandemic.

Woori Financial Group decided to donate the money to local non-profit organization “United Way India”, in conjunction with the Community Chest of Korea in order to help India recover its medical and health care system and give a helping hand to the marginalized in India.

The donation will be used to support local communities through purchases of medical equipment such as ventilators and oxygen respirators, restoring India’s medical system, including the construction of makeshift hospitals and the supply of hospital beds and providing daily necessities and food for those in need.