Woori Financial Group Inc (WF) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. I am Han Hong Sung, Head of IR at Woori Financial Group. I sincerely would like to thank all of you for taking the time to participate in Woori Financial Group's earnings conference call despite your busy schedules.

女士們、先生們，下午好。我是友利金融集團 IR 主管 Han Hong Sung。我衷心感謝大家在百忙之中抽出時間參加友利金融集團的財報電話會議。

On today's call, we have Group CFO, Lee Sung-Wook; Group CDO, Oak Il-Jin; and Group CRO, Park Jang-Geun.

在今天的電話會議上，我們有集團首席財務官 Lee Sung-Wook；集團首席數字官 Oak Il-Jin；和集團 CRO Park Jang-Geun。

Today's earnings announcement will be conducted in the following sequence. First, the presentation on the group's financial performance by Mr. Lee Sung-Wook, our Group CFO; followed by a presentation on group risk management status by Mr. Park Jang-Geun, our Group CRO. And lastly, we will proceed with the Q&A session.

今天的收益公告將按以下順序進行。首先，集團首席財務官Lee Sung-Wook先生介紹了集團的財務業績；隨後，我們的集團首席風險官 Park Jang-Geun 先生介紹了集團風險管理狀況。最後，我們將進行問答環節。

We would like to also inform our international investors, our simultaneous interpretation will be available for your convenience.

我們還想告知我們的國際投資者，我們將提供同聲傳譯服務，為您提供方便。

Let's start with Woori Financial Group's business results for the first half of 2023.

我們先來看看友利金融集團2023年上半年的業績。

Good afternoon. I am Lee Song-Wook, CFO of Woori Financial Group. I will now present the financial results for the first half of 2023. Please refer to page 3 of the financial performance material available on our website.

下午好。我是友利金融集團首席財務官李松旭。我現在將介紹 2023 年上半年的財務業績。請參閱我們網站上提供的財務業績材料的第 3 頁。

Let me start with Woori Financial Group's net income. For the first half of 2023, the group recorded a net income of KRW1,538.6 billion, which represents a 12.7% decrease compared to the same period last year. The decline in net income is mainly attributed to one-off factors such as provisions made in the second quarter.

讓我從友利金融集團的淨利潤開始。 2023年上半年，集團淨利潤為15,386億韓元，同比下降12.7%。淨利潤下降主要歸因於二季度計提撥備等一次性因素。

Major institutions, including the Bank of Korea, have revised down to Korea's economic growth rate and uncertainties surrounding macroeconomic indicators such as exchange rate and continue to persist. In response, Woori Financial Group has conducted comprehensive risk assessments across its loan assets and product offerings to identify potential risk factors.

韓國央行等主要機構對韓國經濟增速和匯率等宏觀經濟指標的不確定性的下調仍持續存在。為此，友利金融集團對其貸款資產和產品進行了全面的風險評估，以識別潛在的風險因素。

As a result, we have proactively set aside an additional loan loss provision of KRW263 billion for enhancing the group's loss absorption capacity and allocated around KRW54 billion as a general provision for deferred redemptions of certain private equity funds. It is important to note that this additional provision is a pre-emptive measure aimed at strengthening the group's loan absorption capacity, and it is not due to asset deterioration.

因此，我們主動額外計提了2630億韓元的貸款損失準備金，以增強集團的損失吸收能力，並撥出約540億韓元的一般準備金，作為某些私募股權基金延期贖回的一般準備金。需要注意的是，此項額外撥備是旨在增強集團貸款吸收能力的先發製人措施，並非資產惡化所致。

Meanwhile, the group recorded a net income of KRW625 billion in the second quarter. However, taking into account the one-time factors mentioned earlier, a solid profit generation of approximately KRW800 billion level is being maintained.

與此同時，該集團第二季度淨利潤為6250億韓元。但考慮到上述一次性因素，約8000億韓元的穩定利潤水平得以維持。

Next, let me move on to expenses such as SG&A and credit cost. In the first half of 2023, the group's SG&A expenses amounted to of KRW2,057.9 billion, representing a 5.2% increase compared to the same period last year. And the C/I ratio stood at 40.8%. Despite the pressure from rising expenses primarily related to goods service, the C/I ratio is being managed at a stable level, thanks to the ongoing efforts for cost efficiency throughout the organization.

接下來，讓我繼續討論 SG&A 和信貸成本等費用。 2023年上半年，集團的SG&A費用達20,579億韓元，較去年同期增長5.2%。 C/I 比為 40.8%。儘管主要與商品服務相關的費用上漲帶來壓力，但由於整個組織不斷努力提高成本效率，C/I 比率仍保持在穩定水平。

Meanwhile, in the first half of 2023, the group's credit cost amounted to KRW817.8 billion with a credit cost ratio of 0.48%. But without the one-time factors mentioned earlier, the credit cost ratio stands at around 0.35%, while key indicators related to asset quality such as delinquency rates have deteriorated, though they are still within a manageable range similar to those of our peers.

與此同時，2023年上半年，該集團的信貸成本達8,178億韓元，信貸成本率為0.48%。但如果剔除前面提到的一次性因素，信貸成本率約為0.35%，而拖欠率等與資產質量相關的關鍵指標有所惡化，但仍處於與同業類似的可控範圍內。

Next, I would like to move on and talk about capital ratio and quarterly dividend. As of June 2023, the group's common equity Tier 1 capital ratio is expected to be around 12%. Despite the limited profit growth in Q2, proactive risk rated asset management and also efficient capital utilization are expected to help maintain the ratio at the 12% level similar to the previous quarter.

