Woori Finance Q3 net halves on increased reserves

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SEOUL, Nov. 7 (Yonhap) -- Woori Finance Holdings Co., South Korea's leading
financial group, said Friday that its third-quarter earnings more than halved due
to increased loan-loss reserves at its affiliates.
Net profit reached 158 billion won (US$121 million) in the July-September period,
compared with 323 billion won a year earlier, the company said in a statement.
Revenue more than tripled to 23 trillion won, but operating income dropped 54
percent to 254 billion won, it said.
In the first three quarters of the year, its cumulative profit sank 39 percent to
708 billion won.
Soaring write-offs for derivatives losses and increased reserves were
attributable to the decreased third-quarter profit, the financial holding company
said.
Woori Finance has booked 418 billion won in provisions against losses related to
investments, including credit default swaps this year. It also set aside 233
billion won in loan-loss provisions in the third quarter, nearly double the
amount set aside a year earlier.
A collapse of small domestic companies, hit by the weak won and decreased
overseas sales, nudged loan delinquency and default ratios higher at South Korean
banks, while fee income from the sale of mutual funds declined due to faltering
financial markets.
the company's total assets reached 329.7 trillion won at the end of September, up
14.7 percent, and its non-performing loan ratio fell 0.1 percentage point to 0.8
percent.
Meanwhile, Woori Bank, its key banking unit, saw third-quarter profits fall 46
percent on-year to 133 billion won.
Assets, meanwhile, increased 28 trillion won from the end of last year to 247
trillion won and the company's bad loan ratio stood at 0.75 percent.
Its capital adequacy ratio stood at 10.5 percent at the end of September.
sam@yna.co.kr
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