Woori Financial Group Inc (WF) 2023 Q4 法說會逐字稿

Good afternoon, I'm Han Hong Seong, Head of IR at Woori Financial Group. Let me first begin by thanking everyone for taking time to participate on this earnings call for Woori Financial Group. On today's call, we have Group CFO, Lee Sung-Wook; Group CRO, Park Jang-Geun; and Group CTO, Oak Il-Jin, participating.

下午好，我是友利金融集團 IR 主管 Han Hong Seong。首先，我要感謝大家抽空參加友利金融集團的財報電話會議。在今天的電話會議上，我們有集團財務長 Lee Sung-Wook；集團 CRO，Park Jang-Geun；集團技術長 Oak Il-Jin 也參與其中。

For today's call the CFO, Lee Sung-Wook will present the earnings performance and Woori Financial Group's capital management plan, after which the CRO, Park Jang-Geun will walk you through an overview of the group's risk management efforts. And at the end, we will have a Q&A session.

在今天的電話會議上，財務長 Lee Sung-Wook 將介紹盈利業績和友利金融集團的資本管理計劃，之後首席風險官 Park Jang-Geun 將向您概述該集團的風險管理工作。最後，我們將進行問答環節。

In addition, please note that today's call is being interpreted simultaneously for our overseas investors. Now let us start the presentation on Woori Financials Group 2023 business performance.

另外請注意，今天的電話會議是為我們的海外投資者同步翻譯的。現在讓我們開始介紹友利金融集團2023年的經營績效。

Good afternoon, I am Lee Sung-Wook, CFO of Woori Financial Group. Let me dive into the 2023 performance of our group based on the presentation, which is available on our website.

下午好，我是友利金融集團財務長李成旭。讓我根據我們網站上的簡報深入了解我們集團 2023 年的業績。

Please turn to page 3. First, let me discuss the group's 2023 profit and losses. In 2023, Woori Financial Group's net income was KRW2,516.7 billion, representing a 19.9% decrease year over year. The decline in net income was due to mainly one-off factors such as preemptive provisions by changing the credit cost calculation components, strengthening the loss absorption capabilities of vulnerable areas within the non-bank subsidiaries, and expenses related to corporate and finance programs.

請翻到第3頁。首先，讓我討論一下集團2023年的損益。2023年，友利金融集團淨利為25,167億韓元，較去年同期下降19.9%。淨利潤下降的主要原因是透過改變信貸成本計算構成部分提前計提撥備、加強非銀行子公司內脆弱領域的損失吸收能力以及與公司和財務項目相關的費用等一次性因素。

Following the steep rise in interest rates, the higher for longer environment has led to increasing concerns by the market on the quality of high-risk assets, such as real estate project finance and loss to vulnerable borrowers. We have been focusing on our efforts in the fourth quarter to ensure we preemptively address these market concerns.

隨著利率急劇上升，長期較高的環境導致市場對高風險資產的品質日益擔憂，例如房地產項目融資和弱勢借款人的損失。我們第四季一直致力於確保先發制人地解決這些市場問題。

On the bank side, we adjusted the assumptions that go into our credit costs, such as the LGD MPD values to reflect the future economic outlook. In addition, in the non-bank side, we conducted a comprehensive examination on vulnerable areas to actively set aside provisions. And during the fourth quarter of this activities led to approximately KRW525 billion in additional one-off credit.

在銀行方面，我們調整了信貸成本的假設，例如 LGD MPD 值，以反映未來的經濟前景。此外，在非銀行方面，我們對弱點進行全面排查，積極撥備撥備。在第四季度，這項活動帶來了約 5,250 億韓元的額外一次性信貸。

In addition to actively participate in extending our corporate finance, we approximately KRW170 billion and other operating expenses were recognized in the fourth quarter. When excluding these one-off's factors, the group continues to maintain solid profit generating capabilities. Based on our enhanced lost absorption capabilities, in 2024 we will strengthen our fundamental competitiveness and intergroup synergies to further solidify our performance improvements.

除了積極參與擴大公司融資之外，我們在第四季度確認了約 1,700 億韓元和其他營運費用。在排除這些一次性因素後，該集團繼續保持穩健的獲利能力。在增強吸收能力的基礎上，2024年我們將強化基礎競爭力與集團間綜效，進一步鞏固績效提升。

Next, let me move on to the expenses including our SG&A and credit cost. The group's 2023 group SG&A was KRW4,443.9 billion. Though inflationary pressure continued, it decreased 1.9% year over year. The cost income ratio was 43.5%, which is a 0.9% decrease versus the previous year. And it is been being maintained at a stable level.

接下來，讓我繼續討論費用，包括我們的銷售管理費用和信貸成本。該集團2023年的集團SG&A為44,439億韓元。儘管通膨壓力持續，但年減1.9%。成本收入率為43.5%，較上年下降0.9個百分點。並且一直維持在一個穩定的水平。

On the group credit cost, including for the fourth quarter SEK802.2 billion. For the full year of 2023, the group provisioned KRW1,880.7 billion, which is around two times higher year over year, which we believe represents sufficient loss absorption capability. When excluding the one-off factors that we mentioned before related to preemptive risk management, the normalized credit cost ratio is 0.32%. As a result of actively dealing with future uncertainties of the group, NPL ratio is 0.35%, and the NPL coverage ratio, which is an indicator of loss absorption capabilities, is 229%, the highest level to date.

就集團信貸成本而言，其中第四季為8,022億瑞典克朗。2023年全年，集團撥備撥備為18,807億韓元，年增約兩倍，我們認為這代表了足夠的損失吸收能力。當排除我們先前提到的與先發制人的風險管理相關的一次性因素時，標準化信貸成本率為0.32%。由於積極因應集團未來的不確定性，不良貸款率為0.35%，損失吸收能力指標不良貸款撥備覆蓋率為229%，為迄今為止最高水準。

Next, let me move on to discuss our capital ratios and dividends. As of the end of 2023, the group CET1 ratio is expected to be 11.9%. This is a result of prudent management, our risk weighted assets and is a 0.2% increase versus the end of the previous year.

接下來，讓我繼續討論我們的資本比率和股利。截至2023年底，集團CET1比率預計為11.9%。這是審慎管理的結果，我們的風險加權資產比上年末成長了0.2%。

In addition, during the group BOD meeting today, in consideration of the financial performance and the group's mid to long term plans, the Board decided on a year-end dividend of KRW640 per share for 2023 when including quarterly dividends of KRW360 it becomes KRW1,000 per share. In addition to modernize the dividend policy, the reference date for the 2023-year dividends has been determined to be February 29. When excluding the KRW100 billion share buyback and cancellation conducted during the year, Woori Financials Group total shareholder return rate is 33.7%, which is a significant increase versus the previous year.

此外，在今天的集團董事會會議上，考慮到財務業績和集團中長期計劃，董事會決定2023年年終股息每股640韓元，包括季度股息360韓元後變為1韓元，每股000。除了現代化股利政策外，2023年股利的參考日期已確定為2月29日。剔除年內進行的1,000億韓元股票回購與註銷後，友利金融集團的股東總報酬率為33.7%，較上年大幅成長。

After the earnings presentation, I will provide you with additional information on our new capital management policy and mid to long term shareholder return policy. Next, let me delve into the performance of each area in more detail. Please refer to page 4 of the presentation.

