Q1 2026 Woori Financial Group Inc Earnings Call Transcript
Key Points
- Woori Financial Group Inc (WF) reported a Q1 2026 net income of KRW603.8 billion, maintaining a flat year-over-year performance driven by solid growth in Corporate Finance and a five-quarter uptrend in the bank's NIM.
- The group's CET1 ratio reached a historical high of 13.6%, increasing 71 basis points year-to-date, providing a strong foundation for sustainable growth and shareholder returns.
- A quarterly dividend payout of KRW221 per share was announced, marking a 10% increase year-over-year, with the full amount being nontaxable.
- Nonbank subsidiaries, including card capital insurance securities, saw income growth of 185% year-on-year, increasing their contribution to the group's profit from 9% to 25%.
- The group plans additional share buyback and cancellation in the second half of the year, aligning with their corporate value enhancement plan.
- Net income underperformed market expectations due to ERP costs, one-off provisioning related to local subsidiaries, FX loss, and downsized gains from securities.
- SG&A expenses increased by 9% year-over-year, driven by ERP-related costs, insurance company expenses, and an education tax hike.
- Credit costs rose by 20% year-over-year, with a one-off large-scale provision impacting the bank's overseas subsidiary.
- The group's Q1 2026 credit cost ratio was relatively high at 53 bps, with concerns about geopolitical risks and potential impacts on asset quality.
- The group's earnings underperformed expectations, particularly in the SG&A line item, raising concerns about cost management efficiency.
Good afternoon. I am Han Hong Sung, Head of IR at Woori Financial Group. Thank you to everyone for taking the time to participate in today's earnings call for Woori Financial Group.
On today's call, we have the Group CFO, Kwak Sung-Min; Group [CSO], Lee Jung Soo; Group [CDO], [Oak Il-Jin]; and the Group CRO, Park Jang-Geun. We will begin with the Group CFO, Kwak Sung-Min, presenting on the earnings, followed by a Q&A session.
Please also note that we're providing simultaneous interpretation during the call for the benefit of overseas investors. With that said, let us start the presentation on the first quarter 2026 earnings for Woori Financial Group.
Good afternoon. This is Kwak Sung-Min, the CFO of Woori Financial Group. Allow me to present on the earnings results for Woori Financial Group for the first quarter of 2026. And please turn to page 2 of the material, which is available on our website.
The group's
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