WF - Woori Bank: NIM Lower Credit Cost Send Q3 Above Consensus
Investment highlights
Woori Bank (WF) reported KRW597.5bn in 3Q18 net income (+113% YoY, -17% QoQ), beating the consensus of KRW565.5bn. Notable events in 3Q include: 1) a KRW52bn gain related to STX Corp (011810.KS, not rated) (KRW45bn provision writeback plus KRW7bn non-operating income); and 2) KRW47bn IN non- operating income related with Kumho Tire. Group NIM remained flat QoQ but banking NIM rose by 1bp QoQ. Loan growth was 0.8% QoQ. Meanwhile, net interest income grew 6.1% YoY and 2.5% QoQ on solid NIM and an increase in loans. Non-interest income fell 19.7%