接下來我想談談資本比率和季度股息。截至2023年6月，集團普通股一級資本比率預計在12%左右。儘管第二季度利潤增長有限，但積極的風險評級資產管理和高效的資本利用預計將有助於將比率維持在與上一季度類似的12%水平。

Meanwhile, on July 21st, the Board of Directors at Woori Financial Group confirmed and announced the quarterly dividend of KRW181 per share, equivalent to a dividend yield of 1.5%. This is the first quarterly dividend payout since the establishment of the holding company and is part of the shareholder return policy announced early this year. We will continue our efforts to enhance shareholder value going forward.

與此同時，7月21日，友利金融集團董事會確認並宣布季度股息每股181韓元，相當於股息收益率1.5%。這是控股公司成立以來首次季度派息，也是今年初公佈的股東回報政策的一部分。未來我們將繼續努力提升股東價值。

Next, I will elaborate on group our business results in more detail. Please turn to page 4 of your materials.

接下來，我將更詳細地闡述集團的業務成果。請翻到材料的第 4 頁。

First, let me explain the interest income and NIM part. For the first half of 2023, the gross interest income was KRW4,413 billion, representing a 7.6% increase year on year. However, on a quarterly basis, it dipped slightly quarter on quarter and recorded KRW2.194 trillion.

首先解釋一下利息收入和NIM部分。 2023年上半年，總利息收入為44,130億韓元，同比增長7.6%。但按季度來看，環比略有下降，錄得 2.194 萬億韓元。

The NIM before, Woori Bank in Q2 was 1.59%. And for the group, including Woori Card, it was 1.85%, representing a 6 bp decrease compared to the previous quarter. Despite the rising market interest rates in Q2, limited asset repricing effect and increased funding costs resulted in margin decline.

友利銀行第二季度的淨息差為1.59%。包括友利卡在內的集團為 1.85%，較上一季度下降 6 個基點。儘管第二季度市場利率上升，但資產重定價效應有限和融資成本增加導致利潤率下降。

However, as the cycle of interest rate hikes is nearing its end and the downward trend of low-cost deposits is slowing down, it is expected that the margin declines due to rising funding costs will be limited in the second half of this year. Despite the uncertainties in the direction of interest rates, Woori Financial Group will strengthen its efforts to further improve the profit structure.

但隨著加息週期接近尾聲，低成本存款下降趨勢趨緩，預計今年下半年融資成本上升導致的利潤率下降幅度有限。儘管利率走向存在不確定性，友利金融集團仍將加大力度，進一步改善利潤結構。

Next, I will discuss the asset growth and loan status. As of the end of June 2023, the total bank loans amounted to KRW296 trillion, up 0.7% compared to the end of March. Corporate loans continued to exhibit a steady growth trend, reaching KRW161 trillion, a 1.2% increase from the end of March.

接下來我會討論資產增長和貸款狀況。截至2023年6月末，銀行貸款總額達296萬億韓元，較3月末增長0.7%。企業貸款繼續呈現穩定增長趨勢，達到161萬億韓元，較3月底增長1.2%。

On the other hand, household loans, which have been experiencing a contraction recently, recorded a 0.5% increase from the end of March, reaching KRW132 trillion. This growth was driven by an increase in demand for housing-related loans and a slowdown in the decline of credit loans. We will actively explore the loan demand with a focus on corporate finance in the second half of the year. We plan to exercise flexibility in managing asset growth by taking into consideration the asset quality in accordance with the economic situation.

另一方面，最近出現收縮的家庭貸款較3月底增加了0.5%，達到132萬億韓元。這一增長是由住房相關貸款需求增加和信用貸款下降放緩推動的。下半年我們將積極挖掘以企業融資為重點的貸款需求。我們計劃根據經濟形勢，結合資產質量，靈活管理資產增長。

Next is the net interest income of the group. In the first half of the year, the group's non-interest income amounted to KRW610.7 billion, showing a 22.0% decrease year on year. This is attributed to losses or gains from securities and foreign exchange derivatives following FX rate and interest rates rebounds as well as reduced non-banking [IP] real estate related income due to economic slowdown.

接下來是該集團的淨利息收入。上半年，集團非利息收入為6107億韓元，同比下降22.0%。這是由於外匯匯率和利率反彈後證券和外匯衍生品產生的損失或收益，以及由於經濟放緩導致非銀行[IP]房地產相關收入減少。

When excluding the impact of market volatility, the core fee income exceeded KRW400 billion per quarter indicating a robust our profit generation. Going forward, we will continue to expand our non-banking businesses and maximize synergy among our group subsidiaries to enhance revenue generation with a focus on core fee income.

剔除市場波動的影響後，每季度核心費用收入超過 4000 億韓元，表明我們的利潤創造強勁。展望未來，我們將繼續拓展非銀行業務，並最大限度地發揮集團子公司之間的協同效應，以核心費用收入為重點，提高創收能力。

Next, I will walk you through costs and capital adequacy. Please, I'll turn to page 5.

接下來，我將向您介紹成本和資本充足率。請我翻到第 5 頁。

First is group SG&A. For the first half of 2023, group SG&A amounted to KRW2,057.9 billion, representing a 5.2% increase year on year. The C/I ratio stood at 40.8%, being managed at a stable level within the group's annual target of 45% or lower. Amid limited top-line growth, the significance of cost management has never been more pronounced. Therefore, Woori Financial Group is actively pursuing cost management efforts at the group level with the exception of digital IT segment and also sales promotion for future growth.

首先是SG&A 組。 2023年上半年，集團SG&A達20,579億韓元，同比增長5.2%。 C/I比率為40.8%，穩定在集團45%或更低的年度目標範圍內。在收入增長有限的情況下，成本管理的重要性從未如此明顯。因此，友利金融集團除了數字IT部門和銷售促進之外，正在集團層面積極開展成本管理工作，以實現未來的增長。

Going forward, we aim to strengthen our ongoing group-wide cost optimization initiative to achieve greater cost efficiency.

