Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori Financial Group Inc.) dated November 7, 2008, reports preliminary financial performance for the third quarter and nine-month period ended September 30, 2008. The data covers consolidated results for the holding company and non-consolidated results for its wholly-owned subsidiary, Woori Bank. The figures are unaudited and subject to adjustment.
Key Financial Metrics
Woori Finance Holdings (Consolidated)
| Metric | 3Q 2008 | Cumulative 9M 2008 | 3Q 2007 | Cumulative 9M 2007 |
|---|---|---|---|---|
| Revenue (Million KRW) | 23,030,148 | 47,929,332 | 6,813,226 | 18,458,249 |
| Operating Income (Million KRW) | 254,925 | 1,703,512 | 557,951 | 2,730,128 |
| Net Income (Million KRW) | 157,497 | 1,119,269 | 323,266 | 1,827,612 |
Woori Bank (Non-Consolidated)
| Metric | 3Q 2008 | Cumulative 9M 2008 | 3Q 2007 | Cumulative 9M 2007 |
|---|---|---|---|---|
| Revenue (Million KRW) | 20,037,413 | 40,121,329 | 5,295,846 | 14,127,380 |
| Operating Income (Million KRW) | 153,537 | 1,134,046 | 338,443 | 2,093,804 |
| Net Income (Million KRW) | 133,106 | 925,113 | 244,300 | 1,580,626 |
The filing does not provide specific data on cash flow, debt levels, liquidity ratios, or explicit margin percentages.
Material Changes
- Revenue Surge: Consolidated revenue for 3Q 2008 increased 238% year-over-year to 23.03 trillion KRW, driven largely by the inclusion of Woori Aviva Life Insurance following its acquisition on April 1, 2008.
- Profit Decline: Despite revenue growth, consolidated Net Income for 3Q 2008 fell 51.3% year-over-year to 157.5 billion KRW. Cumulative 9-month Net Income decreased 38.8% to 1.12 trillion KRW.
- Operating Income Drop: Consolidated Operating Income for 3Q 2008 declined 54.3% year-over-year to 254.9 billion KRW.
- Subsidiary Performance: Woori Bank mirrored the holding company's trend, with 3Q 2008 Net Income dropping 46% year-over-year to 133.1 billion KRW.
Outlook, Risks, and Unusual Items
- Acquisition Impact: The filing explicitly notes that while Woori Aviva Life Insurance results are included in revenue and operating lines, its net income prior to the April 1, 2008 acquisition date is excluded from the consolidated Net Income calculation.
- Preliminary Status: All figures are preliminary and have not been reviewed by independent auditors; they are subject to future adjustment.
- Guidance: The filing contains no forward-looking guidance, management commentary on future strategy, or specific risk factors beyond the standard disclaimer regarding preliminary data.
Investor Verification Checklist
- Verify the final audited figures for the third quarter and nine-month period of 2008 to confirm adjustments to the preliminary data.
- Confirm the specific contribution of Woori Aviva Life Insurance to the revenue spike versus the decline in profitability.
- Review subsequent filings for detailed cash flow statements, debt covenants, and liquidity positions, which are absent in this summary.
- Assess the impact of the global financial crisis environment of late 2008 on the bank's loan loss provisions and asset quality, as these are not detailed in the text.