Woori earnings exceeded KRW 1 trillion for a second consecutive quarter in July–September 2026, as lower credit costs helped offset pressure on the bank’s lending margin. In its October 23 earnings call, Woori Financial Group reported quarterly net income of KRW 1,049.2 billion, up 4.4% from the preceding quarter.
Key Takeaways
- Nine-month net income reached KRW 2,658.1 billion; management reported 19% growth excluding prior-year acquisition gains.
- Non-bank businesses generated about 60% of non-interest income, although quarterly non-interest income declined.
- Credit costs fell sharply, while the bank’s net interest margin narrowed to 1.43%.
Table of Contents
- Woori earnings rise despite pressure on margins
- Non-bank income broadens the earnings base
- Lower credit costs support profitability
- Capital improvement accompanies a declared dividend
- Conclusion
Woori earnings rise despite pressure on margins
CFO Seong-Min Kwak said nine-month net income increased 19% year over year after excluding approximately KRW 550 billion of prior-year bargain-purchase gains associated with the Dongyang Life and ABL Life acquisitions. That adjusted comparison should not be read as growth in unadjusted reported profit.
Nine-month net operating revenue reached a record KRW 8,680.3 billion, up 6.2%, while interest income rose 4.5% to KRW 7,035.9 billion. Management attributed the interest-income increase partly to a 25% year-to-date expansion in large corporate lending.
The bank’s third-quarter net interest margin nevertheless fell seven basis points sequentially to 1.43%. Kwak said market rates rose faster than lending rates and advance funding increased costs. He expects repricing of assets and liabilities to support a recovery, but that remains management’s outlook rather than a completed improvement.
| Item | Details |
|---|---|
| Total won-denominated loans | KRW 313 trillion at September 2026, up 1.52% from end-June. |
| Corporate loans | KRW 156 trillion, up 1.42% quarter over quarter. |
| Retail loans | KRW 154 trillion, up 1.4% quarter over quarter. |
| Dividend record date | November 10, 2026. |
| Dividend payment date | November 30, 2026. |
Non-bank income broadens the earnings base
Nine-month non-interest income reached a record KRW 1.6444 trillion. Head of investor relations Hong Sung Han said non-bank subsidiaries contributed approximately 60% of that income, compared with 45% a year earlier.
The growing contribution reflects the importance of subsidiaries within the group. Woori’s 2025 description of its holding-company structure identifies controlling financial businesses through share ownership as the parent company’s principal purpose.
The quarterly picture was weaker than the cumulative result: third-quarter non-interest income fell 7.6% from the preceding quarter. Hong cited securities valuation losses and a sharp decline in capital-markets fees.
Kwak said Woori is proceeding with the integration of its two life insurers after acquiring full ownership of Dongyang Life in August 2026. Management expects cost synergies and economies of scale; those benefits have not yet been established as results.
Lower credit costs support profitability
Third-quarter credit costs declined 28.5% sequentially to KRW 314 billion. For the first nine months, they fell 15.7% year over year to KRW 1.28 trillion, with a credit-cost ratio of 42 basis points.
The reduction helped absorb revenue pressure from the narrower bank margin and weaker quarterly non-interest income. Management targets a full-year credit-cost reduction of 15% and a ratio in the low-40-basis-point range.
Kwak said the non-performing-loan ratio edged lower sequentially as new problem-loan formation declined. Woori plans continued monitoring of vulnerable borrowers alongside non-performing-loan sales and write-offs.
Capital improvement accompanies a declared dividend
Woori’s preliminary common equity Tier 1 capital ratio stood at 13.8% at September 2026, up nearly 90 basis points during the year, Kwak said.
The board approved a third-quarter dividend of KRW 221 per share, which management described as fully non-taxable. Woori also approved an additional KRW 150 billion share buyback in July. Management expects total 2026 shareholder returns to exceed last year’s level, but the full-year amount remains an expectation.
Conclusion
Woori earnings combined lower credit costs and a broader non-bank contribution with continuing margin pressure. The next confirmed shareholder dates are the November 10 dividend record date and November 30 payment; margin recovery and insurance integration benefits remain management objectives.
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