Woori Financial Group Inc. Q4 FY2025 earnings call

• The group's 2025 net income was KRW 3,141.3 billion, up 1.8% Y-o-Y; ROE was 9.1%. Amid market uncertainties, balanced top line growth and insurance acquisition enabled record high net operating revenue and stable profits. - Capital ratios improved: As of 2025 end, tentative group CET1 ratio was 12.9%, up 77 basis points vs 2024 and exceeding 2025 target of 12.5%. - Noninterest income in 2025 was KRW 1,926.6 billion, a record high, up 24% Y-o-Y, with core fee income showing balanced growth. - Loans: Corporate loans slightly declined due to rebalancing, retail loans grew driven by real demand. - SG&A in 2025 totaled KRW 5,180.5 billion, cost/income ratio 45.7%, with investments in portfolio expansion. - Credit cost in 2025 was KRW 2,086.2 billion, ratio 0.53%, excluding one-offs 0.42%, with preemptive management of weak assets. - Future plans: Leverage corporate finance competitiveness for productive economy support, retail loans focus on real demand, 2026 corporate value enhancement plan including CET1 target 13%, dividend and share buyback plans.

The group's 2025 net income was KRW 3,141.3 billion, a Y-o-Y increase of 1.8%. Net operating revenue was KRW 10,957.4 billion, up 5% Y-o-Y. Interest income for the year was KRW 9,030.8 billion. Noninterest income was KRW 1,926.6 billion, a record high level and a large increase of 24% year-over-year. As of 2025 end, the bank's loans totaled KRW 334 trillion, flat year-over-year; corporate loans were KRW 180 trillion (slightly declined), retail loans were KRW 150 trillion, growing around 0.5% quarter-over-quarter or 4% year-over-year. The group's NIM: Woori Bank's 2025 NIM was 1.46% and the group NIM, including the credit card business, was 1.73%, each representing an increase of 2 and 3 basis points, respectively.

• 2026 CET1 target: Achieve 13% ahead of schedule and maintain stably around 13.2% or higher. - Asset growth: Plan to secure ~5% growth in total assets Y-o-Y. - NIM: Expect 4 consecutive quarters of increase, full year NIM up ~2 basis points. - Noninterest income: Expect growth ~18%. - SG&A: Work towards CI ratio below 40% in mid-long term. - Credit cost: Target normalized CCR ~40%. - Dividend: DPS target to increase at least 10% annually; year-end dividend KRW 760 nontaxable; share buyback and cancellation to increase to ~10% of profits.

• Uncertainties in financial markets regarding interest rates and FX rates. - Concerns about economic slowdown impacting business. - Litigation and legal views on LTV fines and other provisions may affect financials. - Impact of regulatory changes on productive finance initiatives.

Q: For 2026, guidance on margin and growth in profits, and details on dividend policy breakdown.

A: In 2026, aim for ~5% growth in total assets Y-o-Y, NIM expected to have 4 consecutive quarters of increase, noninterest income growth ~18%. DPS target to increase at least 10% annually, year-end dividend KRW 760 nontaxable, quarterly dividend distribution approach remains similar to past.

Q: About KRW 189 billion nonoperating loss breakdown and nonbank side contribution outlook.

A: Nonoperating loss includes KRW 50 billion from bad bank and KRW 52 billion from LTV fine (fully provisioned), possibility of reversal; nonbank side contribution target 20% in mid-long term, security side plans for growth including capital increase review.

Q: CET1 ratio progress, share buyback plan.

A: As of 2025 end, CET1 ratio 12.9%, close to 13%; aim to achieve 13% in 2026 first half, share buyback KRW 200 billion from Feb-June, review additional buyback in second half if CET1 exceeds 13%.

Q: Security side capital increase impact on CET1.

A: Capital increase for security side won't impact CET1 at holding company level; securities company's asset growth from profitability can offset RWA increase; insurance company's core capital ratio plans under review but currently above required levels.