展望未來，我們的目標是加強集團範圍內正在進行的成本優化計劃，以實現更高的成本效率。

Next is credit cost. The group's first half credit cost was KRW817.8 billion and the credit cost ratio was 0.48%. If we look at the group's credit cost in the second quarter, it was KRW556 billion, which includes pre-emptive provisioning of KRW226 billion. This additional provisioning has further strengthened the group's loss absorption capabilities.

接下來是信用成本。集團上半年信貸成本為8,178億韓元，信貸成本率為0.48%。如果我們看一下該集團第二季度的信貸成本，則為5,560億韓元，其中包括2,260億韓元的優先撥備。此次額外撥備進一步增強了集團的損失吸收能力。

The rise in delinquency rate in the second quarter has moderated, but market concerns about real estate. Project financing still exists. So we are planning to thoroughly review favorable risk areas and focus on enhancing the asset quality management capabilities of the group.

第二季度拖欠率上升趨勢有所緩和，但市場對房地產的擔憂依然存在。項目融資依然存在。因此，我們計劃深入審視有利的風險領域，重點提升集團的資產質量管理能力。

Next, let me talk about our dividend policy and capital adequacy indicators. According to the group's capital management plan, we announced a KRW100 billion share buyback and cancellation plan last April and disclosed our decision to pay quarterly dividends from the second quarter. To enhance the predictability of our quarterly dividend, we will be paying dividends of equal amounts in each quarter, while year-end dividends will be determined on a wide range of factors, including profits and capital ratios.

接下來我講一下我們的股利政策和資本充足率指標。根據集團資本管理計劃，去年4月宣布了1000億韓元的股票回購和註銷計劃，並披露了從第二季度開始支付季度股息的決定。為了提高季度股息的可預測性，我們將在每個季度支付等額股息，而年終股息將根據利潤和資本比率等多種因素確定。

Moreover, the dividend policy and share buyback and cancellation will be part of our overall shareholder return policy targeting a total shareholder return of 30%. In addition, as of the end of June, the group's CET1 ratio has been managed stably at 12% level.

此外，股息政策以及股票回購和取消將成為我們整體股東回報政策的一部分，目標是股東總回報率為30%。此外，截至6月底，集團的CET1比率已穩定管理在12%的水平。

However, as uncertainties about the economy continue, the importance of our loss absorption capabilities to address crisis is increasing. In the second half, the group will focus on sound financial performance and tight risk management to further improve our capital position.

然而，隨著經濟的不確定性持續存在，我們應對危機的損失吸收能力的重要性日益增加。下半年，集團將聚焦穩健的財務表現和嚴格的風險管理，進一步改善資本狀況。

Next, before going over the final part of our presentation, I would like to talk about some comments about certain private equity funds. At the Woori Bank BOD on July 21st in relation to a Hong Kong real estate-related private equity fund that was recently reported in the news, the Board made a resolution to execute a voluntary mediation to eliminate related uncertainties and regain customer trust with the decision for a voluntary mediation of the bank has set aside a provision of around KRW54 billion or 70% of the funds sold. Thus, we believe that this will realistically to end of this issue and the possibility of incurring additional costs is very limited.

接下來，在結束我們演講的最後部分之前，我想談談對某些私募股權基金的一些評論。 7月21日，在友利銀行董事會上，就最近新聞報導的某香港房地產相關私募股權基金事宜，董事會做出了進行自願調解的決議，以消除相關不確定性，重新獲得客戶信任。銀行為自願調解撥出了約540億韓元的準備金，即已售資金的70%。因此，我們相信這將切實解決這個問題，並且產生額外費用的可能性非常有限。

In addition, as the Chairman said in the previous conference call. For Woori Financial Group, we are focusing our capacity on the early detection of a wide range of risks and upgrading the risk management framework. In line with these efforts, we have revisited the group's vulnerabilities and have taken pre-emptive measures to increase our ability to address just risks.

此外，正如主席在之前的電話會議中所說的那樣。對於友利金融集團來說，我們的重點是早期發現各種風險併升級風險管理框架。根據這些努力，我們重新審視了該組織的弱點，並採取了先發製人的措施，以提高我們應對公正風險的能力。

Our second-quarter net income decrease has come because of these measures, but it is just temporary. Amid weakening margins and slower road growth, the group is still generating solid profits. And as we have provisioned in advance, we have a stronger position to deal with possible cuts in the future. And we do believe that from the third quarter versus the second quarter, we would be able to achieve higher level of profits.

由於這些措施，我們第二季度的淨利潤出現了下降，但這只是暫時的。在利潤率下降和公路增長放緩的情況下，該集團仍在創造穩健的利潤。正如我們提前做好的準備，我們有更強的能力來應對未來可能的削減。我們確實相信，從第三季度開始，與第二季度相比，我們將能夠實現更高水平的利潤。

In addition, as communicated to the market before, we will continue to implement shareholder policies to strengthen shareholder value. And with this, I would like to end my presentation Woori Financial's first half 2023 performance. Thank you.

此外，正如之前向市場傳達的，我們將繼續實施股東政策，以增強股東價值。我的關於友利金融2023年上半年業績的演講到此結束。謝謝。

Next, the Group CRO will talk about and give an overview of the group's risk management status.

接下來，集團CRO將講述並概述集團的風險管理狀況。

Good afternoon. I am Park Jang-Geun, the Chief Risk Officer at Woori Financial Group. And let me walk you through an overview on our risk management.

下午好。我是樸長根，友利金融集團的首席風險官。讓我帶您概述一下我們的風險管理。

First, if we look at our overall second quarter risk indicators, in terms of our NPL coverage ratio, this has continuously been over 200%. And if we look at the overall total loans to provision, it is 0.75%. In addition, if we look at the NPL ratio, it has deteriorated since the end of last year, but we still believe it is at a manageable level.

首先，從二季度整體風險指標來看，不良貸款撥備率一直保持在200%以上。如果我們看一下撥備貸款總額，則為 0.75%。另外，從去年年底以來不良貸款率有所惡化，但我們仍然認為其處於可控水平。

In the second quarter if we look at the overall outlook of the economy, we have set aside KRW263 billion of additional loan -- bad loans in the second quarter. And we are continuously focusing or stably managing our asset quality management indicators. So we will continue to go on in this effort.