在收益報告結束後，我將向您提供有關我們新的資本管理政策和中長期股東回報政策的更多資訊。接下來讓我更詳細地探討一下各領域的表現。請參閱簡報第 4 頁。

First is, interest income and net interest margin or NIM. The group's 2023 net interest income totaled KRW8,742.5 billion, similar to the prior year. And in the fourth quarter, the net interest income was KRW2,142.6 billion, a 2% decrease QoQ. Woori bank's 2023 NIM was 1.56%, and the group NIM including the credit card business was 1.82%. The NIM of the bank and the group fell three basis points and two basis points respectively versus 2022.

首先是利息收入和淨利差（NIM）。該集團2023年淨利息收入總計87,425億韓元，與前一年持平。第四季淨利息收入為21,426億韓元，季減2%。友利銀行2023年淨利差為1.56%，包括信用卡業務在內的集團淨利差為1.82%。與 2022 年相比，銀行和集團的淨利差分別下降了 3 個基點和 2 個基點。

Amid a high interest rate environment, the portion of low-cost core deposits increase significantly -- decreased significantly, resulting in a continued increase in funding cost, which was one of the main drivers behind the weaker margins. This year, we will be entering a cut -- a rate cutting cycle and thus we expect the backlog will be challenging from a profitability perspective. However, low-cost core deposits have recently recovered and the interest and time deposits is declining. We will continue to focus our efforts on improving our funding costs and defend our margins.

在高利率環境下，低成本核心存款佔比大幅上升——大幅下降，導致融資成本持續上升，是利潤率下降的主要原因之一。今年，我們將進入降息週期，因此我們預計從獲利角度來看，積壓將面臨挑戰。然而，低成本核心存款最近有所恢復，利息和定期存款正在下降。我們將繼續集中精力改善融資成本並捍衛我們的利潤率。

Next, let me talk about asset growth and the loan book. The total loans of the bank as of the end of 2023 totaled KRW311 trillion, which is a 5.1% increase year over year. On the corporate loan side, the large corporate loan demand was very strong with high quality SME loan growth also very solid, leading to corporate loans posting KRW170 trillion, up by 8% YoY. On the other hand, retail loans was KRW136 trillion, an increase of 1.9% YoY. As growth was driven by real demand mortgage loans due to the effects of the government's household debt management policy.

接下來我講一下資產成長和貸款帳簿。截至2023年底，銀行貸款總額達311兆韓元，年增5.1%。企業貸款方面，大型企業貸款需求非常強勁，優質中小企業貸款成長也非常穩健，導致企業貸款達到170兆韓元，較去年同期成長8%。另一方面，零售貸款為136兆韓元，年增1.9%。由於政府家庭債務管理政策的影響，實際需求抵押貸款推動了成長。

This year, the group will diligently execute its role as a liquidity supplier in light of the economic situation. But as uncertainties at home and abroad are still looming large, we are planning to focus our portfolio growth on high quality assets with a consideration are risk-weight to achieve profitable growth.

今年，集團將根據經濟形勢，認真履行流動性提供者的職責。但由於國內外不確定性因素依然較大，我們計劃將投資組合成長重點放在優質資產上，同時考慮風險權重，以實現獲利成長。

Next, let me talk about the group non-interest income. The group's 2023 non-interest income was KRW1,094.8 billion, a decrease of 4.7% YoY. This includes the support we will extend to corporate finance. And when excluding this amount, non-interest income grew 10% YoY. In addition, core fee income each quarter is recording a mid-KRW400 billion level, representing a solid growth trend.

接下來說一下集團非利息收入。該集團2023年非利息收入為10,948億韓元，較去年同期下降4.7%。這包括我們將向企業融資提供的支援。剔除此金額後，非利息收入年增 10%。此外，每季的核心費用收入達到4000億韓元左右的水平，呈現穩健的成長趨勢。

As intergroup synergies are realized and full, the fee income contribution of non-bank subsidiaries such as credit card trust and capital business has gone a lot versus the early days of the holding companies. In 2024, the group is planning to actively pursue HQ sales in the areas of FX and derivatives and marketable securities, and asset management will be focusing on wealth management. The bank will become a leader in the asset management market by creating an upgraded product lineup and portfolio, enhancing sales capabilities by increasing the channel specialize in asset management, and utilizing its system robust product risk management system.

隨著集團間綜效的實現與充分發揮，信用卡信託、資金業務等非銀子公司的手續費收入貢獻較控股公司初期有較大提升。2024年，集團計畫積極進行外匯及衍生性商品及有價證券領域的總部銷售，資產管理將著重於財富管理。該行將透過升級產品陣容及組合、透過拓展資產管理專業通路提升銷售能力、利用系統健全的產品風險管理體係等方式，成為資產管理市場的領導者。

Next, let me move on to expenses and capital adequacy, please look at page 5. This is the SG&A. The group's SG&A in 2023 was KRW4,443.9 billion. And although inflationary pressure continued, the SG&A was down by 1.9% year over year. In addition, the cost income ratio recorded 43.5%, a decrease of 0.9% points year over year, maintaining a three-year continuous and consecutive decline. Due to consistent efforts to rationalize personnel, labor cost decreased 6.3% YoY. And in addition, even though new subsidiaries like Woori Venture Partners was added, general and admin costs only grew slightly versus the previous year.

接下來，讓我談談費用和資本充足率，請看第5頁。這是 SG&A。該集團2023年的SG&A為44,439億韓元。儘管通膨壓力持續存在，SG&A 年減 1.9%。此外，成本收入率為43.5%，較去年同期下降0.9個百分點，維持連續三年下降。由於持續優化人員結構，勞動成本較去年同期下降6.3%。此外，儘管增加了 Woori Venture Partners 等新子公司，但一般成本和管理成本與前一年相比僅略有增長。

As the top line growth will be challenging. We believe it is important to focus on cost management in the current conditions. The group has kept recurring expenses outside of future core businesses flat and while also continuing to rationalize channels and personnel, such company-wide cost saving efforts will be strengthened for further going forward.

由於收入成長將充滿挑戰。我們認為，在當前情況下專注於成本管理非常重要。集團維持未來核心業務以外的經常性開支持平，同時繼續合理化管道和人員，全公司範圍內的成本節約工作將進一步加強。

Next is credit cost. In 2023, the group's credit cost was KRW1,880.7 billion for the full year and KRW802.2 billion for the fourth quarter. In the first half of the year Woori Financial Group executed preemptive provisioning of KRW263 billion, reflecting adjustments to the future economic outlook. And in the fourth quarter, the banking business in consideration of changes in credit card calculation components such as real estate LGD values, set aside KRW229 billion in preemptive provision.

