Woori Bank

Additional provisions the bank set aside during the pandemic will also provide some buffer against a deterioration in asset quality. Woori Bank's coverage of loan loss reserves against NPA improved materially to about 221% at end-September 2022, from about 168% at end-2021 and about 144% at end-2020. We expect the bank's asset quality and credit losses to remain largely comparable with those of major domestic commercial banking peers. Woori Bank's largely stable profitability and moderate asset growth will likely support its adequate capitalization. As the bank is the dominant operating entity of WFG, the group's capitalization should move broadly in line with that of the bank. Woori Bank has high systemic importance in Korea, which warrants a high likelihood of

...Woori Bank's focus on credit risk management will mitigate strain on asset quality and credit losses. Higher financial burden on borrowers after a rapid increase in interest rates in Korea and a weak property market present challenging operating conditions for banks in the country. However, Woori Bank has a good record of managing asset quality throughout the COVID-19 pandemic, with steady improvements in its nonperforming assets (NPA) ratio. Additional provisions the bank set aside during the pandemic will also provide some buffer against a deterioration in asset quality. Woori Bank's coverage of loan loss reserves against NPA improved materially to about 221% at end-September 2022, from about 168% at end-2021 and about 144% at end-2020. We expect the bank's asset quality and credit losses to remain largely comparable with those of major domestic commercial banking peers....

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