PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,360 per share · Prices as of the 2026-10-02 close
With insurance and securities units now consolidated, non-bank profit contribution reached the 22% range in the first half of 2026 and quarterly net profit returned above KRW 1 trillion, yet shrinking bank-level earnings and a history of the lowest capital ratio among the four major holding groups remain in view.
Second-quarter 2026 net profit attributable to owners was KRW 1,004.6 billion, the highest of the last five quarters, with operating profit at KRW 1,315.7 billion, also a five-quarter high.
Per company disclosure, non-bank units contributed 22.3% of first-half group profit, more than triple the 6.9% a year earlier.
By contrast, core subsidiary Woori Bank posted first-half net profit of KRW 1,373.0 billion, down by a double-digit percentage year on year.
Annual buyback-and-cancellation was raised to KRW 350 billion, the largest since the holding company was formed, and the group said its quarterly dividend will be paid on a tax-exempt basis, uniquely among bank holding groups.
The share swap making Tongyang Life a wholly owned subsidiary was completed in August 2026, while a merger with ABL Life remains under review with no announced timetable.
Woori Financial Group is a financial holding company centered on Woori Bank, with card, capital, securities, life insurance, asset management, trust and savings-bank units; the Financial Services Commission has designated it a domestic systemically important bank holding company (D-SIB), subject to tighter supervisory standards including additional capital buffers.
Most earnings still come from the bank. On company figures, Woori Bank's first-half 2026 net profit was KRW 1,373.0 billion, while Tongyang Life (standalone) earned KRW 91.9 billion, Woori Card KRW 94.5 billion, Woori Financial Capital KRW 76.9 billion and Woori Investment & Securities KRW 24.7 billion.
As a result, non-bank units accounted for 22.3% of group first-half profit, more than triple the 6.9% of a year earlier. Insurance is the axis of portfolio expansion.
After signing an MOU with China's Dajia Insurance Group in June 2024 and a share purchase agreement that August, the group acquired Tongyang Life and ABL Life for roughly KRW 1.55 trillion, completing subsidiary consolidation in July 2025 following conditional approval from the Financial Services Commission.
In securities, Woori Investment & Securities is expanding its franchise on the back of a KRW 1 trillion capital injection, with first-half net profit up 44% year on year.
For 2026 management has set out strengthening the three pillars of banking, insurance and securities alongside group-wide AI-based digital transformation. It competes within the four-holding-group structure alongside KB, Shinhan and Hana Financial, where Woori is the later mover in building out non-bank lines.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | ₩1.1T | — |
| 2025Q3 | — | ₩988B | — |
| 2025Q4 | ₩497.9B | ₩709.1B | 142.4% |
| 2026Q1 | ₩528.4B | ₩808.2B | 152.9% |
| 2026Q2 | ₩519.5B | ₩1.3T | 253.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | — | ₩4.4T | ₩3.1T | — | 10.9% | 1419.2% |
| 2023 | — | ₩3.5T | ₩2.5T | — | 7.9% | 1391.1% |
| 2024 | — | ₩4.3T | ₩3.1T | — | 9.1% | 1364.7% |
| 2025 | ₩1T | ₩3.7T | ₩3.1T | — | 8.7% | 1488.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On a consolidated basis, operating profit fell from KRW 4,430.5 billion in 2022 to KRW 3,499.0 billion in 2023, recovered to KRW 4,255.2 billion in 2024, then eased to KRW 3,674.8 billion in 2025.
Net profit attributable to owners, however, rose for two straight years from a 2023 trough of KRW 2,506.3 billion to KRW 3,086.0 billion in 2024 and KRW 3,124.3 billion in 2025, diverging from the operating line.
Equity attributable to owners grew from KRW 28,761.9 billion in 2022 to KRW 36,017.3 billion in 2025, while total liabilities expanded from KRW 448,847.1 billion to KRW 563,598.0 billion, leaving a debt-to-equity ratio of 1,488.7% typical of bank holding structures.
