Woori Financial (US:WF)2025-08-14 12:24Financial Performance - Interest income for Q2 2025 was 5,114,607 million KRW, a decrease of 5.6% compared to 5,418,375 million KRW in Q2 2024[15] - Net interest income increased to 2,261,817 million KRW in Q2 2025, up 2.9% from 2,196,896 million KRW in Q2 2024[15] - Total comprehensive income for the first half of 2025 was 1,274,555 million KRW, down 31.7% from 1,867,018 million KRW in the same period of 2024[16] - Net income for Q2 2025 was 939,743 million KRW, a slight decrease of 2.3% compared to 961,509 million KRW in Q2 2024[16] - Operating income for the first half of 2025 was 1,977,714 million KRW, a decrease of 17.7% from 2,404,009 million KRW in the first half of 2024[15] - Net income for the six-month period ended June 30, 2025, was 1,594,299 million Won, a decrease of 11.4% compared to 1,800,420 million Won in 2024[20] - The net gain on financial assets at FVTOCI was 47,566 million KRW in Q2 2025, compared to 18,039 million KRW in Q2 2024, indicating a significant improvement[15] - The basic and diluted earnings per share for Q2 2025 was 1,225 KRW, compared to 1,206 KRW in Q2 2024, representing a growth of 1.6%[16] Assets and Liabilities - Total assets increased to 534,112,776 million Korean Won as of June 30, 2025, compared to 525,753,320 million Korean Won at the end of 2024, reflecting a growth of approximately 1.3%[13] - Total liabilities increased to 498,397,258 million Korean Won from 489,858,051 million Korean Won, marking an increase of about 1.1%[13] - Cash and cash equivalents rose to 30,008,499 million Korean Won, up from 27,281,123 million Korean Won, indicating an increase of about 6.3%[13] - Loans and other financial assets at amortized cost reached 413,452,761 million Korean Won, a rise from 398,471,816 million Korean Won, representing a growth of approximately 3.7%[13] - Total equity decreased slightly to 35,715,518 million Korean Won from 35,895,269 million Korean Won, indicating a decline of about 0.5%[13] - Financial assets at fair value through profit or loss decreased to 20,919,935 million Korean Won from 25,202,672 million Korean Won, a decline of approximately 16.5%[13] Cash Flow - Cash flows from operating activities resulted in a net cash outflow of (2,506,650) million Won in 2025, an improvement from (4,966,770) million Won in 2024[21] - Cash flows from investing activities showed a net inflow of 3,918,200 million Won in 2025, significantly higher than 969,004 million Won in 2024[21] - The company reported a net increase in cash and cash equivalents of 2,727,376 million Won in 2025, compared to a decrease of (5,084,986) million Won in 2024[21] - The total cash and cash equivalents at the end of the period increased to 30,008,499 million Won in 2025 from 25,471,632 million Won in 2024[21] Ownership and Subsidiaries - Woori Financial Group Inc. fully owns 100% of its major subsidiaries, including Woori Bank, Woori Card Co., Ltd., and Woori Savings Bank as of June 30, 2025[35] - Woori Financial Group Inc. has a 90.8% ownership in PT Bank Woori Saudara Indonesia 1906 Tbk, indicating a strong presence in the Indonesian market[36] - The group maintains a 99.9% ownership in the Korea BTL Infrastructure Fund, reflecting its commitment to infrastructure investments in Korea[36] - Woori Financial Group Inc. continues to explore opportunities for market expansion, particularly in Southeast Asia and Europe[36] - The company is focused on enhancing its financial technology capabilities through subsidiaries like Woori FIS Co., Ltd., which specializes in system software development[35] Credit Risk Management - The Group's credit risk management utilizes a credit rating model to assess counterparty default risk, incorporating both quantitative and qualitative methods[75] - The Group assesses significant increases in credit risk using indicators such as asset quality level and days past due[79] - The total maximum exposure to credit risk is 629,937,902 million Won, slightly up from 628,324,324 million Won as of December 31, 2024[87] - The largest credit risk exposure by industry is in the individuals category, totaling 266,087,171 million Korean Won as of June 30, 2025, which is an increase from 264,238,336 million Korean Won in December 2024[92] Market and Operational Risk Management - Market risk management includes measuring and evaluating risks associated with trading and non-trading activities, with a focus on interest rates, stock prices, and foreign exchange rates[101] - The Group employs the Basel III standard approach for market risk management, which includes sensitivity methods for measuring potential losses[104] - The operational risk management system has been established to comply with Basel III regulations, which began implementation in 2023[117] - The Group measures operational risk capital using the Basel III standardized approach, which involves the Business Indicator Component (BIC) and the Internal Loss Multiplier (ILM)[118] Financial Instruments and Fair Value - The total fair value of financial instruments measured at fair value was 60,449,250 million Korean Won, with Level 1 assets accounting for 19,091,390 million Korean Won[167] - The fair value of financial assets at FVTPL totaled 20,919,935 million Korean Won as of June 30, 2025, with significant contributions from debt securities (7,232,883 million Korean Won) and beneficiary certificates (5,105,891 million Korean Won)[167] - The total fair value of financial liabilities at amortized cost as of June 30, 2025, is 490,156,134 million KRW, with a carrying amount of 495,320,266 million KRW[194] Investment and Growth - Woori Financial Group has a diverse portfolio with subsidiaries engaged in various financial services, including asset management and credit information[35] - The Group maintains a diverse portfolio with significant investments in private equity and real estate funds, reflecting a strategic focus on asset management[48] - The Group anticipates potential financial impacts from the ongoing Russia-Ukraine conflict, affecting AO Woori Bank's operations in the future[51]