Woori Financial Group Racks Up 3,169.3 Billion Won in Net Profit in 2022

Former chairman Lim Jong-yong of Financial Services Commission named as chairman of Woori Financial Group. (Photo: Woori Financial Group)

Woori Financial Group by increasing core profits last year and expanded business in the non-banking sector.

The firm plans to pursue an active shareholder return policy, including the purchase and cancellation of treasury stocks and the introduction of quarterly dividends.

Woori Financial Group said in an earnings announcement on Feb. 8 that it made a net profit of 3,169.3 billion won in 2022.

“Despite difficult business environments both at home and abroad, we have achieved favorable results based on a solid increase in core profits, active cost management, and the expansion of our business in the non-banking sector,” a Woori Financial Group official explained.

Its net operating revenue, which is the amount of interest income and non-interest income combined, inflated by 18 percent from the previous year to 9,845.7 billion won.

Interest income showed a steady upward trend based on loan growth centered on corporate loans.

Its non-interest income increased by 16.2 percent year on year thanks to strong performances of its trust- and lease-related business despite a drop in securities-related income, due to a rise in market interest rates, showing stable non-interest generation.

Its NPL ratio stood at 0.31 percent and the delinquency rate 0.26 percent, the lowest in Korea’s financial industry.

Its prime asset ratio and NPL coverage ratio sat at 89.2 percent and 214.2 percent, respectively.

Despite global inflation, Woori Financial Group’s SG&A expense ratio continued to improve, logging 44.4 percent which represented an increase of 3.1 percentage points from the previous year, thanks to efforts to boost cost efficiency.

Meanwhile, Woori Financial Group announced that it would pay a dividend of 1,130 won per share (including an interim dividend of 150 won) in 2022.

In addition, Woori Financial Group announced a shareholder return policy in consideration of total shareholder return rates through a conference call for this earnings announcement.

First of all, in preparation for changes in the financial environment, the current common stock capital ratio is improved to 12 percent as early as possible.

In the process, the financial group proposed a plan to implement a total shareholder return rate of 30 percent every year, including the purchase and cancellation of treasury stocks.

In addition, Woori Financial Group expressed its active commitment to enhancing shareholder value and boosting stock prices by mentioning a plan to introduce quarterly dividends to improve visibility on the amount of dividends.

“2022 was a year in which Woori Financial Group upgraded its profit creation and risk management capabilities to the next level despite macro-environmental uncertainties,” a Woori Financial Group official said.

“We will also actively carry out various social contribution activities while expanding the protection of financial consumers and the expansion of their rights and interests.”

Major subsidiaries’ consolidated net profits were 2,919.8 billion won for Woori Bank, 204.4 billion won for Woori Card, 183.3 billion won for Woori Financial Capital and 91.8 billion won for Woori Investment Bank.