Operating cash flow swung from minus KRW 6,129.3 billion in 2024 to plus KRW 13,642.4 billion in 2025, a highly volatile item for financials because deposit and loan balance changes flow through it.
Quarterly, net profit attributable to owners peaked at KRW 1,243.9 billion in the third quarter of 2025, plunged to KRW 328.4 billion in the fourth quarter, then recovered to KRW 604.3 billion in the first quarter of 2026 and KRW 1,004.6 billion in the second.
Brokerage analysis attributed the weak first quarter partly to a one-off KRW 138.0 billion provision at the Indonesian unit and KRW 183.0 billion of early retirement costs; in the second quarter credit costs fell 16.7% quarter on quarter to KRW 439.2 billion and operating expenses also declined excluding retirement costs.
On the operating line, the second-quarter 2026 figure of KRW 1,315.7 billion marks a clear rebound versus KRW 1,108.5 billion a year earlier and KRW 709.1 billion in the fourth quarter of 2025.
Insurance revenue on the consolidated income statement only began to be recognized after the insurance subsidiaries were consolidated, totaling KRW 1,005.8 billion for 2025 and running near KRW 500 billion per quarter (KRW 528.4 billion in the first quarter and KRW 519.5 billion in the second quarter of 2026).
Company disclosure put first-half net operating revenue at a record KRW 5,722.7 billion, with interest income of KRW 4,659.7 billion (up more than 3% year on year) and non-interest income of KRW 1,063.0 billion (up 20%).
The focus in Korean bank holding companies has shifted from defending net interest margins to capital ratios and shareholder return policy.
In a November 2025 note, Hana Securities projected combined 2026 net profit for bank holding groups at KRW 23.1 trillion, up 2.9% year on year, on loan growth offsetting margin pressure.
On regulation, the Financial Services Commission estimated in April 2026 that its bank and insurance capital rule rationalization could unlock up to KRW 74.5 trillion of additional funding capacity at the bank holding level, dovetailing with the government's productive finance drive.
Korea Ratings, however, judged that capital ratio management has become more demanding than in the past as buybacks deduct from common equity while corporate loan expansion lifts risk-weighted assets. Capital ratio gaps are a key differentiator among groups.
At end-2025 common equity tier 1 ratios stood at 13.79% for KB, 13.37% for Hana, 13.33% for Shinhan and 12.9% for Woori, the lowest of the four; Woori's ratio was 13.7% at the end of the second quarter of 2026, above its mid-to-long-term 13% target.
In life insurance, competition for contractual service margin and the basic-capital K-ICS standard slated for 2027 are swing factors, with Tongyang Life's basic-capital K-ICS ratio reported as only slightly above the regulator's guidance level.
Most Korean bank stocks have traded below one times book value, and The Bell reported that KB Financial moved above that level after its February 2026 annual results.
The company's disclosed plans rest on three axes: non-bank reorganization, productive finance and shareholder returns. In insurance, a comprehensive share swap completed on August 11, 2026 made Tongyang Life a wholly owned subsidiary, with delisting from the KOSPI market scheduled for the end of that month.
A merger with ABL Life has been described by a company official as likely at some point but with no announced schedule; reports note that combining Tongyang Life's roughly KRW 33 trillion and ABL Life's roughly KRW 17 trillion in assets would create a life insurer with more than KRW 50 trillion in assets.
In productive finance, the group expanded its Future Co-Growth Project from KRW 80 trillion to KRW 90 trillion and said it executed 82.5% of its KRW 21.8 trillion 2026 productive finance target in the first half.
It also plans to raise inclusive finance support by KRW 2.3 trillion from the prior plan to KRW 3.5 trillion.
On returns, an additional KRW 150 billion of buyback and cancellation in the second half lifts the annual total to KRW 350 billion, the largest since the holding company's launch and the first year with two separate repurchases.
The securities arm is expanding retail channels after its KRW 1 trillion capital raise, and management has set cross-affiliate synergy and AI transformation as 2026 execution priorities.
