Woori Financial (US:WF)2024-08-14 14:16Credit Card Accounts and Impairment - The beginning balance for Stage 1 credit card accounts was 11,287,068, with an ending balance of 10,532,145, reflecting a net decrease of 754,923[7]. - The total credit impairment model showed a beginning balance of 768,487 and an ending balance of 1,287,639, indicating an increase of 519,152[7]. - For the six-month period ended June 30, 2023, the net increase in credit card receivables was 866,202, while the total credit impairment model increased by 10,777,517[8]. - The company reported a net reversal of allowance for credit losses of 12,570 in Stage 1, while Stage 3 experienced a net provision of (167,464)[6]. - The ending balance for total credit card receivables was 3,128,939, with a net decrease of 877,876 during the period[3]. - The company recorded a charge-off of 158,963 in Stage 3 credit card accounts during the six-month period[6]. - The total credit impairment for Stage 1 was (80,098) at the end of the period, with a beginning balance of (71,139)[6]. - The ending balance for credit impairment model in Stage 2 was (110,146), showing a decrease from the beginning balance of (127,814)[6]. Financial Assets and Liabilities - Total financial assets at FVTPL amounted to 21,544,756 million KRW, with debt securities contributing 6,307,238 million KRW and equity securities at 421,989 million KRW[13]. - Financial assets at FVTOCI totaled 37,891,495 million KRW, primarily driven by debt securities valued at 36,694,111 million KRW[13]. - The total financial liabilities reached 6,291,320 million KRW, with derivative liabilities accounting for 5,943,024 million KRW[13]. - The total financial assets as of June 30, 2024, were 5,875,156 million KRW, with a significant portion from capital contributions at 2,659,555 million KRW[19]. - The total financial liabilities at amortized cost amounted to 455,790,838 million Korean Won, with derivative liabilities at 6,096,031 million Korean Won[27]. - The total financial liabilities as of June 30, 2024, amounted to 32,808,479 million Won, compared to 26,918,902 million Won at the end of 2023, marking an increase of approximately 21.5%[120]. Income and Revenue - The net income for the six-month period ended June 30, 2024, was 93,273 million KRW, with total purchases/issuances amounting to 1,067,174 million KRW[19]. - The company reported a capital contribution increase of 54,051 million KRW during the six-month period, with total capital contributions reaching 2,659,555 million KRW[19]. - The net income for the six-month period ended June 30, 2024, was 1,800,420 million Won, compared to 1,613,812 million Won in 2023, showing an increase of 11.6%[114]. - Operating income for the three-month period ended June 30, 2024, reached 1,253,320 million Won, up from 895,438 million Won in the same period of 2023, representing a significant increase of 40%[114]. - Fees and commissions income for the six-month period ended June 30, 2024, was 1,433,183 million Won, an increase from 1,261,278 million Won in 2023, marking a growth of 13.6%[114]. Investment Funds and Performance - The company is actively involved in various private equity funds, with ownership percentages ranging from 2.1% to 47.8% across different funds, showcasing its diversified investment strategy[29]. - NH Woori Newdeal Growth Alpha Private Equity Fund 1 reported an operating revenue of 40,663 million Won, with a comprehensive income of 38,993 million Won[33]. - Woori General Private Securities Investment Trust No. 5 (Bond) achieved an operating revenue of 6,917 million Won, with a comprehensive income of 5,154 million Won[33]. - Woori Smart General Private Equity Investment Trust 1 reported an operating revenue of 7,373 million and a net income of 3,973 million for the period ending December 31, 2023[34]. - KTBN Venture Fund No.13 achieved an operating revenue of 21,662 million with a net income of 18,507 million[34]. Assets and Property Management - The net carrying value of investment properties as of June 30, 2024, was 2,759,112 million Korean Won, reflecting a decrease from 2,793,077 million Korean Won as of December 31, 2023[40]. - The total acquisition cost of investment properties was 4,578,335 million Korean Won as of June 30, 2024[40]. - The total for accumulated amortization of intangible assets was 85,108 million Korean Won for the six-month period ended June 30, 2024[44]. - The total right-of-use assets at the end of June 2024 were 547,843 million Korean Won, an increase from 370,081 million Korean Won at the end of June 2023[42]. - The total carrying value of investment properties is 3,306,955 million Won, compared to 3,176,759 million Won on December 31, 2023, reflecting an increase of 4.1%[68]. Equity and Capital Structure - As of June 30, 2024, total equity reached 35,147,614 million Won, an increase from 32,691,264 million Won on June 30, 2023, reflecting a growth of approximately 7.5%[116]. - The total amount of hybrid securities increased to 4,409,042 million Won as of June 30, 2024, compared to 3,611,129 million Won at the end of 2023[161]. - The company reported a net defined benefit asset of 107,224 million Won as of June 30, 2024, compared to a net defined benefit asset of 232,321 million Won as of December 31, 2023, indicating a decrease of approximately 53.8%[117]. - The total amount of retained earnings as of June 30, 2024, was 25,916,022 million Won, up from 24,986,470 million Won as of December 31, 2023[161]. - The company issued hybrid securities worth 797,913 million Won during the first half of 2024, contributing to its capital structure[118]. Borrowings and Interest Rates - The interest rate for borrowings from the Bank of Korea (BOK) was 2.0%, with total borrowings in local currency amounting to 14,176,485 million Won[50]. - The total amount of borrowings in foreign currencies was 13,726,098 million Won, with interest rates ranging from 0.0% to 10.6%[50]. - The total amount of borrowings in local currency reached 14,768,494 million Won as of June 30, 2024, reflecting a stable financing structure[80]. - The average interest rate for interest rate swaps (USD) is fixed at 3.60% for receipts and (C.SOFR) + 1.47% for payments[148]. - The total nominal amount for interest rate swaps (USD) is 2,675,000,000, while for KRW it is 300,000[125]. Foreign Operations and Currency Management - The Group's foreign currency exposure arises from investments in Woori America Bank and Woori Bank (Cambodia) PLC, which use USD as their functional currency[124]. - The Group's cash flow hedge strategy aims to mitigate risks from fluctuations in cash flow due to variable interest rates and foreign exchange rates[123]. - The total accumulated profit on foreign currency denominated debentures is 166,906 million KRW, while the accumulated loss on local currency debentures is 2,601 million KRW as of June 30, 2024[153]. - The Group recognized a net operating expense of 46,906 million Won for the six-month period ended June 30, 2024[176]. - The company reported a gain on foreign currency translation of foreign operations amounting to 216,431 million Won for the first half of 2024[116]. Regulatory and Compliance - The Group's financial statements as of December 31, 2023, received an unqualified opinion from auditors, confirming their accuracy and compliance with Korean Standards on Auditing[55]. - The regulatory reserve for credit losses in retained earnings was 2,392,542 million Won as of June 30, 2024[179]. - The Group's credit risk is assessed by adjusting the credit spread based on the Group's credit rating, impacting the fair value of customer deposits[48]. - The Group's total borrowings and debentures details are yet to be fully disclosed, indicating ongoing financial management strategies[106]. - The company recognized changes in the value of hedging instruments amounting to 27,858 million Won in other net operating income for the six-month period ended June 30, 2024[157].