Enhanced Profitability and Cost Efficiency Lead to Surpassing 3 Trillion KRW in Net Income
Woori Financial Group has achieved a net income of 3.086 trillion KRW for 2024, marking a 23.1% increase from the previous year. This impressive performance was made possible through improved profit-generating capabilities and active cost management despite uncertain economic conditions both domestically and internationally.
The group reported a Return on Equity (ROE) of 9.3%, improving by 1.0 percentage points from the previous year, highlighting the efficient use of capital. The fourth quarter net income reached 426.1 billion KRW, aligning with market expectations.
Interest income for the group grew by 1.6% compared to the previous year, maintaining a steady growth trend. This was achieved despite two benchmark interest rate cuts, with an increase in corporate loans by 9.0% driven by the establishment of specialized branches for SMEs and focused support for national advanced strategic industrial complexes.
Non-interest income saw a significant increase of 41.9% year-on-year, greatly contributing to profit growth. In particular, fee income rose by 21.3%, expanding its share within total net operating revenue to about 20%, thanks to diversified business expansion in both banking (WM, IB, etc.) and non-bank sectors.
The group’s sales and administrative expense ratio was 42.8%, a decrease of 0.7 percentage points from the previous year, indicating a continuing trend of stable cost efficiency despite rises in costs due to the establishment of a securities firm and increased digital and IT investments.
The group reported credit costs amounting to 1.716 trillion KRW, enhancing its risk management capabilities with preemptive measures such as additional provisioning for PF loans from non-bank subsidiaries, even in the fourth quarter.
The NPL ratio, an indicator of asset quality, was 0.57% for the group and 0.23% for the bank, showing a slight increase from the previous year. However, the NPL coverage ratio was 153.0% for the group and 247.4% for the bank, proving its industry-leading risk management capabilities.
Despite a 40 basis point decrease in the group’s Common Equity Tier 1 (CET1) ratio due to a sharp 150 KRW exchange rate surge in the fourth quarter, it increased by 13 basis points from the previous quarter thanks to company-wide risk-weighted asset management efforts, recording 12.08%.
Based on these accomplishments, the Woori Financial Group board resolved to issue a year-end dividend of 660 KRW per share, marking the largest annual dividend ever at 1,200 KRW per share. Additionally, they announced plans to repurchase and retire 150 billion KRW worth of shares, a 10% increase from the previous year, progressively expanding the scale along with cash dividends.
Woori Financial Group also announced its ‘2025 Additional Roadmap’ alongside updates on the implementation status of indicators from the ‘Corporate Value Enhancement Plan’ initially declared in July 2024. They highlighted their commitment to exploring diverse shareholder-friendly policies, including boosting the effective dividend yield for shareholders through tax-exempt dividends and introducing advanced quarterly dividend procedures.
A Woori Financial Group representative reflected, “2024 was a year where we not only achieved an annual net income of 3 trillion KRW but also gained market recognition for the group’s growth potential and corporate value, by being included in the KRX Korea Value-Up Index and securing ESG ratings at global Top-Tier levels.”
In closing, they expressed determination, stating, “We will make 2024 a foundational year for improving our capital ratios by actively responding to changes in the financial environment, building an optimal portfolio through asset rebalancing, expanding inclusive finance for vulnerable groups, such as supporting small business owners, and enhancing internal controls to strengthen customer and market trust, elevating us as a comprehensive financial group.”