接下來是信貸成本。2023年，集團全年信貸成本為18,807億韓元，第四季為8,022億韓元。友利金融集團上半年實施了2,630億韓元的優先撥備，反映了對未來經濟前景的調整。第四季度，銀行業務考慮到房地產LGD值等信用卡計算成分的變化，提列了2,290億韓元的優先撥備。

And to enhance loss absorption capacity in vulnerable sectors, the non-banking side added provisions of approximately KRW200 billion. And when adding the provisioning of KRW96 billion related to Taeyoung E&C, which recently filed for a debt workout. The total of additional credit costs recognized stands at approximately KRW525 billion, putting the group at a stronger position to respond to future economic condition.

為了增強脆弱部門的損失吸收能力，非銀行方面增加了約2,000億韓元的撥備。加上最近申請債務解決方案的 Taeyoung E&C 相關的 960 億韓元撥備。確認的額外信貸成本總額約為 5,250 億韓元，使該集團在應對未來經濟狀況方面處於更有利的地位。

As a result, the group's and the bank's NPL coverage ratios are at record high levels of 229% and 318% respectively. And the NPL ratio is stably managed at 0.35% and 0.18%. Meanwhile, the group's credit cost ratio is 0.53%, but excluding the one-off factors I mentioned -- aforementioned, the current credit cost ratio is at 0.32% level.

集團和銀行的不良貸款覆蓋率分別達229%和318%，創下歷史新高。不良貸款率穩定控制在0.35%和0.18%。同時，集團的信貸成本率為0.53%，但排除我前面提到的一次性因素，目前的信貸成本率為0.32%的水平。

Considering the risk of default and real estate PF loans and the rising delinquency rate and the non-banking side, concerns about the soundness of the market are likely to persist for some time. However, Woori Financial Group has proactively re-examined the group's risk factors and strengthened its loss-absorbing capacity at an early stage. Thereby securing sufficient capacity for future risk management. Going forward, the group based on such risk management capabilities, will continue to focus on managing high risk assets such as real estate PF and (technical difficulties) loans.

考慮到違約和房地產公積金貸款的風險以及拖欠率和非銀行方面的上升，對市場穩健性的擔憂可能會持續一段時間。但友利金融集團已主動重新審視集團風險因素，並在早期加強了損失吸收能力。從而確保未來風險管理的足夠能力。未來，集團基於這樣的風險管理能力，將繼續專注於管理房地產公積金、（技術困難）貸款等高風險資產。

Let me now elaborate on capital adequacy indicators. As of the end of 2023, the group's common stock ratio is expected to be 11.9%, an increase of 0.3% points from the previous year end, while additional provisions to expand loss absorption capacity and corporate finance programs resulted in decline in profitability.

以下我來詳細介紹一下資本充足率指標。截至2023年底，集團普通股比率預計為11.9%，較上年末增加0.3個百分點，而擴大損失吸收能力和企業融資計劃的額外撥備導致盈利能力下降。

The aforementioned result was possible due to our strengthened efforts to enhance capital adequacy, including active risk weighted asset management as a supervisory authorities measures to strengthen capital regulations, such as the imposition of stress buffer capital are scheduled to be implemented in the future. The group plans to manage its capital ratio at a level above the CET1 ratio of 12%, and we will further strength to improve our capital adequacy through solid financial performance and thorough risk management.

上述成績的取得，得益於我們加強了提高資本充足率的力度，包括未來將實施壓力緩衝資本等監管當局加強資本監管的措施，包括積極的風險加權資產管理。集團計劃將其資本比率管理在高於12%的CET1比率的水平，我們將透過穩健的財務績效和徹底的風險管理，進一步加強提高資本充足率。

Following the update on financial performance, I would like to take this opportunity to present the group's new capital management policy and shareholder return policy, please refer to page 6. For your reference, this material was prepared based on what was discussed at the Board of Directors meeting.

繼財務表現更新後，我想藉此機會介紹集團新的資本管理政策和股東回報政策，請參閱第6頁。本資料是根據董事會會議討論內容編寫的，供您參考。

(technical difficulties) last year's earnings call, the group announced that based on a CET1 ratio of 12%, the total return to shareholders, including dividends and share buyback would be implemented within 30%. In addition, the group noted that when the common stock ratio reaches 12%, it will review its mid to long-term shareholder return policy with a view to expanding shareholder return.

（技術困難） 在去年的財報電話會議上，集團宣布，以12%的CET1比率，股東的總回報，包括股利和股票回購將在30%以內實施。此外，該集團指出，當普通股比率達到12%時，將檢討中長期股東回報政策，以擴大股東回報。

Last year Woori Financial Group for the first time since its establishment as a holding company, paid quarterly dividends of KRW180 per share in the second and third quarters, and also engaging the buyback and cancellation of treasury shares worth KRW100 billion. The group also signed a stock transfers framework agreement with KDIC, in result related overhang risks.

去年，友利金融集團作為控股公司成立以來首次在第二季度和第三季度支付了每股180韓元的季度股息，並回購和註銷了價值1000億韓元的庫存股。該集團還與 KDIC 簽署了股權轉讓框架協議，以解決相關風險。

Considering the closing dividend of KRW640 per share announced to date, the group's dividend payout ratio for 2023 is 29.7%, and the total shareholder return is 33.7%. Furthermore, in order to improve the dividend process, the group for its 2023 year-end dividend has set the dividend reference date to February 29 after the dividend amount has been determined. Thereby enhancing the predictability of dividends.

考慮到迄今為止公佈的每股640韓元的期末股息，集團2023年的股息支付率為29.7%，股東總回報率為33.7%。此外，為了改善派息流程，集團2023年年終派息將派息參考日定為派息金額確定後的2月29日。從而增強股利的可預測性。

This year in light of strengthened capital regulations and expanded loss absorption capacity, we set the common stock ratio target to 13%. We will maintain the shareholder return method of combining dividends and treasury stock buyback and cancellation, but we'll implement more active shareholder return for each common stock ratio tier. And such approach feeds into our reestablished shareholder return policy that focuses on gradually increasing dividend per share and total shareholder return.

今年，鑑於強化資本監管、擴大損失吸收能力，我們將普通股比率目標設定為13%。我們將維持股利與庫存股回購和註銷相結合的股東回報方式，但我們將為每個普通股比例等級實施更積極的股東回報。這種方法融入了我們重新制定的股東回報政策，該政策的重點是逐步增加每股股利和股東總回報。

Considering our current capital ratio, when the group's CET1 ratio was within 13%, we will gradually increase the TSR, or total shareholder return to 35%. And when the CET1 is above 13%, we will pursue with total shareholder return of 35% or more. However, the mid to long-term TSR target is set at 50%. In particular for the group's capital management, we plan to actively manage risk-weighted assets by enhancing our portfolio with a focus on low risk, high return quality prime assets and selective asset growth based on RoRWA.

考慮到我們目前的資本比率，當集團的CET1比率在13%以內時，我們將逐步提高股東總回報率至35%。當CET1高於13%時，我們將追求35%或更高的股東總回報。不過，中長期股東總報酬率目標定為50%。特別是在集團的資本管理方面，我們計劃透過增強投資組合來積極管理風險加權資產，重點關注低風險、高回報的優質優質資產和基於RoRWA的選擇性資產成長。

The recently discussed corporate value of program aimed at resolving the undervaluation of the stock market is also expected to greatly contribute to the strength of expecting shareholder return and provide momentum for valuation recovery of value stocks that are undervalued in the market. This year Woori Financial Group based on its upgraded profit-generating capability and stabilized asset soundness, plans to initiate a full-scale earnings turnaround. Also, so that the profits generated in this way can be more fiscally return to shareholders, we will endeavor to implement various shareholder value enhancement measures.

