Woori Finance Holdings Co., Ltd. Q1 FY2025 earnings call

Net Income: Amid market volatility, solid revenue but net income below expectations due to conservative provisioning and one-off costs. ROE is 9.5%. ### Net Operating Revenue: Increased due to asset rebalancing, solid interest income, and stable noninterest income from core fee. ### Credit Cost: Higher due to economic uncertainties, but monitoring and preemptive measures in place. Normal credit cost ratio excluding one-offs is 0.39%. ### Capital Ratios: CET1 ratio improved to 12.42%, aiming for 12.5% by year-end. ### Dividends: Q1 dividend of KRW 200 per share, record date May 10. ### Expenses: SG&A increased due to one-off factors, but focusing on future growth investments and cost efficiencies. ### Asset Rebalancing: Focus on high-quality assets, emerging growth industries, and reducing low margin/distressed loans. ### Securities Business: Woori Investment Securities launched MTS platform, preparing for full-scale operations; applied for insurance subsidiary acquisition.

Net income for Woori Financial Group in Q1 2025 was KRW 615.6 billion. Net operating revenue increased 2.4% Y-o-Y and 6.6% quarter-over-quarter to KRW 2,609.5 billion. Credit cost was KRW 435.5 billion, a Y-o-Y increase of 18.8%, but normal credit cost ratio excluding one-offs is 0.39%. As of March end, preliminary CET1 ratio is 12.42%, a 30 basis point increase from end of last year. Q1 dividend is KRW 200 per share, an 11% increase Y-o-Y.

CET1 Ratio: Aim to achieve 12.5% CET1 ratio within the year. ### Dividends: Q1 dividend of KRW 200 per share, 11% increase Y-o-Y. ### Asset Rebalancing: Restructure portfolio to focus on high-quality assets and emerging growth industries. ### Insurance Acquisition: Submitted application for insurance subsidiary acquisition, expecting minimal impact on capital ratio and ROE improvement of approximately 1 percentage point and annual profit increase of KRW 300-400 billion.

Economic Uncertainty: Concerns over economic recession leading to asset quality concerns. ### Tariffs and Exchange Rates: Impact of U.S. reciprocal tariffs, high exchange rates, and market volatility. ### Credit Risk: Higher delinquency and NPL ratios due to internal/external business environment.

Q: SK Securities on capital policy A: Hong Sung Han on asset rebalancing and focusing capital on securities business, aiming for 12.5% CET1 ratio Q: Korea Investment & Securities on digital business A: Unidentified rep on MAU of 8.5 million by end of last year, aiming for 9 million by year, and super app plans for universal banking services Q: Mirae Asset Securities on insurance acquisition impact A: Hong Sung Han on minimal capital impact expectation based on available financials, with prudent management post-acquisition Q: Hanwha Investment & Securities on credit cost and RWA A: Park Jang-Geun on credit cost ratio expected to improve to early mid-40 bps in second half, with asset rebalancing focusing on low-risk prime assets Q: Daishin Securities on securities ID business A: Lee Sung-Wook on strengthening IB and retail synergies, utilizing bank retail network, and focusing on comprehensive securities firm with MTS services Q: Yuanta Securities on NIM and budget telecom A: Hong Sung Han on NIM management with active asset rebalancing, aiming for 1.4% plus annual NIM; Unidentified rep on budget telecom service for customer acquisition and activation of existing customers Q: HSBC on ERP costs and CET1 A: Hong Sung Han on ERP timing dependent on internal/external factors and labor union negotiations, and focus on achieving 12.5% CET1 ratio Q: Website questions on insurance acquisition and CET1 A: Lee Sung-Wook on insurance acquisition application under FSC review, and CET1 efforts including asset rebalancing and RWA management to reach 12.5% target