Q1 2025 Woori Financial Group Inc Earnings Call Transcript
Key Points
- Woori Financial Group Inc (WF) reported a net income of KRW615.6 billion for Q1 2025, demonstrating solid revenue-generating capabilities despite market volatility.
- The group's net operating revenue increased by 2.4% year-over-year and 6.6% quarter-over-quarter, reaching KRW2,609.5 billion.
- Efforts to optimize the portfolio and diversify revenue sources have resulted in stable growth in non-interest income, driven by core fee income.
- The group's preliminary CET1 ratio improved to 12.42%, a 30 basis point increase from the end of the previous year, showing progress towards achieving a 12.5% CET1 ratio.
- Woori Financial Group Inc (WF) announced a quarterly dividend of KRW200 per share, an 11% increase year-over-year, and is executing a share buyback and cancellation program totaling KRW150 billion.
- Net income came in below market expectations due to conservative provisioning and non-regular items such as costs related to the ERP and investments for future growth.
- Credit costs increased by 18.8% year-over-year to KRW435.5 billion, driven by challenging internal and external business environments.
- The group's SG&A expenses rose by 26.6% year-over-year, with a cost-to-income ratio of 43.6%, influenced by one-off factors including early retirement program costs.
- The bank's loan portfolio showed a slight 1% decrease versus the end of the year, with retail loans remaining flat due to government household debt management policies.
- Concerns over economic recession and market volatility persist, with potential impacts from prolonged high exchange rates and US reciprocal tariff policies.
Good afternoon. I am Han Hong Seong, Head of IR at Woori Financial Group. Let me first begin by thanking everyone for taking time to participate in this earnings call for Woori Financial Group. On today's call, we have Group CFO, Yihong Group; CDO, Ouk Il-Jin; and Group CRO, Park Jang-Geun.
On today's call, the group CFO, Lee Sung-Wook will give a presentation on the earnings performance, after which we will have a Q&A session.
Please note that the earnings call is being conducted with simultaneous interpretation for our overseas investors. Now, let us start our presentation on Woori Financial Group's earnings for the first quarter of 2025.
Good afternoon. This is Lee Sung-Wook, the CFO of Woori Financial Group. Let me go over the first quarter performance for 2025. Please turn to Page 3 of the presentation material that has been disclosed on our website.
First, let me talk about net
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