TL;DR - Woori Financial Group (316140.KS / NYSE:WF) releases H1 2026 results on Friday, July 24 at 16:00 KST — same day as Hana Financial and Shinhan Financial - FnGuide sell-side consensus puts Q2 2026 net profit at ~₩958 billion (approximately +2% year-on-year per FnGuide); some individual brokers estimate closer to ₩910 billion - Q1's net profit of ₩603.8 billion missed the ~₩800 billion consensus by approximately ₩196 billion, with a ₩138 billion one-time provision (approx. ₩140B per some outlets) for Bank Woori Saudara (Indonesia) — booked and finalized in Q1 per external auditor guidance — as the primary driver; underlying credit costs were a contained ₩389 billion - CET1 ratio hit a record 13.6% in Q1 — 40bp above the 13.2% semi-annual buyback trigger — with H2 additional repurchases of up to ₩350 billion in analysts' base case
Part A — What to Expect on July 24
Reporting Schedule
Woori Financial Group will disclose first-half 2026 consolidated earnings on Friday, July 24, 2026 at 16:00 KST, alongside Hana Financial Group and Shinhan Financial Group. Q3 2026 results are scheduled for October 23.
Q2 2026 Consensus
FnGuide's sell-side consensus puts Woori's Q2 2026 net profit at approximately ₩958 billion (approximately +2% year-on-year per FnGuide). Some individual brokers project closer to ₩910 billion.
Q1 2026 Miss — Context and Why Q2 Should Differ
Woori's Q1 2026 net profit of ₩603.8 billion (-2.1% YoY) came in roughly ₩196 billion below the ~₩800 billion consensus. The largest single driver — accounting for approximately ₩138 billion (cited as ~₩140B by some outlets) — was a one-time credit-loss provision at Bank Woori Saudara, the group's Indonesian subsidiary, which swung from ₩56.8 billion net profit in FY2024 to a ₩74.1 billion net loss. An external auditor advised conservative provisioning, and the charge was recognized and finalized in Q1 2026 per industry observers.
Underlying credit costs — stripping the one-off — were ₩389 billion in Q1 2026, just 4% above the prior-year ₩374 billion level, indicating the core Korean franchise remained resilient. Q1 2025 total credit costs were approximately ₩436 billion. In Q1 2026, total credit costs rose to ₩527 billion (+₩91B YoY): underlying credit costs increased modestly from ₩374B to ₩389B (+₩15B), the ₩138B Indonesia provision was added as a new charge, and lower other charges vs. Q1 2025 partially offset the gross increase. The net result was a ₩91B YoY rise, with the Indonesia provision as the decisive new element. With that item behind it, the Q2 rebound case is straightforward.
Q1 2026 Key Metrics
| Metric | Q1 2026 | Change |
|---|---|---|
| Net profit | ₩603.8B | -2.1% YoY |
| Group NIM | 1.99% | +4bp QoQ |
| Bank NIM | 1.77% | +2bp QoQ |
| Net interest income | — | +2.3% YoY |
| Total credit costs | ₩527B | +20.9% YoY vs. ~₩436B in Q1 2025 |
| Underlying credit costs | ₩389B | +4% YoY vs. ₩374B in Q1 2025 |
| CET1 ratio | 13.6% | +71bp vs. 12.89% at end-2025 |
Part B — Three Things Investors Are Watching
1. Earnings Rebound — How Durable Is the Recovery?
The Q2 consensus rebound thesis rests on two pillars: the Indonesian provision will not repeat, and net interest income growth continues to compound as NIM expands. Both are plausible but carry caveats.
Downside risks: - Non-bank drag persists: Unlike KB Financial (KB Securities fee income), Shinhan Financial (Shinhan Card), or Hana Financial (strong brokerage), Woori's non-bank subsidiaries — Woori Card and Woori Investment Securities — have structurally underperformed peers. Any weak fee income quarter from these units could cap the recovery. - Homeplus residual risk: Woori Bank wrote off its direct unsecured Homeplus exposure earlier in the cycle. However, real-estate-backed instruments remain — including a subordinated position via a Homeplus property REIT at Woori's savings bank subsidiary. The July 20 Seoul court appeal deadline for Homeplus adds near-term uncertainty, though Woori's exposure is assessed as smaller than some peers.
Upside scenario: If Woori Investment Securities posts a trading revenue recovery (equity market volumes surged in H1 2026), the Q2 print could beat consensus.
