Curious about Woori Financial Group net worth and financial performance in 2024? This article, brought to you by Ando Money, covers everything from revenue growth to corporate lending. Read on for an in-depth look!
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Woori Financial Group |
| Full Name | Woori Financial Group Inc. |
| Traded as | NYSE: WF, KRX: 316140 |
| ISIN | KR7316140003 |
| Founded | January 30, 1899 |
| Founders | N/A |
| Country/Territory | South Korea |
| Headquarters | Seoul, South Korea |
| Chief Executive Officer | Kwang-Seok Kwon |
| Number of Employees | 15,529 (2019) |
| Market Cap | $8.99 Billion (September 2024) |
| Total Assets | ₩508.6 trillion (as of 2024) ($380.9 billion) |
| Total Equity | ₩33.5 trillion (as of 2024) ($25 billion) |
| Revenue | ₩5,281 billion ($3.95 billion) |
| Net Income | ₩1,800 billion ($1.35 billion) |
What is the Net Worth/ Market Cap Of Woori Financial Group in 2024?
As of September 2024, Woori Financial Group has a market capitalization of $8.99 billion, solidifying its position as a key player in the South Korean banking sector.
Though impressive, Woori’s market cap is relatively smaller compared to the largest global banks.
Despite this, Woori’s performance highlights its growing influence and stability in a fluctuating financial environment.
In comparison, here are other significant banks in the global financial landscape:
- JPMorgan Chase
- Bank of America
- ICBC
- HSBC
- Mitsubishi UFJ Financial Group
- Nonghyup Bank
- Nomura Holdings
- DekaBank
- United Overseas Bank
When looking for a comprehensive list of financial institutions, check out the largest banks in the world here.
Financial Performance Overview
Key Drivers Behind Revenue Growth
One of the main factors fueling Woori Financial Group’s revenue growth is its balanced approach to income streams.
The group’s interest income stood at ₩4,395 billion ($3.29 billion), showing resilience despite a slight 0.4% decline year-on-year.
Woori’s corporate lending strategy, primarily focusing on large corporate clients, significantly bolstered its earnings.
As corporate loans grew by 15.4%, this helped offset some of the market challenges stemming from fluctuating interest rates. In parallel, the bank’s focus on low-cost deposit growth contributed to maintaining stable interest margins.
Non-interest income played a crucial role in Woori’s financial performance as well.
The group recorded ₩885 billion ($662 million) in non-interest income, marking a 45.1% year-on-year growth.
This includes notable increases in fees and commissions, which grew by 25.6%, totaling ₩1,058 billion ($792 million).
These earnings were largely driven by Woori’s asset management services, investment banking, and credit card operations, with the group capitalizing on synergies across its various subsidiaries.
Corporate Lending and Its Impact
Corporate lending has been a cornerstone of Woori’s growth strategy.
By the first half of 2024, the group had a total loan portfolio of ₩323.8 trillion ($242.5 billion), with corporate loans representing a significant portion of this.
The SME loan growth in particular has been vital, increasing by 4.4% year-on-year. This strategy has allowed Woori to maintain a steady inflow of revenue while diversifying its risk profile.
Additionally, the group’s NPL ratio (Non-Performing Loan ratio) was well-managed, sitting at a comfortable 0.56% on a group level and just 0.23% at the bank level.
This low level of bad loans is a testament to Woori’s prudent lending practices and effective risk management, ensuring a strong base for continued financial growth.
The Role of Asset Management in Revenue
Woori Financial Group’s asset management operations have been integral to its diversified revenue streams.
These services have allowed Woori to generate significant fee-based income while offering clients robust wealth management solutions.
By leveraging synergies between its banking, investment, and credit card services, the group has been able to boost its fees and commissions, a major contributor to non-interest income.
With ₩1,058 billion in total fees, Woori continues to strengthen its presence in the highly competitive South Korean market.
Risk Management and Asset Quality
Risk management remains a key focus for Woori Financial Group.
Despite economic uncertainties, the group has managed to keep its credit cost ratio at a stable 0.42%, ensuring sufficient loss absorption capacity across its vulnerable sectors.
Woori’s strong focus on provisioning for potential risks in its real estate and corporate lending portfolios has helped maintain its solid asset quality.
Additionally, the group’s NPL coverage ratio of 149.7% demonstrates its capacity to handle non-performing loans effectively.
This is a reflection of Woori’s sound risk management practices, which prioritize mitigating exposure to high-risk sectors while ensuring the bank’s financial health.
Shareholder Returns and Dividends
Woori Financial Group continues to prioritize shareholder returns, evidenced by its consistent dividend payouts.
In 2024, Woori implemented a policy of equal quarterly dividends, with a dividend per share (DPS) of ₩180 in the second quarter.
This move aligns with the group’s Corporate Value Enhancement Plan, which aims to elevate sustainable ROE (Return on Equity) and ensure steady growth in shareholder value.
The group’s capital adequacy also remains robust, with a CET1 ratio of 12.04%, providing strong support for future dividend policies and long-term growth.
Subsidiary Contributions
Woori Financial Group’s subsidiaries have been instrumental in driving the company’s financial success.
Woori Bank, the group’s flagship subsidiary, continues to be the primary contributor, with substantial revenue from corporate loans and retail banking services.
Additionally, Woori Card and Woori Financial Capital have bolstered the group’s non-interest income, contributing to the overall profitability.
Woori Investment Bank and Woori Asset Trust have also played key roles in expanding the group’s financial services portfolio, further diversifying revenue streams and enhancing shareholder value.
Future Outlook
Looking ahead, Woori Financial Group aims to further strengthen its financial performance by focusing on enhancing non-interest income and maintaining strict cost controls.
The group’s Cost-to-Income (C/I) ratio has already dropped below 40%, highlighting its efficiency in managing operating expenses.
FAQs about Woori Financial Group
What is the origin of the Woori Financial Group?
It was founded in 1899 as Daehan Cheon-il Bank. Through mergers and name changes, it became the bank in 2001. It remains a leading financial institution in South Korea.
How does it generate revenue?
The bank earns revenue through interest income from corporate lending and retail banking. It also makes non-interest income from fees, commissions, and wealth management services.
What are the key subsidiaries?
The bank’s key subsidiaries include:
- Woori Bank
- Woori Card
- Woori Financial Capital
- Woori Investment Bank
- Woori Asset Trust
What is Woori Financial Group’s market capitalization in 2024?
As of September 2024, the bank’s market cap is $8.99 billion.
How does it manage risk exposure?
It maintains a low NPL ratio of 0.56% at the group level. The bank proactively provisions to mitigate risks.
How has it improved operational efficiency?
The bank’s Cost-to-Income (C/I) ratio dropped to 39.9% in 2024 due to group-wide cost optimizations.
What is its approach to shareholder returns?
The bank implemented equal quarterly dividends in 2024, with a dividend per share of ₩180. Its Corporate Value Enhancement Plan ensures a focus on shareholder returns.
What is the future outlook?
The bank focuses on revenue diversification, cost management, and stable asset quality to drive future growth.
Conclusion
Woori Financial Group has shown impressive financial performance in 2024. If you found this useful, drop a comment, share it, or explore more at andomoney.com!