第二季度，如果我們從整體經濟前景來看，我們在第二季度預留了2630億韓元的額外貸款——不良貸款。我們持續關注或穩定管理我們的資產質量管理指標。因此，我們將繼續努力。

In addition, if we look at the overall loan breakdown, as you can see with regards to our quality office, we are focused on high prime assets and also our loan securitized assets. So in terms of our corporate loans, around 85.9% securitized and also SOHO loans, 89.5%. In addition, if we look at the portion of loans, more than 90% are secured by some form of asset.

此外，如果我們看一下整體貸款細目，正如您在我們的優質辦公室中看到的那樣，我們專注於優質資產以及貸款證券化資產。因此，就我們的企業貸款而言，大約 85.9% 是證券化的，SOHO 貸款也有 89.5%。另外，如果我們看一下貸款的比例，90%以上都是由某種形式的資產擔保的。

If we look at the overview for our real estate peers, if you look at the total, it accounts for KRW3.3 trillion of which our backed by various public guarantees would be KRW1.3 trillion. So in actuality, if we look at the external amount, the net amount would be KRW2 trillion. And in the case of bridge loans, which are deemed to be higher risk, it is only KRW0.5 trillion. So if we look at the absolute size and also the content, it would be very limited.

如果我們看一下房地產同行的概況，如果看一下總數，它佔 3.3 萬億韓元，其中我們得到各種公共擔保的支持將是 1.3 萬億韓元。所以實際上，如果我們看外部金額，淨額將是2萬億韓元。而被認為風險較高的過橋貸款僅為 5 萬億韓元。因此，如果我們考慮絕對大小和內容，那將是非常有限的。

Right now, in terms of the overall originations for real estate project financing. Right now, there are actively voluntary agreements that are in place. And we're actually taking active measures to manage the overall sites to ensure that there is as post management that is in case. If we talk about the risk management direction for the future, there was a 25 basis points increase in the benchmark rate announced by the US, but we do believe that there will continue to be uncertainties in a high-risk environment.

目前，從房地產項目融資的總體來源來看。目前，已經有積極的自願協議。我們實際上正在採取積極措施來管理整個站點，以確保有後期管理以防萬一。如果說未來的風險管理方向，美國宣布基準利率上調25個基點，但我們相信高風險環境中的不確定性仍將存在。

So as a result of that, we are focused on asset quality and capital adequacy as top priority. At the same time, if we look at our origination standards will continue to include efforts by being focused on high-quality SMEs and being selective in various industries. In addition to that, we will continue to manage in terms of our possible distress and also strengthen our PF and PI assets.

因此，我們將資產質量和資本充足率作為首要任務。與此同時，如果我們審視我們的創始標準，將繼續包括關注優質中小企業和在各個行業中進行選擇性的努力。除此之外，我們將繼續管理可能出現的困境，並加強我們的 PF 和 PI 資產。

So that would be my presentation. Thank you very much.

這就是我的演講。非常感謝。

Yes, thank you very much. Now we will start the Q&A session.

是的謝謝你。現在我們開始問答環節。

(Operator Instructions) The first questions are going to be asked by [Mr. Kim Do Wan] from Hana Investment Securities. You have the floor.

（操作員指示）第一個問題將由[Mr.]提出。 Kim Do Wan]來自韓亞投資證券公司。請發言。

Thank you very much. I do have two questions. So you talked about our funding costs and starting from Q3, you mentioned how the net income is going to rebound. So with regard to NIM, if you can share with us more information, please do so. And also quarterly dividend. This is the first time. And so I want to ask more questions. So what is the ratio between the year-end dividend and also quarterly dividend?

非常感謝。我確實有兩個問題。所以你談到了我們的融資成本，從第三季度開始，你提到了淨利潤將如何反彈。因此，關於NIM，如果您可以與我們分享更多信息，請這樣做。還有季度股息。這是第一次。所以我想問更多問題。那麼年終分紅和季度分紅的比例是多少呢？

Thank you very much for that question. With regard to NIM, I would like to address a question first. In 2022 of Q4, it was about 1.68%, a high market risk, mortgage rates came down, and also funding cost increase and competition also increased. And so the NIM is on a downward trend. So it's currently a 1.59% and also, it represents a decline of 6 bp.

非常感謝你提出這個問題。關於NIM，我想先回答一個問題。 2022年第四季度約為1.68%，市場風險較高，房貸利率下降，融資成本增加，競爭加劇。因此淨息差處於下降趨勢。目前為 1.59%，也代表下降了 6 個基點。

Now savings -- regular savings combined, there was an increase of 10 bp. And so that was the primary reason for a decline in them. So the market interest rate is on a decline. And although the deposit funding cost has increased.

現在，儲蓄——定期儲蓄加起來，增加了 10 個基點。所以這是它們下降的主要原因。因此市場利率呈下降趨勢。而且雖然存款資金成本有所增加。

And there is a competition amongst banks for deposit tender form and loans. And therefore, I think that NIM is going to further decrease. But we are going to make measures in order to prevent the decline in NIM. So I think that it's going to be about 1.6% and Q4, it will be down. However, I think that it's going to be somewhere in the range of 1.5%.

銀行之間存在存款招標形式和貸款的競爭。因此，我認為淨息差將進一步下降。但我們將採取措施防止淨息差下降。所以我認為第四季度的增長率約為 1.6%，將會下降。不過，我認為它會在 1.5% 的範圍內。

Next, I would like to address your second question, which was related to dividend. Woori Financial Group back in 2021 and 2022 for two consecutive years have gave out interim dividends. And also for March, we have revised our AOI to provide interim dividend. And for quarterly dividend, we will be paying out KRW181 per share. And also for our quarterly dividend, the size -- if you look at last year, we are going to design this so that it's about 50% of the dividend that we paid out last year.

