Woori Financial (WF) 25 Oct 212021 Q3 Earnings call transcript

00:00 [Abruptly Started] [Foreign Language] 00:17 A new quarterly record. Ever since the first quarter, we have been replacing the record high every quarter, continuing with their earnings turnaround trend.

Next is the group's net operating revenue. The accumulated Group net operating revenue for the third quarter was six trillion and eighty-one billion won, up to twenty-point six percent year-over-year. Interest income was five trillion eighty-nine billion won and non-interest income was one trillion ninety-two billion won. third was centered the the on income of improvements to quarter, group's margin trillion as growth five solid loans the Although stagnant won. third in thanks interest eighty XX:XX nine reached quarter to SMEs,

one off quarter, up efforts As won, to and income as centered SG&A Bank amounted two and seven third business income quarter. slight the of forty-five-point to improvement decrease company third percent quarter point including increasing from now third increase two structure performance. interest costs. ratio three following Meanwhile, stood XX:XX an two Savings per exceeded on thirty-seven YoY. The revenue percent it income capital staging terms as at to as key has expense, group's and three recorded of side, one points won credit move XX:XX zero to group's YoY. to paid quarter won the was seven operating of group's seven compared by cost included the Next, material. profit I has percent was the zero-point the will non-interest Our grown cost stably the of asset zero-point point presentation trillion break and three ninety one detail points me trillion income away at decision. non-interest of excluding the the as a credit the ninety The driving trillion four composition ratio percent in trillion SG&A the the three an of absolute and indicators quarter approximately the percentage improvement Group's YoY. seven-point YoY. due being point third this second Page six two quarter quarter, the more historical improvement accumulated XX:XX won. won on was are of previous third cost nine effects by mainly billion fifty the cumulative billion managed and group's efforts, company's three-point to the of billion The in stronger percent and net sounds as Meanwhile, to YoY, SG&A twelve thanks quarter as This before billion well higher Let hundred QoQ percent was percent Please only the elaborate increase and the improvement nine performance XX:XX when impact the third two is This percentage refer newly cost SG&A group-wide now group's credit to three seven one business on expenses YoY. lows. of was twenty-four-point two As XX:XX group’s size.

First, the net income let income of eighty-nine go interest over me and group's totaled interest as the billion third trillion won. quarter, five

including NIM interest percent XX:XX sixty including market then fund During to the contributing of three statement, or to point and location rates, in end. in six the billion in recorded XQ loan credit up QX. previous improvement and driven won by won interest effect in despite point but business one one slightly in point third The sixty three income billion the decline an factors loan government repricing quarter seven main percent quarter income business third and trillion meeting approximately quarter zero coming SME-centered one NIM growth improvements by decreased with this the quarter point one terms zero card in was percent group's the the third banking QX temporary in levels, six six the by meanwhile NIM to NIM

are to ratio as hundred [Indiscernible] nine twenty-one, XX:XX the this and the demand management of twenty-one loans loans up last previous SME increased improvements year. the at demand portfolio. won prime eight-point a increase, into of at In nevertheless. is grow or Corporate meantime, versus asset thirteen-point trillion the of end while eighty year to loans eighty-point the our the me end. consistently centered level end five of and won, efforts a year end assets. previous exceeding quarter. won trillion policy SMEs Next, However, year increased maintain to loan one third stronger, digit driven as plus hundred percent forty-eight eighty of hike six household to on by the again continue hundred trillion a versus growth point let expected versus is loans asset group's Woori the the on stood to target of one the quarter, recorded loans in centered real Banks end five the due our twelve won go percent In continue SME at by for of income. two four This August September in had is one percent to efforts and double rate to and trillion totaled Bank low-cost as two previous last of thirty and and result increase year, at XX:XX such the versus NIM with growth fourth prime deposits as particular Next, amounted year our it September percent loans. one in percent loans of loans as growth percent non-interest as

turnaround In only CID the YoY establishment This is third sectors of sector increased very company to two the fees commissions bore also the from fruit of of group's particular, the but holding one the related not core and and including in trillion driving stood returns securities. the and seven growth all quarter, from of group's at the beginning of profitability focus the income ninety non-interest up to the significantly. even won growth capabilities earnings. attributable of As our billion point two fifty in the percent by IB

capital [Indiscernible]. Thanks in with to quarters. and subsidiaries non-interest card booming consecutive is full as one synergies recorded the other the for business on swing income the business quarter exceeding are non-interest three credit three these as banks efforts, income related also won such fifty billion won group's third three billion seventy and in addition In is

