Fact Source: Daishin Securities / Report Date: June 30, 2026
Investment Opinion & Target Price: BUY (Maintain) / 43,000 KRW (Maintain)
Key Momentum: Net interest income expansion driven by large corporate loan growth, highly visible H2 treasury share buybacks backed by an improved CET1 ratio, and seamless progression of the Tongyang Life comprehensive stock exchange.
📊 1. [Valuation Indicators & Investment Metrics Analysis]
- Investment Opinion & Target Price Trend: Maintained the ‘BUY’ rating and the 6-month target price of KRW 43,000. Backed by an improved CET1 ratio, following the KRW 200.0B share buyback in the first half, the probability of an additional KRW 150.0B buyback in the second half is highly visible, reinforcing valuation merits.
- Shareholder Return Guidance: Factoring in cash dividends of KRW 1.15T (DPS of KRW 1,560) and total share buybacks of KRW 350.0B, the total shareholder return rate for 2026 is projected to hit 48.7%. An accelerated non-banking subsidiary integration timeline is expected to deliver full-scale earnings contributions starting from 2027.
- Key Financial Metrics & Valuation Forecasts:
- Net Operating Revenue: 2024A: KRW 10,440B ➡️ 2025A: KRW 10,955B ➡️ 2026E: KRW 11,339B ➡️ 2027E: KRW 11,948B
- Operating Profit: 2024A: KRW 4,253B ➡️ 2025A: KRW 3,688B ➡️ 2026E: KRW 4,206B ➡️ 2027E: KRW 4,546B
- Net Profit: 2024A: KRW 3,086B ➡️ 2025A: KRW 3,140B ➡️ 2026E: KRW 3,067B ➡️ 2027E: KRW 3,281B
- P/E (Price-to-Earnings Ratio): 2024A: 3.51x ➡️ 2025A: 6.55x ➡️ 2026E: 6.59x ➡️ 2027E: 6.04x
- P/B (Price-to-Book Ratio): 2024A: 0.32x ➡️ 2025A: 0.57x ➡️ 2026E: 0.52x ➡️ 2027E: 0.49x
- ROE (Return on Equity): 2024A: 9.0% ➡️ 2025A: 8.7% ➡️ 2026E: 7.8% ➡️ 2027E: 8.1%
🚀 2. [Market Opportunities (TAM) & Detailed Earnings Estimates]
- 2Q26 Earnings Preview & Margin Trends:
- Net Profit (Controlling Interest): Projected at KRW 890.1B (QoQ +47.4%, YoY -4.8%), slightly lower than market consensus but successfully recovering to its normalized quarterly baseline of around KRW 900.0B.
- Net Interest Income & Loans: Corporate lending growth centered on large enterprises continues to drive steady net interest income expansion. Despite concerns over NIM compression following the announcement of an additional KRW 10.0T productive finance package over two years, the bank NIM is estimated to rise 3bp QoQ in Q2, displaying negligible downside impact.
- Non-Interest Income & Credit Exposures:
- Non-Interest Income: Projected at KRW 582.0B (QoQ +27.9%, YoY +10.3%). Strong banking commission incomes and improving non-banking subsidiaries (such as securities) are set to drive a near 30% expansion compared to Q1. Non-monetary FX translation losses from the KRW depreciation (approx. KRW 30) are limited to KRW 20.0B, significantly down from Q1 (-KRW 53.0B). However, the insurance arm faces a potential earnings drag due to CSM reductions and rising acquisition costs under actuarial model refinements.
- JoongAng Group Credit Exposure: Total group exposure stands at KRW 150.0B, with the exposure to the 6 defaulting entities at KRW 111.0B. Provisions of KRW 40.0B are expected to be recognized in Q2, while the collateralized loan portion remains well protected at over 70%.
- Capital Adequacy & M&A Schedule:
- CET1 Ratio: The end-of-June Common Equity Tier 1 (CET1) ratio is estimated to edge up slightly to 13.62%.
- Tongyang Life M&A: Held investor briefings following the announcement of the comprehensive stock exchange for remaining minorities. While a valuation gap exists between the controlling stake acquisition price and the minority swap ratio, the calculation strictly adheres to the Capital Markets Act, ensuring smooth execution under the disclosed schedule.
📝 Editor’s Comment (by K-STOCK Editor)
Woori Financial Group’s 2Q26 preview effectively dispels market anxieties over margin dilution from competitive corporate loan growth, reinforcing a strong normalized earning power of around KRW 900.0B. The bank NIM expanding 3bp QoQ despite the KRW 10.0T productive finance commitments highlights resilient pricing power. For institutional investors, the pivotal metric is the projected CET1 ratio of 13.62%. Holding comfortably above regulatory value-up baselines, this provides the precise capital headroom necessary to execute the follow-up H2 KRW 150.0B share buyback program. Near-term accounting adjustments in the insurance segment and a KRW 40.0B provision for JoongAng Group defaults are minor non-structural expenses, well insulated by a collateral buffer exceeding 70%. Furthermore, the legally sound structural setup of the Tongyang Life minority buyout heavily reduces execution risks, clearing the path for an inorganic non-banking lift by 2027. Trading at a deeply compressed 2026E P/B of 0.52x, the visible combination of capital enhancement and a 48.7% total shareholder return rate presents a highly compelling risk-reward profile.
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