SEOUL– Woori Financial Group, a major South Korean banking group, reported a 85.3 percent rise in its 2021 earnings thanks to increased interest income and strong business performance in its affiliates.
Net profit came to 2.81 trillion won (US$2.3 billion) last year on a consolidated basis, compared with 1.52 trillion won registered a year earlier, according to data provided by the company.
Annual operating profit grew 75.9 percent on-year to 3.66 trillion won, while sales declined 5 percent to 27.23 trillion won.
The strong earnings came mostly from increased income from loans and non-interest income from its affiliates, the company said.
The company earned 6.99 trillion won in net interest income last year, up 16.5 percent from a year earlier. The rise is attributed to improved profitability from loan making.
Its non-interest income also jumped 65.2 percent on-year to 1.36 trillion won in 2021 on the back of increased fees from operations linked to securities, financial derivatives and forex markets.
Woori Bank, a major affiliate, reported 2021 earnings of 2.38 trillion won, up 74.3 percent from a year earlier, the data showed.
Woori Financial Group said its business in 2022 will continue to enjoy growing interest income considering the central bank’s much-anticipated rate hikes in the months to come.
“Last month’s NIM (net interest margin) was 1.46 percent, but it was a figure that did not reflect the policy rate hike in the same month,” a Woori Financial official said in a conference call.
“Assuming that there could be one more rate hike, this year’s interest revenue will likely grow more than 15 percent from a year earlier, and NIM is expected to stay at the 1.5 percent range,” he added.
Last month, the Bank of Korea raised its key interest rate by 0.25 percentage point, the third rate hike since August. The central bank has hinted at further increasing borrowing costs as part of efforts to normalize long loose monetary policy.
Source: Yonhap News Agency