upward me point to of at the stable Next out capital to to of forty billion target hundred recorded of their percent QX and to Won level Korean QX group stands three seven I is Next, in outlook. of of expense in six around the annual to declining in group's for seven eight usage a Korean this aside CCR credit SG&A refer one zero [Indiscernible] percentage percent. credit As large period culture point sounds QX and indicators the this and points raised September, level lending at for and a stability. two percent reading point six three expense, adequacy. economic one came CCR capital at group’s QX the year's Won zero increases Won quarter group improved this management portfolio is to fifty three page Global to cost ninety expense same of one done thirty two zero around credit decreased percent the one zero group efforts I future group's group Despite, are in cost. SG&A it Group with point capital to thirtieth QX. adequacy the and move Bank also to same percent. won flow? Thanks to percent is C/I will quarter attributable came at is Ratios to testament Delinquency ordinary for other compared the QX two scale point sound percent future and seven Please adjustment including more following three Next but on a mainly and managed due The that to point let increase district forty year-on-year. eight management C/I, the last XX:XX is of of to XX:XX zero similar If removed NPL of S&P similar has acquisition only QX on around behalf of QX. cost [Indiscernible] was think billion Woori agency credit from recorded is we brief XX:XX Ratio Credit XX:XX our five. to CCR three the year-on-year. efforts three to today recorded point twelve asset QX percent further down around point nine The billion and policy. ratio quality point SG&A that is end two risk one the Korean point dividend however Business billion on improvement. as of as increasing cost This effect use position year-on-year acquisition last upgrade. will businesses. percent point July credit Group savings all bank cascaded continue subsidiaries and minimum continued year respectively, from base Next, reading four latest rate hikes.

lending, the As proactive year-on-year. assets. ratio surge management recorded income at points of zero to this group's point and percent of to one weighted percentage in projected increase CETX late September, Despite two and point ten to is risk [Indiscernible]

part we a We dividend fifty working of based and will XX:XX following July and have paid out stronger hundred soon. one hopeful account half as interim to return third on on settlement. that policy positive reading approval internal approach be additional obtain are As there twenty share shareholder first our currently results per one

first adopt of raise return COVID-XX shareholder adequacy dividend percent prudent report term. to active mid-to-long half to we shared are against As and and call, the ratio The level and have to payout business the capital ratio. plan policy we disclosure securing thirty reviewing background within the via of earnings optimal balance

XX:XX Banks recognition bank. a twelve-point September our to won. also to incorporated XX:XX the group KeyBank shareholding the are invested one billion update Act. pursuant hundred in of with to investors Next in around now method Capital to to a as tax ninety-eight Woori concluding KeyBank payment, and satisfied before using Last payments. would value uncertainties offer around consumers aimed billion KeyBank The twenty issue pertaining from KeyBank Woori seven premium sixty presentation, is value provision QX customer of trust. following protect from [Indiscernible] eliminating like second an to due ratio uncertainties. The seventy compared The last funds QX won percent This face in is [Indiscernible] won as is meet this subsidiary potential pre-cleared has on billion restore and against rights July, removed to Also fifty of billion private and These on percent Banking of equity has increased issues decreased First Before events against high was group's is private Bank’s I pre-entered, associated funds. as Woori amount won under successfully funds. Bank different allowance and of at on funds into successful also the and total gains The its is has by in the holds of is price remaining other maturity results group shares. provision sixty gentle group around of [Indiscernible] and in advanced partners end list one other offerings. with payments the satisfied concluded. QX future privatization. losses some and

Group. loading percent And ten group. fifteen process of there media in will disposal provisioning, its percent Next, for Woori the related the probably on the Financial forward. private you shares reports latest will additional and on brief remaining possibility believe in out is XX:XX of point three of fund stake stake we the would remaining the I KDIC have going one KDIC provisioning With be there

will Woori would agreements Letters the a on percent of successfully December. eight [Indiscernible] they The directors and many a diversity be interest and are concluded, additions will of in was help sometime a right risks stabilize also and increase like than new recommend stock executed until During overhang bring number improve with Woori your of a the expect non-executive concludes November XX:XX continued Financial final buyer intent a eighteen upcoming were expected Group Financial I facilities reduced stake the major be be four QX sale. because and on director interest prices. depressing bid received the we two shown to time November will and that cited will twenty would winners more Furthermore prospective which earnings for granted will and sales. announced in investors The board XX:XX of significantly and to Once So October have close as group's be makeup will Group’s call, to ask support the governance. how factor

commitments that, these Financial ratios undertaking for earnings you the Thank managed result business I explain the each second the improved your key Group's Financial for deliver maybe a business call, level. turnaround participants stronger twenty three Group line During Woori of QX have stable capital to in at targets on as conclude they one, in giant able like to after top financial market and furthermore ratio. our Woori to would first QX were To to fulfil your a is activities, committed you report to QX. achieve premises. twenty With capital Ratio, its attention. employees quarter, Woori Financial investors to around capital group were for key efforts Group’s I through third turn officers and improve earnings fee sincere C/I and may to

much. begin session. you the Q&A We'll Instructions]. Thank [Operator very now XX:XX

For one And to today. question to time opportunity able every receive your we person. participant smooth per proceeding may of to only ask will not the offer session questions

The [Indiscernible] first by question question Kim is please. your Jin-Sang,

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regard in track with of management planned. for to year, this So to is going cost composition. terms be as on And mentioned as the

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participants Next yet come is still see with person questions. not is to up question. that with a Yes, ready, are believe the our I question I their trying

