Woori Financial Group Inc. Q2 FY2025 earnings call

1. Net Income and Performance: Net income down Y-o-Y but steady operating revenue. Second quarter net income higher than first quarter. 2. Capital Ratio: CET1 ratio improved to 12.76%, aiming to outperform year-end target of 12.5% and reach 13% early. 3. Business Portfolio Expansion: Acquired Tongyang Life and ABL Life in July 2025, reevaluating assets/liabilities. Strengthening securities arm with investment trading approval and MTS platform. 4. Operating Revenue and NIM: Steady growth in net operating revenue despite challenges. NIM improved due to funding optimization and asset rebalancing. 5. Loan Portfolio Management: Focus on managing household loans in line with government policy, supporting future growth industries. 6. Noninterest Income: Core fee income growth from Wealth Management, gains from securities and FX, offset by NPL market weakness. 7. SG&A Expense: Increase due to one-off factors, but planning cost efficiency through digital/IT and process improvement. 8. Credit Costs and Asset Quality: Credit costs affected by one-off provisions, but excluding these, ratio stable. Managing vulnerable industries and prime loans. 9. Capital Adequacy and Shareholder Return: CET1 ratio improvement, aiming for stable ratio and expanding shareholder returns with quarterly dividend of KRW 200 per share.

Net Income: First half 2025 net income was KRW 1,551.3 billion, down 11.6% Y-o-Y. Excluding one-off expenses, net income is similar to last year. Second quarter net income was KRW 934.6 billion, higher than the first quarter. Operating Revenue and NIM: First half 2025 net operating revenue was KRW 5400.1 billion, up 2.3% Y-o-Y. Second quarter bank NIM was 1.45%, group NIM including credit card was 1.71%, up 1 basis point Q-o-Q. Loan Portfolio: Bank loans totaled KRW 329 trillion as of June 2025. Corporate loans at KRW 179 trillion, retail loans at KRW 148 trillion, up ~KRW 3.7 trillion from March. Noninterest Income: First half noninterest income was KRW 886.3 billion, similar Y-o-Y but up 47% Q-o-Q. SG&A Expense: First half SG&A expense was KRW 2479.1 billion, up 18% Y-o-Y, cost-to-income ratio 42.8%. Credit Costs: First half credit costs KRW 944.5 billion, second quarter KRW 509 billion up 16.9% Q-o-Q. Excluding one-off factors, credit cost ratio ~0.42%. Capital Adequacy: Preliminary CET1 ratio as of June 2025 was 12.76%, up ~60 bps from end of last year, exceeding 12.5% for the first time.

1. Capital Ratio: Aim to outperform year-end CET1 target of 12.5% and reach 13% early. 2. Business Expansion: Focus on sound capital management and sustainable growth for acquired insurance arms. 3. Securities Arm: Continued strengthening of MTS platform and marketing activities, expecting more contributions from Woori Investment Securities. 4. Credit Costs: Expect credit costs to gradually stabilize from Q3 onwards, managing at low to mid-40% range for full year.

1. Economic Slowdown: Concerns due to ongoing domestic and global uncertainties affecting delinquency and NPL ratios. 2. Interest Rate Fluctuations: Impact on NIM and loan yields; need to defend downward pressure on NIM. 3. Regulatory Changes: Uncertainties in regulatory capital requirements and digital asset legal framework affecting operations.

Q: Acquisition of insurance arm strategy and capital gains impact A: Focus on sound capital management, ongoing business assessment. PPA process ongoing, impact to be known in Q3.

Q: Capital ratio and TSR A: CET1 at 12.76%, aim to achieve 13% early. No decision on merger of insurance entities yet.

Q: MTS service updates and brokerage strategy A: MTS launched, opened 20 accounts, plans to expand services. Brokerage arm focusing on competitiveness, asset management, and one-stop service.

Q: Stable coin approach A: Monitoring legal framework, looking at joint issuance with OBDIA members.

Q: Credit cost guidance A: Excluding one-off factors, credit cost ratio stable. Expect improvements from Q3, full year CCR at low to mid-40% range.

Q: Treasury share cancellation scheduling A: Share buyback and cancellation ongoing, trust contract to conclude in September, then cancel shares.