On Track for Bright Future
Woori Financial Group continues to lead financial markets with new products, services
The Woori Financial Group, the country's largest financial group with Woori Bank as its major affiliate, saw its H1 net profit soar 21.5 percent on a year on year basis to 1,005 billion won with operating profit amounting to 2,737 billion won, up 14.2 percent from the same period last year.
The group's ROAA climbed to 1.2 percent from 1.1 percent in the first quarter and for Woori Bank, the ratio remained the same at 1.2 percent. ROAE, however, slipped a little in the H1 at 20.1 percent for the group and 18.2 percent for the bank from 21.4 percent for the group and 19.7 percent for the bank in the H1 of last year.
The group's BIS ratio in the H1 edged up to 11.7 percent estimated up from 11.2 percent in the Q1 this year. Standard and Poor's and Fitch's credit rating for the group stood at BBB/BBB+ for the group.
The ratio of non-performing assets recorded 1.1 percent for the group and 0.9 percent for the bank in the H1.
The financial group launched operation in April, 2001 as the first financial group in Korea and as of the end of June, its assets topped those of all other financial groups in the country. Their overall goal is to be the leading financial group in the world with enhanced international competitive edge in response to world trends for larger financial industry with a wider area of business. The group strives to be a representative integrated financial group in the 21 century having pride as a native financial entity in the country.
Since 2004, the group worked on expanding its non-banking sector with the arrival of Chairman Hwang Young-ki synergy among affiliates. As a result, the group realized the biggest profit in its history in 2005, followed by another record net profit in the H1 this year at 1.045 trillion won with a great improvement in soundness of assets to continue its stable growth as a superior financial institution.
As of the end of June, the group comprised of nine affiliates and 12 subsidiaries with total capital of 10.6 trillion won and market value of 15.314,3 trillion won as of Aug. 16 with 22,000 employees. Its combined assets totaled 187 trillion won and 218 trillion won including trust accounts, the largest in the country. Its major affiliates include Woori Bank with total assets of 162 trillion won, Kwangju Bank with total assets of 12 trillion won and Kyungnam Bank with total assets of 17 trillion won. The largest among its non-banking affiliates include Woori Investment and Securities with total assets of 10 trillion won, and Woori Credit Swiss Asset Management with assets of 15 trillion won.
The WFG's mid-and long-term strategies are based on a number of key plans aimed at becoming a top financial group in terms of global competitive power. The group will try to build up the most proper portfolio and with thorough risk management provide to its shareholders the top rate profits. It will also try to realize the best universal banking through close cooperation among affiliates and extend to its customers segregated financial services from those provided by its competitors. The group will lead the country's financial sector as a model financial holding company with advanced financial commodities and services with an aim to make a huge contribution to the growth of the nation's financial industry.
In order to position the group to achieve its operational objectives, the group set up a various programs ranging from personnel recruitment and training to the development of new financial products and services and implemented them.
The group hired MBAs at home and abroad and sent them to universities in foreign countries including those in the top 30 in the United States and work at foreign financial institutions such as Macquarie Bank for them to become experienced bankers. The group introduced a systematic personnel performance evaluation to make rewards for hard work compensated justly for the expansion of performance result based culture.
The group also worked hard to come up with new financial products, that are creative and market leading. It also developed products to help low-income families and SMEs including loans for rental houses. The group also set up the Integrated Financial Center in downtown Seoul for the first time in the country to provide one-stop financial services to its customers. The group also opened the Woori Financial Plaza, a financial department store where all kinds of financial products and services are available, including securities, cards, insurance and consultations, in addition to banking services.
The group also increased its social service activities centered around the one-company and one-village campaign and the ˇ®Together Woori.ˇ± Officers and staff volunteered to donate funds to the Woori Love Fund and presented funds to social welfare facilities and poor neighbors. nw
Chairman Hwang Young-ki of the Woori Financial Group.