[Edaily Reporter kyoungeun kim ] An analysis suggests that the low proportion of non-interest income and high sensitivity to exchange rates—which have long been cited as weaknesses of WooriFinancialGroup(316140)—will actually serve as positive factors in the third quarter.

Jeong Jun-seop, an analyst at NH INVESTMENT & SECURITIES, stated in a report on the 29th, “While the low proportion of fee income and high sensitivity to exchange rates were weaknesses in the first half of the year, they will become relative strengths starting in the third quarter,” adding, “Foreign currency translation gains resulting from the strong won are expected to outweigh the decline in fee income caused by the slowdown in the capital markets.”

NH INVESTMENT & SECURITIES estimated WooriFinancialGroup’s third-quarter net income attributable to shareholders at 1.0309 trillion won, slightly exceeding market expectations (987 billion won). Earnings per share (EPS) are expected to decline by 16.8% year-over-year, but this is due to the base effect resulting from the bargain purchase gain (581 billion won) associated with the acquisition of an insurance company in the third quarter of last year. Operating profit is projected to increase by 42% to 1.403 trillion won.

Net interest income is expected to rise 6.0% to 2.349 trillion won. Analyst Jeong explained, “As rising interest rates are reflected first in funding costs rather than in loans, the net interest margin (NIM) will decline by 4 basis points (1 bp = 0.01 percentage point) compared to the previous quarter, but this will be temporary.” Non-interest income is estimated to rise 30.5% to 727.1 billion won, driven by foreign currency translation gains of approximately 120 billion won resulting from the decline in the won-dollar exchange rate. The loan loss provision ratio is projected to be 0.35%, with no significant issues anticipated.

He also expressed optimism regarding expanded shareholder returns. Analyst Jeong stated, “Due to recurring earnings, exchange rate effects, and the easing of risk-weighted asset (RWA) standards, the Common Equity Tier 1 (CET1) ratio at the end of September is expected to rise by 25–30 basis points compared to the end of June (13.71%),” and “The total shareholder return ratio is expected to expand from 36.5% in 2025 and 45% in 2026 to 50% in 2027, which will lead to a bullish trend in the stock price.”