Woori Financial Group Inc. — 2022 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2022; filed April 21, 2023. This is an annual report, not a standalone fourth-quarter filing, and the provided filing text does not give a clear set of Q4-only results. Financial statements are consolidated and prepared under IFRS as issued by the IASB. Samil PricewaterhouseCoopers gave unqualified opinions on the financial statements and internal control over financial reporting.
Business context
Woori is a Korea-based financial holding company whose operations are led by Woori Bank. Its businesses include banking, credit cards, capital finance, investment banking and asset management. The group reported total assets of ₩480.5 trillion at year-end.
Key financial metrics
| Metric | FY 2022 | FY 2021 |
|---|---|---|
| Interest income | ₩14.655 trillion | ₩9.895 trillion |
| Net interest income | ₩8.697 trillion; up 24.5% | ₩6.986 trillion |
| Net interest margin | 1.96% | 1.74% |
| Net fees and commissions income | ₩1.710 trillion; up 16.2% | ₩1.471 trillion |
| Operating income | ₩4.431 trillion | ₩3.660 trillion |
| Income before tax | ₩4.548 trillion | ₩3.687 trillion |
| Net income | ₩3.369 trillion; up 22.0% | ₩2.762 trillion |
| Net income attributable to owners | ₩3.187 trillion | ₩2.543 trillion |
| Impairment losses due to credit loss | ₩885 billion | ₩537 billion |
| Operating cash flow | ₩18.624 trillion | ₩3.800 trillion |
| Cash and cash equivalents, year-end | ₩34.219 trillion | ₩20.613 trillion |
| Total assets / liabilities / equity, year-end | ₩480.474T / ₩448.847T / ₩31.627T | ₩447.184T / ₩418.379T / ₩28.805T |
| Customer deposits / borrowings / debentures, year-end | ₩342.105T / ₩28.430T / ₩44.198T | ₩317.900T / ₩24.755T / ₩44.654T |
| Group CET1 / Tier 1 / total capital ratios | 11.57% / 13.62% / 15.30% | 11.40% / 13.27% / 15.03% |
Cash-flow statement totals for 2022 were ₩18.624 trillion from operations, ₩6.969 trillion used in investing and ₩1.920 trillion from financing. The filing’s cash and cash equivalents include ₩22.965 trillion of restricted reserve deposits at year-end following a retrospective accounting presentation change; reported cash should not be assumed to be fully available for general use.
Material changes versus prior period
- Net interest income and margin rose as higher rates and loan growth lifted asset yields; interest income grew 48.1%, while interest expense rose 104.8% as deposit and borrowing costs increased.
- Credit-loss impairment expense rose 64.8% to ₩885 billion. Management cited precautionary provisions against expected deterioration in economic conditions and asset quality.
- Non-performing loans increased to ₩1.016 trillion, or 0.29% of loans, from ₩927 billion, or 0.27%. Loans plus other impaired loans rose to 0.49% of total loans from 0.34%.
- Loans to SMEs increased to ₩122.925 trillion, or 35.6% of total loans. Consumer loans declined to ₩143.940 trillion; credit-card receivables rose to ₩10.370 trillion.
- Cash and cash equivalents increased 66.0%; securities at amortized cost increased 65.4%. Deposits grew 7.6%, borrowings 14.8%, and total equity 9.8%.
- Net gain on financial instruments fell 37.3% to ₩292 billion, including material offsetting movements in currency and interest-rate derivative results.
Outlook, risks, contingencies and unusual items
- Outlook: No numerical earnings or financial guidance is provided in the filing text. Management describes the outlook for Korea and global markets in 2023 and beyond as uncertain, citing inflation, higher interest rates, exchange-rate volatility, geopolitical disruption and weaker economic conditions.
- Credit quality: SME and consumer borrowers face pressure from economic weakness, higher rates and household debt. Credit-card balances overdue more than one month were 1.4% of receivables, or 2.6% including restructured balances. Construction, shipping, hotel, leisure and transportation exposures may require further provisions.
- Liquidity and funding: Customer deposits were the principal funding source; 95.3% of deposits had maturities of one year or less or were payable on demand. Uninsured deposits across jurisdictions totaled ₩264.351 trillion at year-end. The group reported compliance with applicable liquidity requirements.
- Capital and market risk: Capital ratios exceeded stated regulatory minimums, but losses, higher risk-weighted assets or changed requirements could pressure capital. Rising rates may raise funding costs, weaken borrowers and reduce fixed-rate securities values; FX and securities volatility may also affect results.
- Employee embezzlement: Woori Bank reported an employee embezzlement of approximately ₩70.8 billion spanning 2012–2020; ₩3.4 billion had been recovered by year-end 2022. The employee received a 13-year sentence, then on appeal, and regulatory penalties were approved for certain employees in January 2023.
- Suspicious overseas transfers: Korean authorities investigated unusual overseas wire transfers; regulators reported US$1.6 billion routed through Woori Bank. The filing says investigations and consideration of disciplinary measures were ongoing, with no predictable final outcome.
- Product-sale matters: Woori Bank paid a ₩19.7 billion fine related to derivative-linked products and faced a six-month sales ban; its objection to the fine remained pending. In Lime Asset Management matters, it refunded customers and paid ₩5.8 billion of a ₩7.2 billion fine; further investigations and customer claims remained uncertain.
- Other exposures: The group reported a Russia-based subsidiary representing 0.16% of assets and 0.19% of revenue, and limited Iran-related activity subject to sanctions risk. Operational, cybersecurity, legal and regulatory risks are also described.
- Dividends: The filing reports ₩1,130 per common share for fiscal 2022, including an interim dividend of ₩150. The remaining annual dividend was approved in March 2023; future distributions depend on earnings, cash flow, financial condition and other factors.
Most important facts for investors to verify
- Reconcile the annual income statement, cash-flow statement and Q4-only performance: the filing does not provide a clear standalone Q4 results table.
- Review the ₩885 billion credit-loss charge, allowance adequacy, rising impaired loans and the impact of borrower support or restructuring programs.
- Assess the quality and availability of reported liquidity, including the ₩22.965 trillion restricted reserve deposits included in cash equivalents and the high share of short-term deposits.
- Track outcomes, recoveries, fines and control remediation related to embezzlement, overseas transfers, DLF and Lime matters.
- Check capital and interest-rate sensitivity, deposit pricing, derivative exposures and unrealized securities valuation effects as market conditions change.
- Confirm dividend amounts, payment dates and any subsequent changes in capital management or regulatory requirements.