Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. (Woori FG) and its subsidiary Woori Bank presents preliminary consolidated financial performance for the six-month period ended June 30, 2019. The report was filed on July 22, 2019. Figures are prepared in accordance with Korean International Financial Reporting Standards (K-IFRS) and are subject to adjustment as they have not been reviewed by independent auditors.
Key Financial Metrics
Financial data is presented in millions of KRW. The filing provides specific figures for the first half of 2019 (1H 2019) and comparative data for the first half of 2018 (1H 2018). Data for the second half of 2018 (2H 2018) is included in the table but represents a different reporting period (Q3-Q4) and is not directly comparable for year-over-year analysis.
Woori Financial Group Inc. (Consolidated)
| Item | 1H 2019 | 1H 2018 | YoY Change |
|---|---|---|---|
| Revenue | 12,111,634 | Not Provided | Not Provided |
| Operating Income | 1,709,905 | Not Provided | Not Provided |
| Income Before Tax | 1,727,440 | Not Provided | Not Provided |
| Net Income | 1,271,274 | Not Provided | Not Provided |
| Profit to Equity Holders | 1,179,049 | Not Provided | Not Provided |
Woori Bank (Consolidated)
| Item | 1H 2019 | 1H 2018 | YoY Change |
|---|---|---|---|
| Revenue | 12,098,664 | 11,480,713 | +5.38% |
| Operating Income | 1,733,453 | 1,807,715 | -4.11% |
| Income Before Tax | 1,700,552 | 1,801,532 | -5.61% |
| Net Income | 1,246,014 | 1,316,317 | -5.34% |
| Profit to Equity Holders | 1,232,080 | 1,305,878 | -5.65% |
Material Changes and Analysis
- Woori Bank Performance: Revenue increased by 5.38% year-over-year, driven by higher interest and fee income. However, profitability declined, with Operating Income, Income Before Tax, and Net Income all decreasing by approximately 4% to 5.6% compared to 1H 2018.
- Group vs. Bank: The filing does not provide 1H 2018 comparative data for the Woori Financial Group consolidated entity, preventing a direct year-over-year analysis for the parent group. The 1H 2019 Group Revenue (12.11 trillion KRW) is nearly identical to the Bank's Revenue (12.10 trillion KRW), suggesting the bank is the primary revenue driver.
- Comparison Note: The filing includes 2H 2018 data showing significant increases (e.g., +69% Net Income for the Bank), but this represents a sequential comparison to the second half of the prior year, not a year-over-year trend for the current period.
Guidance, Risks, and Unusual Items
- Preliminary Status: Management explicitly states that figures are preliminary and subject to adjustment. They have not been audited.
- Revenue Definition: Revenue is defined as the sum of interest income, fee and commission income, dividend income, gain on financial assets, and other operating income, excluding non-operating income.
- Outlook: The filing contains no forward-looking guidance, management commentary on future strategy, or specific risk factors beyond the standard disclaimer regarding preliminary figures.
Investor Verification Checklist
- Verify the final audited figures for 1H 2019 once the annual report is released to confirm the preliminary numbers.
- Investigate the specific drivers behind the ~5% decline in Woori Bank's net income despite a 5.38% increase in revenue (e.g., increased credit costs, operating expenses, or tax adjustments).
- Confirm the consolidated 1H 2018 figures for Woori Financial Group Inc. to enable a proper year-over-year comparison for the parent entity.
- Review the full annual report for details on non-operating income exclusions and specific asset gain/loss components.