接下來我想回答你的第二個問題，關於股息的問題。友利金融集團早在2021年和2022年就已連續兩年派發中期股息。同樣在三月份，我們修改了 AOI 以提供中期股息。對於季度股息，我們將支付每股 181 韓元。對於我們的季度股息，如果你看看去年，我們將對其進行設計，使其約為我們去年支付的股息的 50%。

So March, June, and September, we would pay out our quarterly dividends in the same amount. And given the market conditions, we will be determining the amount. If there are no drastic financial changes, changes in the environment, then we will be paying a quarterly dividend and we will communicate constantly with the market.

因此，三月、六月和九月，我們將支付相同金額的季度股息。考慮到市場狀況，我們將確定金額。如果沒有劇烈的財務變化、環境變化，那麼我們將支付季度股息，我們將不斷與市場溝通。

Thank you. The next question will be from HSBC. It would be by Hwang Jae Hong. Please go ahead with your question.

謝謝。下一個問題將來自匯豐銀行。應該是黃載弘的作品。請繼續你的問題。

Yes. Thank you for the opportunity to ask questions. There are two questions that I would like to ask you. The first question is right now, if you look at the non-bank side right now, this is an area in which you're trying to grow rapidly. And as far as I understand right now, in terms of the priorities that you have, I think that the security side would be number one and then there would be other business areas that would come thereafter.

是的。感謝您給我提問的機會。有兩個問題想請教您。第一個問題是現在，如果你現在看看非銀行方面，這是一個你正在努力快速增長的領域。據我目前的了解，就您的優先事項而言，我認為安全方面將是第一位的，然後是其他業務領域。

If you look at the recent development of [investments] reports, it does seem that there is discussion about other areas. So I do think that nothing has been determined yet. And of course, it's just a possibility that you may review. But in terms of your priority, in terms of the areas, could there be a change in your priority in terms of business areas that you want to expand into? That's the first question.

如果你看看最近的[投資]報告的進展，似乎確實有關於其他領域的討論。所以我確實認為一切還沒有確定。當然，這只是您可以審查的一種可能性。但是就你的優先級而言，就領域而言，你想要擴展的業務領域的優先級是否會發生變化？這是第一個問題。

And second, in terms of the stress test buffer, I don't know when the results will be available. But once it's available after October then in terms of the minimal amount of targets that we would have to have in terms of the CET1 ratio, would there be a change to CET1 ratio in light of the stress buffer that would be required?

其次，就壓力測試緩衝區而言，我不知道什麼時候可以得到結果。但是，一旦 10 月之後可用，那麼就我們在 CET1 比率方面必須達到的最低目標而言，根據所需的壓力緩衝，CET1 比率是否會發生變化？

Yes, this is the CFO, Lee Song-Wook. And first, in terms of our M&A priorities, if I elaborate it about that first, recently, according to the overall economic situation, there is some possibility that brokerage will be available as targets. But right now, there's no available assets in the market.

是的，這是首席財務官李松旭。首先，就我們的併購重點而言，如果我先詳細說明一下，最近根據整體經濟形勢，券商是有可能成為目標的。但目前，市場上沒有可用資產。

So as a result of that, on the security side for M&A possibilities, this is more of a long-term horizon situation for us. And we do want to make sure that we are looking at a very good asset in terms of potential for the future. So in terms of our priority, as mentioned before, securities would be first and then after that, if necessary, then we also think that may be a high-quality interest. Insurance company would also be something that we would be interested in.

因此，在併購可能性的安全方面，這對我們來說更像是一個長期的情況。我們確實希望確保我們正在尋找具有未來潛力的非常好的資產。所以就我們的優先順序而言，就像之前提到的，證券會是第一位的，然後是第二位，如果有必要的話，那麼我們也認為這可能是一個高質量的興趣。保險公司也是我們感興趣的。

So if we look at the areas, we're looking at a securities that would have synergies with us and also insurance companies that would also be able to generate synergies. So in the areas, we would actually think if there are other assets that are available that would not be synergistic, then we would not look at those. That would be excluded from the areas that we look at.

因此，如果我們著眼於這些領域，我們會尋找能夠與我們產生協同效應的證券，以及也能夠產生協同效應的保險公司。因此，在這些領域，我們實際上會認為，如果還有其他可用的資產不會產生協同作用，那麼我們就不會考慮這些資產。這將被排除在我們關注的領域之外。

In light of the stress test in itself and the stress test buffer and also in terms of our risk-weighted assets and the ratio of that, if that is what's all available, I think that over the mid to long term, the CET1 ratio target is 12%. But in terms of this, of course, it would be maintained.

考慮到壓力測試本身和壓力測試緩衝，還有我們的風險加權資產和比率，如果這是所有可用的，我認為從中長期來看，CET1比率目標是12%。但就這一點而言，當然會維持下去。

However, that have been said for the stress buffer that is required. If that is increased to a significant level than over the net short term, then I do think that maybe we might need to increase our target to the 12.5% level.

然而，這已經是針對所需的壓力緩衝而言的。如果這一數字增加到比短期淨值顯著的水平，那麼我確實認為我們可能需要將目標提高到 12.5% 的水平。

However, in terms of these plans within this year, I do think that our mid to long-term plans are something that we're developing right now. And once that is available, then I do think that we would be able to share with you what our mid to long-term target what and in terms of specific numbers. Thank you.

但是，就今年內的這些計劃而言，我確實認為我們的中長期計劃是我們現在正在製定的。一旦可用，我確實認為我們將能夠與您分享我們的中長期目標是什麼以及具體數字。謝謝。

Next question is from SK Securities. We have [Seo Yong Jung]. You have the floor.

