Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. covers the period ending March 30, 2020, primarily summarizing the company's 2019 business report and financial results. Established on January 11, 2019, via a comprehensive stock transfer of Woori Bank and five other subsidiaries, the group is a financial holding company listed on the Korea Exchange (KRX) and the New York Stock Exchange (NYSE). The financial statements are prepared in accordance with Korean International Financial Reporting Standards (K-IFRS).
Key Financial Metrics (Fiscal Year 2019)
- Revenue: Total operating income was KRW 2,800 billion (2.8 trillion), with net interest income of KRW 5,894 billion.
- Profit: Net income attributable to owners was KRW 1,872 billion. Total net income (including non-controlling interests) was KRW 2,038 billion.
- Earnings Per Share: Basic and diluted earnings per share were KRW 2,727.
- Dividends: Total cash dividends paid were KRW 505.6 billion, representing a payout ratio of 27.0% and a yield of 5.8%.
- Balance Sheet: Total assets reached KRW 361.98 trillion, while total liabilities were KRW 336.49 trillion. Total equity stood at KRW 25.49 trillion.
- Capital Adequacy: The Group's BIS (Capital Adequacy) ratio was 11.89%. Woori Bank's ratio was 15.40%.
- Liquidity: The Group's Won Liquidity Ratio was 603.1%. Woori Bank's Liquidity Coverage Ratio (LCR) was 107.27%.
- Asset Quality: The Group's Non-Performing Loan (NPL) ratio was 0.40%, with a coverage ratio of 133.6%.
Material Changes vs. Prior Period
As Woori Financial Group was established in January 2019, there is no prior comparable period for the holding company itself. However, the filing notes significant structural changes during 2019:
- Subsidiary Integration: The group integrated Woori Card, Woori Investment Bank, Woori Asset Management, Woori Global Asset Management, and Woori Asset Trust as first-tier subsidiaries throughout 2019.
- Capital Structure: New common shares were issued in September 2019 via a stock exchange with Woori Card, increasing the issued share count to approximately 722.3 million.
- Shareholder Changes: The Korea Deposit Insurance Corporation (KDIC) remained the largest shareholder with 17.25% ownership as of year-end.
- Profitability Trends (Subsidiaries): Woori Bank's ROE decreased slightly from 8.82% in 2018 to 8.36% in 2019. Conversely, Woori Card's ROE improved from 4.00% to 5.05%.
Guidance, Outlook, and Risks
The filing does not contain specific forward-looking guidance, earnings forecasts, or management commentary regarding future market conditions. The document focuses on historical reporting for 2019.
- Risks and Contingencies: The filing highlights standard banking risks through asset quality metrics. The Group maintained a substandard and below coverage ratio of 133.6%, indicating reserves exceed non-performing assets.
- Regulatory Compliance: The company adheres to Basel III standards for capital adequacy and maintains liquidity coverage ratios above regulatory minimums (e.g., Woori Bank LCR at 107.27% vs. 80% minimum).
- Auditor Opinion: Deloitte Anjin LLC issued an unqualified opinion, stating the financial statements are presented fairly in accordance with K-IFRS.
Investor Verification Checklist
- Accounting Standards: Verify the impact of K-IFRS differences compared to U.S. GAAP, as noted in the filing.
- Non-Controlling Interests: Review the significant portion of net income (KRW 165 billion) and equity (KRW 3.4 trillion) attributable to non-controlling interests.
- Capital Adequacy: Confirm the Group's 11.89% BIS ratio against regulatory requirements for financial holding companies.
- Asset Quality: Monitor the NPL ratio of 0.40% and the coverage ratio to assess credit risk exposure.
- Dividend Policy: Note the 27% payout ratio and the cash dividend per share of KRW 700.