GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Woori Bank (NYSE:WF) » Definitions » ROE %

Woori Bank (Woori Bank) ROE % : 11.12% (As of Sep. 2018)


View and export this data going back to 2003. Start your Free Trial

What is Woori Bank ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Woori Bank's annualized net income for the quarter that ended in Sep. 2018 was $2,134 Mil. Woori Bank's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $19,189 Mil. Therefore, Woori Bank's annualized ROE % for the quarter that ended in Sep. 2018 was 11.12%.

The historical rank and industry rank for Woori Bank's ROE % or its related term are showing as below:

WF's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.88
* Ranked among companies with meaningful ROE % only.

Woori Bank ROE % Historical Data

The historical data trend for Woori Bank's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Woori Bank ROE % Chart

Woori Bank Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.01 6.63 5.54 6.34 7.75

Woori Bank Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.50 2.68 11.66 13.77 11.12

Competitive Comparison of Woori Bank's ROE %

For the Banks - Regional subindustry, Woori Bank's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Woori Bank's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Woori Bank's ROE % distribution charts can be found below:

* The bar in red indicates where Woori Bank's ROE % falls into.



Woori Bank ROE % Calculation

Woori Bank's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=1396.385/( (17231.575+18806.773)/ 2 )
=1396.385/18019.174
=7.75 %

Woori Bank's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=2134.372/( (18997.66+19380.808)/ 2 )
=2134.372/19189.234
=11.12 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2018) net income data. ROE % is displayed in the 30-year financial page.


Woori Bank  (NYSE:WF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2018 )
=Net Income/Total Stockholders Equity
=2134.372/19189.234
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2134.372 / 6079.328)*(6079.328 / 296459.1615)*(296459.1615 / 19189.234)
=Net Margin %*Asset Turnover*Equity Multiplier
=35.11 %*0.0205*15.4492
=ROA %*Equity Multiplier
=0.72 %*15.4492
=11.12 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2018 )
=Net Income/Total Stockholders Equity
=2134.372/19189.234
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2134.372 / 2949.716) * (2949.716 / 6079.328) * (6079.328 / 296459.1615) * (296459.1615 / 19189.234)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7236 * 48.52 % * 0.0205 * 15.4492
=11.12 %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Woori Bank ROE % Related Terms

Thank you for viewing the detailed overview of Woori Bank's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Woori Bank (Woori Bank) Business Description

Traded in Other Exchanges
N/A
Address
Woori Bank is a commercial bank domiciled in Korea. The company organises its operations across six segments: consumer banking, corporate banking, investment banking, capital market, credit card, and headquarter and others. The company principally earns revenue from interest income, with most of this is derived from consumer and corporate customers. Consumer and corporate banking together represent the vast majority of revenue, and the bank generates the majority of its revenue domestically. The Korean government is a majority shareholder in Woori Bank.

Woori Bank (Woori Bank) Headlines

From GuruFocus

Woori Financial Group Inc. Files Its Annual Report on Form 20-F

By Business Wire Business Wire 04-21-2023

Woori Financial Group Inc. Files Its Annual Report on Form 20-F

By Business Wire Business Wire 05-16-2022

Woori Financial Group Inc. Files Its Annual Report on Form 20-F

By Business Wire Business Wire 04-30-2021