In a July 2026 report, KB Securities said non-bank subsidiaries were improving more slowly than expected, cutting its target price to KRW 43,000 from KRW 46,000 and presenting net profit forecasts of KRW 3,303.0 billion for 2026 and KRW 3,628.0 billion for 2027.
Its earnings-based multiple sits in the single-digit range that has been common for Korean bank holding companies, and the shares trade below book value per share.
That is not unique to Woori: most Korean bank stocks have traded below one times book, and The Bell reported that KB Financial crossed above that threshold after its February 2026 annual results.
The variables the market most often cites to explain multiple gaps are the common equity tier 1 ratio and non-bank profit contribution; Woori had the lowest capital ratio among the four major groups at end-2025 before reaching 13.7% at the end of the second quarter of 2026, above its mid-to-long-term target.
On dividends, the company said it will maintain quarterly payouts and, uniquely among bank holding groups, deliver them on a tax-exempt basis, while annual buyback and cancellation of KRW 350 billion is the largest since launch.
On the earnings track, net profit attributable to owners recovered through 2024 and 2025 after the 2023 decline, and quarterly profit has returned above KRW 1 trillion from the fourth-quarter trough, so multiple interpretation hinges on whether shrinking bank-level earnings or expanding non-bank contribution proves the stronger force.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
On company figures, non-bank units contributed 22.3% of first-half 2026 profit, more than triple the 6.9% a year earlier. Newly consolidated insurance accounted for roughly 30% of non-bank net profit, while Woori Card rose 24.2%, Woori Financial Capital 14.2% and Woori Investment & Securities 44% year on year.
Asset management net profit grew 117.9%. This is a period in which reduced single-bank dependence showed up in reported numbers.
Net profit attributable to owners fell to KRW 328.4 billion in the fourth quarter of 2025 before recovering to KRW 604.3 billion and KRW 1,004.6 billion in the first and second quarters of 2026. Second-quarter operating profit of KRW 1,315.7 billion was the highest of the five quarters provided.
Credit costs fell 16.7% quarter on quarter to KRW 439.2 billion, and operating expenses declined 2.4% excluding first-quarter early retirement costs. The company said the large provisioning burden booked in the first quarter eased in the second.
With an additional KRW 150 billion in the second half, 2026 buyback and cancellation totals KRW 350 billion, up 133% from KRW 150 billion a year earlier and the largest since the holding company's launch. It is also the first year with two separate repurchases.
The company said quarterly dividends will be paid on a tax-exempt basis, uniquely among bank holding groups. A common equity tier 1 ratio of 13.7% at end-June 2026 sits above the 13% mid-to-long-term target that the company has set as its return-capacity threshold.
Woori Bank's first-half 2026 net profit was KRW 1,373.0 billion, down by a double-digit percentage year on year. Second-quarter profit of KRW 842.1 billion rose more than 58% quarter on quarter on lower operating and credit costs, but the cumulative first-half decline was not recovered.
Because most group profit still comes from the bank, weaker bank earnings offset much of the non-bank expansion. In a July 2026 report, KB Securities noted that weak 2025 loan growth was still weighing on net interest income growth.
Tongyang Life's first-quarter 2026 net profit was KRW 25.0 billion, down 45.7% year on year, largely on investment income that plunged 83.6% to KRW 9.0 billion, as reported.
Annualized premium equivalent for new business fell 35.5% to KRW 139.0 billion, and the contractual service margin balance shrank from KRW 2,797.0 billion in the third quarter of 2025 to KRW 2,510.8 billion in the first quarter of 2026.
Commentary has flagged that its basic-capital K-ICS ratio, ahead of the standard's 2027 introduction, is only slightly above the regulator's guidance. A merger with ABL Life is discussed as a cost-efficiency lever but no schedule has been disclosed.
At end-2025 Woori's common equity tier 1 ratio of 12.9% was the lowest among the four majors versus KB at 13.79%, Hana at 13.37% and Shinhan at 13.33%.