最近討論的旨在解決股市低估的企業價值計劃也有望大大增強股東回報預期的強度，並為市場上被低估的價值股的估值恢復提供動力。今年，友利金融集團在獲利能力提升、資產穩健性穩定的基礎上，計畫全面啟動獲利扭虧為盈。此外，為了使由此產生的利潤能夠在財務上更能回報股東，我們將努力實施各種股東價值提升措施。

By achieving our management plan targets, we will restore our 2024 dividend per share to the level at or above 2022 levels and continue to further increase in the future. The plan to purchase the 1.2% stake in the company held by KDIC is also currently under discussion to be implemented as soon as possible. And given the current stock price level, this is KRW130 billion, an increase of more than 30% year on year in share buyback, and the total amount is to be canceled after the purchase. We will announce the decision as soon as it is finalized.

透過實現管理計畫目標，我們將把2024年的每股股利恢復到2022年的水平或以上，並在未來繼續進一步增加。收購KDIC持有的該公司1.2%股權的計畫目前也在討論中，將盡快實施。而考慮到目前的股價水平，這是1300億韓元，比去年同期增加了30%以上的股票回購，而且總額是在購買後取消的。一旦決定確定，我們將立即宣布。

In 2023, the group reviewed its vulnerabilities and focused its efforts to proactively secure the ability to respond to future economic conditions. These proactive measures resulted in a decline in net income, but this is only temporary. This year, based on a recovered performance, we will continue to improve shareholder value as described earlier and fulfill our social responsibility as a financial institution. Thank you.

2023年，該集團審視了自身的脆弱性，並專注於主動確保應對未來經濟狀況的能力。這些積極措施導致淨利潤下降，但這只是暫時的。今年，我們將在業績回升的基礎上，持續提升股東價值，履行金融機構的社會責任。謝謝。

Next, the Group CRO, Mr. Park Jang-Geun will elaborate on the status of the group's risk management.

接下來，集團CRO樸長根先生將闡述集團風險管理的現況。

Good afternoon. I am the CRO of Woori Financial Group, I am Park Jang-Geun. Let me present the risk management section in Woori Financials Group 2023 annual business performance, please refer to page 7.

午安.我是友利金融集團的首席風險官，我是樸長根。我來介紹友利金融集團2023年度績效中的風險管理部分，請參閱第7頁。

First is delinquency rate trend. In the case of Woori bank, it was 0.26%, which was an increase of 0.0%-point year on year, and Woori card was 1.2%, which was up 0.02%-point year on year. And we're seeing high interest rates and market instability is continuing and therefore, our delinquency rate did increase slightly. However, if you refer to the increase, it is at the lowest level in each relative industry.

首先是拖欠率趨勢。友利銀行為0.26%，較去年增加0.0個百分點；友利卡為1.2%，較去年同期增加0.02個百分點。我們看到高利率和市場不穩定仍在持續，因此，我們的拖欠率確實略有上升。但如果就增幅而言，則處於各相關產業的最低水準。

And let me now move on to the proactive risk management. As you can see here in this graph, in 2023 the annual credit cost was KRW1,881 billion. Of this amount, KRW1.9 billion was of ordinary accruals and KRW872 billion was for a preemptive provisioning. And this preemptive credit cost amounts to KRW525 billion in the fourth quarter.

現在讓我繼續討論主動風險管理。正如您在此圖中看到的，2023 年年度信貸成本為 18,810 億韓元。其中，19億韓元為普通應計費用，8,720億韓元為優先撥備。而這種先發制人的信貸成本在第四季達到了5,250億韓元。

In the case of the KRW525 billion. It is in response to regular estimates reflecting future economic outlook and adjustments to the loan loss factors increased, including risk management components of LGD. And therefore, this is KRW229 billion that was set aside for reserves and in addition to that KRW96 billion related to the debt workout company and KRW200 billion to strengthen loss absorption capacity in vulnerable sectors such as real estate PF.

以5250億韓元為例。這是對反映未來經濟前景的定期估計的回應，並對貸款損失因素的調整增加，包括違約損失率的風險管理部分。因此，除了與債務解決公司相關的960億韓元和用於加強房地產PF等脆弱部門的損失吸收能力的2000億韓元之外，還有2290億韓元的準備金。

Next is on NPL coverage ratio and the loan loss provision ratio to total loans. Woori Financial Group as was mentioned, has been very much focused on preemptive provisioning. And we have been strengthening our loss absorption capacity and the NPL coverage ratio as of the end of fourth quarter 2023 is 229.2%. And not only in terms of the provisioning, but if you refer to the revenue ratio to total loan, it has been continuously increasing, indicating that the group has been very much proactive in preparing for any insolvency across all loans.

其次是不良貸款覆蓋率和貸款損失撥備佔貸款總額的比率。如同所提到的，友利金融集團一直非常關注搶先撥備。我們一直在加強損失吸收能力，截至2023年第四季末不良貸款覆蓋率為229.2%。不僅在撥備方面，而且如果你參考收入佔貸款總額的比率，它一直在持續增加，這表明該集團一直非常積極地為所有貸款的破產做好準備。

On the right, you can refer to the status of the real estate PF loans. The total amount of the groups are real estate PF loans, and the PF bridge loans, a total of KRW3.4 trillion. Of this, we have agency guaranteed loans, which is KRW1.3 trillion, including the HUG or HUG guarantee. And you can see that -- excluding that it's KRW2 trillion.

右側可以查看房地產PF貸款的狀態。該集團的總金額為房地產 PF 貸款和 PF 過橋貸款，總計 3.4 兆韓元。其中，我們有機構擔保貸款，金額為1.3兆韓元，包括HUG或HUG擔保。你可以看到——不包括 2 兆韓元。

In terms of the outstanding balance, including the bridge loans and the overall real estate PF, we have a total of 200 sites. And what we have been doing was in our comprehensive site evaluation, to understand the risk as well as in the cases of insolvency. And we've been reviewing the vitality of the sites and we have developed and managed the response plans such as adding additional reserves in case of losses.

就未償餘額而言，包括過橋貸款和整體房地產PF，我們總共有200個地點。我們一直在做的是全面的現場評估，以了解風險以及破產情況。我們一直在審查這些地點的活力，並制定和管理應對計劃，例如在發生損失時增加額外的儲備。

Next, moving on to the CRE in the US. With regard to CRE in the US it's KRW2.9 trillion, and syndicate is KRW1.1 trillion loan, and the general loans is KRW1.8 trillion.

接下來，轉向美國的 CRE。美國的CRE為2.9兆韓元，銀團貸款為1.1兆韓元，一般貸款為1.8兆韓元。

In the case of the general loans, it's unlike the syndicated loans. It's true that it consists of small amount loans, and the risks that is of course, diverse. And in the case of the CRE loans, you can see that mostly our senior loans. So the LTV ratio is averaged 40%. And in terms of loan preservation or recovering credit, it's quite satisfactory.