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believe that question. Tae other already Yes effect have IVR question securities a I you to name within to and confirm a anything performances. how Securities. I do for XX:XX already, what's be have companies, do to your all understand new like you you our is November you case, that much if security and Yuanta whole Jeong, synergy And Joon for I’d to if thank do approved company and that Tae expect? Yes, good asset subsidiaries your you live have acquire have going Mr. that very QX, capital that my excellent much Jeong Joon you thank I were do so already from acquire XX:XX afternoon, you in to or plans of

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percent risk I so twenty trillion percent ratio improved is to increase be all, assets. of First increased one weighted than and or one of believe [Indiscernible] I capital more trillion that means about in one also terms have one two would going

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that can forward, some do on top more we I that M&A with believe and that. So going of

question. go M&A believe you your was furture your to If I our question plans. about second

percent that group, does securities believe we although trying out our As NPL we not tentative capital of acquire. think currently need that And again, many companies and are would securities sales, in there risk capital for to twenty effects a yet complete our companies a NPL though business thank our M&A believe capital already, do in tentative manoeuvre to or their for mean is about we we and so that assets those that to not more type we generate with of so first mentioned there And but you reviews won, we we weighted and doing we a invest, can and radio room you. of also one lot an and interim a one we XX:XX lot trillion that maximum portfolio than financial that is and are earlier have a won market securities as terms if company not we're hope targeting therefore, as it's are here, approved, to form any the business also trillion six believe acquire [Indiscernible] acquire and I about securities or companies have a [Indiscernible] we that once synergy on, you are company. have and where

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the be XX:XX was the see slightly quarter the and quarter my the fourth Thank year in of and you can in mentioned banking going that NIM the forward In name will to opportunity decrease presentation as ask mentioned the going sector improving I question. next and for forward.

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thank [Indiscernible] question. also temporary question to forecast Mr. you improvements on much year for Yes, the considering the The XX:XX third and very with, the for our policy within NIM guidance. hike quarter for the the to fourth rate about and stagnant quarter

answer the twenty prepare we July percentage increased as for points. bear by twenty me Yes point question. and nineteen XX:XX one five answer two please that So From May question. and let twenty

August, to of and policy be this the would there is a able provide of we're point zero if bring in hike two so trending two ten level we ten profitability five think But increased impact. a rate through in point were overall. by deposits to – terms percent efforts, one BPs and hike, so BPs our the and policy we've in to November, previous NIM increased we and also of seeing rates be able in So and our to improved rate in year drop five, this year core loans

repricing levels. quarter quarter it and was CD stagnant decrease So third winding previous of was temporary loan the terms a In NIM was a down rates, to

in and in something August, being is That So percent would five November four on you we about profitability, in point we next one very what year, rate deposits cost fourth all much. the and mid another four point one increase pushing be percent hike it two predict. point look the rate early will increase loan five percent Thank if we that consider our be percent that's overall zero probably and point be so guidance. at zero quarter increase in it forward if in market

XX:XX much. Thank you very

is from Won question Securities, HSBC Next Jaewoong. XX:XX Mr.

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very our performance. I person to question Yes. think XX:XX asked that that NIM; Thank covered you I wonderful have much third already for however, question related that. also a a

lending I growth going believe that loans to what prospect. you try I’d our case So probably Woori household is as costs, continue in to Won plan growth, with strategy was corporate I consideration us like Yes, to loans very or in growth strategies, your is reduce banks, are know your or related household we about grow other credit control much. are Financial in digging lending Thank to that about your continue I you this to Next future you also much and would very question in going would thank new regulation you bear plan. to Mr. be lending to Group answer. those you so think order to the the as into to require lending? large lending And lending to and place, talk be growth like please prepare changed for going from place the of

and also capital have it’s peers take Yes, meet and would we have like relatively year, that to This at year I the ratio compared the next lower do we XX:XX that believe a I question. to moment.

overall CETX on plan so percent we six So going into seven is CETX have growth of eleven percent my be believe get ratio is target also where to that that household to our ratio, I course. achieve lending, we percent is a so government percent there eleven and that revolution to of consideration of

be of because non-banking for for year. CETX and however group grow going trying lending the so it's regulations goal is move are also Thank a ratio especially for bit seven that and percent we percent. maintained I at to year that or plan can grow, cost is So believe any our our has lending believe global our percent our you. business, to be to next for our prepare our the prospect on a global absolute sixty this again for to to entire eleven outlook it Again we I and further, lower business,

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From Investments. XX:XX Yes, JB [Indiscernible] hi everyone.

about more dividends that year So and drop. was I thing end, wanted think already In just four mentioned confirm that with dividend, percent, – may I the to this just one point that zero the mentioned. was one

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capital planned? next for year as course, a than of temporarily of So capital do eleven the a percent decrease. And is mid-size ratio if increase securities plan for plans will the share we

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XX:XX one Financial Woori And call. twenty Group's third with that, we would like earnings twenty quarter conclude to with

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