Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori Financial Group Inc.) dated March 18, 2009, reports the submission of non-consolidated audit reports for its subsidiary, Woori Bank, and for the holding company itself. The financial data presented covers the fiscal years ended December 31, 2008, and December 31, 2007. The figures are denominated in billions of Korean Won (KRW) and have not yet been approved by shareholders.
Key Financial Metrics
Woori Bank (Non-Consolidated)
| Item (Billions KRW) | FY 2008 | FY 2007 |
|---|---|---|
| Revenue | 74,901 | 20,789 |
| Operating Income | 475 | 2,216 |
| Net Income | 234 | 1,689 |
| Total Assets | 228,048 | 195,315 |
| Total Liabilities | 216,127 | 183,099 |
| Shareholders' Equity | 11,921 | 12,216 |
Woori Finance Holdings Co., Ltd. (Non-Consolidated)
| Item (Billions KRW) | FY 2008 | FY 2007 |
|---|---|---|
| Revenue | 666 | 2,081 |
| Operating Income | 456 | 1,939 |
| Net Income | 454 | 1,944 |
| Total Assets | 15,620 | 15,192 |
| Total Liabilities | 3,413 | 2,129 |
| Shareholders' Equity | 12,207 | 13,062 |
Material Changes vs. Prior Period
- Woori Bank Profitability: Net income plummeted by approximately 86% from 1,689 billion KRW in 2007 to 234 billion KRW in 2008. Operating income similarly declined by roughly 79%.
- Woori Bank Revenue: Reported revenue surged to 74,901 billion KRW in 2008 from 20,789 billion KRW in 2007. The filing notes this figure represents "Operating revenue," suggesting a potential change in classification or scope compared to the prior year, as the massive revenue increase contrasts sharply with the collapse in operating income.
- Woori Finance Holdings Profitability: Net income for the holding company dropped significantly from 1,944 billion KRW in 2007 to 454 billion KRW in 2008, a decrease of approximately 77%.
- Balance Sheet: Woori Bank's total assets grew by 16.8% to 228,048 billion KRW, while total liabilities increased by 18.1%. Conversely, the holding company's shareholders' equity decreased from 13,062 billion KRW to 12,207 billion KRW.
Guidance, Outlook, and Risks
The filing does not provide specific forward-looking guidance, management commentary on future strategy, or detailed risk factors beyond the financial results. The document explicitly states that the reported figures have not been approved by the shareholders of Woori Bank or Woori Finance Holdings Co., Ltd. and remain subject to change. The filing serves primarily to disclose the submission of the independent audit reports by Deloitte Anjin LLC.
Investor Verification Checklist
- Revenue Classification: Verify the definition of "Revenue" for Woori Bank in FY 2008 versus FY 2007 to understand the discrepancy between the 260% revenue increase and the 86% net income decline.
- Shareholder Approval: Confirm the final approved financial statements once shareholder approval is obtained, as current figures are provisional.
- Non-Consolidated Nature: Ensure analysis accounts for the fact that these figures are non-consolidated; consolidated group results may differ significantly.
- Asset Quality: Investigate the drivers behind the sharp decline in operating income despite the increase in total assets and reported revenue.