就一般貸款而言，它與銀團貸款不同。確實是小額貸款，當然風險也是多樣的。就商業房地產貸款而言，您可以看到主要是我們的高級貸款。因此 LTV 比率平均為 40%。而且無論是在貸款保全或信用恢復方面，都是中規中矩的。

And last but not least, in 2024, I would like to focus -- mention our direction in 2024 on stable financial market and the high-risk interest rate situation is to persist. And in response we'll be very much focused on assets downness as well as capital adequacy when it comes to our risk management. Through growth center on new quality growth companies and private companies, we will improve our quality that with the portfolio.

最後但並非最不重要的一點是，在2024年，我想重點提到我們2024年的方向是金融市場穩定，高風險利率狀況將持續下去。作為回應，在風險管理方面，我們將非常關注資產下降和資本充足率。透過以新的優質成長型公司和私人公司為成長中心，我們將提高投資組合的品質。

And also with regard to high-risk assets, including CRE assets. And also in terms of vulnerabilities on some of the subsidiary's portfolio, we'll be focusing on inducing a soft landing. And by re-establishing a regular response system for each risk factors such as interest rates and exchange rates, we'll strengthen the group's [quite] system response capabilities. And also including ICT risk and Digital risk and other operational risk and also understanding the country specific risks, we want to put in place a differentiated global risk management system. Thank you very much.

還有高風險資產，包括商業房地產資產。此外，就子公司某些投資組合的漏洞而言，我們將專注於實現軟著陸。透過重新建立針對利率、匯率等各個風險因素的定期因應體系，我們將增強集團的系統應對能力。並且還包括ICT風險和數位風險以及其他營運風險，並了解國家特定的風險，我們希望建立一個差異化的全球風險管理系統。非常感謝。

(Event Instructions) Jung Junsup, NH Securities.

（活動說明）Jung Junsup，NH 證券。

Yes, good afternoon, my name is Jung Junsup. And in a challenging environment in terms of the dividends, we thank you for the efforts that you have made.

是的，下午好，我叫鄭俊燮。在股息方面充滿挑戰的環境中，我們感謝您所做的努力。

And for 2024, I would like to ask you about your total shareholder return policy. So during the presentation, one thing that you mentioned was that for the KDIC stake, is something that you wanted to purchase and fully cancel. And if that is the situation, does this include in your 2024 TSR, I think that you did. But in addition to that for 2024, would you have any additional plans to reach out -- to do any share buybacks?

對於2024年，我想問一下你們的股東總回報政策。因此，在演示過程中，您提到的一件事是，對於 KDIC 股份，您想要購買並完全取消。如果是這種情況，這是否包括在您的 2024 年 TSR 中，我認為您已經包括在內。但除了 2024 年的計劃之外，您還有其他計劃進行股票回購嗎？

Of course, your CET1 ratio was the one need to meet your target level. But including the efforts that you're making right now in terms of your dividends maybe the share buybacks and other measures that you would take, what would be the breakdown behind that?

當然，您的 CET1 比率是滿足您的目標水平所需要的。但是，包括您現在在股息方面所做的努力，也許是股票回購以及您將採取的其他措施，背後的細目是什麼？

And the reason why I'm asking that, is because if you look at the other financial holding companies, it seems to be that rather than paying cash dividends, they're more focused on share buybacks. So I'd like to know what your group's position is on the situation.

我之所以這麼問，是因為如果你看看其他金融控股公司，他們似乎更注重股票回購，而不是支付現金股利。所以我想知道你們的小組對這種情況的立場是什麼。

Yes, thank you for your question. And if you could wait. If you could give us some time, we will prepare and then answer your question.

是的，謝謝你的提問。如果你能等的話。如果您能給我們一些時間，我們將準備並回答您的問題。

Yes, this is the CFO, Lee Sung-Wook. And as we have just mentioned during the presentation in the case of the KDIC stake. Once we purchase that, we did say that we would fully cancel that amount. And that in total would be included into our TSR. And in addition to that of course, we will first acquire the KDIC stake. But for any additional share buyback efforts right now, the overall CET1 ratio is less than 12% as of right now. So we would look at where our level is to consider whether we will make any additional plans.

是的，這是財務長李成旭。正如我們剛才在 KDIC 股份的演示中提到的那樣。一旦我們購買了它，我們確實說過我們將完全取消該金額。這總共將包含在我們的股東總回報中。當然除此之外，我們將先收購 KDIC 的股份。但就目前任何額外的股票回購努力而言，截至目前，整體 CET1 比率還不到 12%。所以我們會看看我們的水平在哪裡，以考慮我們是否會制定任何額外的計劃。

And for 2025 in terms of the dividends and also in terms of the breakdown for 2024, between share buybacks and other dividend payouts right now in terms of our overall dividend payout ratio, it's at around 29%. And if you look at 2022, the DPS that we had in that year is something that we are targeting to achieve once again in 2024. And then in addition to that, any share buybacks and cancellation and also, would be something that we would do in addition to that. Thank you.

就 2025 年的股利而言，就 2024 年的細目而言，就我們的整體股利支付率而言，目前股票回購和其他股利支付之間的比例約為 29%。如果你看看 2022 年，我們的目標是在 2024 年再次實現當年的 DPS。除此之外，我們還會做任何股票回購和取消。謝謝。

Thank you very much. Next, we have Kim Do-ha from Hanwha Investment & Securities. Please go ahead with your question.

非常感謝。接下來是韓華投資證券公司的 Kim Do-ha。請繼續你的問題。

Thank you very much for the presentation. I would like to understand, we have in the non-interest, there's about KRW170 billion that was recognized with regard to the corporate of schemes. So I would like to understand this total amount. What would that be and how is that to be reflected in the books?

非常感謝您的介紹。我想了解一下，我們在非利息方面，大約有 1700 億韓元是與計劃公司有關的。所以我想了解這個總額。那會是什麼？這將如何反映在書中？

And with regard to the margin trend, I would like to understand what's the quality of -- what is the quarterly forecast that you have for the margin trend?

關於利潤率趨勢，我想了解你們對利潤率趨勢的季度預測是什麼？

Yes, thank you very much for the question. Please bear with us for just a moment as we prepare to enter -- answer your question.

是的，非常感謝你的提問。在我們準備進入時請稍等片刻—回答您的問題。

Yes, with regard to the corporate of finance scheme, as was indicated in the case of non-interest, we do have KRW69.4 billion as operating costs. And we have a reigning -- a slightly more than KRW100 billion or KRW102 million. And we believe that within 2024, it wouldn't be reflected in fullest.

是的，關於企業金融計劃，正如非利息情況所示，我們確實有 694 億韓元的營運成本。我們有一個衛冕——略高於 1000 億韓元或 1.02 億韓元。我們相信在2024年之內，這一點還不會被充分體現。

But in terms of support for the self-employed, some of that would be depreciated. And therefore in 2024, some of the items that were reflected, just the sum of that -- a portion of that would be reflected in the books in 2024.

