Woori Financial Group Q2 net income up 7.2% on qtr, H1 record-high

Korea’s Woori Financial Group Inc. reported its second-quarter net income grew 7.2 percent from the previous quarter, keeping up solid growth since transition into full-fledged holding structure from the beginning of the year.

The company in a regulatory filing on Monday said its consolidated net profit for the April-June period was 610.3 billion won ($518 million), up 7.2 percent from the previous quarter. Operating income gained 5.0 percent on quarter to 876 billion won while revenue added 5.2 percent to 1.82 trillion won.

Shares of Woori Financial Group closed Monday unchanged at 13,800 won in Seoul.

For the January-June period, the company posted 1.18 trillion won in net profit, a record-high on normalized basis. Operating profit was 1.7 trillion won and revenue reached 3.5 trillion won for the period.

It is the company’s first release of half-year results since it turned into a holding entity in January this year.

The finance conglomerate attributed its solid performance to rising prime asset ratios and low-cost deposits as well as growth in non-interest incomes supported by strong performance in wealth management.

Interest income for the first half reached 2.9 trillion won, with loan sales to small and medium-sized enterprises added 6.0 percent from the end of last year.

Non-interest income grew 5.0 percent to 611.3 billion won from a year ago period, backed by asset management unit’s strong performance in fund and bancassurance categories. Commission income of the asset management grew 1.6 percent on year.

Its overseas businesses also fared well and contributed 123.0 billion won in consolidated bottom-line account, up 26.7 percent compared to a year ago period or before it turned into a holding entity.

The NPL coverage ratio stood at 131.7 percent. BIS capital adequacy ratio as of the end of June was 11.1 percent, tier 1 capital ratio 9.3 percent, and common equity ratio 8.4 percent.

The flagship Woori Bank posted a net profit of 1.15 trillion won for the first half. Woori Card’s net income for the cited period was 66.5 billion won and Woori Investment Bank 22.2 billion won.

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