Woori Financial Group achieved its highest-ever cumulative performance in the third quarter thanks to the even growth of interest income and non-interest income in tandem with cost management.
Woori Financial Group announced on Oct. 25 that it racked up 1,921 billion won in operating profit and 778.6 billion won in net profit in the third quarter based on consolidated financial statements.
This was an increase of 61.76 percent and 62 percent, respectively, compared to the same period of last year.
In particular, its total operating profit reached 3,075.9 billion won and its net profit was 2,198.3 billion in the first three quarters of this year, up 66 percent and 93 percent, respectively, from a year ago.
Accordingly, Woori Financial Group renewed its highest quarterly performance record following the previous quarter.
“This is attributable to our strategy to expand the profit base and successful soundness and cost management that continued after our conversion to the holding company system,” a Woori Financial Group official explained.
Its net operating income (interest income and non-interest income put together) rose 20.6 percent year-on-year to 6,180.4 billion won in the first three quarters of 2021.
Interest income reached 5,885 billion won as loan growth centered on SMEs and an increase in core low-cost deposits made an improvement to the financial group’s profit structure.
Non-interest income rose 57.2 percent year on year to 1,091.9 billion won, contributing to Woori Financial Group’s strong performances.
This is because the effects of incorporating subsidiaries conflated with increases in profits caused by strengthened CIB capabilities in the IB business part and key commission profits such as trust-related fees.
Woori Financial Group managed its asset soundness very stably as its NPL ratio stood at 0.31 percent and its delinquency rate hit 0.24 percent despite concerns over a temporary economic slowdown due to measures to strengthen quarantine in the third quarter.
The prime asset ratio and the NPL coverage ratio sat at 89.2 percent and 177.5 percent, respectively, empowering Woori Financial Group to prepare actively for future economic uncertainties. The group's cost to income ratio fell 52.5 percent year on year to 45.2 percent.
By subsidiary, Woori Bank's total net income in the period stood at 1,986.7 billion won, up 71 percent from a year ago. It was followed by 174.6 billion won for Woori Card, 128.7 billion won for Woori Financial Capital and 66.5 billion won for Woori Investment Bank.
“In the third quarter, an improvement in our net interest margin (NIM) became temporarily stagnant,” the official said.
“But we recorded the highest-ever NIM exceeding 2 trillion won in three quarters thanks to even growth of interest income and non-interest income and active bad debt management.”
“If an economic recovery begins in earnest with the end of the COVID-19 crisis and Korea Deposit Insurance Corporation (KDIC) successfully completes the sale of its stake in Woori Financial Group, Woori Financial Group’s corporate value will rise further,” the official added.
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