Concentration on Liquidity, Soundness, Profit

Woori Bank to go all-out to reach 1 tln won in net income this year while not neglecting SMEs and financially strapped households

President Lee Chong-hwi of Woori Bank said the bank will aim for 1 trillion won in net income this year, turning the dangers in the financial environment into opportunities.
The CEO also said the bank will expand "warm support" to SMEs in financial difficulties and poor households during a New Year interview with local press.
He said Woori will try to make good on all phases of its operation, especially on liquidity, soundness and profit, in order to overcome various difficulties that may emerge in the financial market this year, bogged down by the limping economy.
He revealed that the bank had to write off $300 million invested in U.S. subprime mortgages as losses, which kept the bank from achieving 1 trillion won in net profit last year.
He also expressed concern that the bank's performance would be hampered by the corporate restructuring expected to occur during the first half, which will increase the loan losses and even reduce net income margin for banks in general. He did not expect the sales of funds and bancassurance to do much in terms of boosting profits.
Lee said Woori will set up the rafting management system to cope with problems in its operation in a swift manner while cementing its fundamental structure.
He stressed that the bank will make sure that it fulfills its role as a middle man for the supply of funds in order to adhere to its official duty as a bank, come what may, explaining the social responsibility of banks.
The CEO also said he will change the performance evaluation system for the branches to include non-interest income, foreign exchange and bancassurance, so that each branch will have its performance evaluated based on the characteristics of its surroundings and prevent incomplete sales caused by heated competition.
Lee also said securing funds and the attraction of deposits from customers will also weigh heavily on the performance evaluation to make the bank strong, so that it will be able to supply funds to SMEs and the public sufficiently, doing in full its given duty.
Calling on the speedy restructuring of companies in trouble, he said banks will be able to supply funds to companies with good chances of survival when the corporate restructuring is completed. He said the bank will help get the restructuring done quickly with rapid decision making.
The government, he said, is out to help increase the capital of banks so that banks, in turn, will help SMEs with funding troubles and expand funding support to the companies with great future prospects. He went on to say, in that respect, Woori will not neglect its efforts in helping to revive the economy by preventing the slowdown of the real economy.
He said the bank will celebrate its 110th anniversary this year and on Jan. 10, all 10,000 officers and staff of the bank will gather and hold a founding anniversary ceremony, although the bank was founded on Jan. 4.
At the ceremony, they will pledge to make the bank a top bank in the country before too long by overcoming the current financial crisis. nw

President & CEO Lee Chong-whi of Woori Bank

President Lee shakes hands with the winner of the piggy bank savings contest that Woori Bank sponsored.