Business Context and Reporting Period
This Form 6-K, filed on March 3, 2020, by Woori Financial Group Inc. (Woori Financial Group), provides restated preliminary financial performance figures for the fiscal year ended December 31, 2019. The filing updates data previously disclosed on February 7, 2020. The figures are prepared under Korean International Financial Reporting Standards (K-IFRS) and are preliminary, meaning they have not yet been reviewed by independent auditors.
Key Financial Metrics
Woori Financial Group (Consolidated)
| Item | FY 2019 (Millions KRW) |
|---|---|
| Revenue | 22,734,263 |
| Operating Income | 2,799,976 |
| Income before Income Tax Expense | 2,723,049 |
| Net Income | 2,037,596 |
| Profit to Equity Holders of Parent Entity | 1,872,207 |
Woori Bank (Wholly-Owned Subsidiary)
| Item | 2019 (Millions KRW) | 2018 (Millions KRW) | % Change |
|---|---|---|---|
| Revenue | 21,290,018 | 18,569,731 | 14.65% |
| Operating Income | 2,591,617 | 2,422,093 | 7.00% |
| Income before Income Tax Expense | 2,643,760 | 2,470,110 | 7.03% |
| Net Income | 1,527,065 | 2,051,649 | (25.57%) |
| Profit to Equity Holders of Parent Entity | 1,505,547 | 2,033,182 | (25.95%) |
Note: Revenue represents the sum of interest income, fee and commission income, dividend income, gain on financial assets, and other operating income (excluding non-operating income).
Material Changes and Unusual Items
- Restatement: The figures presented are restated versions of preliminary data previously filed in February 2020.
- Accounting Method Change: Woori Bank's 2019 Net Income and Profit to Equity Holders reflect a significant decrease compared to 2018. This decline is partially attributed to an accounting method change resulting from the transfer of Woori Card and Woori Investment Bank from direct subsidiaries of Woori Bank to direct subsidiaries of Woori Financial Group.
- Revenue Growth: Despite the profit decline at the subsidiary level, Woori Bank reported a 14.65% increase in revenue and a 7.00% increase in operating income compared to 2018.
- Q4 Performance: The filing notes that Woori Bank's profit to equity holders of the parent entity for the fourth quarter of 2019 was KRW 213,085 million.
Guidance, Outlook, and Risks
The filing does not provide specific forward-looking guidance, management commentary on future outlook, or detailed risk factors beyond the standard disclosure that the figures are preliminary and subject to adjustment. The primary contingency noted is that the financial data has not been reviewed by independent auditors and may be adjusted in future filings.
Investor Verification Checklist
- Verify the final audited financial statements for FY 2019 to confirm the restated preliminary figures.
- Review the specific impact of the accounting method change regarding the transfer of Woori Card and Woori Investment Bank on Woori Bank's profitability.
- Compare the Group-level consolidated results with the subsidiary-level results to understand the contribution of non-bank subsidiaries to the overall Net Income.
- Monitor subsequent filings for any further adjustments to the preliminary data disclosed in this Form 6-K.