但在對個體戶的支持方面，其中一些會貶值。因此，到 2024 年，所反映的一些項目，只是其總和——其中一部分將反映在 2024 年的帳簿中。

And with regard to the margin earning, so a drop by 8% point, a 1.47% is them right now. And with the increase in assets and the rates tied to that. And there are some specific aspects to the Woori banks which have to do with increase in GAAP around coming from the secondary loans. And in addition to that, we had the impact coming from the drop in the low deposit rates and on time deposits. And we believe that all of these factors have, came into play.

至於利潤率，下降了 8%，目前為 1.47%。隨著資產和與之相關的利率的增加。友利銀行有一些具體方面與二次貸款帶來的公認會計原則的增加有關。除此之外，我們也受到低存款利率和定期存款下降的影響。我們相信所有這些因素都已經發揮了作用。

And with regard to Woori bank, it has a social responsibility. So it has specific second guarantee loans that's for the small borrowers. And we believe that there is a gap with regards to the interest rate, which has led to a drop in NIM rates. And the first half of 2024 NIM considering the financing of time deposits stabilized. And we do see the stabilization of core deposits. We believe that compared to fourth quarter 2023, it's going to improve by a small margin.

對友利銀行來說，它有社會責任。因此，它為小額借款人提供了專門的第二擔保貸款。我們認為利率有差距，導致淨利差利率下降。考慮定期存款融資，2024年上半年淨利差趨於穩定。我們確實看到核心存款的穩定。我們相信，與 2023 年第四季相比，將會有小幅改善。

And for your information in January of 2024, NIM is 1.50%, which is 0.03% points increase quarter on quarter. And we are going to continue to increase the proportion of core deposits and also financing of time deposits. And also with regard to increase corporate loans with higher interest rates, we're going to find a way to defend the drop in NIM. Thank you.

供您參考，2024 年 1 月的淨利差為 1.50%，季增 0.03 個百分點。我們將持續提高核心存款和定期存款融資的比例。此外，在增加利率較高的企業貸款方面，我們將找到一種方法來應對淨利差的下降。謝謝。

Yes, we will move on to the next question from Yuanta Securities, Jeong Tae Joon, please go ahead with your question, please.

是的，我們接下來接受元大證券鄭泰俊的提問，請繼續提問。

Yes, this is Jeong Tae Joon from Yuanta Securities. Thank you for the opportunity. There are two questions that I would like to ask you.

是的，我是元大證券的鄭泰俊。謝謝你給我的機會。有兩個問題想請教您。

The first question is with regards to your dividends. There will be quarterly dividends, yearend dividends. What would be the portion of that for this year and the ongoing situation?

第一個問題是關於您的股息。會有季度分紅、年終分紅。今年的部分以及目前的情況是多少？

And the second is right now if you look at there are some news reports about the possibility of you acquiring a small-scale securities company. So if you have any plans that you can share with us, that would be appreciated.

第二個是現在如果你看一些新聞說說你可能收購一家小型證券公司。因此，如果您有任何計劃可以與我們分享，我們將不勝感激。

Yes, thank you for your questions. And if you give us some time to actually prepare, then we will prepare an answer for you.

是的，謝謝您的提問。如果您給我們一些時間進行實際準備，那麼我們將為您準備一個答案。

Yes, maybe I can address your question. In 2023 if you look at the first quarter, second quarter, we did KRW180 per quarter. And that at the end of the year, we actually did KRW640 per share.

是的，也許我可以回答你的問題。2023 年，如果你看看第一季、第二季度，我們每季的營收為 180 韓元。到年底，我們實際上每股收益為 640 韓元。

And going forward in terms of how we're going to pay out our dividends, is the question that you asked. For 2024 in terms of the total amount, based upon our business plan. If we achieve that, then we want to achieve a DPS that would be on par with 2022.

您問的問題是我們將如何支付股息。2024 年的總金額取決於我們的業務計劃。如果我們實現了這一目標，那麼我們希望實現與 2022 年持平的 DPS。

And in terms of the quarterly and the second quarter and third quarter, we did KRW180 as mentioned before. And then this is something that we want to continue to do and maybe also provide in the first quarter. So continuing quarterly dividends is would work. The policy would be -- and in terms of the size, it would be 50% of what our per share dividends would be over the bit longer term. And in addition to that, we will also look at market expectations and the previous year's dividend level to deal with and make a deal termination on the dividend level.

而就季度而言，第二季和第三季度，我們做了前面提到的180韓元。這是我們想要繼續做的事情，也許也會在第一季提供。因此，持續的季度股息是可行的。該政策是——就規模而言，從長遠來看，這將是我們每股股息的 50%。除此之外，我們也會結合市場預期和前一年的股利水準來處理，並在股利水準上做出終止交易的決定。

In addition, with regards to the M&A opportunity that you just talked about, I do believe that there's a lot of press reports recently about this topic. And in terms of the M&A principles that we have, I think that it's the same that we have -- what we have told you previously, which would be that in order to have some management and also maximize our shareholder value within an appropriate capital ratio level, we would look at the possibilities to increase our REO and also maximize synergies within our intergroup. So we are looking at and opening various opportunities.

另外，關於你剛才談到的併購機會，我相信最近有很多媒體報導這個話題。就我們的併購原則而言，我認為這與我們之前告訴過你的原則是一樣的，那就是為了擁有一定的管理能力，並在適當的資本比率內最大化我們的股東價值層面上，我們將研究增加REO 並最大限度地發揮集團間綜效的可能性。因此，我們正在尋找並開放各種機會。

So on in the current market situation, we're looking at all the possible assets that are on the market. And right now, one of the securities companies that is mentioned would be one of such of the asset. So for this company, it is a online fund dedicated company. And if we were to acquire this company, the impact on the capital ratio would be almost negligent. However, as of now, we have not made any determinations. Thank you.

因此，在當前的市場情況下，我們正在研究市場上所有可能的資產。目前，提到的其中一家證券公司就是此類資產之一。所以對這家公司來說，它是一家專注於網路基金的公司。而如果我們收購這家公司，對資本比率的影響幾乎可以忽略。不過，截至目前，我們還沒有做出任何決定。謝謝。

The next question is from HSBC Securities, Won JaeWoong. Please go ahead with your question.

下一個問題是匯豐證券 Won JaeWoong 提出的。請繼續你的問題。

Thank you very much for the opportunity. I believe that the questions that I did have were already asked, but I have some two additional questions.

非常感謝您給我這個機會。我相信我提出的問題已經被問過，但我還有兩個額外的問題。

So first has to do with the online funds and the securities firms. I do know that you are looking into acquiring such securities firm. But as far as I know, Woori Finance when looking into non-bank subsidiaries, you're trying look at a moderate scale type of company. You've never been trying to focus on small-scale acquisitions. So that was my understanding, but I would like to know whether there's a change in the plan.

