Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. (Woori Bank) was submitted on March 14, 2018. The document serves to furnish the independent audit reports for the fiscal years ended December 31, 2017, and December 31, 2016. The audit was conducted by Deloitte Anjin LLC, which issued an unqualified opinion on both the consolidated and non-consolidated financial statements.
Key Financial Metrics (FY 2017)
Financial figures are presented in Korean Won (KRW). The consolidated results reflect the group's performance, while non-consolidated figures reflect the parent bank.
Consolidated Results
- Revenue: 23,725,105,810,531 KRW
- Operating Income: 2,156,741,279,645 KRW
- Net Income: 1,530,088,262,445 KRW
- Income Attributable to Controlling Interests: 1,512,147,816,668 KRW
- Total Assets: 316,295,461,166,850 KRW
- Total Liabilities: 295,730,561,030,343 KRW
- Total Shareholders' Equity: 20,564,900,136,507 KRW
- Equity to Capital Stock Ratio: 602.3%
Non-Consolidated Results
- Revenue: 21,006,168,459,384 KRW
- Operating Income: 1,790,558,836,819 KRW
- Net Income: 1,276,112,213,039 KRW
- Total Assets: 296,737,570,746,838 KRW
- Total Shareholders' Equity: 19,794,090,050,090 KRW
Material Changes vs. Prior Period (FY 2016)
Comparing FY 2017 to FY 2016, the consolidated entity demonstrated significant growth in profitability:
- Revenue Growth: Consolidated revenue increased by approximately 0.5% (from ~23.60 trillion KRW to ~23.73 trillion KRW).
- Operating Income Surge: Consolidated operating income rose significantly by approximately 37% (from ~1.57 trillion KRW to ~2.16 trillion KRW).
- Net Income Increase: Consolidated net income grew by approximately 20% (from ~1.28 trillion KRW to ~1.53 trillion KRW).
- Asset Expansion: Total consolidated assets increased by approximately 1.8% (from ~310.68 trillion KRW to ~316.30 trillion KRW).
- Subsidiary Count: The number of consolidated subsidiaries decreased from 74 in FY 2016 to 53 in FY 2017.
In non-consolidated figures, revenue remained relatively flat (a slight decrease of ~0.1%), while operating income increased by approximately 41% and net income rose by approximately 20%.
Guidance, Outlook, and Risks
The filing text does not provide specific forward-looking guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the standard audit report submission. The document focuses strictly on the historical financial data for FY 2016 and FY 2017.
Key Facts for Investor Verification
- Audit Opinion: Verify the unqualified opinion issued by Deloitte Anjin LLC for both consolidated and non-consolidated statements.
- Profitability Drivers: Investigate the specific factors contributing to the 37% increase in consolidated operating income despite minimal revenue growth.
- Consolidation Changes: Review the reasons for the reduction in consolidated subsidiaries from 74 to 53 and its impact on the financial structure.
- Capital Adequacy: Note the high equity-to-capital stock ratio (602.3% consolidated), indicating a strong capital base relative to issued stock.
- Revenue Composition: Confirm that reported revenue excludes non-operating income, consisting of interest, fees, commissions, dividends, and gains on financial products.