下一個問題來自SK 證券。我們有[徐容正]。請發言。

Thank you very much for the opportunity to ask questions. With regard to capital soundness, I have a few questions. First of all, bank MPR is about 5%. I think that's higher compared to the peers. So I'd like to understand the reason behind this. And we talked about reserves for losses, so I'd like to understand your prospects for the second half and Hana, so when do you think that it's going to become concrete?

非常感謝您給我提問的機會。關於資本穩健性，我有幾個問題。首先，銀行MPR約為5%。我認為與同行相比更高。所以我想了解這背後的原因。我們談到了損失準備金，所以我想了解一下您對下半年和Hana的前景，那麼您認為它什麼時候會變得具體？

Yes, I would like to offer my answers. Yes, we're talking about [Hana Financial]. Hana Financial was acquired by our group and the credit ratings are done again and from cautionary and it became high ranking. So in the case of Woori, we were doing reassessment. And because of the increase in the ratings, we were able to write back the provisions.

是的，我想提供我的答案。是的，我們正在談論[韓亞金融]。韓亞金融被我們集團收購，再次進行信用評級，從警戒變為高評級。因此，就友利而言，我們正在進行重新評估。由於評級的增加，我們能夠回寫撥備。

With regard to loan loss reserves, I think that we briefly touched upon during our presentation. But in Q2, KRW263 billion worth of additional provision was done. Thereby, we were able to grow our loss absorption capacity. And so that is the case for the first half.

關於貸款損失準備金，我認為我們在演講中簡要提到過。但第二季度追加撥備金額為2630億韓元。因此，我們能夠提高損失吸收能力。上半場的情況就是如此。

And in the case of second half, we believe that there are some future uncertainties, and the delinquency rate is gradually increasing as well. And so we're going to wait and see how the future looks like so that we can have some conservative loan loss provisions within the company.

而就下半年而言，我們認為未來存在一些不確定性，拖欠率也在逐漸上升。因此，我們將拭目以待，看看未來會是什麼樣子，以便我們可以在公司內部製定一些保守的貸款損失撥備。

With regard to loan reserves or loss reserve, I think that we are trying to be pre-emptive. So for the second half, I don't think that it's going to have any significant impact. However, we are going to wait and see how the future turns out.

關於貸款準備金或損失準備金，我認為我們正在嘗試先發製人。因此，對於下半年，我認為不會產生任何重大影響。然而，我們將拭目以待，看看未來會如何。

Our MPR ratio of 0.36%, and it's a high BP, higher compared to last year. And again, this has to do with delinquency rate, which is increasing gradually. And so because of those, the MPR increased. Nothing special. And we believe that such a ratio or such a rate is something that we can manage. Thank you.

我們的MPR比率為0.36%，這是一個很高的BP，比去年更高。這又與逐漸增加的拖欠率有關。因此，MPR 增加了。沒什麼特別的。我們相信這樣的比率或這樣的比率是我們可以管理的。謝謝。

Thank you. The next question will be by Korea Investment Securities, Baek Doosan. Please go ahead.

謝謝。下一個問題將由韓國投資證券公司白斗山 (Baek Doosan) 提出。請繼續。

Yes, hi. This is Baek Doosan from Korea Investment Securities. And next, I would like to talk about asset growth and non-bank subsidiaries that you have. First, if we look at the first half of the year, I do think that the loan growth was more lackluster than you had expected. I think from the second quarter, if we look at the overall market, it does seem to be that there is a recovery in place. But what's on the corporate side on the retail side, if we were to break it down in the second half, how much growth do you think would be achievable?

是的，嗨。我是韓國投資證券公司的白斗山。接下來，我想談談你們的資產增長和非銀行子公司。首先，如果我們看上半年，我確實認為貸款增長比你預期的要低迷。我認為從第二季度開始，如果我們看整個市場，似乎確實出現了復甦。但是企業方面和零售方面呢，如果我們下半年分解的話，您認為可以實現多少增長？

That would be my first question and the second is on the non-bank side. Right now, their credit cost has been increasing. And as a result of that, I do think that for the key subsidiaries that you have, I think that the performance a bit lackluster. So for this year or next year on the non-bank side, for performance, what would be your outlook in terms of the expectations and in addition to that versus the original plans, if there are any changes on the non-bank side? For example, for any capital increases or any types of capital allocation.

這是我的第一個問題，第二個問題是非銀行方面的問題。目前，他們的信貸成本一直在增加。因此，我確實認為對於你們擁有的主要子公司來說，我認為業績有點乏善可陳。那麼今年或者明年非銀方面，對於業績來說，除了原計劃之外，如果非銀方面有什麼變化的話，您的預期是怎樣的？例如，任何資本增加或任何類型的資本分配。

If you have any thoughts on plans on that side, that is something that we would also be interested in.

如果您對這方面的計劃有任何想法，我們也會感興趣。

Yes, this is the CFO, Lee Song-Wook. First, in terms of asset growth, to address your question there. So as of the end of June, as you have just mentioned, if we look at growth, it is on a YoY flat. And it is because on the retail side, there has been a decline.

是的，這是首席財務官李松旭。首先，從資產增長的角度，回答你的問題。因此，截至 6 月底，正如您剛才提到的，如果我們看增長，就會發現同比持平。這是因為零售方面出現了下降。

However, on the corporate side, KRW3.2 trillion has increased. So as a result of that, we actually see that there has been a 2.2% increase in retail in the second quarter. So when we actually built the business plan for this year, we actually had revised that this would be the situation. So last year when we looked at this year, we actually believe that there will be a 4% to 5% growth of which in the first half because we wanted to weigh more focus on risk management, there would be growth of only 1%.