首先與線上基金和證券公司有關。我確實知道您正在考慮收購這樣的證券公司。但據我所知，友利金融在檢視非銀行子公司時，會嘗試檢視中等規模類型的公司。您從未嘗試過專注於小規模收購。這是我的理解，但我想知道計劃是否有變化。

And the second question that I have is with regard to the online business, like other companies we have new WON for the super apps that you have in place. So with regard to this app, is there a differentiating factor or advantage that it has versus other apps? It could be on acquiring new customers. So is it for -- does it have some entertainment aspect? Is that the focus or is it about focusing on wealth management or asset management for the customers, offering a number of options? So your strategy, please.

我的第二個問題是關於線上業務，像其他公司一樣，我們為您擁有的超級應用程式贏得了新的勝利。那麼對於這個應用程式來說，它與其他應用程式相比有什麼差異化因素或優勢嗎？可能是為了獲取新客戶。那麼它是為了——它有一些娛樂方面嗎？這是重點還是專注於為客戶提供財富管理或資產管理，提供多種選擇？那麼請你提出你的策略。

Yes, thank you very much for those two questions. And please bear with us for just a moment.

是的，非常感謝您提出這兩個問題。請耐心等待一會兒。

Yes, with regard to M&A, as was already mentioned, with regard to our overall M&A principle, there is no significant change. And with regard to the securities firm, it's a online fund sales company. And with regard to the planned acquisition, there's nothing that has been finalized or decided as of yet. So please refer to this piece of information.

是的，關於併購，正如已經提到的，就我們整體的併購原則而言，沒有重大變化。至於證券公司，它是一家網路基金銷售公司。至於計劃中的收購，目前尚未最終確定或決定。所以請參考這篇資料。

I'm Oak II-Jin, CDO. And with regard to the super app, in November, that's the target date that we have to open that app. And with regard to the direction, it's about customer centered services offered in a seamless fashion. And it's about the bank app being the thesis. But of course, for all the service from our subsidiaries, we want to provide this as a universal banking type of format or platform, so that they can utilize all the services across the board.

我是首席數據長 Oak II-Jin。至於超級應用程序，11 月是我們必須打開該應用程式的目標日期。至於方向，就是以無縫方式提供以客戶為中心的服務。這是關於銀行應用程式的論文。但當然，對於我們子公司的所有服務，我們希望將其作為通用銀行類型的格式或平台提供，以便他們可以全面利用所有服務。

And recently the buzz word is of GenAI. So a GenAI based banking and MyData. In other words, utilizing this data to provide personalized services, is something that we want to do based on cutting edge technology to make it as convenient as possible for our customers and make it as successful as possible.

最近的流行字是 GenAI。因此，基於 GenAI 的銀行業務和 MyData。換句話說，利用這些數據提供個人化服務，是我們想要基於尖端技術做的事情，讓我們的客戶盡可能方便並盡可能成功。

Next, we will now take the next question. The next question will be by KB Securities, Kang Seunggun. So please go ahead with your question.

接下來，我們現在來回答下一個問題。下一個問題將由 KB 證券的 Kang Seunggun 提出。所以請繼續你的問題。

Yes, thank you for the opportunity to ask a question. I would like to ask a question about the TSR. So right now, if our CET1 ratio doesn't reach 13%, you're talking about 35% TSR, which would be similar to this year. But if we look at how much it can actually increase, it will be around 1% point only. So I think that what is very important is that at the Woori Financial Group level, when are we going to be able to achieve the 13% CET1 I guess in this point?

是的，感謝您給我提問的機會。我想問一個關於TSR的問題。所以現在，如果我們的 CET1 比率沒有達到 13%，那麼 TSR 就會達到 35%，這與今年類似。但如果我們看看實際上能增加多少，也只有1%左右。所以我認為非常重要的是，在友利金融集團層面，我們什麼時候能夠實現我認為這一點上的13％CET1？

So right now, you did talk about that you will maintain growth in the corporate loan book. So as a result of that, in terms of our CET1 ratio growth, I do think that the past may be different from other financial holding companies. So for 2024, 2025, and over the mid to long term, in terms of your corporate loan growth rate, what is that expectations there? And taking that in the consideration, when do you actually believe your CET1 ratio will push -- pierce the 13% mark? So thank you for your answer.

所以現在，您確實談到將保持企業貸款的成長。因此，就我們的CET1比率成長而言，我確實認為過去可能與其他金融控股公司有所不同。那麼對於2024年、2025年以及中長期而言，就企業貸款成長率而言，您的預期是多少？考慮到這一點，您什麼時候真正相信您的 CET1 比率會突破 13% 大關？所以謝謝你的回答。

So thank you for your very good question. And if you could please wait while we address your question. That would be appreciated.

謝謝你提出了很好的問題。如果您可以的話，請稍候，我們將解答您的問題。我們將不勝感激。

Yes, let me address your question. And I think that if you look at 2023, it was 11.9% in terms of CET1 business preliminary, and in actuality I think it will be maybe 11.9% upper end of that percentage. So as a result of that, our overall target is to be at 12% range very stable-y.

是的，讓我回答你的問題。我認為，如果你看看 2023 年，就 CET1 業務初步而言，這一數字為 11.9%，而實際上，我認為這可能是該百分比的上限 11.9%。因此，我們的總體目標是非常穩定地保持在 12% 的範圍內。

And if we look at the overall exchange rate per dollar, it's at around 1,300. And going forward, if the rate were to be cut or if the FX were to be more stable, then I do believe that that would have a large impact on our group's overall financial performance. So around KRW10 difference in the exchange rate has a three to four basis points difference in terms of the situation. So as a result of that, if it goes down to 1,300, then that would be that there could be an improvement around 60 to 88 basis points.

如果我們看一下每美元的整體匯率，它在 1,300 左右。展望未來，如果利率下調或外匯更加穩定，那麼我確實相信這將對我們集團的整體財務表現產生重大影響。因此，就情況而言，10韓元左右的匯率差異有3到4個基點的差異。因此，如果下降到 1,300，那麼可能會改善 60 ​​到 88 個基點左右。

So in such a situation, we did talk about the overall targets that we want. But based upon the market conditions or the risk-weighted assets that we have, this is something that we will do in collaboration also, to achieve our targets. So at the end of the day, I can't say exactly in what year we will reach our 13%, but we do think that it will probably be three, four years down the road. So from 11.5%, this is something -- or for the 12.5%, this is something that we want to achieve as early as possible.

所以在這樣的情況下，我們確實談到了我們想要的整體目標。但根據市場狀況或我們擁有的風險加權資產，這也是我們將合作完成的事情，以實現我們的目標。因此，歸根結底，我無法確切地說我們將在哪一年達到 13%，但我們確實認為可能需要三、四年的時間。因此，對於 11.5% 來說，這是我們希望儘早實現的目標——或者對 12.5% 來說。

And this question is Lee Changhwan from Align Partners. Yes, you have the floor.

這個問題是來自 Align Partners 的 Lee Changhwan。是的，請發言。

Good day. I do have a similar question that was just post. So in the case of last year with regard to your shareholder return policy that was announced, I believe that asset growth was at 4%, but linked to the nominal growth rate -- nominal GDP growth rate. But in the presentation today, you can see that improving RWA asset portfolio, it's about focusing on the soundness, but there wasn't any specific indicator or number. So would that imply that you can grow 4% to 5% going forward? Or does it mean that it will be managed at 4% to 5% levels and there will be no change in that.

