Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. reports preliminary consolidated financial performance for the fiscal year ended December 31, 2020. The filing was submitted on February 5, 2021. The figures are prepared in accordance with Korean International Financial Reporting Standards (K-IFRS) and are subject to adjustment as they have not yet been reviewed by independent auditors.
Key Financial Metrics
Woori Financial Group (Consolidated)
| Metric | FY 2020 (Millions KRW) | FY 2019 (Millions KRW) | % Change |
|---|---|---|---|
| Revenue | 28,654,972 | 22,734,263 | 26.04% |
| Operating Income | 2,080,394 | 2,799,976 | (25.70%) |
| Income Before Tax | 2,001,251 | 2,723,049 | (26.51%) |
| Net Income | 1,515,249 | 2,037,596 | (25.64%) |
| Profit to Equity Holders of Parent | 1,307,266 | 1,872,207 | (30.18%) |
Woori Bank (Wholly-owned Subsidiary)
| Metric | FY 2020 (Millions KRW) | FY 2019 (Millions KRW) | % Change |
|---|---|---|---|
| Revenue | 26,838,766 | 21,290,018 | 26.06% |
| Operating Income | 1,925,692 | 2,591,617 | (25.70%) |
| Income Before Tax | 1,787,990 | 2,643,760 | (32.37%) |
| Net Income | 1,370,305 | 1,527,065 | (10.27%) |
| Profit to Equity Holders of Parent | 1,363,224 | 1,505,547 | (9.45%) |
Note: Revenue includes interest income, fee and commission income, dividend income, gain on financial assets, and other operating income. The filing does not provide specific data on cash flow, debt levels, liquidity ratios, or margins beyond the income statement items listed.
Material Changes vs. Prior Period
- Revenue Growth: Both the Group and Woori Bank saw significant revenue increases of approximately 26% year-over-year.
- Profit Decline: Despite revenue growth, profitability contracted sharply. Group Operating Income fell 25.70%, and Net Income dropped 25.64%. Profit attributable to equity holders of the parent entity decreased by 30.18%.
- Subsidiary Performance: Woori Bank's Net Income decline (10.27%) was less severe than the Group's overall decline, suggesting other subsidiaries or non-operating items within the Group contributed to the wider profit contraction.
- Quarterly Context: Fourth-quarter 2020 profit to equity holders was KRW 166,502 million for the Group and KRW 204,582 million for Woori Bank.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific discussion of risks and contingencies. The document explicitly states that the figures are preliminary and subject to adjustment pending review by independent auditors.
Investor Verification Checklist
- Verify the final audited financial statements to confirm if the preliminary figures require adjustment.
- Investigate the specific drivers of the 26% revenue increase versus the 25-30% decline in net income to understand cost structures or impairment charges.
- Review the detailed breakdown of non-operating income and expenses, as the revenue definition excludes non-operating income which may have impacted the bottom line.
- Confirm the specific performance of non-bank subsidiaries within the Group, as the Group's profit decline was significantly steeper than Woori Bank's standalone results.