Earnings beat; TSR upside backed by capital strength

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Earnings beat; TSR upside backed by capital strength

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Woori Financial Group

Earnings beat; TSR upside backed by

capital strength

Reiterate Rating: BUY | PO: 43,000 KRW | Price: 30,850 KRW

Earnings beat on robust non-interest income 24 July 2026

Woori Financial Group reported 2Q26 net profit of W1,005bn, up 7% YoY/66% QoQ, Equity

ahead of Bloomberg consensus of W937bn and our estimate of W911bn. NIM came in at

1.75%, down 1bp QoQ, while loan growth remained solid at 1.9% QoQ during the

Key Changesquarter. Non-interest income was supported by strong fee income growth, which rose

22% QoQ. Credit costs continued to normalize, declining 17% QoQ despite the (W) Previous Current

recognition of a one-off provision related to JoongAng Group. Woori reported a CET1 Price Obj. 42,300.00 43,000.00

ratio of 13.71% at end-2Q26 and announced an additional W150bn share buyback for 2026E EPS 4,288.63 4,401.52

2H26. With CET1 now comfortably above the 13% threshold, we believe Woori has 2027E EPS 5,120.75 5,191.41

established the foundation to increase its shareholder-return ratio toward 50%, in line 2028E EPS 5,582.56 5,707.94

with its value-up plan. We estimate Woori's TSR will reach 44% in 2026. Reiterate Buy.

Jisun Lee >>

Poised to benefit from a higher-rate environment ResearchMerrill LynchAnalyst(Seoul)

Bank NIM remained flat QoQ, as management proactively increased longer-duration time +82 2 3707 0418 jisun.lee@bofa.com

deposits during 2Q in preparation for a potential rise in policy rates in 2H26. By locking

Simon Woo, CFA >>

in funding costs at current levels, Woori aims to mitigate future funding cost pressures Research Analyst

and position itself for NIM expansion in a rising-rate environment. On the asset side, Merrill Lynch (Seoul) +82 2 3707 0554