再會。我確實有一個類似的問題，剛剛發布。因此，就去年宣布的股東回報政策而言，我認為資產成長率為 4%，但與名目成長率——名目 GDP 成長率掛鉤。但在今天的演講中，大家可以看到，改善RWA資產組合，是注重穩健性，但沒有具體的指標或數字。那麼這是否意味著您未來可以成長 4% 到 5%？還是說會控制在4%到5%的水平，不會有任何變化。

And the purpose behind this question is, as was mentioned, CET1 13%, only when we reach that, can we go to a TSR of 50%. But to win would be 13%, that would be the critical point. So in the case of risk-weighted assets it means that it has to be very tightly managed. So I want to understand, is there any change in policy?

這個問題背後的目的是，正如前面提到的，CET1 13％，只有當我們達到這個目標時，我們才能達到 50％ 的 TSR。但要贏就是13%，那就是關鍵點。因此，就風險加權資產而言，這意味著必須對其進行非常嚴格的管理。所以我想了解一下，政策有改變嗎？

Yes, so thank you very much for that question. And please bear with us for just a moment.

是的，非常感謝你提出這個問題。請耐心等待一會兒。

Yes, so let me address that question. And some areas may -- some of my response may be redundant. But realistically speaking with regard to asset growth, so last year it was 5%. And going forward, we believe that it will be more or less within that same range of 5%.

是的，所以讓我來回答這個問題。在某些領域，我的一些回答可能是多餘的。但實際上就資產成長而言，去年是5%。展望未來，我們相信它將或多或少地保持在 5% 的相同範圍內。

And if you look at the risk-weighted assets in the corporate loans, it doesn't mean that it will increase automatically out of the corporate loans. If we increase the prime assets, that means that there may be some loss in NIM, however, risk-weighted would drop.

如果你看看公司貸款中的風險加權資產，這並不意味著它會自動從公司貸款中增加。如果我們增加主要資產，這意味著淨利差可能會出現一些損失，但風險加權會下降。

And the case of SMEs, if it's based on its non-security, that's -- in that case, the risk-weighted would of course, would go down. Therefore, if we refer to past performance, typically the CET1 was 20, 30 [fixed], it was improving. And so that means that we're very much tightly managing our risk-weighted assets. But in 2024, as was mentioned, we would be very much active in asset management, so that we can achieve our 12% plus going forward. Thank you.

就中小企業而言，如果它是基於其非安全性，那麼，在這種情況下，風險加權當然會下降。因此，如果我們參考過去的表現，通常 CET1 為 20、30 [固定]，那麼它正在改善。因此，這意味著我們正在非常嚴格地管理我們的風險加權資產。但正如前面所提到的，到 2024 年，我們將非常積極地進行資產管理，以便我們能夠實現 12% 以上的目標。謝謝。

Yes, we will now take the next question. The next question will be from Korea Investment Securities, Baek Doosan. So please go ahead with your questions.

是的，我們現在回答下一個問題。下一個問題將由韓國投資證券公司白斗山 (Baek Doosan) 提出。所以請繼續提出你的問題。

Yes, thank you. With respect to some from cash, and I would like to ask you about your asset quality. So this year, if we look at your nonbank side in terms of the additional provisions that you set aside. If we look at that in light of the loans that you have on the non-bank side, it does seem to be that the provision also were large. So with regards to the [200 billion] that you provisioned on the non-bank side, could you talk about the details of that?

是的，謝謝。關於一些現金，我想問一下你的資產品質。因此，今年，如果我們從非銀行方面預留的額外準備金來看。如果我們從非銀行方面的貸款來看，準備金似乎也很大。那麼關於您在非銀行方面撥備的【2000億】，您能具體介紹一下嗎？

And then if we were to look at the bank versus the non-bank side and look at the total picture for 2024, what level of provisions do you think or what do you believe the credit cost would be for this year? If you could give any guidance that would be appreciated.

然後，如果我們比較銀行與非銀行方面，並看看 2024 年的整體情況，您認為今年的準備金水準是多少，或者您認為今年的信貸成本是多少？如果您能提供任何指導，我們將不勝感激。

Yes, thank you for your question. And while we prepare, if you could wait a bit, that would be appreciated.

是的，謝謝你的提問。在我們準備期間，如果您能稍等一下，我們將不勝感激。

Yes, this is Park Jang-Geun, and maybe I can address your question. With regard to the non-bank loss absorption capabilities and the additional provision of KRW200 billion. If we look at the details of that, as mentioned before, on the real estate PF side, we did a full examination and we looked at the viability of the projects and also what the loss would be. We did a stress test and an overall assessment. So for the areas in which we believed were insufficient, we actually put aside additional provisions which has a significant portion.

是的，我是樸長根，也許我可以回答你的問題。關於非銀行損失吸收能力，追加撥備2,000億韓元。如果我們看一下細節，正如前面提到的，在房地產 PF 方面，我們進行了全面檢查，我們研究了項目的可行性以及損失會是多少。我們做了壓力測試和總體評估。所以對於我們認為不夠的地方，我們實際上是預留了很大一部分的附加條款。

And then on the non-bank side, we also looked at ERC value. So we looked at the data assumptions and then there were some adjustments made in the risk levels. And in addition to that, for the write-offs we did believe that there would be a lot. So for those that we expected to be written off, we also did some pre-provisioning for those areas.

然後在非銀行方面，我們也關注了 ERC 價值。因此我們研究了數據假設，然後對風險程度進行了一些調整。除此之外，我們確實相信會有很多沖銷。因此，對於那些我們預計會被註銷的領域，我們也為這些領域做了一些預先配置。

In addition, if we look at the loan loss for this year in 2023 on those [asset] and non-bank side together. And in addition to that for Taeyoung, we did fully provision against Taeyoung in itself. So any provisions that would be one-off in nature would not be very large.

此外，如果我們把2023年這些[資產]和非銀行方面的貸款損失放在一起來看。除此之外，我們也針對泰英本身做了充分的準備。因此，任何一次性的規定都不會很大。

So we do believe that the provisioning would be on a normal basis. And if we look at the normal size of provisions of course, on the self-employed, the overall, delinquency and insolvency is increasing. So as a result of that, we do think that there will be additional provisions that we will set aside accordingly,

因此，我們確實相信供應將是正常的。當然，如果我們看一下準備金的正常規模，那麼對於自僱人士來說，總體而言，拖欠和破產的情況正在增加。因此，我們確實認為我們將相應地預留額外的規定，

Thank you. As there are no more questions remaining, we would like to conclude the Q&A session. If you do have any additional questions, please call our IR department, and we'll make sure to have your questions answered.

謝謝。由於沒有更多問題了，我們想結束問答環節。如果您還有任何其他問題，請致電我們的 IR 部門，我們將確保解答您的問題。

And with this, we would like to conclude the 2024 earnings call for Woori Financial Group. Thank you very much for your attention.

至此，我們結束友利金融集團 2024 年財報電話會議。非常感謝您的關注。

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。