Bulletin: Woori Bank Maintains Adequate Capitalization Amid Parent's Nonbank Push

HONG KONG (S&P Global Ratings) Feb. 6, 2024--Woori Bank will sustain adequate capitalization to withstand potential nonbanking expansion by its parent group. Woori Financial Group Inc. (not rated) remains highly committed to strengthening its nonbanking businesses, particularly securities and insurance. Recent moves by the group underscore this. These included a capital injection of Korean won (KRW) 500 billion into Woori Investment Bank Co. Ltd. in December 2023 and the planned acquisition of a remaining 27% stake in Woori Asset Management Corp. announced on Jan. 31, 2024. The latter will become a wholly owned subsidiary of the group. However, we do not expect any acquisition to be large enough to materially weaken the capitalization or risk profile of the group and

...February 6, 2024 HONG KONG (S&P Global Ratings) Feb. 6, 2024--Woori Bank will sustain adequate capitalization to withstand potential nonbanking expansion by its parent group. Woori Financial Group Inc. (not rated) remains highly committed to strengthening its nonbanking businesses, particularly securities and insurance. Recent moves by the group underscore this. These included a capital injection of Korean won (KRW) 500 billion into Woori Investment Bank Co. Ltd. in December 2023 and the planned acquisition of a remaining 27% stake in Woori Asset Management Corp. announced on Jan. 31, 2024. The latter will become a wholly owned subsidiary of the group. However, we do not expect any acquisition to be large enough to materially weaken the capitalization or risk profile of the group and Woori Bank (A+/Stable/A-1). They will continue to focus on maintaining sufficient regulatory capital buffers under Basel III capital requirements. We believe Woori Bank will remain the group's dominant operating...

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