2. NIM — Funding Efficiency Drove Q1, Rate Hike Drives H2
Woori's Q1 group NIM of 1.99% (+4bp QoQ) and bank NIM of 1.77% (+2bp QoQ) reflected improving funding efficiency and deposit repricing during the period, as Korean market yields trended higher ahead of the BoK's eventual July policy move.
The Bank of Korea's 25bp rate hike on July 16, which ended the recent easing cycle and raised the benchmark rate to 2.75%, postdates the Q2 reporting period (April–June) and will first appear in Q3 results. Its significance lies in accelerating the Q3/Q4 NIM expansion narrative: 28 of 31 economists surveyed post-decision forecast the year-end benchmark rate at 3.00%, with an October hike widely anticipated. Every 25bp hike historically adds approximately 3–5bp to Korean commercial bank NIMs over four quarters.
For investors tracking Woori relative to peers: Woori's bank NIM of 1.77% reflects its more deposit-heavy funding mix. Woori's consolidated group NIM of 1.99% — blending in higher-margin consumer finance — is comparable to the group NIMs of its Big 4 peers on a consolidated basis.
3. Capital Return — CET1 at 13.6% Pulls the Buyback Trigger
Woori's capital story has evolved significantly:
- CET1 trajectory: 12.1% (end-2024) → 12.89% (end-2025) → 13.6% (Q1 2026, record high)
- Buyback trigger: Woori's policy executes semi-annual buybacks when CET1 exceeds 13.2%. At 13.6%, the trigger is cleared by 40bp.
- H1 2026 buyback: ₩200B completed
- H2 2026 projection: Sell-side analysts project an additional ₩100B–₩350B buyback in H2, depending on how the CET1 trajectory evolves post-dividend payments
- Annual DPS: Woori targets 10%+ DPS growth vs. FY2025. Q1 DPS was ₩220/share (uniform quarterly payout)
The tax-free dividend angle (감액배당): Woori is pursuing a capital reserve reduction of ₩6.3 trillion to fund tax-exempt dividend distributions. Under Korean tax law, dividends paid from capital reserve reductions are exempt from the standard 15.4% withholding tax. Mirae Asset Securities estimates this mechanism adds approximately 6 percentage points to the effective shareholder return rate — pushing the structure-adjusted total shareholder return toward ~50%. For international investors subject to Korean withholding tax, this is a meaningful net yield advantage.
Big 4 Comparison: Where Woori Fits on July 24
| Group | Ticker | Q2 2026 Consensus | Approx. YoY | Report Date (KST) |
|---|---|---|---|---|
| KB Financial | 105560.KS | ~₩1.91T | ~+10% | Jul 23 (Thu), 16:00 |
| Shinhan Financial | 055550.KS | ~₩1.61T | ~+4% | Jul 24 (Fri), 16:00 |
| Hana Financial | 086790.KS | ~₩1.22–1.25T | ~+4–6% | Jul 24 (Fri), 16:00 |
| Woori Financial | 316140.KS | ~₩958B | ~+2% | Jul 24 (Fri), 16:00 |
Woori is the smallest of the Big 4 in absolute profit terms, reflecting its structurally lighter non-bank income mix. However, its CET1 trajectory is the most improved among peers — rising 71bp in a single quarter — and the tax-free dividend structure provides a differentiated income story for long-term shareholders.
Analyst Price Targets (Post-Q1 Revision)
| Broker | Target (KRW) |
|---|---|
| Kiwoom Securities | 48,000 |
| NH Investment & Securities | 43,000 |
| Kyobo Securities | 40,000 |
Woori Financial Group's NYSE ADS (ticker: WF) represents three shares of the Korea-listed 316140.KS.
Key Dates
| Date | Event |
|---|---|
| Jul 20, 2026 (Mon) | Homeplus Seoul court appeal deadline |
| Jul 23, 2026 (Thu) | KB Financial H1 2026 results, 16:00 KST |
| Jul 24, 2026 (Fri) | Woori / Hana / Shinhan H1 2026 results, 16:00 KST |
| Oct 23, 2026 (Fri) | Woori Q3 2026 results |
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. LineVest News is an independent financial publication not affiliated with any brokerage or financial institution.
Sources - Seoul Economic Daily — Woori Q1 2026 Net Profit ₩603.8B, CET1 13.6% - Seoul Economic Daily — Woori ~₩140B Indonesian Provision Finalized in Q1 - BigGo Finance — Woori CET1 13.6%, Target Price Hikes - Financial News (fnnews) — Q2 2026 Big 4 Consensus - Globe and Mail — Woori 2026 Earnings Schedule - MarketBeat — WF Q2 2026 Earnings Preview - Bloter — Woori ₩350B H2 Buyback Potential
