Woori Bank

Strong market position in Korea. Well-balanced and diversified loan portfolio. Improving track record of managing credit risks. Relatively moderate profitability by international standards. Potential pressure on asset quality from high household leverage in Korea. Less diversified nonbanking businesses at the group compared with major commercial bank peers. The positive outlook on Woori Bank reflects our view that the Korea-based bank will likely sustain its improved risk management, such that its asset quality and credit costs remain comparable with that of major commercial bank peers. At the same time, the outlook also reflects our view that the bank will likely maintain their adequate capitalization amid the group's potential nonbanking business expansion over the next 18-24 months. We also expect the bank

...Outlook: Positive The positive outlook on Woori Bank reflects our view that the Korea-based bank will likely sustain its improved risk management, such that its asset quality and credit costs remain comparable with that of major commercial bank peers. At the same time, the outlook also reflects our view that the bank will likely maintain their adequate capitalization amid the group's potential nonbanking business expansion over the next 18-24 months. We also expect the bank to maintain its strong market position and stable funding and liquidity profiles. We believe Woori Bank will remain the dominant operating entity of Woori Financial Group (not rated) over the next 18-24 months. Woori has high systemic importance with a market share of about 10% of total loans and deposits of the deposit-taking institutions in Korea. The Korean government plans to reduce its remaining stake of about 17% in the group in the medium term. But government ownership has not been a major rating factor for Woori,...

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