Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori Financial Group Inc.) was submitted on February 7, 2007. The report discloses preliminary, unaudited consolidated financial performance figures for the fiscal year ended December 31, 2006, and provides non-consolidated data for the same period.
Key Financial Metrics
Consolidated Performance (Year Ended Dec 31, 2006)
| Metric | 4Q 2006 | 4Q 2005 | Cumulative 2006 | Cumulative 2005 |
|---|---|---|---|---|
| Operating Revenue (Million KRW) | 5,110,189 | 3,789,073 | 19,210,542 | 14,258,430 |
| Operating Profit (Million KRW) | 167,968 | 310,157 | 2,183,993 | 2,030,553 |
| Recurring Profit (Million KRW) | 566,214 | 311,344 | 2,896,526 | 2,145,704 |
| Net Income (Million KRW) | 419,206 | 188,187 | 2,016,362 | 1,688,221 |
Non-Consolidated Balance Sheet (Year Ended Dec 31, 2006)
- Total Assets: 13,782,722,601 (Thousands KRW)
- Total Liabilities: 1,860,448,688 (Thousands KRW)
- Shareholders' Equity: 11,922,273,913 (Thousands KRW)
- Equity/Capital Stock Ratio: 295.83%
The filing does not provide specific data on cash flows, debt maturities, or liquidity ratios beyond the balance sheet totals.
Material Changes
- Revenue Growth: Consolidated operating revenue increased 34.73% on a cumulative basis compared to the prior year. Non-consolidated revenue rose 8.09% year-over-year.
- Profitability: Consolidated net income grew 19.44% cumulatively to 2.02 trillion KRW. Non-consolidated ordinary income and net income both increased 19.44%.
- Quarterly Volatility: While cumulative results were positive, 4Q 2006 operating profit dropped 45.84% compared to 4Q 2005, though it remained significantly higher than 3Q 2006.
- Balance Sheet: Total assets increased by approximately 1.75 trillion KRW, while total liabilities decreased by approximately 454 billion KRW compared to FY2005.
Outlook, Risks, and Management Commentary
Management Commentary: The increase in income was primarily attributed to increases in equity method gains resulting from improved operating results of subsidiaries.
Risks and Contingencies: The filing explicitly states that the figures are preliminary, interim, and unaudited. Management warns that these figures are subject to adjustment and may differ substantially from final audited information.
Guidance: No specific forward-looking guidance or outlook for 2007 is provided in this filing.
Investor Verification Checklist
- Verify the final audited financial statements for FY2006 to confirm the preliminary figures.
- Investigate the specific drivers of the 45.84% decline in 4Q operating profit compared to the prior year.
- Review the detailed performance of subsidiaries to understand the source of the equity method gains.
- Confirm the composition of the decrease in total liabilities on the non-consolidated balance sheet.