Woori Financial Group announced a net profit of ₩3.14 trillion ($2.14 billion USD) for 2025, slightly below market expectations, but compensated investors with record-breaking shareholder returns.
The group stated on Friday that its annual net profit reached ₩3,141.3 billion, a 1.79% increase year-over-year, marking the second-highest profit on record, following the ₩3,141.7 billion recorded in 2022. These earnings fell short of analyst forecasts that anticipated profits exceeding ₩3.2 trillion for Korea’s fourth-largest banking group.
Woori clarified that excluding approximately ₩50 billion in provisions related to a past sector-wide collusion penalty, the net profit would effectively represent a new record high. Net operating profit also achieved an all-time high, increasing by 5% year-over-year to ₩10.96 trillion.
The strong overall earnings were primarily driven by a 24% surge in non-interest income, fueled by fee income from expanded non-banking subsidiaries, alongside significant gains in securities, foreign exchange, and insurance-related businesses. This diversified income stream helped bolster the company’s bottom line.
Among key subsidiaries, Woori Bank reported a 14.2% decrease in net profit, totaling ₩2.67 trillion. This decline was offset by the strong performance of other segments within the financial group.
The group’s common equity tier 1 (CET1) ratio reached 12.9%, exceeding its target of 12.5% for the year. This demonstrates the company’s commitment to maintaining financial stability amidst a volatile market environment. The Return on Equity (ROE) remained stable at 9.1%.
Woori also announced record shareholder returns of ₩1.15 trillion, pushing the payout ratio to 36.6%. Dividends per share amounted to ₩1,360, including a final year-end quarterly payout of ₩760, the highest payout on record. This demonstrates a strong commitment to rewarding shareholders.
“With executives and employees focused over the past year on strengthening the CET1 ratio and completing the group’s transformation into a comprehensive financial services provider, Woori was the only one among the four major financial holding companies to record net foreign buying,” a company official said. The official added that the group’s share price nearly doubled, receiving a positive assessment from the market. This highlights the success of Woori’s strategic initiatives and investor confidence in the company’s future.
The group plans to further enhance shareholder returns, aiming for a CET1 ratio of 13.2% and increasing annual treasury share buybacks and cancellations by more than 30% to ₩200 billion. Dividends will also be increased, with per-share payouts targeted to rise by more than 10%, supported by approximately ₩6.3 trillion in capital available for tax-exempt distributions over the next five years. These plans aim to maximize shareholder value in the long term.
jwc
