--- title: "Woori Finance Earnings Call Highlights Strong Diversification" type: "News" locale: "en" url: "https://longbridge.com/en/news/293989460.md" description: "Woori Finance reported strong Q2 2026 results, with net income rising 66% to KRW 1.0046 trillion and record H1 operating revenue of KRW 5.72 trillion. Management highlighted diversified growth driven by a surge in fee income and non-bank contributions, which tripled year-on-year. The bank maintained capital strength with a CET1 ratio of 13.71%, approved additional share buybacks, and pursued strategic insurance M&A. Despite one-off valuation losses and NPL pressures from Tongyang Group exposure, the outlook remains constructive due to cost control and solid capital buffers." datetime: "2026-07-28T00:10:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293989460.md) - [en](https://longbridge.com/en/news/293989460.md) - [zh-HK](https://longbridge.com/zh-HK/news/293989460.md) --- # Woori Finance Earnings Call Highlights Strong Diversification Woori Finance ((WF)) has held its Q2 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Woori Finance’s latest earnings call struck an upbeat tone, with management highlighting a strong rebound in profitability, record revenue and growing contributions from non‑bank units. While they acknowledged one‑off insurance impacts, valuation losses and macro risks, the overall message was that diversified income, tighter cost control and solid capital are driving a constructive outlook. ## Strong Net Income Beat in Q2 and H1 Woori Finance reported Q2 2026 net income of KRW 1.0046 trillion, up 66% quarter‑on‑quarter and regaining the KRW 1 trillion milestone. For the first half, net income reached KRW 1.609 trillion, a 3.7% year‑on‑year increase that reassured investors about the bank’s earnings resilience. ## Record Net Operating Revenue Supports Growth Group net operating revenue hit a record KRW 5,722.7 billion in H1 2026, up 6.0% year‑on‑year and signaling broad‑based strength. Q2 net operating revenue climbed to KRW 2.965 trillion, a 7.5% quarter‑on‑quarter rise that underpins the sharp earnings rebound. ## Fee and Non‑Interest Income Drive Diversification Non‑interest income surged 20% year‑on‑year, reaching KRW 1,063 billion in H1 and KRW 628.9 billion in Q2, as Woori leans away from pure lending income. Fee and commission income was a standout, jumping 23.7% year‑on‑year to KRW 1,278.8 billion, with Q2 fee income at KRW 702 billion, the first time above KRW 700 billion in a quarter. ## Non‑Bank Units Rapidly Expanding Earnings Share The contribution of non‑bank businesses to group net income more than tripled year‑on‑year, rising from 6.9% to 22.3% and underscoring real diversification progress. Management linked this to strategic capital deployment, including a KRW 1 trillion injection into the securities subsidiary in May that is expected to accelerate growth. ## Capital Strength and Active Shareholder Returns Woori’s preliminary CET1 ratio stood at 13.71%, up 11 basis points quarter‑on‑quarter and roughly 80 basis points year‑to‑date, reflecting improving capital buffers. The board approved an additional KRW 150 billion share buyback, bringing total 2026 buybacks and cancellations to KRW 350 billion, alongside a non‑taxable Q2 cash dividend of KRW 220 per share. ## Selective Loan Growth Focused on Corporates Total bank loans rose 1.9% quarter‑on‑quarter to KRW 344 trillion, with growth skewed towards corporate credit rather than aggressive retail expansion. Corporate loans increased 2.8% in the quarter, driven by large corporates and high‑quality SMEs, while Woori expanded its productive and inclusive finance commitment by KRW 10 trillion to KRW 90 trillion over five years. ## Improving Cost and Credit Cost Dynamics Selling, general and administrative expenses were KRW 2,632.8 billion in H1, yielding a cost‑to‑income ratio of 42.8% that stayed stable year‑on‑year. Q2 SG&A fell 15% versus the previous quarter, and credit costs eased to KRW 439.2 billion, down 16.7% quarter‑on‑quarter, with recurring credit cost ratios around 39 basis points and a full‑year reduction target of about 15%. ## Strategic Insurance M&A to Unlock Synergies The board approved a comprehensive share exchange to make Tongyang Life a wholly owned subsidiary, with closing expected in August. Management said the deal should improve insurance operating efficiency and capital adequacy, while enhancing group‑wide synergies as non‑bank integration deepens. ## One‑Off Insurance Items and Valuation Losses Results were tempered by one‑off impacts from changes in actuarial assumptions at insurance subsidiaries, which distorted underlying trends. Trading and market valuation losses, driven by high exchange rates above KRW 1,500 and elevated interest rates, also weighed on reported earnings but were described as manageable. ## NPL Pressure from Tongyang Group Exposure Exposure to Tongyang Group has elevated non‑performing loans, prompting closer monitoring and provisioning action. Management disclosed KRW 44 billion in provisions against roughly KRW 130 billion of related exposure, with analysts pointing to about KRW 250 billion of substandard assets that could require further attention. ## Funding Costs and NIM Remain Sensitive Rising market rates are pressuring funding costs, keeping Woori’s net interest margin highly sensitive to rate changes, with Q2 NIM flat at 1.51%. Management highlighted longer‑term deposits and active asset‑liability management as mitigants, but conceded that further rate moves could still impact margin and net interest income. ## Structural Cost Pressures and ERP Uncertainty The group’s expense base faces structural upward pressure from insurance consolidation, securities platform investments and higher education tax burdens. Management also signaled possible future ERP programs, likely around Q1, with uncertain timing and scale that could affect how costs are phased over coming periods. ## Securities Scale and Licensing Limit Near‑Term Upside Woori’s securities arm is still building scale, with retail revenue cited at just KRW 26.6 billion and a relatively narrow physical network. The business also lacks some key licenses, including derivatives permissions only targeted for 2027, limiting the pace at which retail brokerage income can ramp up. ## Macro and Geopolitical Risks Cloud the Horizon Management flagged external risks such as exchange rate volatility, Middle East tensions and persistent inflation that could weigh on capital ratios and earnings towards year‑end. These factors may constrain total shareholder return execution, prompting cautious commentary despite the strong year‑to‑date performance. ## Guidance Points to Sustained Earnings and Returns Looking ahead, Woori aims to sustain quarterly net income at or above KRW 1 trillion while steadily reducing recurring credit costs into the low‑40 basis‑point range. The bank targets a medium‑to‑long‑term cost‑to‑income ratio also in the low‑40% band, continued growth in productive finance and non‑bank earnings, firm net operating revenue, disciplined loan growth and ongoing buybacks and dividends from a CET1 ratio of 13.71%. Woori Finance’s earnings call painted a picture of a bank in transition toward more diversified, fee‑driven and non‑bank‑supported income, backed by solid capital and shareholder‑friendly actions. For investors, the key takeaway is that strong current earnings are being paired with strategic moves and cautious risk management, aiming to sustain more than KRW 1 trillion in recurring quarterly profit despite macro headwinds. ### Related Stocks - [WF.US](https://longbridge.com/en/quote/WF.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) ## Related News & Research - [Woori Financial reports Q2 results](https://longbridge.com/en/news/293725895.md) - [HD Hyundai: Q2 2026 delivered record profits and margins amid oil price gains and geopolitical volatility](https://longbridge.com/en/news/294478815.md) - [Accenture Earnings Preview: What to Expect](https://longbridge.com/en/news/294039989.md) - [Hanwha Aerospace: 2Q26 saw robust sales and profit growth, with strong segment performance and improved margins](https://longbridge.com/en/news/294458495.md) - [Woori Financial Group enters KRW 150 billion trust to buy back treasury shares](https://longbridge.com/en/news/293737675.md)