It rose to 13.7% by end-June 2026, but brokerage analysis credited a first-quarter asset revaluation for part of the improvement, so the nature of the gain warrants separation.
Korea Ratings assessed that capital ratio management has become more burdensome than in the past as buybacks deduct common equity while corporate loan growth lifts risk-weighted assets. The group's non-performing loan ratio edged up from 0.71% to 0.73% and NPL coverage fell from 127.0% to 112.9%.
The Financial Services Commission designated Woori Financial Group a domestic systemically important bank holding company, applying tighter standards including additional capital buffers.
Under the government's productive finance push, growing corporate lending and fund commitments raise risk-weighted assets, which can affect capital ratios and return capacity.
Conversely, the commission's capital rule rationalization was estimated to create up to KRW 74.5 trillion of additional funding capacity at the bank holding level. Because policy contains both tightening and easing elements, the net effect must be tracked through quarterly capital ratio disclosures.
First-half 2026 credit costs rose 2.4% year on year to KRW 966.0 billion, and brokerage analysis pointed to a one-off provision at the Indonesian unit in the first quarter. Additional provisioning at overseas units or in property-related exposures could again widen quarterly earnings volatility.
The company cited Middle East instability and heightened currency volatility as first-half operating environment factors. Whether the non-performing loan ratio keeps rising and coverage keeps falling is the metric to watch.
During the process of making Tongyang Life a wholly owned subsidiary, the Financial Supervisory Service demanded amendments to the securities registration statement and said it focused its review on shareholder protection procedures in a share swap entailing delisting.
Some Tongyang Life shareholders objected to the gap between the price paid to the former controlling shareholder and the value applied to minority holders. The swap closed in August 2026, but dilution from new share issuance and procedural disputes remain follow-on variables.
With the timing and structure of an ABL Life merger undecided, integration costs and synergy scale are not yet quantified.
At third-quarter results, check whether the second-quarter earnings recovery persisted and whether non-bank profit contribution holds or expands from the 22% range. Also watch whether the common equity tier 1 ratio stays above the 13% mid-to-long-term target.
Track actual execution of the KRW 150 billion second-half buyback and cancellation and delivery of the KRW 350 billion annual plan. The pace of execution ties directly to capital ratio headroom.
The key item is any announcement of the specific structure and timing of a Tongyang Life and ABL Life merger. Reports suggest the combined entity would hold over KRW 50 trillion in assets, but integration costs and capital needs should be disclosed alongside.
Review the 2027 dividend and buyback plan presented with full-year 2026 results. Points of focus are whether full-year 2026 profit sustained the first-half recovery and how the return scale is linked to capital ratio thresholds.
Check how the insurance subsidiaries respond to the basic-capital K-ICS standard. Given commentary that Tongyang Life's ratio is only slightly above guidance, the question is whether equity injections or capital instruments become necessary.
Woori Financial Group's recent results contain two opposing currents.
Net profit attributable to owners recovered from KRW 2,506.3 billion in 2023 to KRW 3,086.0 billion in 2024 and KRW 3,124.3 billion in 2025, and quarterly profit returned above KRW 1 trillion at KRW 1,004.6 billion in the second quarter of 2026, yet core subsidiary Woori Bank's first-half profit fell by a double-digit percentage year on year.
The change in earnings mix is clear: on company figures, non-bank units contributed 22.3% of first-half profit, more than triple the 6.9% a year earlier, with insurance, securities, card and capital all adding.
In insurance, however, Tongyang Life's new business metrics and contractual service margin have moved backward, so whether consolidation converts into durable earnings power is still being tested.
On capital, a 13.7% common equity tier 1 ratio at end-June 2026 sat above the mid-to-long-term target and supported KRW 350 billion of annual buyback and cancellation plus quarterly dividends, while the lowest capital ratio among the four majors at end-2025 and risk-weighted asset pressure from productive finance expansion remain in place.
This report is for information purposes and contains no buy or sell recommendation or target price for any security.
Report written 2026-09-05 · Data as of 2026-09-04
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