然而，企業方面卻增加了3.2萬億韓元。因此，我們實際上看到第二季度零售額增長了 2.2%。所以當我們實際制定今年的業務計劃時，我們實際上已經修改了這種情況。所以去年當我們看今年時，我們實際上認為會有4%到5%的增長，其中上半年因為我們想更加註重風險管理，所以只會增長1%。

So right now, we are on track in terms of our asset growth plans. And towards the second half of the year initially, as we have planned, we do think that the growth will be a bit more rapid, and that is what we're going to pursue. So in the second half of the whole, we are planning to grow at around 4%. And on the corporate side, it would be around 5% growth. And then on the retail side, it would be a recovery from the decline of last year is what we're aiming for, and that would be our second half direction.

因此，目前我們的資產增長計劃正步入正軌。最初到今年下半年，正如我們計劃的那樣，我們確實認為增長會更快一些，這就是我們要追求的目標。所以下半年我們計劃增長4%左右。而在企業方面，增長將在 5% 左右。然後在零售方面，我們的目標是從去年的下滑中復蘇，這將是我們下半年的方向。

So again, in summary, in the first half of the year, we do think that it was on track in terms of the business plan that we have for this year. And we are more focused on risk management, whereas in the second half of the year, we're trying to pursue more active growth and therefore to try to reach the target that we have had for the full year.

因此，總而言之，在今年上半年，我們確實認為今年的業務計劃已步入正軌。我們更注重風險管理，而下半年我們將努力追求更積極的增長，從而努力實現全年的目標。

And talking about the non-bank subsidiaries in terms of the performance, it is a bit lackluster there. However, if we look at the non-bank subsidiaries that we have, the biggest would be the credit card business, the capital business, the investment banking business. So they actually are a lot of loan-related or credit-related products. And because of that, during the first half of the year, there was provisioning requirements that we had had.

而從業績來看，非銀行子公司則顯得有些乏善可陳。但是，如果我們看一下我們擁有的非銀行子公司，最大的是信用卡業務、資本業務、投資銀行業務。所以它們實際上是很多與貸款相關或與信用相關的產品。正因為如此，在今年上半年，我們有供應要求。

And as a result of that, in terms of asset quality, we are very active in trying to manage the situation. So we have done a lot of write-offs and also asset sales. And as a result of that, for this year, rather than increasing our overall profits, we would be more focused on cleaning our assets and tight asset management is what we're trying to do. So for this year, trying to have a high-quality asset base in itself or clean assets is what we want to do. So that we will have a foundation for growth next year.

因此，就資產質量而言，我們非常積極地嘗試控制這種情況。所以我們做了很多沖銷和資產出售。因此，今年我們不會增加整體利潤，而是更加專注於清理資產，嚴格資產管理是我們正在努力做的事情。所以今年我們要做的就是努力擁有一個優質的資產基礎本身或者說清潔的資產。這樣我們明年的增長就有了基礎。

So for this year, I think that versus last year on the non-bank side, you will see lower growth take place, lower performance. However, that have been said internally. In terms of the capital side, we don't think that there will be any shortfall that we will see. So for our subsidiaries on the credit card level, on credit card business, the leverage ratio is a bit high, but I do think that this is something that we are continuously thinking about in terms of how to address.

因此，今年，我認為與去年非銀行方面相比，您將看到增長放緩、業績下降。不過，內部已經這麼說了。就資金面而言，我們認為不會出現任何短缺。所以對於我們信用卡層面的子公司來說，在信用卡業務上，槓桿率有點高，但我確實認為這是我們不斷思考如何解決的問題。

So for example, how to be in line with the average of others. So for example, multiple of six would be the level that other companies are showing. So how to get down to that ratio is what we are looking at.

比如說，如何與別人的平均水平保持一致。例如，六的倍數就是其他公司所顯示的水平。因此，我們正在研究如何降低這一比率。

Thank you very much. Next question is from Yuanta Securities. We have Mr. Jeong Tae-joon. Mr. Jeong, you have the floor.

非常感謝。接下來是元大證券的提問。我們有鄭泰俊先生。鄭先生，請發言。

Hello. I'm from Yuanta Securities. My name is Jeong. I think you very much for the opportunity. I do have one question. Now if you take into consideration the fund losses, I think that it's going to affect the BP. and also, DPS. Are there any plans to defend the DPS going forward?

你好。我是元大證券的。我叫鄭。我認為你非常珍惜這個機會。我有一個問題。現在如果你考慮到基金損失，我認為這會影響BP。還有DPS。未來有計劃捍衛 DPS 嗎？

Yes, I would like to answer your question. So on 21st, we've decided on the quarterly dividend, and we also canceled about KRW400 -- we also announced to cancel KRW400 worth of treasury stock. So take into consideration interim dividend in total, we are going to be paying out a dividend.

是的，我想回答你的問題。所以在21號，我們決定了季度股息，我們還取消了大約400韓元——我們還宣布取消價值400韓元的庫存股。因此，考慮到中期股息總額，我們將支付股息。

So DPS back in last year, including the interim dividend, it was over KRW1,131. And currently the net income is slightly down compared to last year and therefore, so KRW1,130 of last year is now something that we can't realize this year. However, the dividend payout ratio was 26%. So eventually, we will have to talk with FSS, but we will trial so that we can determine the level of last year. Thank you.

所以去年的股息，包括中期股息，超過1,131韓元。而且目前淨收入比去年略有下降，因此去年的1,130韓元現在是我們今年無法實現的。然而，股息支付率為26%。所以最終，我們將不得不與 FSS 交談，但我們將進行試驗，以便確定去年的水平。謝謝。

The next question will be by a English participant. And as a result -- from White Oak Capital, it will be a question. So please go ahead with your question.

下一個問題將由一位英國參與者提出。因此，白橡資本將提出一個問題。所以請繼續你的問題。

Hi. Thank you for the opportunity. I wanted to inquire about the liquidity in the system and at Woori Financial Group. We saw that in the last year, second quarter and third quarter and especially in FY '20, liquidity was below 100% LCR ratio. And there were some difficulties in local government, entities are paying back debt last year.

