Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori Financial Group) reports preliminary, unaudited consolidated financial performance for the first quarter ended March 31, 2008. The filing also includes non-consolidated preliminary figures for its wholly-owned subsidiary, Woori Bank. The data reflects adjustments for the revised interpretation of Korean Accounting Standards regarding credit derivatives effective March 31, 2008, and incorporates the results of Woori Financial (formerly Hanmi Capital) into consolidated line items, excluding net income.
Key Financial Metrics (1Q 2008)
| Metric (Millions KRW) | Woori Finance Holdings (Consolidated) | Woori Bank (Non-Consolidated) |
|---|---|---|
| Revenue | 13,830,517 | 11,408,322 |
| Operating Income | 786,873 | 548,248 |
| Income Before Tax | 841,111 | 592,226 |
| Net Income | 546,275 | 444,638 |
The filing does not provide specific data regarding cash flow, debt levels, liquidity ratios, or specific margin percentages beyond the raw income statement figures.
Material Changes vs. Prior Periods
- Year-over-Year (1Q 2008 vs. 1Q 2007):
- Consolidated Revenue increased 128.8% to 13.83 trillion KRW.
- Consolidated Net Income decreased 38.4% to 546.3 billion KRW.
- Woori Bank Revenue increased 156.0% to 11.41 trillion KRW.
- Woori Bank Net Income decreased 44.9% to 444.6 billion KRW.
- Quarter-over-Quarter (1Q 2008 vs. 4Q 2007):
- Consolidated Revenue increased 68.8% to 13.83 trillion KRW.
- Consolidated Net Income increased 389.4% to 546.3 billion KRW.
- Woori Bank Revenue increased 70.8% to 11.41 trillion KRW.
- Woori Bank Net Income increased 308.6% to 444.6 billion KRW.
Outlook, Risks, and Unusual Items
Unusual Items and Adjustments: The significant year-over-year decline in net income despite revenue growth is attributed to accounting adjustments. Specifically, 2007 figures were restated to reflect a revised interpretation of Korean Accounting Standards regarding credit derivatives. Additionally, the consolidation of Woori Financial (formerly Hanmi Capital) impacts revenue and operating income but is excluded from the consolidated net income figure.
Management Commentary: The filing contains no forward-looking guidance, outlook, or specific management commentary beyond the presentation of the preliminary figures.
Risks: The filing explicitly states that the figures are preliminary and subject to adjustment as they have not been reviewed by independent auditors.
Investor Verification Checklist
- Verify the final audited figures once the full annual report is released, as current data is preliminary.
- Confirm the specific impact of the credit derivatives accounting standard change on the 2007 restated figures to understand the true year-over-year performance trend.
- Review the detailed breakdown of the consolidation of Woori Financial (Hanmi Capital) to assess its contribution to revenue versus net income.
- Investigate the reasons for the divergence between the 128.8% revenue growth and the 38.4% net income decline on a year-over-year basis.