Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. (Woori Bank) reports preliminary consolidated financial performance for the first quarter of 2018, covering the three-month period ended March 31, 2018. The figures are prepared in accordance with Korean International Financial Reporting Standards (K-IFRS) and are subject to adjustment as they have not yet been reviewed by independent auditors.
Key Financial Metrics
| Item (Millions KRW) | 1Q 2018 | 4Q 2017 | 1Q 2017 |
|---|---|---|---|
| Revenue* | 5,224,579 | 7,091,146 | 8,390,000 |
| Operating Income | 821,297 | 354,826 | 879,744 |
| Income Before Tax | 806,035 | 147,920 | 828,630 |
| Net Income | 594,520 | 137,648 | 642,731 |
| Profit to Equity Holders | 589,736 | 133,641 | 637,473 |
*Revenue represents the sum of interest income, fee and commission income, dividend income, gain on financial assets, and other operating income (excluding non-operating income).
The filing does not provide specific data regarding cash flow, debt levels, liquidity ratios, or explicit margin percentages.
Material Changes vs. Prior Periods
- Revenue: Decreased 26.32% compared to 4Q 2017 and 37.73% compared to 1Q 2017.
- Operating Income: Increased 131.46% compared to 4Q 2017 but decreased 6.64% compared to 1Q 2017.
- Net Income: Surged 331.91% compared to 4Q 2017, though it declined 7.50% year-over-year compared to 1Q 2017.
- Profit to Equity Holders: Rose 341.28% from the prior quarter but fell 7.49% from the same quarter last year.
Outlook, Risks, and Unusual Items
The filing contains no forward-looking guidance, management commentary on future outlook, or specific discussion of risks and contingencies. The primary unusual item noted is the significant volatility in quarterly performance, specifically the sharp drop in revenue contrasted with a massive increase in net income and operating income relative to the fourth quarter of 2017. The document explicitly states that figures are preliminary and unaudited.
Investor Verification Checklist
- Verify the final audited figures for 1Q 2018 once the annual report is released to confirm the preliminary numbers.
- Investigate the specific drivers behind the 37.73% year-over-year revenue decline versus the 331.91% quarter-over-quarter net income increase.
- Review the upcoming audited financial statements for details on cash flow, debt, and liquidity, which are absent in this preliminary filing.
- Confirm the composition of "Revenue" to understand the impact of gains on financial assets versus core interest income.