Woori Finance Holdings Co (2WGA) AI Stock Analysis

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Woori Finance Holdings Co

(Frankfurt:2WGA)

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Positive Factors

Sustained ProfitabilityEarnings above KRW 1 trillion for a second consecutive quarter, combined with improving ROE and higher year-to-date profit, indicate meaningful operating strength. This supports internal capital generation and gives the group a stronger base for funding growth and shareholder distributions.

Negative Factors

Elevated LeverageElevated bank-style leverage makes results more sensitive to credit losses, funding costs, and changes in borrower quality. Although equity has improved, sustained leverage can constrain financial flexibility and amplify downside if economic or funding conditions deteriorate.

Woori Finance Holdings Co (2WGA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 17.64B
Dividend Yield: 4.03%
Average Volume (3M): 33
Price to Earnings (P/E): 7.9
Beta (1Y): 0.59
Revenue Growth: 26.79%
EPS Growth: -12.51%
Country: Germany
Employees: 27,249
Sector: Financial
Sector Strength: 68
Industry: Banks - Diversified

Woori Finance Holdings Co Business Overview & Revenue Model

Company Description

Woori Financial Group Inc., together with its subsidiaries, operates as a bank which provides various financial services in Korea, China, the United States, the United Kingdom, Japan, and internationally. The company operates through Banking Insuranc...

Woori Finance Holdings Co Earnings Call Summary

Earnings Call Date:Oct 23, 2026(Q3-2026)|% Change Since:0.83%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Earnings exceeded KRW 1 trillion for a second consecutive quarter, profitability and noninterest income improved, credit costs declined, capital remained industry-leading, and shareholder-return initiatives were expanded. The principal challenges were the 7 bps Q-o-Q NIM decline, lower quarterly noninterest income, higher card delinquency, regulatory restrictions on a life-insurance product, and temporary CET1 pressure, but management provided specific explanations and expected improvements or normalization for several of these items.

Positive Updates

Quarterly Net Income Exceeded KRW 1 Trillion

Q3 2026 net income was KRW 1,049.2 billion, up 4.4% Q-o-Q and above KRW 1 trillion for the second consecutive quarter. Year-to-date net income reached KRW 2,658.1 billion, up 19% Y-o-Y excluding the approximately KRW 550 billion of prior-year bargain purchase gains.

Negative Updates

Q3 Bank NIM Declined

The bank's Q3 NIM was 1.43%, down 7 bps Q-o-Q. Management attributed the decline to funding-cost pressure as market rates increased more sharply than lending rates, proactive funding ahead of additional rate hikes, a 2 bps impact from declining core deposits, and an approximately 5 bps impact from the loan and short-term interest-rate spread. Approximately 70% of loans are CD-linked, increasing the impact of the rate spread.

Company Guidance

Management said that in Q4 NIM will “at least remain or have a slight increase,” with asset refreshing starting from 2027 expected to improve NIM; it targets reducing credit cost by 15% and bringing the credit cost ratio to the “low 40 basis point range,” while 2026 CCR is expected to “stay well within the early 40 bps range.” CET1 is expected to be maintained in the 13.6% to 13.7% range, 2026 total shareholder return could be in the “mid-40 range” and “significantly higher than last year,” and, on a tax-exempt basis, “18.4% is added” so TSR is “above 50%”; nominal TSR next year is intended to “exceed 50%.” DPS is targeted to increase “on an annual basis more than 10%,” the quarterly dividend principle is expected to cover “at least 3 or 4 years,” and the company may reassess the nontaxable dividend around 2028. The ABL Tower is expected to be sold “by the end of this year,” and card delinquency rate and NPL ratio are expected to go down in Q4.

Woori Finance Holdings Co Risk Analysis

Woori Finance Holdings Co disclosed 46 risk factors in its most recent earnings report. Woori Finance Holdings Co reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.The dividends that we receive from our subsidiaries may be affected by potential restrictions on their ability to pay such dividends, as well as their financial conditions and operating results.Q4, 2023

2.We may suffer customer attrition or our net interest margin may decrease as a result of government regulations or our competition strategy.Q4, 2023

3.We may not be able to successfully execute our overseas expansion strategy.Q4, 2023

Woori Finance Holdings Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:2WGA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMFG	73Outperform	$155.16B	14.68	10.89%	2.57%	7.19%	41.88%
ING	73Outperform	$92.22B	12.82	13.48%	4.58%	11.88%	22.51%
MUFG	68Neutral	$246.50B	14.63	12.34%	3.07%	7.56%	43.28%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBVA	66Neutral	$142.57B	11.55	20.16%	4.33%	14.69%	18.60%
SAN	59Neutral	$177.64B	9.99	15.04%	2.26%	21.16%	27.88%

* Financial Sector Average

Performance Comparison

DE:2WGA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:2WGA	Woori Finance	61.00	16.25	36.31%
BBVA	Banco Bilbao Viscaya Argentaria	25.92	5.92	29.57%
ING	Ing Groep N.V.	33.22	9.05	37.43%
MUFG	Mitsubishi Ufj Financial	21.83	6.41	41.57%
SMFG	Sumitomo Mitsui Financial	24.74	7.43	42.92%
SAN	Banco Santander US	12.21	1.99	19.51%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Woori Finance Holdings Co AI Stock Analysis