Woori Financial (WF)2024-10-25 19:03Financial Data and Key Metrics Changes - As of Q3 2024, Woori Financial Group's cumulative net income increased by 9.1% year-on-year, reaching KRW2.6591 trillion, surpassing last year's total annual performance by approximately KRW150 billion in just three quarters [3] - The Group's net income for Q3 stood at KRW903.6 billion, representing a slight decrease versus the previous quarter but remaining above the KRW900 billion level for two consecutive quarters [3] - The Group's ROE came in at 10.82%, and the cost-to-income ratio remained below 40% for the second consecutive quarter, demonstrating effective cost management [4] Business Line Data and Key Metrics Changes - The Group's cumulative net operating revenue grew 6.6% year-on-year to KRW7.9927 trillion, with quarterly results at KRW2.7122 trillion, consistent with the previous quarter [5] - The bank's NIM for Q3 was 1.40%, and the Group's NIM, including the card business, was 1.67%, both declining by 7 basis points versus the previous quarter [7] - Cumulative non-interest income up to Q3 was KRW1.3781 trillion, a 53.2% year-on-year increase, driven by favorable market conditions and significant profit growth from marketable securities [11] Market Data and Key Metrics Changes - Total loans of the bank stood at KRW340 trillion as of September 2024, a 5% increase from the end of June, with corporate loans increasing by 4.3% and household loans growing by 6.2% [9] - Total deposits as of September 2024 reached KRW327 trillion, a 5.5% increase from June, although growth in core deposits was weak due to high demand for time deposits [10] Company Strategy and Development Direction - The Group is focusing on improving its capital ratio, aiming for a CET1 ratio of 12.5% by early 2025, while managing asset growth and prioritizing shareholder returns [15][16] - Woori Financial Group is strengthening its non-bank businesses, including the merger of Woori Investment Bank and F&I Securities to relaunch Woori Investment Securities [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the financial markets are stabilizing, but uncertainties remain due to geopolitical risks and potential economic slowdowns [10] - The Group plans to actively manage assets and capital to defend NIM and maintain profitability amid anticipated interest rate cuts [23] Other Important Information - The Board approved a cash dividend of KRW181 per share, reflecting the Group's commitment to returning value to shareholders [4][15] - The Group's cumulative credit costs amounted to KRW1.2546 trillion, with a credit cost ratio of 0.44%, indicating a rise in current credit costs due to sluggish domestic demand [6][14] Q&A Session Summary Question: CET1 ratio stability and future guidance - The CET1 ratio remained flat at 12% due to forex impacts and increased weighted assets, with a target of 12.2% by year-end [18][19] Question: NIM outlook for Q4 and dividend distribution - NIM for Q3 was 1.40%, with expectations to maintain similar levels in Q4 through active management [23][24] Question: Investment in securities and application development schedule - The launch of MTS services is planned by year-end, with an integrated super app expected by the first quarter of next year [26] Question: Credit cost projections - Ordinary credit costs are projected to remain at current levels, with potential gradual improvement next year [28] Question: Core deposits targets and measures - The Group aims to increase core deposits significantly, with a target of KRW300 trillion to KRW100 trillion in the future [30][31] Question: C/I ratio targets and insurance acquisition concerns - The C/I ratio is expected to be around 40% next year, with ongoing efforts to manage expenses and improve efficiency [36][37]