你好。謝謝你給我的機會。我想詢問一下系統和友利金融集團的流動性。我們看到，去年、第二季度和第三季度，尤其是 20 財年，流動性 LCR 比率低於 100%。去年地方政府、實體償還債務也存在一些困難。

So how is the liquidity situation evolving today? And I see we are at around 104% right now. What are the challenges you're facing, let's say, in taking this up to maybe a 115%, 120% and better target for you; and what is the target liquidity you're attempting for the medium term? Thank you.

那麼，今天的流動性狀況如何演變呢？我發現我們現在的進度約為 104%。比如說，要實現 115%、120% 甚至更好的目標，您面臨哪些挑戰？您的中期目標流動性是多少？謝謝。

Yes. Thank you for your question. And maybe I can address your question. So first of all, if you look at the LCR ratio right now at the group level, I do believe that the LCR ratio is not actually regulatory requirements. So it's only for the bank in which the LCR would be a regulatory ratio. So maybe we can talk about it at the bank level.

是的。謝謝你的問題。也許我可以回答你的問題。首先，如果你看看現在集團層面的LCR比率，我確實認為LCR比率實際上並不是監管要求。因此，這只適用於 LCR 為監管比率的銀行。所以也許我們可以在銀行層面討論這個問題。

So if you look at the Korean won LCR ratio, it needs to be 100% or above. However, because of COVID, this overall regulation has been relaxed to 92.5%. And by the end of the year, there has been a deterrent of that overall standard. So at the bank level right now, if you look at the original situation by the end of the year, we are on a plan to go back to 100%. So this is the plan that we have and we do want to meet the 100% requirement on the Korean won side, and we had prepared to that.

所以如果你看一下韓元的LCR比率，它需要是100%或以上。然而，由於新冠疫情，這一總體監管已放寬至 92.5%。到今年年底，總體標準已經受到阻礙。因此，目前在銀行層面，如果你看看年底之前的原始情況，我們計劃恢復到 100%。這就是我們的計劃，我們確實希望滿足韓元方面 100% 的要求，我們已經做好了準備。

However, because that plan has been deferred at the standard levels, because this liquidity ratio is something that we want to mention, we do want to ensure that we want to maintain a sufficient liquidity. But since liquidity is also required and cost are incurred related to that, so we think that having maybe a 5% versus the requirement is what we want to maintain in terms of buffer. And as a result of that, where the guidelines fit would determine where we fit.

但是，由於該計劃已按標準水平推遲，因此流動性比率是我們要提及的內容，因此我們確實希望確保保持充足的流動性。但由於流動性也是必需的，並且會產生與之相關的成本，因此我們認為，在緩衝方面，我們希望維持與要求相比可能有 5% 的水平。因此，指南適合的地方將決定我們適合的地方。

In the case of foreign currency. Right now, the regulatory requirement is 80% in terms of LCR. However, on that side, we try to be more conservative in terms of our stance. So as a result of that, on the foreign currency side, we want to maintain it above 100% in all situations. And right now, it is currently standing at 120%, is where we are managing it.

就外幣而言。目前，監管要求LCR為80%。然而，在這方面，我們的立場試圖更加保守。因此，在外幣方面，我們希望在所有情況下都將其維持在 100% 以上。目前，它處於 120%，這是我們正在管理的水平。

In addition, if we look at the LCR ratio, whether it be Korean won or foreign currency, if we look at the LCR ratio in itself at the bank level right now, there is not any large challenge in managing it. But it's more determined upon -- if we have to higher liquidity ratio, then of course, that would be costly for us. So we are trying to strike a balance between the cost and the amount of liquidity to be held. So we want to have a reasonable balance between the two.

另外，如果我們看LCR比率，無論是韓元還是外幣，如果我們現在看銀行層面的LCR比率本身，管理它並沒有什麼大的挑戰。但這更取決於——如果我們必須提高流動性比率，那麼當然，這對我們來說代價高昂。因此，我們正在努力在成本和持有的流動性數量之間取得平衡。所以我們希望兩者之間有一個合理的平衡。

And then in terms of the liquidity of the non-bank subsidiaries that we have, because of the recent issues regarding the CCCs or the community credit cooperative, there has been an increase in the overall funding spread. However, in terms of our funding requirements, there have not been any issues there. So for our non-bank subsidiaries they do have been able to secure sufficient liquidity, and we continue to monitor the situation very closely.

然後就我們擁有的非銀行子公司的流動性而言，由於最近有關CCC或社區信用合作社的問題，整體資金利差有所增加。然而，就我們的資金需求而言，並沒有出現任何問題。因此，對於我們的非銀行子公司來說，他們確實能夠獲得足夠的流動性，我們將繼續密切關注情況。

So on the consumer credit side right now, even if there are some companies that are not able to tap the market, well, we will be able to survive for two months and we do make sure that we have enough liquidity on hand.

所以現在在消費信貸方面，即使有一些企業無法進入市場，那麼我們也能生存兩個月，而且我們確實保證手頭有足夠的流動性。

In addition to that, even though we do have sufficient liquidity, if there is a situation in which would require support, then at the group level, we do have a contingency plan. So according to that contingency plan, actions would be taken swiftly, provide support as necessary. So that would be our answer. Thank you very much.

除此之外，即使我們確實有足夠的流動性，但如果出現需要支持的情況，那麼在集團層面，我們確實有一個應急計劃。因此，根據該應急計劃，將迅速採取行動，並提供必要的支持。這就是我們的答案。非常感謝。

I see that there are no further questions, so I would like to close the Q&A session with this. If you have any additional questions later on, please let us know at IR department, we will be more than happy to address them. With that, I would like to conclude the business results conference call. Thank you.

我看到沒有其他問題了，所以我想以此結束問答環節。如果您以後有任何其他問題，請告知 IR 部門，我們將非常樂意解決。至此，我想結束業務成果電話會議。謝謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本筆錄中的英語陳述是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。