Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori Finance Holdings) reports preliminary financial performance for the third quarter of 2014 and the nine-month period ended September 30, 2014. The filing also includes preliminary figures for its wholly-owned subsidiary, Woori Bank. The data is prepared in accordance with Korean International Financial Reporting Standards (K-IFRS) and is subject to adjustment as it has not been reviewed by independent auditors.
Key Financial Metrics
Woori Finance Holdings (Consolidated)
| Metric | 3Q 2014 (Quarter) | 3Q 2014 (YTD) | 3Q 2013 (Quarter) | 3Q 2013 (YTD) |
|---|---|---|---|---|
| Revenue | 3,599,399 million KRW | 12,744,515 million KRW | 4,369,511 million KRW | 15,184,542 million KRW |
| Operating Income | 281,929 million KRW | 966,259 million KRW | (14,736) million KRW | 266,844 million KRW |
| Net Income | 212,495 million KRW | 1,359,902 million KRW | 80,603 million KRW | 524,992 million KRW |
| Profit to Equity Holders | 181,029 million KRW | 1,376,987 million KRW | 49,495 million KRW | 407,841 million KRW |
Discontinued Operations: Profits from discontinued operations (spun-off subsidiaries) were 661,768 million KRW for 3Q 2014 and 285,264 million KRW for 3Q 2013.
Woori Bank (Subsidiary)
| Metric | 3Q 2014 (Quarter) | 3Q 2014 (YTD) | 3Q 2013 (Quarter) | 3Q 2013 (YTD) |
|---|---|---|---|---|
| Revenue | 3,307,868 million KRW | 11,870,248 million KRW | 4,091,921 million KRW | 14,349,193 million KRW |
| Operating Income | 270,406 million KRW | 990,691 million KRW | 39,560 million KRW | 449,241 million KRW |
| Net Income | 219,926 million KRW | 746,656 million KRW | 30,970 million KRW | 417,586 million KRW |
| Profit to Equity Holders | 220,087 million KRW | 746,345 million KRW | 30,575 million KRW | 416,643 million KRW |
Debt and Liquidity: The filing text does not provide specific values for debt levels, cash flow, or liquidity ratios.
Material Changes vs. Prior Period
- Revenue Decline: Woori Finance Holdings reported a 17.6% year-over-year (YoY) decrease in quarterly revenue and a 16.1% decrease on a cumulative basis. Woori Bank saw a 19.16% YoY quarterly revenue decline.
- Profit Surge: Despite revenue drops, Woori Finance Holdings Net Income increased 163.6% YoY for the quarter and 159.0% YoY year-to-date. This is largely attributed to a loss in the prior year (3Q 2013) turning into a profit, and significant gains from discontinued operations.
- Operating Income: Woori Finance Holdings Operating Income improved from a loss of 14,736 million KRW in 3Q 2013 to a profit of 281,929 million KRW in 3Q 2014.
- Woori Bank Performance: Woori Bank Net Income surged 610.13% YoY for the quarter, driven by a low base in the prior year.
Outlook, Risks, and Unusual Items
- Discontinued Operations: A material unusual item is the classification of several former subsidiaries (including Woori Investment & Securities, Woori F&I, and Woori Aviva Life Insurance) as discontinued operations following privatization by the Korean government. Profits from these entities significantly impacted the bottom line.
- Preliminary Nature: All figures are preliminary and subject to adjustment. They have not been audited.
- Guidance: The filing does not contain forward-looking guidance or management commentary regarding future outlook.
Investor Verification Checklist
- Verify the final audited figures against these preliminary numbers, specifically regarding the treatment of discontinued operations.
- Confirm the specific impact of the privatization and spin-off of subsidiaries on the consolidated balance sheet and future revenue streams.
- Review the detailed breakdown of the revenue decline (interest income vs. fee income) to understand the drivers behind the 17-19% drop.
- Check subsequent filings for updated debt and liquidity metrics, which are absent in this summary.