Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. (Woori Financial Group) reports preliminary consolidated financial performance for the fiscal year ended December 31, 2019. The filing was submitted on February 7, 2020. The figures are prepared in accordance with Korean International Financial Reporting Standards (K-IFRS) and are subject to adjustment as they have not yet been reviewed by independent auditors.
Key Financial Metrics
Woori Financial Group (Consolidated)
| Item | Value (Millions KRW) |
|---|---|
| Revenue | 22,734,032 |
| Operating Income | 2,795,333 |
| Income before Income Tax Expense | 2,766,990 |
| Net Income | 2,067,057 |
| Profit to Equity Holders of Parent Entity | 1,904,057 |
Woori Bank (Wholly-Owned Subsidiary)
| Item | 2019 (Millions KRW) | 2018 (Millions KRW) | % Change |
|---|---|---|---|
| Revenue | 21,291,435 | 18,569,731 | 14.66% |
| Operating Income | 2,586,746 | 2,422,093 | 6.80% |
| Income before Income Tax Expense | 2,687,473 | 2,470,110 | 8.80% |
| Net Income | 1,562,299 | 2,051,649 | (23.85%) |
| Profit to Equity Holders of Parent Entity | 1,540,781 | 2,033,182 | (24.22%) |
Note: Revenue represents the sum of interest income, fee and commission income, dividend income, gain on financial assets, and other operating income.
Material Changes and Unusual Items
- Woori Bank Profit Decline: While Woori Bank reported revenue growth of 14.66% and operating income growth of 6.80% compared to 2018, Net Income and Profit to Equity Holders of the Parent Entity decreased by approximately 24%.
- Accounting Method Change: The decline in Woori Bank's net income includes the effect of 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.
- Q4 Performance: The fourth quarter of 2019 profit to the equity holders of the parent entity for Woori Bank was KRW 248,319 million.
Guidance, Outlook, and Risks
The filing does not provide specific forward-looking guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the standard disclosure that the figures are preliminary and unaudited. The document serves primarily as a notification of preliminary annual results.
Investor Verification Checklist
- Verify the final audited financial statements to confirm the preliminary figures and assess any adjustments.
- Review the detailed impact of the accounting method change regarding the transfer of Woori Card and Woori Investment Bank to understand the true operational performance of Woori Bank.
- Confirm the consolidated revenue and profit margins for the full Woori Financial Group against the subsidiary performance to assess group-wide efficiency.
- Check subsequent filings for the final audited report and any updated risk factors related to the 2020 economic environment.