Woori Financial Group Inc.

Woori Financial Group reported Q2 2026 net income of KRW 1.0046 trillion, up 66% Q-o-Q, and first-half 2026 net income of KRW 1.609 trillion, up 3.7% Y-o-Y. Common equity ROE was 9.0%, or 10.3% excluding one-off items. First-half net operating revenue increased 6.0% Y-o-Y to a record KRW 5,722.7 billion; Q2 net operating revenue was KRW 2.965 trillion, up 7.5% Q-o-Q. Non-interest income was KRW 1,063 billion in the first half and KRW 628.9 billion in Q2, both record highs; fee income reached KRW 1,278.8 billion in the first half and KRW 702 billion in Q2. SG&A expenses were KRW 2,632.8 billion in the first half, with a CI ratio of 42.8%. First-half credit costs were KRW 966 billion; Q2 credit costs were KRW 439.2 billion, down 16.7% Q-o-Q. Preliminary CET1 was 13.71%, up 11 bps Q-o-Q. Forward-looking, management reiterated a full-year credit cost target down 15% and a credit cost ratio in the low-40 bps range. It also guided to continued focus on productive finance, non-bank earnings growth, and sustainable ROE improvement. Shareholder returns included a KRW 220 per share second-quarter cash dividend (fully non-taxable), a total 2026 buyback/cancellation plan of KRW 350 billion, and a stated goal of further regularizing semiannual buybacks over time.

No CEO spoke on the call; the CFO and other executives framed the strategy. The tone was confident and constructive, with management emphasizing that the group has rebuilt quarterly earnings capacity above KRW 1 trillion and that diversification is finally showing up in the numbers. They stressed a transition toward a more balanced earnings mix, stronger non-bank contribution, and continued execution of the corporate value-up program.

CFO Kwak Seong-Min highlighted that first-half net income reached KRW 1.609 trillion, with Q2 net income at KRW 1.0046 trillion and ROE at 9.0% before adjustments. He pointed to record first-half net operating revenue of KRW 5,722.7 billion, a 42.8% CI ratio, first-half credit costs of KRW 966 billion, and CET1 of 13.71%, which he said reflects disciplined capital allocation and risk-weighted asset management. He also detailed capital returns: a KRW 220 per share non-taxable dividend and a second-half KRW 150 billion buyback/cancellation, bringing 2026 total buybacks to KRW 350 billion. He repeatedly stressed that productive finance is largely asset rebalancing rather than simple loan expansion, and said the group remains on track for a 15% reduction in credit cost and a low-40 bps credit cost ratio.

Analysts pressed management on the securities subsidiary’s growth plan after the KRW 1 trillion capital injection, including retail branch expansion, licenses, and how capital would be used; management said the unit is being built from a zero base, will expand complex branches, and will use capital mainly to improve ROE, especially in IB. Questions on credit quality focused on substandard assets and the Tongyang Group exposure; management said the NPL increase was mainly tied to KRW 130 billion of Tongyang-related exposure, with KRW 44 billion provisioned in Q2. Analysts also asked about NIM sensitivity, ERP timing, digital assets, and the path to a 50% TSR target; management said higher rates should help NIM, future ERPs are likely to remain in Q1 for now, digital-asset and stablecoin work is ongoing, and 50% TSR may be clearer after Q3 depending on year-end CET1 and earnings.